When Courts May Impute Income to Parents Owing Child Support

In Arizona as elsewhere, child support is a critical aspect of ensuring the welfare and well-being of children following the separation or divorce of their parents. The courts have a vested interest in ensuring that both parents contribute fairly to their children's upbringing. In situations where a parent is unemployed or underemployed by choice rather than due to reasonable cause, Arizona courts have the authority to impute income to enforce the payment of child support.

Income imputation, as defined in the Arizona Child Support Guidelines, is the legal process by which the court assigns a potential income to a parent based on their earning capacity rather than their actual earnings. This measure is particularly relevant in cases where a parent might be deliberately avoiding work or opting for a lower-paying job to reduce their child support obligations. The following are examples of such situations:

  1. Voluntary unemployment — If a parent quits their job without a valid reason, the court may consider this as voluntary unemployment. For instance, a parent who leaves a well-paying job to travel or pursue a leisurely lifestyle can have income imputed based on their previous salary.

  2. Underemployment by choice — A parent who takes a part-time job or a position significantly below their qualifications and earning potential may also face income imputation. For example, an engineer with a substantial earning history who chooses to work as a barista may be seen as underemployed by choice.

  3. Refusal to work — If a parent is capable of working but chooses not to, citing personal preferences such as wanting more leisure time, the court can impute income based on what they could realistically earn given their skills and job market conditions.

  4. Educational decisions — While pursuing further education can be a valid reason for reduced income, the court may impute income if it determines that the parent's decision to return to school is a tactic to lower child support payments, especially if they are already sufficiently educated and capable of earning a stable income.

While Arizona courts take a firm stance on ensuring child support is paid, an obligated parent has the opportunity to present defenses against the imputation of income, such as the following:

  1. Genuine job search — If the parent can prove that they are actively seeking employment and their current unemployment is not due to their own volition, the court might refrain from imputing income. This requires substantial documentation of job applications, interviews, and other efforts to secure employment.

  2. Health issues — A legitimate health condition that prevents the parent from working can serve as a defense against income imputation. Medical records and professional assessments will be instrumental in substantiating this claim.

  3. Economy and job market conditions — Demonstrating that the job market in the parent's field is poor or that there are limited opportunities can also be a valid defense. For example, if an industry downturn has led to widespread layoffs, the parent might argue that their unemployment or underemployment is not by choice.

  4. Caretaking responsibilities — In some cases, the parent may have significant caretaking responsibilities, such as caring for a special needs child, which justifies their reduced income. The court will consider whether these responsibilities genuinely limit the parent's ability to work full-time and whether the parent is receiving Temporary Assistance to Needy Families (TANF) benefits.

At Clark and Schloss Family Law, P.C. in Scottsdale, Arizona, we help divorcing or divorced spouses in resolving disputes over child support. For a free initial consultation, please call our office at 602-789-3497 or contact us online anytime.