High Income Child Support in Maryland

Child support matters are often complex. These issues can become even more complicated when one or both parents have high incomes. In cases where considerable income or assets are involved, there may also be a higher level of conflict, making it essential to have a trusted family law attorney who understands the intricacies of complex financial analysis. Applying decades of experience, the attorneys at Strickler, Platnick & Hatfield have the knowledge and proficiency needed to guide high-income families through the process of negotiating child support. We also possess the acumen and skills necessary to vigorously advocate for our clients in court when necessary.

What is High Income Child Support?

High net worth child support refers to child support arrangements that exceed the statutory guidelines due to the high income of one or both parents. While Maryland courts apply an income shares model that calculates child support payments based on the parents' combined income and custody arrangement, high net worth support cases are much more intricate. When one or both parents have significant assets, courts in Maryland do not need to use the formula in Maryland’s child support guidelines. Rather, the court can use its discretion - within bounds - and set the amount of support based on the needs of the child.

How is High Income Child Support Different from Standard Child Support?

Child support is meant to ensure that a child’s basic needs are met when parents divorce or no longer live together. Although the objective of child support is the same regardless of whether parents are of high net worth, in these cases, a court will consider awarding a monetary amount above the statutory guidelines. In situations where combined parental income is over $360,000 annually, the court will consider factors such as:

• The child’s standard of living: High net worth parents may face higher child support obligations because of their ability to provide their child with a more extravagant lifestyle. For instance, if the child participates in luxury activities, travels frequently, or is receiving specialized medical care, the court would help ensure the child’s accustomed lifestyle is not compromised due to the parents’ separation.
• Private education: Private education is not typically included in a basic child support obligation. However, when parents are of high net worth, a court may consider this as part of a high net worth child support obligation, based on the child’s best interests if the child attended private school in the past and the parents have the ability to pay.
• The parents’ total financial resources: Not only will a judge look at each parent’s wage income, but they will also consider income from business profits, dividends, properties, investments, trusts, and other sources.
• Additional expenses: High net worth child support cases often involve additional expenses that go beyond the basic necessities. These can include the costs of tutors, nannies, high-end clothing, elite sports training, premium health insurance, expenses related to visiting the non-custodial parent, and other costs in connection with the child’s enrichment and special needs.

Navigating high net worth child support requires an accurate assessment of all parental income streams and assets, which frequently extends beyond standard W2 wages. Critically, imputation of income may also be an issue in high net worth child support matters. If a parent is capable of earning more but is voluntarily underemployed, a court might assign a higher amount of income to them for the purposes of calculating child support. Taking a methodical approach in each case, the attorneys at Strickler, Platnick & Hatfield understand the nuances involved in high net income child support matters and will work to achieve a fair result for both you and your child.

Tailored Solutions for High Net Worth Families

Confidentiality is often a significant concern for high net worth couples facing divorce or child support disputes. Notably, many high income child support issues can be resolved between parents outside of court to limit sensitive information from becoming part of the public record. Mediation and the collaborative process are two forms of alternative dispute resolution that can allow parents to settle these issues privately, without judicial involvement. These methods can help keep conflict and cost at a minimum while encouraging parents to remain amicable for the benefit of their children.

At Strickler, Platnick & Hatfield, we will advise you regarding all your options when it comes to resolving your child support dispute. Our child support attorney team are seasoned negotiators who will assist you with exploring alternatives to litigation whenever possible. However, if an equitable outcome cannot be reached without court involvement, we are prepared to protect your rights and your child’s best interests at trial.