Do you have a pending family law matter involving financial issues? Are you concerned that your partner is unemployed or underemployed and it will affect the final settlement? Just because a person isn’t currently working, or is not currently working in a field they had previously been in, does that mean that you need to be negatively affected by it. Earning capacity is often taken into consideration in divorces, custody and child support matters (as well as post-judgment modifications). If you have concerns about this issue, you should speak with your attorney and see if the opposing party can be imputed at minimum wage.
The term “imputed income” refers to the treatment of an individual’s income as if it is greater than what they are actually earning, and is usually based on a previously established earning capacity, prior work history or even minimum wage, as applicable. Imputed income is most commonly used in the determination of child or spousal support in family law matters. For example, if the court, when calculating child support payments, finds that one parent is unemployed, or underemployed (earning less than he or she is capable), the court may “impute” a minimum level of income to that parent.
Wolf & Shore, LLC is experienced in handling divorce, custody and post-judgment matters with imputed income. If you are in need of counsel, please contact us for a confidential consultation.