713-333-4430Bonuses, Commissions, and Overtime in Child Support: How Houston Pay Structures Change the Math
Houston has a vibrant, thriving economy based on a number of rapidly growing industries. Professionals in these fields often have multiple forms of income beyond their standard salary, including bonuses, consistent overtime, and sales commissions. When child support is calculated, these numbers can have a significant impact on a court order. Whether you expect to receive or pay child support, talking to a child support attorney is critical.
Attorney Kevin Hunter brings compassion, an in-depth knowledge of Texas family law, and a fierce sense of advocacy to every case he accepts. Recognized as one of the top 10 best attorneys in family law, he helps clients navigate the complex Texas family law system. Call our child support law firm at 713-333-4430 to explore your legal options now.
The Texas Child Support Formula
Texas’s child support calculator bases child support on a paying parent’s monthly net resources. There are allowances for certain expenses. In general, child support follows this structure for the paying parent:
- 20% for one child
- 25% for two children
- 30% for three children
- 35% for four children
- 40% for five children
Net resources go beyond just a parent’s wages. They also include:
- Salary and hourly wages
- Overtime pay
- Commissions
- Bonuses
- Self-employment income
- Rental income
Houston has a number of employers in competitive industries that compensate employees with bonuses, commissions, and other payments. However, it’s common for parents to argue over which types of income should be counted in child support payments which is why you should discuss your specific case with a child support lawyer in Houston.
Are Bonuses Included in Texas Child Support?
In most cases, bonuses do count toward child support calculations. If the parents were raising the children together, that money would still have been used for the child’s care—so the state is likely to consider it as income. This may include annual performance bonuses, profit-sharing programs, retention bonuses, signing bonuses, and other incentive-based payments. The court may look at if the bonus income is consistent and how payments have fluctuated over the years.
If a parent consistently receives annual bonuses, for example, the judge may treat that as part of their overall earnings. Because bonuses may vary, the court may average bonus income out over a period of time to ensure that the paying parent can afford monthly payments.
One-time bonuses, such as signing bonuses or retention bonuses, may be treated differently by the court.
How Commissions Are Treated
Commission-based earners are common in many Houston industries, including real estate, medical device sales, energy sales, and auto sales. Commission income can fluctuate dramatically from month to month, which may make calculating child support a little more challenging. You’ll commonly see the court average out the payer’s income over a set period of time to account for seasonal changes and changes within the economy.
Full financial disclosure throughout this process is crucial. Attempting to underreport commissions or structure payments in a way that reduces child support can have grave legal consequences. If you suspect your co-parent of trying to evade a fair calculation, your child support attorney can help you figure out your next steps.
What About Overtime Pay?
Overtime pay is common in many industries, including healthcare, law enforcement, and construction. Overtime pay does typically count as income, but how it’s treated depends on whether it’s consistent or only occasional. If a parent regularly works overtime as part of their career, a child support lawyer may be able to have it included in standard child support calculations. But if they only work overtime when it’s available and there’s no way to predict how much overtime they’ll get, it may not have a significant effect on the court order.
Ultimately, your Texas child support order depends on the details of the paying parent’s income and how it’s paid out. Working with an attorney throughout the process can help you know what to expect.
Our Family Law Firm is Here to Help You Navigate Child Support Changes
At our child support law firm, we’re ready to handle complex child support calculations, changes in income, and modifications. Let’s discuss your legal needs now. Call us at 713-333-4430 or fill out our online contact form to discuss your next steps now.
Attorney Kevin Hunter at Boudreaux Hunter & Associates, LLC has experience with child custody, spousal support, high conflict divorce, and is fully equipped to guide you through the process. Learn more about Kevin on his profile here.
