Imputed Income in Child Support Cases

All parents have a duty to support their children, both financially and emotionally. When parents of children are no longer married to one another. Then, the laws of South Carolina help determine how much one party should pay to the other for child support.

South Carolina law takes several factors into account when determining child support, such as:

• the gross income of each parent
• health insurance and medical expenses needed for the child
• the noncustodial parent is paying the child support for other children
• children from other relationships that live with each parent
• the amount of time the children spend with each parent
• child-care expenses for the children, and
• state and federal taxes, and other deductions.

What happens when one of the parents voluntarily quits a job or takes a lesser-paying job to avoid or reduce their child support obligation? Or when one of the parents has never worked during the marriage? Is it fair for the Court to assign all financial obligations to the working parent? This is where imputed income becomes critical.

Generally, imputed income is income that the Court assigns or credits a party for the purpose of child support or spousal support. The Court’s focus on how to impute income is two-fold. What is a party’s earning potential, and has the party voluntarily and deliberately taken actions to reduce his or her earnings?

A Skilled Family Law Attorney is Critical

A skilled family law attorney is critical in proving and disproving arguments regarding imputed income in support cases. It is essential to have an attorney who can use the necessary tools to assess a party’s earning potential. And surround themselves with appropriate experts. Vocational evaluators and related financial experts may be required to present to the Court. So, a party’s earning potential is based on their education, employment, and medical history. This can be especially important if one of the parties is self-employed. That party’s true earning potential may not be readily apparent based on their reported income. Thorough investigation and the assistance of experts can provide the Court with a clearer picture regarding the profitability of a business, realistic cash flow, and overall income available to the self-employed party than what may be initially provided.

South Carolina law does not allow a parent to escape child support obligations by purposely staying unemployed or refusing to earn up to his or her income-earning potential. Instead, the court will order a voluntarily unemployed or underemployed parent to pay child support based on his or her potential income.

If you have any questions about how imputed income might impact your case regarding the child or spousal support. Please contact our office today at (864) 804-6330 to request a consultation with a member of our team.