Imputing Income to Determine Support Obligations

Although it is certainly not the only factor, the most important consideration that goes into calculating child support and spousal support obligations is the parties’ income. But did you know the courts have special power over this as well?

Although it is certainly not the only factor, the most important consideration that goes into calculating child support and spousal support obligations is the parties’ income. While this may not require a law degree to figure out, what you may not know is that the court also has the power to impute (or add) income to either party’s side of the equation in certain circumstances.

The effect is that the support obligor may end up paying either more or less than he/she would pay if the court simply used paystubs to calculate support obligations. Specifically, the domestic relations court can impute income to a party in two instances.

First, the court may impute one party’s income if the court finds that the party is “voluntary unemployed.” The most obvious scenarios are when a party refuses to work or if he/she quits their job in contemplation of or during the pending litigation where support is an issue. However, the court may even find a party to be voluntarily unemployed if he/she was a stay-at-home parent during the marriage or if he/she previously lost their employment through no fault of their own.

The court may also impute income to a party if it finds that the party is voluntarily underemployed. In this instance, the party is working and has an income, but the court believes that the party could be earning more somewhere else.

So, how much income will a court impute to one party? Depending on the circumstances, the court may go a couple of different routes. In some instances, the court will simply impute a party to minimum wage income. In other instances, it may impute a party to the income he/she was previously earning before his/her income decreased. And, in some cases, a party may employ the use of an expert witness to analyze the local market and the party’s background to determine what the party could/should be earning.

While it may seem straightforward to the lay person, the issue of income in a divorce and/or custody case is not always cut-and-dry. Be sure to consult an attorney to understand your rights and how these issues may affect your case.