Despite differences that lead to a divorce, during the divorce process both sides have to determine how to divide any property, assets and debts they may have. The divorce can get even more complicated when children are involved and additional issues of child custody, spousal support and child support have to be carefully addressed.
Michigan residents may find it interesting to know that as a result of actors Tom Cruise and Katie Holmes' divorce settlement, their daughter will benefit from nearly $400,000 per year in child support from Cruise. She will continue to benefit from the payments until she emancipates at the age of 18. In addition, Cruise will financially be responsible for any extra needs and expenses she may have such as education, extracurricular activities, medical and dental costs and health insurance. Further, pursuant to their divorce settlement and per their prenuptial agreement, Holmes will receive no spousal support.
Typically a non-custodial parent is required to pay child support to the custodial parent. In Michigan, any child support obligation is determined using the state's child support formula. This formula uses the incomes of parents and factors in other everyday expenses such as childcare, health insurance, education and medical and dental costs.
This same formula is also used when a change in child support modification is necessary due to a change in circumstance such as health issues or an increase or decrease in the income of parents. A change in child support modification may be requested by either parent.
During a divorce, parties deal with a lot of issues, some of which can get complicated. Nevertheless, when a child or children are involved, it is important for parents always keep their children's best interest in mind and set aside their differences to draft a mutually agreeable settlement agreement. For once, a celebrity couple provides a great example of how the parties can make the divorce process work for them, not against.
Source: National Post, "Katie Holmes gets no money in Tom Cruise divorce; Suri to receive $400K/year in child support," Jon Dekel, Aug. 24, 2012