In Florida, family law cases and finances are intertwined. When the issue is child support, the state uses guidelines to determine how much will be paid. Those guidelines are based on many factors including the parents’ income, the child’s needs, how many children there are, what the living arrangements are, and if there are other financial considerations.
The courts generally adhere to the guidelines. However, when the parents have significant assets and income, they will deviate from those guidelines. Still, when the parents earn substantial income, there could be confusion as to how much will be paid in support. A common cause for that is if the parents’ income is inconsistent and hinges on circumstances. People should know state law and how the courts will address this.
What would be considered with high earners whose income is inconsistent?
There are many types of jobs and businesses in which the income will vary. This is true in endeavors like the stock market, dealing in real estate, the entertainment industry, selling high-end items, and more. For the parent who is expected to pay child support, this could mean they will not know how much they will earn from month to month.
Even if a child support order deviates from the guidelines, the paying parent is expected to pay. The receiving parent will want those payments regardless of whether the other parent had a good or bad month on the job.
To address the possibility of fluctuating income, the court might scrutinize their income over a specific amount of time. Perhaps they will assess how much the parents earned during the previous year and break it down into segments. A business owner that specializes in renting property could have good income during the winter and less income during the summer. Those who work on commission can have peaks and valleys.
Their income will be accounted for, perhaps with forensic accountants. There could be provisions in the support order based on adjusted income. There could be ways for the paying parent to make up for a diminished income to make the support payments in full.
Navigating high-asset family law issues will require experienced help
Even though there are child support guidelines, they can be upended by high-asset cases. If the high earners have inconsistent income, it only adds to the complexity. Whether it is the parent set to receive the child support payments or the parent paying it, it is imperative to have advice on how to proceed and reach a fair outcome that provides for the child and serves their best interests.
