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The guideline child support calculation seems simple enough when both parents are salaried, 9-to-5 employees. But what happens when one parent's income is not stable? What if they are a salesperson who gets a huge annual bonus, a nurse who works fluctuating overtime, or a "gig" worker whose income is different every month? This is known as "fluctuating income," and it is one of the most complex areas of child support law. A judge will not just "guess" at an income. This is where you need a child support attorney in Orange County to build a specific, technical legal argument. At JOS FAMILY LAW, we have experience with these complex compensation structures.
When a parent's income is not a fixed salary, the court's job is to find an "average" number that is a fair representation of their total earnings. The most common method is for the judge to look at the parent's income over the last 12 months (or 24 months) to get a "historical average." They will take the total income from all sources (base + bonus + overtime) and divide by 12 to create a monthly average for the support calculation.
However, this can be unfair if a parent's bonus or overtime is not guaranteed. What if they got a huge, one-time bonus last year that will not be repeated? This is where a skilled attorney must argue for a different solution.
The most common solution for fluctuating income is a two-part order, often called an "Ostler-Smith" order.
The Base Support: The judge will set a "base" monthly child support amount based on the parent's guaranteed salary or income, without the bonus or overtime.
The "Bonus" Percentage: The judge will then add a "bonus" order (e.g., "The paying parent shall pay 10% of any and all gross income received above $100,000 per year, payable within 10 days of receipt.").
This is often the fairest solution. It ensures the child's basic needs are met every month with the "base" support, and it also ensures the child gets to "share in the standard of living" of the parent when they have a good year, by getting a percentage of that extra income.
This is a highly technical area of law. Your attorney's job is to conduct "discovery" to get the full financial picture. This includes subpoenaing pay stubs, bonus statements, and tax returns. They must then make a clear and compelling argument to the judge. Should the bonus be "averaged in," or should it be handled with a percentage order? The answer can mean a difference of thousands of dollars a year for your child.
Do not try to negotiate a support order based on fluctuating income by yourself. You are at a massive disadvantage. You need an expert who understands these specific, complex orders.
To get an expert analysis of your complex income situation and to ensure your child support order is fair, contact the professionals at JOS Family Law.
When a parent's income is not a fixed salary, the court's job is to find an "average" number that is a fair representation of their total earnings. The most common method is for the judge to look at the parent's income over the last 12 months (or 24 months) to get a "historical average." They will take the total income from all sources (base + bonus + overtime) and divide by 12 to create a monthly average for the support calculation.
However, this can be unfair if a parent's bonus or overtime is not guaranteed. What if they got a huge, one-time bonus last year that will not be repeated? This is where a skilled attorney must argue for a different solution.
The most common solution for fluctuating income is a two-part order, often called an "Ostler-Smith" order.
The Base Support: The judge will set a "base" monthly child support amount based on the parent's guaranteed salary or income, without the bonus or overtime.
The "Bonus" Percentage: The judge will then add a "bonus" order (e.g., "The paying parent shall pay 10% of any and all gross income received above $100,000 per year, payable within 10 days of receipt.").
This is often the fairest solution. It ensures the child's basic needs are met every month with the "base" support, and it also ensures the child gets to "share in the standard of living" of the parent when they have a good year, by getting a percentage of that extra income.
This is a highly technical area of law. Your attorney's job is to conduct "discovery" to get the full financial picture. This includes subpoenaing pay stubs, bonus statements, and tax returns. They must then make a clear and compelling argument to the judge. Should the bonus be "averaged in," or should it be handled with a percentage order? The answer can mean a difference of thousands of dollars a year for your child.
Do not try to negotiate a support order based on fluctuating income by yourself. You are at a massive disadvantage. You need an expert who understands these specific, complex orders.
To get an expert analysis of your complex income situation and to ensure your child support order is fair, contact the professionals at JOS Family Law.