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Royalties, Tips and Gratuities in Awarding Spousal Support


Royalties, tips, and gratuities represent income available to pay support.  This type of income may present some difficulty in terms of guideline support calculations.  If the income is regular and predictable it should be included in gross annual income for purposes of calculating support.  See Family Code Section 4058(a)(1).

If this form of income is sporadic, there are two potential methods of inclusions.  First, it may be deemed income when received and the payer would pay a percentage of the amount received under the statewide guideline provisions that address periodic payments such as bonus payments.  That schedule provides for a specified percentage of any bonus or overtime to be paid “as and for” child support.  The actual percentage will vary depending on the amount of the bonus or overtime.  (i.e. Smith/Ostler).   Alternatively, as with income from stock options, the court could adjust the child support award under Family Code Section 4060 or 4064.

Contact a Costa Mesa Divorce Attorney today for help.

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