Child support is driven by a rigid guideline formula. We all know that. But do minor children ever really need six figures? This question is particularly relevant in the Bay Area, where employees of startups and publicly traded companies in the bio and tech spaces earn extraordinary wealth through equity compensation (stock options, restricted stock, ESOPs, and the like). Under a strict application of the child support guideline formula, this wealth sometimes yields a dazzling amount of child support. This can result in unfairness, especially where rules promulgated by the employer or the Securities and Exchange Commission (SEC) limit the employee’s ability to “cash out” equity compensation.

Scott Lantry will explore also how Courts treat equity compensation when calculating child support, and examine the evidentiary showing required to persuade the Family Court to issue a below-guideline child support award.

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ACCTLA Members, Non-Member