SPARC Forums

Hello Soc,

My ex-wife's 2003 W-2 identified 90k in (salary+ bonus) and another 80k gain/profit realized in sale of company (she works for) stock/stock options.  Judge said in California only the salary + bonus is used for CS purposes, stock sales are irrelevant.   Has this been your experience as well?

Thx

>Hello Soc,
>
>My ex-wife's 2003 W-2 identified 90k in (salary+ bonus) and
>another 80k gain/profit realized in sale of company (she works
>for) stock/stock options.  Judge said in California only the
>salary + bonus is used for CS purposes, stock sales are
>irrelevant.   Has this been your experience as well?

Income from all sources may be recognized, however, because child support is prospective in nature, courts do not generally use one time income in the guideline support calculation, unless the amount is substantial (> $250,000). Courts will use the interest income generated by a one time windfall because that income is predictable and ongoing, as are wages, self employment income, dividend payments, rental income, royalties, etc.

Proceeds from the sale of a principal residence are rarely counted, because the seller almost always needs the proceeds to purchase a new home.

A stock sale that produces income is absolutely fair game for child support, however a one time sale of stock by a person who doesn't routinely trade stock is not, because it is not predictable or ongoing.

:)