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Gossip websites are abuzz with the emergence of new details from the divorce settlement between Tom Cruise and Katie Holmes.
After a widely publicized courtship, followed by five years of seemingly wedded bliss, Katie Holmes shocked the world when she announced the surprise divorce petition in July. Perhaps most shocking, however, was the couple’s ability to arrive at a quiet settlement just two months later, after what many were predicting to be the knock-down, drag-out divorce of the century.
While the quickie settlement has fuelled a number of rumours from custody battles to religious conspiracies, the couple has remained quiet about the particulars of their split. Since the divorce recently became a matter of public record, however, new information has come to light regarding the details of the divorce decree.
Among the most intriguing details, Radar Online reports that Cruise will be required to pay $40,000 per month in child support for Suri, his only child with Holmes. While the figure is staggering to the average person, the website reports that the child support will cost Cruise $4.8 million up to the time that Suri turns 18—a negligible dent in the actor’s estimated $250 million fortune.
In Ontario, child support is regulated by the Child Support Guidelines, a legislated table that determines the amount of support payable based on the payor’s income and the number of dependent children.
While other factors are taken into account in the child support determination, including the custody arrangement in place between the parties, parties may be responsible to pay an amount that exceeds what is mandated by the table if there are special or extraordinary expenses involved, as outlined by s. 7 of the Family Law Act.
These expenses may relate to health care, child care, educational programs or other needs of the child, and are paid in proportion to the parties’ income where a valid expense has been incurred for the child.
In addition, while parties can voluntarily pay more child support than what is required by the Table, they cannot generally pay less than the mandated amount.
For high-income earners in the $1 to 4 million per year range, generally the Table amount is followed. However in terms of LARGE incomes, such as that of an A-Lister, the Table amount probably would not be appropriate.
For example, on an income of $20 million per year, a payor would have to pay $148,153.00 for ONE child per MONTH! How many toys can one child handle? Therefore, in terms of these high income earners the Table amount generally is not followed as it can result in exorbitant amounts.
We are sure that Suri will be able to maintain her fashionista wardrobe and will be well taken care of with her child support payments. Read Celebrity Divorce Blog