Imputed Income and Child Support: Promoting Fair Contributions
Child support is designed to provide adequate care to children and to cover the essential costs associated with raising a child, such as housing, food, clothing, education, and medical care. This support is not just important to maintain the child's quality of life, but also to balance financial responsibilities between both parents irrespective of their marital status.
When a parent isn’t gainfully employed or is underemployed, the concept of imputed income can play a pivotal role in ensuring that child support orders still reflect a fair and reasonable assessment of a parent's financial capabilities.
Understanding how imputed income affects child support calculations in California is thus essential for any co-parent.
What is Imputed Income?
Child support in California is determined using a complex formula that accounts for a variety of factors, including each parent's income, the amount of time each parent spends with the child, and other factors such as taxes, health insurance, the costs of childcare and education, and other financial obligations.
When one parent is unemployed or underemployed – but is capable of earning more based on their skills, education, previous work experience, and current job market conditions – the court can factor that parent’s earning capacity (instead of their actual earnings) in making its child support determination. This “imputed income” prevents parents from avoiding their child support obligations by not working or by working less than their capability.
Legal Basis for Imputing Income
The California Family Code establishes the basic framework for establishing income and courts then make the appropriate determination. To do so, courts are guided by factors such as the parents’ education, ability to work, opportunities for employment, and typical earnings level in the relevant job market.
The decision to impute income is not taken lightly; it requires substantial evidence, often including expert testimony about the job market, and vocational evaluations if necessary.
When is Income Imputed?
Imputed income is typically considered in the following scenarios:
Voluntary Unemployment or Underemployment: if a parent is intentionally is earning less than they could or not working, the court may decide to impute income based on what they could realistically earn.
Lifestyle Inconsistencies: if there is a significant discrepancy between the parent's reported income and their lifestyle, courts may investigate further to determine if income should be imputed.
Previous Income Levels: if a previously high-earning parent is now reporting much lower earnings without a valid explanation, income may be imputed based on past earnings.
Calculating Imputed Income
To calculate imputed income, the court will consider:
Employment Potential: based on an analysis of what the parent could earn, with reasonable effort, based on their qualifications and job availability.
Earning History: looking at previous job history and the salaries associated with those roles.
General Earnings in the Community: evaluating typical wages for similar roles in the geographic area.
This process often involves vocational experts who assess the job market and the parent's employability to provide an estimated earning potential.
Impact on Child Support Orders
Income can be imputed on either parent – it can reduce the payments that one parent receives, or increase the payments that the other must make.
The court’s ultimate objective in imputing income is to ensure that support orders are equitable and that children receive the financial support necessary for their well-being. It also reflects a commitment to the principle that both parents have an ongoing obligation to contribute financially to their children's upbringing.
Challenges and Considerations
While imputing income can lead to fairer child support orders, it also presents challenges.
For example, accurately assessing someone's earning capacity can be complex and subjective. Moreover, there may be legitimate reasons why a parent is not working to their full earning potential, such as health issues or market conditions. Courts must balance these factors carefully to ensure just outcomes.
For parents navigating child support proceedings in Los Angeles, understanding the concept of imputed income is essential. Whether you suspect that the other parent is shirking their financial responsibilities or you are accused of underemployment, it is advisable to consult with a family law attorney who can provide guidance tailored to your specific circumstances.
Shayan Family Law, APC is a family law firm that routinely handles child support matters. Contact us today to help ensure that your child support orders are fair and based on accurate assessments of earning potential.
