Peter R. Orszag is a well-known American economist and business executive who has served in high-level roles including Director of the Office of Management and Budget (OMB) in the Obama administration and, more recently, Chief Executive Officer and Chairman of global financial advisory firm Lazard. He is also a father with a complex personal and family life — which, for legal and historical reasons, includes a child support dispute that made headlines in 2014.
The attention that Orszag’s child support case received highlights an important truth: child support law — even when applied to very wealthy or prominent individuals — is fundamentally about the best interests of children and legal fairness, not about income, status, or reputation. This article explains what happened in that case and uses it to explore how child support works in the U.S., especially for high-income parents.
Who Is Peter Orszag — and Why Did His Child Support Case Get Attention?
Peter Orszag is an accomplished economist, academic, and corporate leader. He served in several influential government roles, including:
- Director of the Office of Management and Budget under President Barack Obama.
- Director of the Congressional Budget Office under President George W. Bush.
- CEO and Chairman of Lazard, a major financial advisory firm.
He has been married twice, has children from more than one relationship, and in 2014 was involved in a publicly reported child support dispute with his first wife — which illustrates how child support law applies, even at the highest income levels.
The 2014 Child Support Dispute
The child support matter involving Orszag and his first wife became news because of some headline-grabbing figures and legal arguments:
- After the couple divorced, Orszag worked in the private sector and earned a significantly higher income — reportedly approaching several million dollars annually.
- His ex-spouse sought a significant increase in child support based on Orszag’s changed financial circumstances.
- In that case, a judge rejected the request for a very large monthly support figure (reported around $22,000), calling it more like “backdoor alimony” than child support.
- Instead of dramatically increasing monthly payments, the judge ordered Orszag to cover specific child-related expenses such as private school tuition, extracurricular activities, summer camp, and medical costs — and emphasized that his ex-wife was also a high-earning individual able to support the children.
This outcome reflects the core principle of child support law: child support is intended to meet a child’s reasonable needs — not to subsidize a former spouse’s lifestyle or provide economic advantage.
Understanding Child Support Law in the United States
The Orszag case highlights some common themes in child support law — especially when one or both parents have substantial income:
- Child Support Is About the Best Interests of the Child
The primary legal standard in all U.S. states is that child support must benefit the children, not the custodial parent. This means courts look at:
- Basic needs (housing, food, clothing)
- Education and medical care
- Health insurance and childcare
- Special needs or extracurricular activities
- Maintaining continuity with the child’s accustomed standard of living
This is true regardless of income level. High income doesn’t mean limitless child support; low income doesn’t mean insufficient support. Courts focus on reasonable expenses related to the child’s needs and welfare.
- Income Is the Starting Point for Support Calculations
Child support formulas typically begin with parental income. All income sources are usually considered — including:
- Salary
- Bonuses
- Investment income
- Deferred compensation
- Business profits
High net worth or executive-level compensation may be included in calculations. However, courts may also exercise discretion in how far beyond normal guideline amounts they will go, especially where income is very high.
In Orszag’s case, his salary increase after moving from government service to the private sector was part of the justification for reviewing his support obligations.
- Child Support Is Not a Proxy for Spousal Maintenance
Courts are careful to keep child support separate from alimony (spousal support).
- Child support goes directly toward children’s costs.
- Alimony compensates a spouse for economic disparities post-divorce.
In some disputes, one spouse may ask for more child support when really they want support for themselves — which courts reject. The 2014 news reports explicitly noted a judge’s refusal to allow child support to be used as “backdoor” alimony.
- Courts Can Order Specific Expense Contributions
When one parent earns significantly more than another, courts may order that parent to pay specific expenses instead of or in addition to monthly support.
This can include:
- Private school tuition
- Medical insurance or out-of-pocket medical costs
- Extracurricular activities
- Special educational needs
Rather than a set monthly support figure, some courts find this approach better reflects the child’s actual needs — especially in high-income cases like Orszag’s.
- Both Parents’ Income and Financial Capacity Matter
Child support law considers both parents’ ability to pay and their financial obligations. A high-earner cannot escape support, but the receiving parent’s own income and resources also matter.
In the reported Orszag case, part of the judge’s reasoning involved the fact that:
👉 His ex-wife also earned a substantial income and had assets of her own — meaning she was fully capable of caring for the children without excessive additional support.
Why Child Support Law Is Complex in High-Income Cases
While basic child support law applies to everyone, high-income cases often involve additional complexity, including:
✔ Multiple Income Streams:
Executives and entrepreneurs may have salaries, bonuses, deferred compensation, stock options, and investment income all treated differently under law.
✔ Shared Custody or Split Parenting Time:
The more time each parent spends with a child, the more complex support can become.
✔ Expense Documentation:
High-income families often incur expenses (private education, travel, healthcare programs) that standard support guidelines do not neatly account for, requiring judicial discretion.
✔ Adjustment of Guidelines:
Some states allow courts to adjust standard child support formula amounts when parental income is beyond typical guideline ranges.
How Lawyers Approach High-Income Child Support Cases
For legal professionals, high-income child support work requires:
- Careful analysis of all income sources.
- Accurate financial disclosures (including tax returns and statements).
- Differentiating between reasonable child expenses and parental lifestyle expenses.
- Strategic presentation of financial evidence to judges.
In some cases, lawyers will work with financial experts to value deferred compensation, bonuses, or complex earnings — especially if one parent works in finance, as Orszag does
What Parents and Everyday People Should Learn From This Case
- No One Is Above Child Support Laws
Even high-profile figures with complex finances must comply with the same laws and principles that apply to everyone.
- Child Support Must Reflect Actual Child Needs
Courts are more concerned with the child’s needs than with maximizing payments simply because a parent earns a lot.
- Full Financial Disclosure Is Crucial
Honest and transparent income statements protect both parents and help courts make fair decisions.
- Legal Representation Matters
A thoughtful attorney can make the difference between a fair outcome versus an excessive or unfair order.
Conclusion
The Peter Orszag child support situation — as reported — is a rare public view into how child support law works with high-income individuals. But the principles behind the case are universal:
- Child support must serve the child’s best interests.
- Courts are cautious not to use child support as a substitute for spousal maintenance.
- Both parents’ incomes are considered, and specific child costs may be ordered.
- Even very wealthy parents must comply with state child support laws.
Understanding these basics helps everyone — from everyday families to legal professionals — approach child support with clarity, fairness, and the child’s welfare at the center of every decision.