People have been very interested in the details of the divorce settlement between Katie Holmes and Tom Cruise. The former couple created a media frenzy when Holmes filed for divorce earlier this year. After a very quick resolution, people were very curious as to the details of their settlement.
The speed with which the marriage was dissolved was very unusual, prompting rumors and speculation about the legitimacy of their relationship. One thing was for sure, though. Both parents have shown a dedication to their 6-year-old daughter, Suri, and people across California wondered what would be determined in terms of child support and custody arrangements.
It was recently reported that Cruise agreed to pay $400,000 annually for child support. This averages out to just over $33,000 every month. In addition to these payments, Cruise will also be responsible for medical expenses, education and insurance until Suri turns 18. There were also other stipulations outlined in their divorce agreement. For example, it was explicitly stated that Suri would not be sent away for residential schooling, or boarding schools. There were also restrictions on the amount of exposure the young girl would have to the Church of Scientology.
Some people have questioned the amount of money that will go towards Suri's care. While $33,333 every month seems like an enormous sum of money to most parents in California, for Cruise, that number is a drop in the bucket. It is reported that the movie star boasts a fortune of $250 million. Additionally, due to a prenuptial agreement, Cruise won't have to make any spousal support payments to Holmes.
However, in the end, the child support arrangement benefits both sides. While both Holmes and Cruise could have fought certain factors in the agreement, such as the support payments or custody arrangements, putting an end to the dispute seems to have been a top priority for the parents.
Source: NY Daily News, "Katie Holmes to receive 'modest' $400K annual child support from Tom Cruise in divorce deal," Victoria Cavaliere, Aug. 24, 2012