In an Arizona divorce, child support is calculated using the income shares model, which means it is based on the financial resources each parent could have allocated to the children if the parents still lived together. The paying parent’s employment income is a major factor in that determination, so a job loss can be taken into account. But what happens when that parent tries to reduce their child support payments by taking a lower-paying job or stopping work altogether? 

In such a situation, Arizona law allows the courts to attribute income to the parent up to his or her earning capacity if the reduction in earnings is deemed voluntary and without reasonable cause. This is known as imputing income.

The amount of income a court imputes is not arbitrary. It is based on a careful evaluation of the unemployed or underemployed parent's potential earnings. This assessment considers factors such as the parent's age, education and work history and the current job market. The court will also consider childcare responsibilities and the availability of suitable jobs in their area. Importantly, Arizona law sets minimum wage as the lowest amount that can be imputed.

A parent accused of deliberate unemployment or underemployment can raise counterarguments. A judge may decide not to impute income if the parent has a physical or mental disability that limits their ability to work. A parent actively pursuing education or occupational training to improve their earning potential might be exempt. If a child has significant emotional or physical needs requiring a parent to be the primary caregiver at home, this can be a valid reason against imputation. A parent receiving Temporary Assistance to Needy Families (TANF) benefits is generally not subject to income imputation.

It's important to understand that imputing income doesn't automatically guarantee child support payments. While it establishes the legal obligation to pay a certain amount, it doesn't ensure the parent has the immediate funds. If a parent fails to make the required payments, enforcement measures like wage garnishment or other legal actions may be necessary to collect the support owed.

Given the complexities of dealing with issues of underemployment or unemployment, it is advisable to seek the assistance of an experienced child support attorney, who can advocate for your rights while at the same time safeguarding your children's financial well-being.

At Clark and Schloss Family Law, P.C. in Scottsdale, Arizona, we help divorcing or divorced spouses in resolving child support disputes. For a free initial consultation, please call our office at 602-789-3497 or contact us online anytime.