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Is Spousal Support Based on Net-Worth?

Home » Is Spousal Support Based on Net-Worth?

A man pulling money out of his wallet.Spousal support is often one of the most complex and contested issues in a high-net-worth divorce. Some elements of spousal support, also called spousal maintenance, may be based on net worth. Courts consider multiple factors when deciding the amount, duration, and structure of spousal maintenance. However, a spouse requesting maintenance must first be eligible. Then, the court will consider these factors, which include the financial resources of both parties.

There is also a maximum cap on the amount of support that can be paid each month in Texas, and this cap can be determined based on monthly gross income. A Sugar Land high net worth divorce lawyer can guide you through the financial complexities of spousal maintenance.

 

What Factors Influence Spousal Maintenance Determinations?

If the court finds a spouse eligible for spousal maintenance, it then considers multiple factors to determine if support is appropriate. Just because a spouse is eligible does not mean that support will be awarded.

The court considers:

  1. The ability of each spouse to independently provide for their own minimum reasonable needs, accounting for the resources each spouse has after the finalization of the divorce
  2. Each spouse’s education, skills, and employability
  3. How much time is needed for the spouse requesting maintenance to get the education or training that would enable them to earn enough income, as well as whether that education or training is available or possible to secure
  4. The length of the marriage
  5. The age, physical and emotional well-being, employability, and earning capacity of the spouse who is requesting maintenance
  6. Whether each spouse is able to provide for their minimum financial needs while providing existing spousal maintenance or child support payments
  7. Whether either spouse took action to excessively spend community property or acted to destroy, conceal, or dispose of community property through fraud
  8. Either spouse’s contribution to the other’s education, training, or career advancement
  9. The property each spouse brought to the marriage
  10. Either spouse’s contributions to the marriage as a homemaker
  11. Marital misconduct by either spouse in the marriage, including adultery or cruel treatment
  12. A history of family violence by either spouse

All of these factors are considered by the court to determine the amount and duration of spousal maintenance, as well as the manner and nature of the payments.

 

What Are the Limits on Spousal Maintenance?

If the court decides maintenance is appropriate, there are limitations on what the payment can be. This limit is either $5,000 per month or 20% of the average gross monthly income of the paying spouse per month, whichever amount is lower.

If 20% of your income is less than $5,000, that becomes the monthly cap. However, your payment could be significantly lower. To calculate your monthly gross income, the following is included:

  • All wages, salaries, and self-employment income
  • Compensation for services, like bonuses, overtime, tips, and commission
  • Net rental income
  • Interest and dividends
  • Royalties income
  • Severance pay
  • Unemployment benefits
  • Gifts
  • Spousal maintenance
  • Trust income
  • Retirement benefits
  • Pensions
  • Annuities
  • Capital gains
  • Interest income from notes

Some income is not included in your gross income for spousal maintenance, including:

  • Disability benefits
  • Supplemental Security Income
  • Social Security benefits
  • Foster care payments
  • Workers’ compensation benefits
  • Principal or capital returns
  • Accounts receivable
  • Federal public assistance programs benefits
  • Temporary Assistance for Needy Families benefits
  • Department of Veterans Affairs compensation for a disability related to service

 

What Can a Sugar Land High Net Worth Divorce Lawyer Do to Help You?

Spousal maintenance determinations can be complicated, and the final decision is up to the discretion of the court. Having a Sugar Land high net worth divorce lawyer by your side makes it easier to gather information, present a strong case to the court, and potentially secure a fairer outcome for a maintenance determination.

If you are a spouse requesting maintenance, a Sugar Land high net worth divorce lawyer can gather information about your financial situation and personal circumstances to determine if you are eligible for maintenance. If you are, your attorney can gather evidence that shows your need for maintenance and the ability of your spouse to pay that maintenance. An attorney advocates for your financial needs and shows the court why maintenance is necessary in your case.

If your spouse is requesting maintenance, a Sugar Land high net worth divorce lawyer can help ensure a fair maintenance determination is made. In some cases, fairness may mean no maintenance is awarded. Your attorney may be able to prove that your spouse is not eligible for maintenance or that they have no financial need.

 

The Love DuCote Law Firm LLC: Your Sugar Land High Net Worth Divorce Lawyer

Get in contact with our firm online or at 832-471-6904 for support from an experienced Sugar Land high net worth divorce lawyer. We serve clients in Sugar Land, Harris County, Katy, Fort Bend, and Houston, Texas.

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