Spousal Support

Getting past computer calculated temporary support calculations
In California, the spousal support calculation is based upon a complex system that gives much discretion to the trail court who is directed to consider a multitude of factors including the length of marriage, the marital standard of living, the age and health of the parties, the assets and liabilities of each of the parties, the time out of the work force to care for children, the incomes of each party, an incidences of domestic violence etc. Because the court is often asked to set temporary support before trial, the appellate courts have approved the use of computer calculations to set temporary support not based upon the statutory guidelines, but rather simply based upon the income of each party. While many counties have adopted their own formulas for temporary support, the basic calculation involves taking 40% of the high income earners income and deducting 50% of the low income earners income, if any to arrive at a temporary support number. This “temporary” support stays in place until settlement or trial. This calculation can be a disaster for many business owners or professionals, who must report income on their tax returns (the common way to determine income for temporary support purposes) year end bonuses, and income that has to be claimed but not actually received (like the pay down on loan principle which is not tax deductible) that they never actually receive. In addition, the business owner is also often left with having to pay on accumulated credit card or other debt while the case is pending, as typically their spouse has little or now income to do so. Because they have no choice but to continue paying their business expenses to preserve the business, and to pay the credit card bills to preserve their credit, they are forced to borrow money or use their share of any savings to pay spousal support. Because when the case goes to court the court is then directed to look at the total picture, including cash flow, the spousal support usually is reduced. This scenario means that the sooner you can settle, or get to trial the better. This also means that for the supported spouse, there is motivation to stall and delay for as long as possible. If you own a business, or are a professional, you need an attorney who is experienced with this scenario to get your case ready for settlement or trial quickly to end or at least reduce the bleeding of your cash. An other related issues is that the longer a case goes on, the more is spent on attorneys fees for both sides, which the business owner or professional pays a disproportionate amount.