ZaheerKhan
Junior Member
What is the name of your state (only U.S. law)? CA
A question on how a bonus is handled. In our last round of agreements, my x had a clause writing into our child support agreement that grants her 10% of any bonus I earn. We did not agree to a set annual number that could have been applied over the year as my actual bonus amount varies considerably year on year.
In any case, is the tax treatment of a bonus split for CS handled any differently than normal child support payments? Normal child support is a % of income net of taxes, but my support order just says 10% of any bonus amount and is silent on how taxes are handled. If I am required to give up 10% of my gross bonus to child support, my x’s effective share is closer to 17% of my actual bonus (net of taxes). This does not seem terribly equitable.
Thoughts.
A question on how a bonus is handled. In our last round of agreements, my x had a clause writing into our child support agreement that grants her 10% of any bonus I earn. We did not agree to a set annual number that could have been applied over the year as my actual bonus amount varies considerably year on year.
In any case, is the tax treatment of a bonus split for CS handled any differently than normal child support payments? Normal child support is a % of income net of taxes, but my support order just says 10% of any bonus amount and is silent on how taxes are handled. If I am required to give up 10% of my gross bonus to child support, my x’s effective share is closer to 17% of my actual bonus (net of taxes). This does not seem terribly equitable.
Thoughts.
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