High-income divorce cases present unique challenges when it comes to calculating child and spousal support. Standard guideline calculators often fail to reflect the complexity of executive compensation packages, fluctuating income, and asset-based cash flow. A forensic accountant plays a key role in accurately determining available income.
Income Sources Often Involved
- Base salary and bonuses
- Stock options and restricted stock units (RSUs)
- Deferred compensation and profit-sharing
- Investment income and passive earnings
- Business distributions and retained earnings
Challenges in Calculation
- Timing of bonuses or vesting events
- Income manipulation or underreporting
- Classifying recurring vs. one-time income
- Assessing cash flow available for support vs. reinvestment
How Forensic Accountants Help
- Normalize income over a multi-year period
- Evaluate compensation agreements, vesting schedules, and financial statements
- Adjust for discretionary business expenses or non-cash benefits
- Provide expert reports and testimony for court or settlement
In high-income cases, accurate support calculation can make a seven-figure difference in long-term outcomes.