How A High Net Worth Affects Child Support and Custody Rulings

Child support and custody cases are complex and can be influenced by various factors. One significant factor that can greatly impact these rulings is the financial status of the parents involved. When one parent has a high net worth, it can affect the custody outcome and the amount of child support they are ordered to pay.

High-net-worth parents need to understand how income and assets can affect child support and custody. This article will explore how financial status influences child support and custody rulings and provide insights into navigating these cases effectively.

Child Support Calculations for High-Net-Worth Parents

Today, a "high-net-worth individual" is generally defined as someone whose liquid assets total $1 million or more. The $1 million total is calculated as assets minus any liabilities, assets including bank or brokerage account holdings, and excluding non-liquid assets like durable goods, primary residences, or collectibles.

States use a variety of calculations in determining child support. For example, under the New York Child Support Standards Act, for parents with a combined income of $163,000 or less (minus relevant deductions), New York courts factor in each parent's share of the total income and assign pre-determined ratios necessary for child support.

  • One child: 17%
  • Two children: 25%
  • Three children: 29%
  • Four children: 31%
  • Five or more children: 35%

The court determines each parent's share of the support by dividing each parent's contribution by the total adjusted income. Generally, parents who earn more will pay more child support.

This is how it works for most families. However, the calculation is more intricate in cases where one or both parents have a high net worth. In New York, no standard formula is used to determine child support payments for parents with income over the $163,000 cap (in some cases, NYC courts have lifted the cap to $800,000 for higher-income families).

For high-net-worth New York families, the court has discretion in calculating child support. Here, courts will consider numerous factors, including income, assets, lifestyle, and expenses.


In determining child support, the court will examine each parent's regular income plus any additional sources of income, such as investments, dividends, or business profits.


The value of each parent's assets, such as properties, businesses, or investments, will also be considered. For the court, these assets reflect the parent's financial capacity to contribute.


High-net-worth parents can face higher child support obligations due to their ability to provide a superior standard of living for their child. One of the main challenges for the court is determining the child's needs and expenses accurately.

When the high-net-worth parent's lifestyle is extravagant, it can be difficult to establish a reasonable amount of support that reflects the child's best interests. If the child is accustomed to a certain standard of living—receiving exceptional health care, attending private school, traveling frequently, or participating in multiple extracurricular activities—the court may strive to ensure that the parent's separation does not compromise the child's needs and lifestyle.


While both parents' expenses are considered in any child support case, courts may scrutinize the expenses of a high-net-worth parent more closely. There is a concern regarding transparency in financial disclosures, that a parent may attempt to artificially inflate their expenses to minimize the support payment. Courts require thorough documentation of the parent's assets, income, and expenses to prevent attempts at concealing income or inflating expenses.

High-net-worth parents should be prepared to provide documentation of their lifestyle and available resources. Documentation may include financial records, including income, assets, and investments, as well as evidence of the child's accustomed standard of living. Keeping thorough documentation can help in negotiations and court proceedings.

High-Net-Worth and Child Custody Rulings

It is essential to note that a high net worth does not automatically guarantee custody. While financial resources certainly play a role, they are not the sole determining factor in custody decisions.

In custody cases, courts prioritize the best interests of the child. For high-net-worth parents, the court considers a range of factors to decide what is in the child's best interests, including the ability to provide a stable and loving environment, involvement in the child's life, and willingness to foster a healthy co-parenting relationship with the other parent.

In determining the ability of each parent to provide a stable and loving environment for the child, the custody court will examine a range of factors, including work schedules, living arrangements, and involvement in the child's daily life. Does the parent with high net worth have the time and availability to be actively involved in parenting duties? Does a demanding career hinder their ability to provide consistent care and attention?

Custody courts also emphasize the parents' ability to communicate, collaborate, and make joint decisions regarding the child's upbringing. While access to financial resources can facilitate co-parenting arrangements, it ultimately comes down to each parent's willingness to prioritize the child's needs and best interests over their personal differences.

Additionally, courts may consider the lifestyle the parent with a high net worth can provide for the child. While luxury and extravagant living may seem appealing, courts also consider its potential impact on the child's overall well-being and sense of normalcy. In some cases, excessively lavish lifestyles may be seen as detrimental to the child's development, causing them to feel disconnected from reality or develop unhealthy expectations.

If one or both parents frequently travel or have plans to relocate, this can significantly impact child custody arrangements. High-net-worth parents should carefully consider how they will manage travel and relocation and discuss potential solutions with their attorney.

While the best interest of the child standard is priority in custody cases, a high net worth can still contribute to a court's decision to grant custody. The court may find that a high-net-worth parent has the resources to offer the child a stable and comfortable environment. Money may allow the parent to provide better care and access to quality education, healthcare, and support services. In cases involving special needs children with ongoing medical requirements, financial status may weigh more heavily in custody rulings.

Remember, child support and custody guidelines may differ from state to state in cases involving high-net-worth individuals. State laws may provide flexibility so that child support awards reflect the unique circumstances of these families, considering factors such as private education, travel, or extracurricular activities.

Considering the complexities and potential challenges, legal representation is crucial for both parties. Family law attorneys specializing in high-net-worth divorce and custody can help you navigate these cases' complexities and protect the child's best interests.


Naomi Schanfield

Naomi Schanfield concentrates on all aspects of matrimonial and family law, including, prenuptial and postnuptial agreements, divorce, equitable distribution, child custody and visitation, support matters, family offense disputes, and domestic violence.

To connect with Naomi: 212.682.6222 | Online

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