When it comes to determining the appropriate amount of child or spousal support in a family law case, the court will consider a range of factors, including each party’s income. However, what happens when one party is not currently earning an income, but has the potential to earn more? In these situations, the court may decide to impute income to that party in order to calculate an appropriate level of child or spousal support.
In Alberta, the Court of Appeal recently issued an important decision that clarifies many uncertainties associated with income imputation.
Imputing income is a legal concept used in family law cases to assign income to a party, even if they are not actually earning that income. This can happen for a variety of reasons. For example, a court may impute income to a parent who is not currently working, but who has the education, skills, work experience, and job opportunities to earn a certain income. In this case, the court may determine that the parent should be earning that income and use it to calculate the appropriate amount of child or spousal support.
Another reason imputing income may be appropriate is if a party is intentionally underemployed and earning less than they are capable of to avoid paying a higher amount of support. For example, if a parent quits their job or takes a lower-paying job to reduce their income and lower their child support payments, the court may impute income based on what the parent could be earning if they were working to their full potential.
It’s important to note that imputation of income is not always appropriate or necessary in every case. The decision to impute income should be based on the specific circumstances of the case, and the court will consider a range of factors when making this decision. For example, the court may consider the parties’ age and health, their education and work experience, and the availability of job opportunities in their area.
How Kirk Montoute Dawson LLP Can Help with Your Family Law Matters
If you are involved in a family law case and are concerned about the issue of imputing income, or have questions about related family law matters, speak with a family law lawyer at Kirk Montoute Dawson LLP. Our lawyers can help you understand whether imputing income is appropriate in your case, and can assist you with any legal proceedings related to child or spousal support.
Author: Gary Kirk