Imputing Income to an Underemployed Spouse in Child Support Cases

When a couple with children gets divorced, their personal finances determine how much child support should be paid. The judge analyzes each parent’s income and assets, applies the Arizona child support guidelines and orders the amount the noncustodial parent should pay. But in situations when one spouse is not working up to the potential dictated by their education, skill set and experience, the court may invoke a process known as imputing income.

Courts understand that due to changes in the economy, parents’ income varies over time and they may lose their jobs and need to take lower paying ones. But courts are not sympathetic to parents who voluntarily take lower paying jobs or stop working altogether in order to reduce or avoid child support payments. In such cases, the court may attribute income to that parent relative to his or her earning capacity. 

Income may be imputed in different scenarios. Here are two examples:

• During marriage, a parent worked as a highly paid executive. After divorce, he or she quits that job to work at a fast-food restaurant. This parent may be deemed voluntarily underemployed.

• A highly-qualified parent was laid off years ago and fails to use his or her qualifications to get a job after divorce. This parent may be deemed voluntarily unemployed.

The amount of income imputed depends on the earning capacity of the unemployed or underemployed spouse, their age, education, work history, childcare responsibilities and other factors. Minimum wage is the lowest amount that will be imputed.

The parent charged with child support has the right to present evidence to counter a finding of underemployment. In addition, a judge may decline to impute income to a parent who:

• Has a physical or mental disability

• Is attending classes or occupational training to develop skills that would allow him or her to earn more

• Has a child with emotional or physical needs that require the parent to be at home

• Is receiving benefits under Arizona’s Cash Assistance program for low-income families

Imputing income does not assure that the parent has the resources to pay the level of child support required. Considerable enforcement measures may be needed to collect the payments due. A parent seeking child support will likely benefit from retaining an attorney who is highly experienced in the process of imputing income and taking enforcement actions.

At Clark & Schloss Family Law, P.C. in Scottsdale, Arizona, we will advocate to protect your rights and your children’s financial security. Schedule a consultation by calling 602-789-3497 or contacting us online.