Q. I recently got offered a change in position in my company. The new position would require significantly more responsibility which I am not sure I want – right now I have flexibility which allows me to be an equal parent to my 6-year-old son. I coach his soccer and Little League teams without issue.
My ex works part time and agreed an attribution of double her current salary when we set child support because she also wants the flexibility to be around more for Tommy.
In my new role, for the first time I would have equity grants – stock options and restricted stock grants. My base salary would increase significantly, so I know my child support would go up. I am trying to figure out what the increase would be and how stock impacts child support if at all. Also, what happens to my ex’s income if we recalculate child support?
A. You might start the offer evaluation process by asking your employer if you can continue to leave early as needed to coach your son – you might be surprised that even people in high positions now have those opportunities assuming you can just work at other times remotely.
As for support, the answer is less straightforward. All income is considered for child support purposes according to the Massachusetts Child Support Guidelines – which you can read in detail on the State Court website.
For sure your child support will go up on account of your bump in salary. But, depending on when you arrived at the attribution amount to your ex, her attribution amount may also go up if you can determine what salary increases she would have received had she been working full time. It is worth seeing if she will agree to increase her attribution amount if you have to recalculate support.
For equity income, you need to look at the plan documents. Sometimes equity grants are taxed upon grant, sometimes upon vesting, and sometimes upon exercise or receipt of the cash payout. Many people choose to handle child support paid on equity grants by paying an agreed upon percentage as additional child support within a certain time of the equity vesting and/or being exercised. You have options here – I suggest you try resolve this in mediation if you take the job.
Email questions to whickey@brickjones.com