Can You Negotiate Alimony if Both Spouses Have High Incomes?

When both spouses earn substantial incomes, many people assume alimony is off the table. But this isn’t always the case. High-income divorces involve complex finances that extend beyond annual salaries. Business interests, investment portfolios, executive compensation, and the lifestyle established during marriage can all influence whether spousal support is included in the divorce settlement. Understanding how spousal support is negotiated in these situations is essential to protect your financial interests and reach a fair and practical resolution.

What is Spousal Support?

Under California law, spousal support is a court-ordered payment intended to help one spouse meet their financial needs after separation or divorce. While many couples reach their own agreement through negotiations, a judge may determine support if couples cannot agree. Generally, a court considers various factors such as each spouse’s income, earning capacity, the length of the marriage, and the standard of living established during the marriage

In high-income divorces, that analysis can become more complicated. The standard of living may include luxury travel, multiple homes, club memberships, significant investments, and other expenses beyond basic living costs.

Why Alimony Can Become More Complicated in High-Income Divorces

Even if both spouses earn high incomes, one may still have significantly higher earning power or access to assets that generate additional wealth. Income from multiple sources, including businesses, bonuses, stock options, investment returns, or rental properties, all play a part. Questions may also arise about whether one spouse stepped back from greater career opportunities to support the other spouse’s professional success or support the family.

Factors That Influence Alimony Negotiation in High-Income Divorces

When negotiating spousal support, many of the same factors a court would consider become the foundation of settlement discussions. These may include:

• The length of the marriage
• Each spouse’s income and future earning capacity
• The marital standard of living
• Contributions one spouse made to the other’s education or career
• The age and health of each spouse
• Separate property and other financial resources
• Potential tax consequences
• Recurring financial commitments
• Retirement planning
• Travel

Rather than focusing solely on income, high-income negotiations often involve reviewing actual household spending to determine the appropriate level of support. Many couples prefer to negotiate these issues privately rather than go through litigation, where sensitive information may become part of the public record.

Full Financial Disclosure is Essential

Successful negotiating depends on transparency. High-income individuals often receive income from multiple sources that may not be immediately apparent on a salary statement. For effective and successful negotiations, both spouses should fully disclose their income and assets. Failing to do so can undermine negotiations and create significant legal issues if undisclosed assets are discovered later.

If negotiations break down, the case may move to court, where a judge decides whether alimony is appropriate and how much to award. Here, the court may examine all available sources of income, including future earning potential, to understand each spouse’s actual financial circumstances.

Contact the Law Office of Bradley S. Sandler Today

If you are facing a high-income divorce in Beverly Hills, California, our skilled attorneys at the Law Office of Bradley S. Sandler can help you negotiate a fair spousal support agreement. Contact us today to schedule a consultation.