Spouses who enjoy a comfortable standard of living during marriage tend to face particularly acrimonious divorces. With more property and a higher standard of living to defend, there are more opportunities for disputes.
Especially when the spouses share minor children, their custody disagreements can often become contentious. There are several unique issues that those facing high-asset divorces may need to consider as they prepare for custody negotiations or litigation in the Michigan family courts.
What issues often arise in high-asset child custody disputes that are not commonly concerns for lower-income couples?
Specific parenting time issues can be a challenge
High-asset couples often have two working spouses who both enjoy well-compensated careers. Medical professionals, corporate executives and engineers receive sizable salaries and comprehensive benefits packages, but their careers also place more demands on them.
From long hours and weekend shifts to regular travel, those in highly-paid professions can find it challenging to establish a predictable schedule. That can make the division of parenting time more difficult to manage. Parents may need to prioritize flexibility when establishing rules for the division of parenting time.
Child support formulas don’t work well
The Michigan child support formula looks at the number of overnights each parent has with the children, as well as the income of both parents. There are several other key factors, including whether either parent pays support for children from another relationship, that can influence the total amount of child support ultimately ordered.
The formula that Michigan uses is not especially effective for those with above-average income. As such, child support guidelines recommend that the courts deviate from a formula and look more carefully at the unique needs of the children to maintain the standard of living they had during the marriage.
Higher-asset couples with demanding careers may have au pairs or nannies to pay. They may have agreed to enroll their children in private schools. They may also encourage their children to participate in multiple, costly extracurricular activities to make them as competitive as possible for prestigious colleges and universities.
As such, parents need to consider the costs of private school tuition, extracurricular activities and other necessary expenses when negotiating an arrangement with one another for child support. It is worth noting that parents have the option of reaching their own arrangements that reflect the economic needs of their children. They can even make contractual arrangements in advance to share the costs of college education.
Parents preparing for high-asset child custody and support negotiations or litigation need guidance from attorneys familiar with this complex area of law. Having the right guidance can make it easier for parents to understand how to present their case in court or how to set reasonable priorities as they attempt to negotiate a settlement in a contentious divorce scenario.