Legal Definitions - percentage order

A percentage order is a type of court directive that mandates a payment, distribution, or calculation to be made as a specific proportion or percentage of a larger sum, asset, or ongoing income. Unlike an order for a fixed amount, the value of a percentage order fluctuates based on the total value it is derived from, ensuring that the payment or distribution remains proportional.

• Example 1: Child Support Adjustment

  In a family law case, a court might issue a percentage order for child support. For instance, a judge could order a parent to pay 25% of their net monthly income as child support. This means if the parent's income increases due to a promotion or decreases due to a job change, the child support payment automatically adjusts to maintain the 25% proportion, rather than remaining a fixed dollar amount. This illustrates a percentage order because the payment is directly tied to a percentage of a fluctuating income source.

• Example 2: Distribution of Estate Assets

  Consider a probate case where a person has passed away, and their will specifies that their three children should share the remaining assets equally after all debts and taxes are paid. A probate court would issue a percentage order confirming that each child receives 33.33% of the net estate value. If the estate's final value is higher or lower than initially estimated, each child's share will still be one-third of whatever remains, demonstrating a percentage order in the proportional distribution of assets.

• Example 3: Attorney Fees in a Class Action Settlement

  In a large class action lawsuit, where many individuals are compensated for a common harm, the court often approves the distribution of the settlement fund. As part of this approval, the court might issue a percentage order stating that the lead attorneys will receive 30% of the total settlement amount as their fees, with the remaining 70% distributed among the class members. This ensures that the attorneys' compensation is directly proportional to the overall success and size of the settlement achieved for the class.