It isn’t just the division of assets that will be a primary focus of a divorce settlement in a high net worth divorce. Often, these divorces involve child support or alimony payments.
Typically, in Colorado, spousal support or child support are calculated taking into account several factors, including the income of the spouses. A high net worth individual, whether he is self-employed, or a corporate executive, will have several different types of income. For instance, a self-employed businessman may have a base income in the form of periodic drawings. Apart from this, he may also have additional income in the form of profit distribution. In the case of a corporate executive, like a CEO however, the base income may be in the form of salary, while the additional income may be in the form of commissions, bonuses, and other types of payouts.
The important thing to consider during determination of child support payments or alimony payments, is which of these types of income can be considered for purposes of calculation. There may be certain types of income that a CEO is eligible for that can also be taken into consideration while accounting for income. For instance, the person may be eligible for an expense account, or a car allowance, or a house allowance.
Questions of what types of income can be considered for purposes of calculation of child support or alimony can become very contentious in a high net worth divorces. If you are the person who is the higher earning partner in the relationship, your spouse may try to inflate your earnings and income levels, to maximize your alimony and child support payouts. To protect your interests, consult with a Colorado family lawyer who specializes in high net worth divorces.