Imputing Income in Florida Divorce Cases: What Courts Require Before Increasing Support Obligations
In many Florida divorce and support cases, a spouse is likely to claim that they earn far less than their potential to earn. Such a reduction in earning capacity will have a direct effect on how much alimony and child support should be awarded. The Florida legal system tries to address such situations using the theory of imputed income, where the court assigns a certain income to a litigant based on their earning capacity.
Background of the case
In the aforementioned case, both parties were in a divorce where there were issues regarding alimony. One spouse believed that their partner was underemployed or working less than their actual earning potential, and that support should be calculated according to their income potential and not their actual income.
The trial court ruled for an imputation of additional income to the spouse who was alleged to be earning less money. The decision was influential when it came to calculating support payments. In particular, the court significantly increased the alimony payments. Yet the affected spouse was not satisfied with the court decision and contested its legitimacy due to a lack of evidence.
The appeal
Regarding the appeal, the appellate court scrutinized whether the trial court had enough evidence to justify the imputation of income. Under the applicable Florida statutes, the court can impute income if there are reasonable grounds that the party is voluntarily unemployed or underemployed; however, its power is not limitless.
To justify imputation of income, the court must be able to rely on competent and substantial evidence of (1) the party’s capacity to work and (2) the existence of available employment in the community. This requires evidence such as previous earnings record, education level, experience, and testimony about the current state of employment.
In the aforementioned case, the Court of Appeal found that the trial court lacked sufficient evidence to support its decision to impute income to the husband. It was evidence that there was no convincing proof of his capacity to secure employment at a higher salary level. Lacking such evidence, the imputation of income by the trial court amounted to conjecture.
For that reason, the Court of Appeal set aside the part of the trial court order that imputed income.
Key takeaways
- Evidence is essential – It would be unreasonable to assume someone’s ability to earn without concrete evidence of their earning potential and the availability of jobs.
- Imputing income requires proof of voluntary underemployment – A person must have been intentionally underemployed by choosing not to earn what they are capable of earning.
- Consequences of imputation can be severe – Imputation of income can lead to increased alimony or child support payments.
- Preparation is key – Those seeking imputation should be well prepared with information about vocational counselors, job market statistics, or previous earnings.
Talk to a Clearwater, FL, Divorce Lawyer Today
Cairns Law, P.A., represents the interests of Clearwater residents who are going through divorce. Call our Clearwater family lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
Source:
law.justia.com/cases/florida/third-district-court-of-appeal/2008/3d08-1499.html
