My spouse is a financial consultant and his salary is composed of a base and commission. He also receives bonuses and deferred comp each year. How does California calculate how much income he makes to determine if he should pay child support? He is claiming that since he is commissioned based only his base should be used for income. Also, does the state consider past year or current year income in the calculation?
Divorce / Separation Lawyer
Child support will be calculated off his base, giving you a base amount of child support. Then, you will also receive a percentage of his commission income based on a case called Smith-Ostler. He will be required to pay you a percentage of the gross as additional child support. Also, make sure he is required to give you a copy of his W-2 form every year so you can verify you get the percentage you are supposed to get. Or a copy of his monthly commission statement.
Michael is in San Jose, California and can be reached at 408-295-4232 or at email@example.com. Consultation fees, rates and retainers vary based on need and ability to pay.