If you want to end your marriage as someone with a high net worth, it is especially important to prioritize the financial facets of the divorce process. Aside from property division, you could have to take a careful look at child support if you have kids.
Whether you currently owe child support or expect to owe support soon, you should go over a number of factors, such as the way in which courts calculate payment obligations, methods to pay child support and the potential penalties associated with failing to pay what you owe.
The impact of unpaid child support
Falling behind on child support can create financial hardships for the custodial parent and child, but it can also result in serious repercussions for the non-custodial parent. According to the New Jersey Courts, back child support can result in license suspension, including the suspension of occupational licenses, and a bench warrant. You could face the seizure of your assets, the interception of your tax refund and have your name reported to credit agencies.
Unpaid child support could also result in the loss of your passport privileges.
Other child support considerations
Some individuals with a high net worth have to find other ways to pay child support when payments are not taken out of a paycheck via income withholding. For example, you might have to pay online or in another way, and you should review your payment options. If your financial circumstances change considerably, you could benefit from looking into modifying your child support order.
When it comes to high-asset divorce, it is very important to understand your options and obligations if you expect to owe child support.