Imputed income is a fancy was of saying “earning potential.” In a divorce proceeding, when determining child support, courts will look to see how much each of the parent’s can pay to support their children, based on a variety of factors. If the judge feels that a parent isn’t earning their true potential, the judge will impute income on to that parent in order to manipulate the child support calculations and final amounts owed.

Usually the parent that has greater physical custody of the child, or has less income, tends to receive child support from the other parent. But it’s not quite that simple. Though courts look at current wages in order to determine child support, one side can argue that the other is underemployed, or unemployed, for no good reason, in essence “sandbagging” their earnings so as to receive greater child support. So, how does this work in practice?

Best Interest of the Child That Both Parents Are Maximally Employed

Most states, like California, look at the “best interest of the child” when determining child support. They want parents to maximize their earnings while still being good custodial parents. But judges do have a keen eye on what earnings a parent should be making.

Employment and Willingness to Work

At issue here is whether the unemployment, or underemployment, is voluntary or involuntary. If it is voluntary, the court will impute income to that parent up to the amount they believe is in line with his or her true earning capacity. To determine if the unemployment status is voluntary or involuntary, the court will look at three things: ability, opportunity and willingness to work.

Income Not Always Imputed

Sometimes, courts do not impute income even when the other parent is unemployed. If the parent is making a good faith effort to find a job, or has been enrolled in higher education classes, judges may not impute income. In some states, if that parent has always been the “stay-at-home” parent, judges won’t impute income, meaning judges won’t expect the parent to suddenly become employed because of the divorce.

Imputed income can be a complicated, and lucrative, topic in any divorce proceeding. If you are contemplating divorce, and are concerned about child support, speaking with a child support attorney about imputed income, among other topics, can prove to be a great investment in your new future.

  • Find a Child Support Attorney Near You (FindLaw’s Lawyer Directory)
  • Can You Get Child Custody While Divorce Is Pending? (FindLaw Law and Daily Life)
  • 5 Biggest Child Support Questions (FindLaw Law and Daily Life)

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