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What factors can impact spousal support for high-asset couples?

On Behalf of | Jun 21, 2024 | Spousal Support

A couple with significant assets can face unique challenges when it comes to spousal support determinations. Thus, going through a high-asset divorce requires understanding the laws on spousal support, also known as alimony. If you are considering a high-asset divorce, what factors can influence your spousal support?

Considerations for high-asset couples

When determining spousal support, California courts consider the earning capacity of each spouse. If one spouse has a much higher income, the court may order higher spousal support payments to maintain the standard of living they set during their marriage. Other considerations include:

  • Asset division: The division of complex assets like businesses and real estate can impact spousal support. For example, the spouse who receives a larger share of the assets may receive less spousal support.
  • Tax implications: Taxes can affect the net value of spousal support payments. Also, taxes can affect asset division if certain assets are sold.
  • Lifestyle maintenance: An extravagant lifestyle during the marriage can make it complex to maintain the marital standard of living post-divorce.
  • Prenups and postnups: Having prenuptial and postnuptial agreements is more common among high-asset couples. These agreements often include provisions for spousal support in the event of a divorce. If a valid agreement exists, the court will typically enforce the terms unless it deems them unfair.

In addition, the duration of the marriage plays a crucial role in determining spousal support. For marriages less than 10 years, the support will last half the duration of the marriage. For marriages over 10 years, the support may last as long as one spouse needs it and the other can pay.

Making informed decisions about your future

Spousal support for high-asset couples involves unique considerations that require careful navigation. With legal guidance, you may understand the laws, safeguard your rights and make informed decisions about your future.