When people with considerable wealth get a divorce, reading over the divorce settlement can sometimes prove to be very interesting. That is exactly the case for one California couple who is divorcing. Their divorce papers contain a very unique story that might interest some of the readers of this blog.
The couple didn't work, but they did have monthly expenses that averaged around $45,000 by the time they split up. The money was coming from an annual tax-free gift that was given to the couple and their children. All told, the family was getting $130,000 per year in gifts from the husband's family. His mother is an heir to a former Los Angeles Time publisher and real estate magnate.
In a ruling by the California appeals court, it was determined that the money given to the family during the marriage must count as income for the sake of divorce proceedings. The man's father has said that he has cut the man off from inheritance advances. He has, however, gotten a job working for the Santa Barbara New Press. Between the $60,000 annual salary, $13,000 a year from a trust and $26,000 from his parents, the man had an annual income of $99,000.
The decision by the appellate court has a direct effect on the spousal support and child support that is being factored in this case. With the stop in the gift income from the parents, the case gets more complex.
Those who are going through a divorce that involves complex finances should make sure they understand what constitutes income to ensure that their interests are being protected. Learning your rights can help you to make sure that you aren't paying out too much or being paid too little.
Source: Courthouse News Service, "Wealthy Couple's Divorce Makes a Stunning Read" William Dotinga, Jun. 13, 2014