What is an Ostler/Smith Order?
/Experienced family law attorneys in the Bay Area will tell clients that an Ostler-Smith order is an additional support order (child or spousal) that takes into account overtime or bonus income.
How is child support calculated?
Under California Family Code Section 4058, salary and wages are includable for purposes of determining annual gross income. Gross income can also include income such as commissions, bonuses, rents, dividends, pensions, interest, trust income, annuities, workers’ compensation benefits, unemployment insurance benefits, disability insurance benefits, Social Security benefits, and spousal support actually received from a person not a party to the order at issue. And what about inheritance? Although a party’s inheritance is not income under Family Code 4058, the court may consider it as a “corresponding reduction in living expenses”.
What is a bonus table?
If you or your ex has an income that fluctuates due to overtime or bonus income, the court will order a set amount for support and an Ostler-Smith order for any overtime earnings or bonus income. At the time the child support is set, the Court will refer to a schedule which provides for a specified percentage of any bonus or overtime to be paid “as and for” child support. The actual percentage will vary depending on the amount of the bonus or overtime. (See below for an example).
The person who pays support could be ordered to pay a base rate of $2,000 per month for child support. In addition, he court could also issue an Ostler-Smith order of a fixed percentage of all bonus income received payable as additional child support.
The payor spouse can be ordered to pay a bonus percentage for both child and spousal support.
Typically, "Bonus income" is defined as income resulting from employment or self-employment in excess of regular periodic earnings.
Contact a family law attorney today to speak about bonus income and what you or your child may be entitled to receive or what you may be ordered to pay.
I'm always interested in hearing from readers of this blog and if you have questions, you can reach out to me at amanda@gordonfamilylaw.com or (415) 326-4148.
Sample Ostler Smith Order
