How Is Alimony Different During a High-Net-Worth Divorce in Atlanta?
High-net-worth spouses often play by a slightly different set of rules during divorces in Atlanta. Specifically, the court might adopt different calculation methods when approaching alimony. But how exactly is alimony different during a high-net-worth divorce in Atlanta? Consider speaking with an experienced Atlanta divorce lawyer to explore this question in more depth.
High-Net-Worth Spouses Generally Pay More Alimony
Perhaps most obviously, high-net-worth spouses pay more alimony on average. This is something that most people are aware of, since we’ve all read plenty of articles about A-list celebrities paying tens of thousands of dollars (or more) in alimony each month. If you have a similar level of wealth, you may need to pay similar sums to your ex after the divorce concludes.
The Court Adopts a More Flexible Calculation Formula
The court also adopts a more flexible calculation formula when determining how much the paying spouse should provide the recipient in alimony. The normal formula is designed for an average family, and it doesn’t really make sense to use it for someone who is earning much more.
Specifically, the court is more likely to consider standards of living that would be unthinkable for lower-earning spouses. These might include access to luxury vehicles, expensive vacations, costly hobbies, spa treatments, and much more.
Generally speaking, the goal of alimony is to provide the receiving spouse with the same standard of living they enjoyed during the marriage. However, alimony is increasingly “rehabilitative” and temporary, which means most spouses will only receive these payments for a few years.
It Can Be Difficult to Determine the True Wealth of High-Net-Worth Spouses
Alimony during high-net-worth divorces is also distinct because determining each spouse’s wealth isn’t always straightforward. A spouse might have spent the entire marriage as a homemaker, while their ex earned a seven-figure income at a major corporation. However, this doesn’t necessarily mean that the higher-earning spouse is wealthier.
The homemaker may be the beneficiary of an incredibly lucrative trust fund. Perhaps they have inherited considerable investments, real estate holdings, and other assets that make them wealthier on paper than their high-earning ex. These are factors that the court must consider when determining who really deserves to receive alimony during a high-net-worth divorce.
There Is a Greater Incentive to Avoid Alimony
Because so much money is on the line, there is a greater incentive for the paying spouse to avoid alimony altogether. This may be possible by proving certain misconduct in court, such as adultery or desertion. Even after the divorce becomes final, it is possible to end or reduce alimony if circumstances change. For example, the receiving spouse might remarry. After an average divorce, the legal fees associated with these efforts might outweigh the net cost of alimony itself.
Can a High-Net-Worth Divorce Lawyer in Atlanta Help Me?
There is much at stake during a high-net-worth divorce in Atlanta. Alimony can represent a major economic loss for the paying spouse, and an incredible resource for the recipient. No matter what side of the equation you’re on, it makes sense to approach alimony in an effective manner. Discuss your next steps during a consultation with Buckhead Family Law.
Source:
fultonsuperiorcourtga.gov/sites/default/files/family/forms/deduction/Income%20Deduction%20Order%20-%20Alimony%20Only.pdf
