Understanding Income Imputation After Divorce

man counting money

When the family unit is intact, it is pretty simple to meet the financial needs of the children. When divorce happens, it can be hard for the parents to coordinate to meet these needs. Parents must discuss child custody.

They must decide which parent will get the full physical child custody and what will have the visitation rights with the help of a divorce lawyer in Colorado Springs. These two questions determine who will be paying for child support.

Why Child Support?

Child support is important in ensuring that a child’s life continues after the divorce of the parents. Child support ensures a child receives the parental care as they should, and there is no deficit in the financial needs.

Child support is usually a share of the income from both parents, but there are exceptional cases where one parent may be the one to cater for child support.

Income Imputation

Some parents reduce their income intentionally, and this affects the amount of support their child gets. Often the parent reducing their income intends to hurt the other parent, but the child suffers eventually. If the income of one parent reduces drastically after divorce, courts have the power to impute the income of the parent.

When Do Judges Impute Income?

The two situations that prompt a court to impute income are in the event of voluntary underemployment and voluntary unemployment. In both cases, the parent voluntary refuses a job opportunity that will fulfill their earning potential.

Do Judges Impute Income Always?

By all means no — the court seeks the best interests of the child. There should be legitimate reasons there is a drastic change in the income of a parent. If the income reduces due to unemployment or any reason out of control of the parent, then income imputation is not an option.

Is the other parent who should be paying child support reduced the payments? Do you think the reduction of income is intentional? If, so get in touch with a divorce lawyer in Colorado Springs to protect the rights of your child.