If you are approaching the divorce process and you have a high net worth, you need to understand how alimony could impact you as you work through your divorce and afterward. You need to familiarize yourself with your legal options and understand unique factors that could affect your finances. Alimony, also known as spousal support, can have a significant impact on those working through a high-asset divorce.
Courts review various factors when making decisions regarding alimony payments, such as each party’s earning potential, expenses and age, as well as the duration of the marriage. In some cases, courts award temporary alimony.
What is temporary alimony?
According to the Circuit Court for Montgomery County, Maryland, some courts award temporary alimony before the divorce becomes finalized. Also known as Alimony Pendente Lite, the aim of this award is to keep each party’s financial condition intact as a couple navigates through their divorce.
You should note that temporary alimony awards do not necessarily mean that the court will award alimony after the divorce is complete. Moreover, courts award temporary alimony if one party can prove their financial needs and the other party has the means to make payments. The court can make a decision regarding the amount of temporary alimony to award.
What else should you know about alimony?
You are not legally obligated to pay alimony unless a valid court order is in place. Failing to pay alimony can result in harsh repercussions and you should prepare for the potential impact of these payments. Moreover, if you have a high net worth, it is especially important to prepare for alimony and other financial aspects of divorce.