What Is A Smith Ostler Order For Child Support

Child support in California is usually calculated based on regular salary or wages. Pretty straightforward. But what happens when a parent’s income jumps around because of commissions, bonuses, or overtime that changes every month? That’s exactly where Smith Ostler orders come into play. At Attorney Bernie, we help parents figure out whether these specialized support orders make sense for their situation and how to structure them properly.

What Smith Ostler Orders Actually Do

A Smith Ostler order adjusts child support payments automatically based on variable income. Instead of one fixed monthly payment, the court orders a percentage of the paying parent’s total income, including all those extras like bonuses, commissions, stock grants, and other additional compensation.

The name comes from two California court cases, In re Marriage of Smith and In re Marriage of Ostler. These cases established that courts can order support based on income that fluctuates. The orders recognize a simple reality. Some parents earn substantial money beyond their base salary, and their kids should benefit from that income too.

When Do These Orders Make Sense

Smith Ostler orders work well when one parent gets significant variable compensation. Sales professionals working on commission. Executives receive annual bonuses. People with quarterly incentive pay or stock option grants.

If your ex pulls in $80,000 base salary but also gets a $40,000 annual bonus, you don’t want support calculated only on that base pay. Your children deserve support reflecting what their parent actually earns, not just the guaranteed minimum they can’t avoid reporting.

How The Mechanics Work

Courts set a base support amount using the parents’ regular income first. Then the order includes specific language requiring additional payments when variable compensation comes in. The percentage applied to this extra income typically matches whatever percentage was used for the base support under California’s guideline formula.

When the paying parent receives a bonus or commission check, they’ve got to pay the specified percentage directly to the other parent within a certain timeframe. Usually, 10 to 30 days after they get the money.

What This Looks Like In Real Life

If a father had a monthly salary of six thousand and quarterly bonuses that averaged about ten grand, the guidelines of this kind of agreement state that about 25% of his overall income should be put towards child support.

His Smith Ostler order would require:

• Regular monthly payments based on that $6,000 salary
• An additional 25% of each bonus is sent to Mom within 15 days of receipt
• Proof of those bonus amounts through pay stubs or documentation

Mom receives appropriate support all year long instead of just the amount based on base salary. Makes a real difference.

Enforcement Gets Complicated

These orders need cooperation and solid documentation. The paying parent has to disclose when variable income arrives and calculate what they owe. Many orders require them to provide pay stubs or payment proof within specific timeframes.

But enforcement can get messy. If the paying parent doesn’t voluntarily mention bonuses or commissions, the receiving parent might never know additional support is owed. Our Alameda County family lawyer builds enforcement mechanisms right into the order. Things like mandatory annual income disclosure or giving the receiving parent access to employment records.

Don’t Forget About Taxes

Variable income brings tax headaches. Bonuses often get taxed at higher rates. Stock options? Those have incredibly complex tax treatments. Your Smith Ostler calculation should account for actual net income after taxes, not gross amounts. Otherwise, it’s not fair to anyone.

Some orders specify whether the percentage applies to gross or net variable income. Net is more common because it reflects what the parent actually takes home. Gross percentages can work if you negotiate them properly, but they’re trickier.

Changing Existing Orders

Already have a standard child support order, but your ex suddenly starts receiving substantial variable income? You can request a modification to add the Smith Ostler language. You’ll need to show the court that the other parent’s financial situation has shifted significantly since the original order went through.

Works the other way too. If variable income decreases or stops, the paying parent can request a modification to remove those provisions and go back to a standard fixed payment.

Problems We Run Into Constantly

Parents hide bonuses. They underreport commission income, hoping to dodge the additional payments. Others genuinely forget to calculate and send the extra support because it doesn’t happen automatically like wage garnishment does.

Disputes pop up over what even counts as variable income. Does a one-time project completion bonus trigger the order? What about stock that vested but hasn’t been sold yet? You need clear order language to prevent these fights, which is exactly why working with an Alameda County family lawyer when drafting the initial order matters so much.

Getting The Details Right

Smith Ostler orders work best when they’re detailed and airtight. Your order should clearly define what types of income trigger additional payments, the exact percentage owed, payment deadlines, and what documentation you need. Vague language just leads to confusion and more conflict down the road.

If you’re dealing with variable income in a child support case, whether you’re paying or receiving, don’t wing it. Get guidance on structuring an order that’s actually fair and enforceable. Contact our team to talk through how Smith Ostler provisions might apply to your case and what specific language will protect your interests while making sure your kids get the support they need.