Ostler-Smith Orders for Bonuses, Commissions and Additional Income

Ostler Smith orders (also called Smith Ostler orders) are pretty common in child support and spousal support cases, especially when someone's income isn't consistent. These orders come up a lot when a person earns significant overtime, bonuses, or commissions or a business owner is getting distributions or dividends at different times of the year.

An Ostler Smith order ensures the extra income is shared properly and included in support payments—whether for child support, spousal support, or both. Without these orders, the spouse who's supposed to get support might end up getting shortchanged.

Let's break down what Ostler Smith orders are and why they matter.

What Is an Ostler Smith Order?

An Ostler Smith order is a court order that requires the spouse paying support to pay a percentage of their extra income to the other spouse for child and/or spousal support.

A Simple Example

Let's say the person paying support has a $10,000 monthly base salary. On top of that, they can earn bonuses ranging from $10,000 to $50,000 per year. These bonuses aren't guaranteed and might only get paid once or twice a year.

Now, it wouldn't be fair to guess how much they'll earn in bonuses when figuring out support. If we assume they'll make more than they actually do, they'll overpay. If we assume they'll make less, the other spouse ends up underpaid.

That's where an Ostler Smith order comes in. Instead of guessing, the order says a certain percentage of whatever bonus income they actually get will go toward support.

How Is the Percentage Decided?

The percentage can be something the two sides negotiate, or if they can't agree, the court decides. If the extra income is tied to child support, it's usually based on a computer formula that takes all the numbers into account.

For example, as extra income increases, the percentage might decrease. Why? Because as income goes up, taxes also go up. The system adjusts to keep things fair.

What Kind of Fights Happen Over Ostler Smith Orders?

Ostler Smith orders sound great in theory, but they can lead to arguments. Here are some common issues:

1. What Counts as Extra Income?

This is probably the biggest fight. Does the order just cover bonuses? Or does it include commissions, dividends, or other types of income?

If the order's wording is too broad, it can scoop up income that really shouldn't count.

2. Speculating on Income

Another issue is when orders are based on assumptions. Let's say the order assumes the person will get other extra income. If that income doesn't happen, the order feels unfair. These orders should focus on actual income received—not guesses about what someone might earn.

3. Bad Wording in the Order

Poorly written Ostler Smith orders can cause all kinds of confusion. That's why it's so important to get the wording right, whether you're working it out with your ex or taking it to court. Clear language avoids a lot of unnecessary fights.

Why You Shouldn't Handle This on Your Own

Trying to figure out an Ostler Smith order on your own is a bad idea. These things can get complicated fast, and without legal advice, you could end up agreeing to something unfair by overpaying or missing out on support you deserve.

A good family law attorney will help you:

• Figure out what qualifies as extra income.
• Negotiate a fair percentage.
• Make sure the order is written clearly so it doesn't cause future problems.

Our family law firm has handled many Ostler Smith orders for both paying and receiving spouses.

Need Help With an Ostler Smith Order?

If you're dealing with an Ostler Smith order—whether you're paying support or receiving it—we can help. We've helped many clients navigate these tricky situations and get reasonable results.

Reach out to our office today to schedule an affordable strategy session with one of our experienced attorneys.