Is my speculative bonus income used for a child support calculation?

No. This is different than Ostler/Smith Orders. Under California Family Code Section 4508, speculative bonus income – such as the potential to make a large commission at the end of the year, cannot be included in income used for calculations of spousal and child support. This is because a court may not base monthly support amount on predicted receipt of large bonus that may never materialize.


Other types of money that cannot be included as income are: Student Loans not used for books and tuition and Life insurance death benefits.


However, Gordon Family Law does not advise that you hide all your cash in speculative bonuses or student loans to avoid payments. Why? Because even if the Court rules that a certain category of income is not includable as gross income for the purposes of calculating guideline support, a party can ask the court to deviate from the guideline based on the income received as a “special circumstance,” which would allow the court to increase child or spousal support. 


What is “income” for the purpose of child and spousal support?

Child and Spousal Support calculations are one of the most complicated issues in a divorce.  California Family Code Section 4508 governs how income is calculated for the purpose of support.

Before spousal support or child support can be calculated, each party must disclose their income on an Income and Expense Declaration (FL 150), one of the most crucial forms in your child support case. Calculating support may be as simple as looking at a paycheck stub, but if the party makes income from a variety of sources, be sure to contact a family law attorney to help you run a Dissomaster account because the calculations can actually be sophisticated and complicated.

The Court has wide discretion when determining what is income for the purposes of support and has included benefits and here are some examples of income used for support calculations under Family Code 4508 that you may not expect:

·       Commissions

·       Royalties

·       Bonuses (Marriage of Ostler/Smith)

·       Rents

·       Dividends

·       Pensions

·       Interest

·       Trust income

·       Annuities

·       Social Security benefits

·       Military allowances for housing and food

·       The value of company car

·       Subsidized housing as income. 

·       Re-occurring gifts

I often talk with clients who remember generous relatives who gave annual gifts of $14,000 to their grandchildren and children. If those gifts have not been included on the FL – 150, you should make sure that the other parent discloses these gifts on the income and expense declarations as reoccurring and regular monetary gift from a payer’s parents are income for the purpose of support.

Want to learn more about what is NOT included for support payments? Click here to read about what is not considered income under California Family Code Section 4508.

When does a court look at my ex’s ability to earn to calculate support?

Is my speculative bonus income used for a child support calculation?

I want to stop paying spousal support, what are my options?

Are you tired of paying spousal support?  If you are obligated to pay spousal support, you may be frustrated.  However, before you stop paying altogether you should read the following article to understand the consequences for failure to pay spousal support. Here are some important facts that experienced San Francisco Bay Area family law attorneys want you to know before you decide to willfully stop spousal support payments to your ex.  


(1) You May Be Able to Ask the Court For A Reduction of Payments


Some spousal support orders are modifiable by the Court. To determine if your spousal support order is modifiable you should look at your marital settlement agreement and read the language to see if your agreement has modifiable or non-modifiable support terms. 


In California, the Court can modify or terminate a spousal support order at any time, unless there is language in your marital settlement agreement that specifically precludes modification.


Examples of non- modifiable language that could preclude a change to the order include any of the following terms:  this agreement for spousal support cannot be modified; this agreement cannot be modified until ----- ; this is a non-modifiable agreement; or this agreement cannot be modified simply on the basis that the income or expenses of the parties has changed to a substantial degree.


A spousal support order is modifiable if there is a provision in your spousal support order that uses the words .. or upon court order. Those words usually mean that the support ordered can be changed if the moving party shows a material change in circumstances since the order was made. This change in circumstances cannot be a demotion or a child’s education decisions.  Instead the change must be such that the parties are in very different positions than they were at the time the order was made.


If you have experienced a change in circumstances – like caring for the health of a relative or a new spouse, you may be able to change your spousal support order. However, if the language of the order is non-modifiable – you need to understand the consequences of failing to pay.  


(2) Failure to Pay Could Result in Owing Even More To Your Ex Spouse.


Past due support orders accrue interest at 10% from the date of each installment becomes due. Family Code Section 155. This means that every payment you miss accrues interest.  Furthermore, support orders may be enforced like any other money judgment. This means that your ex may obtain a Writ of Execution and enforce a money judgment against your bank accounts, property, or even pension.  
This is even more important because courts do not have discretion to relieve the obligor of the interest and unpaid support cannot be discharged in bankruptcy. But let’s say you don’t care about the money, maybe you care about avoiding jail.


(3) Willful Failure to Pay Spousal Support Could Send You to Jail


If you have failed to pay support or paid only part of what you owe and you have the ability to pay, your ex spouse can file a motion for Contempt of Court. If you are found in Contempt because you have the ability to pay but have evaded payment, then you can expect to be fined and/or incarcerated unless you have a defense.


Contact a family law attorney now if you are facing a Contempt charge you can contact me at amanda@gordonfamilylaw.com.
 

Looking for more posts on spousal support:
 

My ex stopped paying child support - what can I do?
My child’s mother does not follow our visitation schedule, how can I get her to comply?
What to do if your ex does not pay support or follow visitation: how to file for Contempt.

My ex - remarried - do I get to stop paying support?

Yes. Under California law spousal support terminates on an ex spouse's re-marriage even if that event is not listed in judgment as a terminating event.  

This means, even if you fail to specify in your settlement agreement that support will end on re-marriage - you can still stop payments at that date. Marriage of Thorton (2002) 95 CA 4th 251.

 Contact amanda@gordonfamilylaw.com for more information. 

 

 

My marriage only lasted 2 years, do I have to pay temporary spousal support?

Maybe.  Experienced family law attorneys will tell clients that temporary spousal support can be ordered by a Court even in a short time marriage.  The party seeking support is required to show that the need for support exceeds his/her available resources. 

Under California law, spouses are obligated to support each other during marriage. Fam C §720.  While an action for dissolution of marriage or legal separation is pending, the court may order either spouse to pay an amount necessary for the support of the other. This is called Temporary support - or support Pendente Lite - to maintain the status quo of the parties until the divorce is final.  There are no statutory requirements to determine the propriety and amount of an award of interim or temporary spousal support. Rather, any such award is based broadly on the issues of need and ability to pay. Marriage of Dick (1993) 15 CA4th 144, 165.  

In most California counties - there are Superior Court schedules establishing temporary spousal support. However, the Court does not rely on these schedules for permanent spousal support. Each case is different, so contact a family law attorney to talk about your specific case.

Contact amanda@gordonfamilylaw.com for more information.