child support and bonuses

[startingfromscratch]

Child support in our divorce proceedings will be calculated according to the law, but my husband occasionally receives large bonuses. They have gotten more rare, with the economy, but when things improve he will get them again. I know the law says that child support includes bonuses, so how is that taken into account when it is not a regular income? Rely on the NCP to disclose and pay?

[TC]

Normally, either party may request that CS be recalculated once every three years, or when there is a significant change in circumstances.  I think that you can address this with the three year review.

TC

[livealittle]

the bonuses for the year should be figured in annual income.  If you know he got a huge bonus - you can ask it to be recalculated based on the years w-2.  most states require a 10% change in pay before recalculating it.

so, if he made $50,000 a year in 2007 and that's what it was calculated on and then in 2008 he made greater than $55,000, you would have legitimate reason to request a recalculation of CS.

[startingfromscratch]

Thank you all.  I am going to insist that it be considered somehow.  Even on off years he got more than 10% of his base pay.  Last year his bonus almost equaled my annual salary.  That won't happen this year, and the recession may put it off another year or two, but when the economy turns, if he has a good year, my son should have a good year.

[m_t]

but when the economy turns, if he has a good year, my son should have a good year.

Well... a judge may allow him to provide that good year on his own time, ya know?

[startingfromscratch]

Yeah, much as I still trust my STBX to do the right thing (and he really is trying to) I think I will have this addressed in the divorce papers somehow.  Still thinking and researching.

[InDenial]

My STBX and I are comfortable with spreadsheets and calculations, so I have suggested that we just recalculate our child support EVERY year in late April, just after our taxes are done. At that point all the information necessary to compute annual net income will be available and documented by W-2s and 1099s.

As I pointed out to him, that eliminates his risk of being "penalized" for having had an especially good year last year with respect to bonuses. If he has a good year, the kids benefit the following year. On the other hand, if his bonus goes way down (the way he claims it will), then the CS will go down the following year. Yes there is a some lag between bonus and the resulting CS, but we don't have to get into arguments about whether a bonus is a one time thing or not.

This also should keep us out of court. At least on the child support issue!