Imputed income Definition & Meaning


A deadbeat parent may try to hide income or quit a lucrative career as a means of lowering child support. In that kind of circumstance, a judge can impute income to that parent for purposes of calculating child support. In an appropriate Title IV-D case, the Title IV-D agency of this state or another state shall send to the employer the national medical support notice required under Part D, Title IV of the federal Social Security Act (42 U.S.C. Section 651 et seq.), as amended.

  • Voluntary underemployment at or near the time of the divorce as in the cases involving child support is also a factor to be considered in cases involving spousal support.
  • In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual’s own acts or omissions.
  • If the amount of child support agreed upon is different from the amount of child support that would be ordered presumptively upon application of the guideline, the judicial officer shall determine if the agreed-upon level of child support is fair and just.
  • Vocational evaluators are employed to assess the education, employment history, medical and psychological history of a party to determine the potential income of that party.
  • As of April 1, 2015, the modified self-support reserve shall be $11,770.
  • If the primary residential parent chooses child care with an actual cost that is less than the level required to provide child care from a licensed source, the judicial officer shall use the actual child care expense to calculate the child support obligation.

Multiply the basic child support obligation from subparagraph of this paragraph by each parent’s percentage share of combined adjusted gross income from subparagraph of this paragraph to determine each parent’s share of the basic child support obligation. When the parents do not have shared physical custody as defined in subsection of this section, the parent with whom the child does not primarily reside shall be the parent with a legal duty to pay support. The parent with a legal duty to pay support shall pay that parent’s share of the basic child support obligation to the parent with whom the child primarily resides. Adjustments for health insurance premiums, extraordinary medical expenses, child care expenses, and SSDI derivative benefits shall be made to this amount according to subsections through of this section. The parent with whom the child primarily resides shall be presumed to spend that parent’s own share of child support directly on the child. The child support obligation, including additions for health insurance premiums, extraordinary medical expenses, and child care expenses, shall not exceed 35% of the adjusted gross income of the parent with a legal duty to pay support.

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With respect to spousal support, the most common type of modification sought is a reduction or termination of the spousal support obligation by the paying spouse. In the case of child support, modifications can be sought by either party whenever there has been an increase or decrease in income.

combined adjusted gross

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The courts recognize that child support may be a heavy burden for some parents trying to maintain and manage two households. But parents still cannot avoid their financial obligation to pay child support just because of financial difficulties. There must be a showing for the case that any reduction in their income was utterly involuntary. The courts acknowledge that child support may be a weighty burden for some parents trying to support and manage two households. But parents still cannot evade their financial obligation to pay child support just because of financial hardships. There must be a showing for the case that any decline in their income was utterly involuntary.

Do I Need a Lawyer for Advice on Imputed Income in a Child Support Order?

In the case of spousal support, imputation of income is most important at the outset of a divorce case. Oftentimes, the self-employed spouse will attempt to hide income, particularly cash income, to minimize his / her potential maintenance obligation. It is important for the practitioner to gain as much of an understanding as to the self-employed spouse’s business as possible including who the clientele of the business are which can assist the practitioner in filling in gaps in income from those clientele that paid cash for services. The parent seeking to impute income must provide evidence that the other parent is hiding funds or could be earning much more. You can prove this by producing the other parent’s tax returns, employment history, educational record or other evidence that the parent is making large purchases while claiming to have little income.

That Vermeer painting gathering dust on your ex-wife’s wall, or the “Mrs. Winston” diamond necklace she has draped over the nightstand lamp (and valued at $5.8 million) would both be candidates for of income. If she sold either, she would be set for life, and you would be off the hook for spousal support. Payroll, unemployment, government benefits and other direct deposit funds are available on effective date of settlement with provider. Please check with your employer or benefits provider as they may not offer direct deposit or partial direct deposit. Faster access to funds is based on comparison of traditional banking policies for check deposits versus electronic direct deposit. An ITIN is an identification number issued by the U.S. government for tax reporting only.

Imputed Income in Matrimonial Actions

Non-service-connected disability pension benefits, as defined by 38 U.S.C. Section 101. If the order was rendered or last modified before January 1, 1987, the order is presumed to contain a provision for income withholding procedures to take effect in the event a delinquency occurs without further amendment to the order or future action by the court. If the court does not order income withholding, an order for support must contain a provision for income withholding to ensure that withholding may be effected if a delinquency occurs.

What does imputed mean in insurance?

Life Insurance Imputed Income

The imputed income occurs when individuals with more than $50,000 of life coverage volume insurance pay less for the coverage than the IRS has determined to be worth, as per the uniform premium table.

A court that obtains continuing, exclusive jurisdiction of a suit affecting the parent-child relationship involving a disabled person who is a child retains continuing, exclusive jurisdiction of subsequent proceedings involving the person, including proceedings after the person is an adult. Notwithstanding this subsection and any other law, a probate court may exercise jurisdiction in a guardianship proceeding for the person after the person is an adult. Any other financial resources or other resources or programs available for the support, care, and supervision of the adult child. A local registry shall include with each payment it forwards to the Title IV-D agency the date it received the payment and the withholding date furnished by the employer. May be enforced by any means available for the enforcement of child support, including withholding from earnings under Chapter 158.

If both the ability and opportunity to work are present, a court can impute income after reviewing all of the evidence. The evidence is usually provided by the parent seeking child support and sometimes in the form of an expert’s report or testimony regarding salaries for a qualifying job. A court may also use the most recent salary earned by the parent and impute that amount. On occasion, it can be difficult to determine how much a parent could earn, the court will impute minimum wage. “Imputed income” has been defined as “the benefit one receives from the use of one’s own property, the performance of one’s services, or the consumption of self-produced goods and services.” (Black’s Law Dictionary (11th ed. 2019)).

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