When To Use Your True Or Imputed Income for Child Support

When To Use Your True Or Imputed Income for Child Support

During your child support case, the judge must perform precise calculations to ensure all your children get the right level of care from each parent. During the calculations, they determine the child’s overall financial needs. Then, they must decide the parents’ support obligations using a variety of factors, including income. To do that effectively, they must decide whether to use actual earnings or imputed income in their calculations. Only then can they determine the appropriate level of support to ask from each parent. Wondering how judges decide which type of income to use? Here’s a look at how it works.

Difference Between Actual and Imputed Income

Actual income is the money coming into your household on a regular basis, like from your job, investments, or even alimony. On the other hand, imputed income is the money the courts estimate you should be earning based on your industry, job position, and ability to work.

The judge will then use the earnings information from prior years to calculate the imputed income figure. They may use past pay stubs, tax returns, and bank statements to complete their calculations. If the parent has not worked in the past five years, the judge may assign a full-time minimum wage income.

Why Judges Use Imputed Income in Child Support Cases

The decision to use imputed vs actual income is always left to the judge’s discretion. Imputed income only comes into play when the judge feels like one of the parents is trying to skirt their responsibilities.

A sudden at-fault termination from their job, reduction in their hours, and other attempts to decrease their earnings are all red flags to the courts. These tactics often arise as a parent finds child support payments challenging, resulting in the desire to reduce income to get out of paying each month.

When that happens, the judge may then apply the imputed income into their calculations to spur that parent into action for their child. Although that might not seem fair, all child support case rulings reflect what’s best for the children in question.

The only way to avoid having the courts decide to use imputed earnings is by providing that the income reduction was involuntary. Upon doing that, the judge may use the actual earnings to calculate child support payments at that time. If a substantial change occurs in the future, the courts may revisit this matter to ensure the child gets all the care they need and deserve.

Need Help with Your Child Support Case? Contact Our Team Today

Your child support case can leave you stressed, confused, and frustrated between all the legal and financial terms alone. If that’s your reality, then it’s time to get your own support. All you have to do is call 626-569-5200 to reach our team at Mohajer Law Firm. With just one call, we’ll set up an initial consultation, so you can discuss your case and figure out the next steps. So, please feel free to call today to get the help you need in navigating your child support case.