Special Alimony Considerations in High Net Worth Divorces
Alimony is a contentious issue in many divorce cases. In a high net worth divorce, though, the stakes are particularly high and calculating amounts is anything but traditional. When a couple or spouse is significantly wealthy, the standard alimony guidelines often do not reflect the true scope of lifestyle, income, and future need. In these cases, determining alimony is a complicated and highly strategic process. If you are facing a high net worth divorce, it is critical to understand how it is calculated and how to protect your financial future.
Why is Alimony More Complicated in High Net Worth Divorces?
Calculating traditional alimony relies on a fairly straightforward concept. One spouse must require financial support and the other spouse must have the ability to pay. The purpose is to ensure that both spouses can maintain the standard of living they enjoyed during the marriage.
In high net worth divorces the standard of living may include private schools, multiple real estate properties, household staff, and international travel, to name just a few. High net divorces do not neatly fit into the basic framework for alimony in Florida. Analyzing the need, duration, and amount of alimony must delve deeper and account for the income of both spouses, as well as their business ownerships, investments, and long-term financial goals.
Types of Alimony in High Net Worth Divorce
There are different types of alimony in Florida. These are as follows:
- Bridge the gap alimony: Bridge-the-gap alimony is intended to make the transition from married life to single life easier for a lower-earning spouse.
- Rehabilitative alimony: This type of alimony is meant to help a spouse obtain the necessary training or education to become self-sufficient.
- Durational alimony: Durational alimony refers to support payments that are for a specific period of time.
In high net worth divorces, rehabilitative and durational alimony are the two most common types awarded. As of July 1, 2023, permanent alimony is no longer available in Florida. This can provide some relief to those paying support, as it was once quite common in high net worth divorces.
Hidden Income is More Common in High Net Worth Divorces
In any type of divorce, both spouses have a legal obligation to fully disclose all of their income and assets. A higher-earning spouse is more likely to fail to provide full disclosure. This may be intentional, as someone may report lower earnings to reduce the amount of alimony they must pay. Or, someone could make an honest mistake and overlook a type of income, such as stock options.
For this reason, it is critical that all parties work with a Tampa alimony attorney, as well as a forensic accountant. These professionals can ensure all income is accounted for so the determination of support is complete and accurate.
Call Our Alimony Attorney in Tampa Today
In high net worth divorces, alimony requires a different level of advocacy, analysis, and sophistication. At Florida Law Advisers, P.A., our Tampa alimony attorney has the necessary experience to represent individuals with intricate compensation structures, complex wealth, and significant estates. Call us now at 1 (800) 990-7763 or contact us online to schedule a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.08.html
