When Does an Illinois Court Use Imputed Income in a Divorce Case?

 Posted on July 21, 2022 in Divorce

Money affects nearly every aspect of a divorce case. The spouses’ financial circumstances influence property division, debt division, child support, spousal maintenance, and more. When a spouse’s income is unknown, a spouse is unemployed, or there are doubts about the accuracy of a spouse’s financial disclosure, the court may impute income. Essentially, when the court imputes income, the court uses estimated income instead of the reported income during divorce-related calculations. If you are getting divorced, it is important to know how imputed income may affect the outcome of your case.

Imputed Income for Child Support or Spousal Support

Divorcing parties are expected to provide truthful, complete financial information to the court. However, some spouses try to evade financial obligations like child support or spousal support by lying about their income. If this happens, the court may use estimated or imputed income instead of the reported income. For example, if a spouse is self-employed and receives cash payments “under the table,” the income will not be reported on a tax return. The court may be forced to impute income.

Imputed income may also be used if an individual is voluntarily unemployed or underemployed. For example, if a parent quits a high-paying job and takes a minimum wage job during a divorce, the other parent may argue that he or she did this to reduce his or her child support obligation. The child should not receive less financial support because of the parent’s decision to quit his or her job, so the court may use imputed income to determine child support.

The court also has the authority to impute income for spousal support. For example, if a high-earning spouse gets laid off from his or her job just before a divorce, he or she may intentionally remain unemployed to avoid paying spousal maintenance. The unemployed spouse may assume that he or she will not have to pay spousal support if his or her income is zero. In situations like this, the court may use imputed income instead of the spouse’s actual income to calculate spousal maintenance.

Factors Used to Infer Income

If the court imputes income during a divorce case, the court must make a reasonable estimation of what the spouse could be earning. Factors used to impute income include but are not limited to:

• The spouse’s previous income

• The spouse’s employment history

• The spouse’s education and job skills

• The current job market

• Job opportunities in the area

Contact an Arlington Heights Divorce Lawyer

Rolling Meadows divorce and family law attorney Donald J. Cosley has nearly 20 years of experience representing clients during divorce and family law proceedings. He provides dependable legal support and guidance during even the most complex divorce cases. Call Law Offices of Donald J. Cosley at 847-253-3100 for a free consultation.

Source:

https://www.ilga.gov/legislation/ilcs/documents/075000050k505.htm