Understanding Ostler/Smith Orders

Understanding Ostler/Smith Orders and the Treatment of Variable Income in California Family Law

In California family law, the calculation of child and spousal support payments is primarily based on the income of both parties. While this is straightforward when both parties have regular, predictable incomes, it becomes more complicated when a party's income is variable or includes periodic bonuses. This is where Ostler/Smith orders and tools like the DissoMaster come into play.

The Role of Ostler/Smith Orders

Ostler/Smith orders, named after the California case Marriage of Ostler & Smith, provide a method for handling variable income such as bonuses, commissions, or overtime in the calculation of support payments.

Under this type of order, the court sets a base child or spousal support amount, usually calculated based on the payer's regular salary. In addition to this base amount, the order includes a provision for a certain percentage of any additional, variable income to be paid as support. This additional payment is often referred to as an "Ostler/Smith percentage" or "Smith/Ostler percentage."

The specific percentage can vary, and is typically determined based on the statewide guideline provisions that address periodic payments such as bonuses. This ensures that the support payments are equitable and reflect the payer's actual income, even if that income fluctuates or includes sporadic bonuses.

The Role of the DissoMaster

The DissoMaster is a software program commonly used in California to calculate guideline child and spousal support. It takes into account a variety of factors, including each party's income, the number of children, tax deductions, and health insurance premiums, among others.

When it comes to variable income, the DissoMaster can be used to create "bonus charts." These charts can help parties visualize the impact of different bonus amounts on the total support payment, including the base amount and the Ostler/Smith percentage. This can be particularly useful in cases where the payer's bonus income is substantial or highly variable.

Conclusion

Ostler/Smith orders and tools like the DissoMaster are essential components of the family law landscape in California, particularly for cases involving variable income. They ensure that support payments are equitable and accurately reflect the financial circumstances of both parties.