Imputed Income in Child Support Calculations

In most states courts calculate child support based on the income of both parents and the expenses of the children. A parent's income can change due to unemployment. It is not uncommon for the paying spouse to take steps to lower his or her income by refusing promotions or overtime or seeking a lower-paying job. Sometimes a parent will simply hide income.

Imputed income is a method courts use to assign an income to a parent for the purpose of child support. If the court finds that either parent is, without just cause, voluntarily underemployed or unemployed, then the court will impute income to that parent. The court will use this imputed income to calculate the child support owed.

Calculating Imputed Income

How courts calculate imputed income varies by state. Most states have laws which guide courts in this determination. Courts look at factors like these to calculate imputed income:

• Employment history
• Earning history
• Education
• Employment opportunities in the area

Courts also look for evidence of hidden income, such as when a parent's expenses exceed the income he or she claims to be making and there is no evidence the parent is using savings or borrowing money to pay these expenses.

At a minimum, imputed income is often calculated as the amount of income a person could have earned from a full-time minimum wage job.

Factors Consider when Imputing Income

A court will not impute income if unemployment or underemployment is not voluntary, such as when a parent is laid off and is unable to find suitable employment despite a good faith effort to find it. This can be shown by copies of termination notices, cover letters seeking employment, rejection letters, lists of appointments and interviews, job searches and a calendar of daily efforts made to find suitable employment.

A parent may not be able to earn as much as he or she was earlier because of changes in the job market or changes in the person's health. Courts will take this into consideration as well.

Some states have a "nurturing parent" exception. This allows a parent with young children to stay at home to raise them without being required to seek employment. In these states a parent who stays home with the children will not have income imputed against them.

Sometimes a parent is a student when a child support order is granted. Then he or she graduates from high school or college. A court can take this change into account in modifying the order, examining what someone in the area with a similar degree would make and imputing this income to the parent. A job which would be suitable for someone with a high school degree might be considered underemployment for someone with a college degree.

Related Resources on lawyers.com

- Child Support articles and information
- Find a Child Support attorney
- State Specific Child Support Links
- Child Support Message Board for more help