In California divorce cases, imputation of income refers to the legal process where a court assigns an income level to a spouse who is intentionally underemployed or unemployed in order to avoid paying child or spousal support. If a spouse is not earning as much as they are capable of due to voluntary choices—such as working fewer hours, taking a lower-paying job, or not seeking work at all—the court may impute income based on their potential earning capacity, rather than their actual earnings. The court will consider factors such as the spouse’s education, work history, skill level, and available job opportunities to determine what income they should reasonably be earning. The goal is to prevent a spouse from manipulating the system by not working or underworking in order to avoid financial obligations.
Imputing income can significantly affect support calculations, as a spouse’s child or spousal support obligations may be based on the imputed income rather than their actual, lower earnings. However, for income to be imputed, the court must find that the spouse is deliberately not earning to their full potential, and the decision must be made with careful consideration of the spouse’s circumstances. If the spouse’s actions are deemed reasonable, such as taking time off for child-rearing or health issues, the court may not impute income. Imputation of income ensures that both spouses are contributing fairly to their financial obligations, especially in cases where one spouse may be intentionally limiting their income to reduce their support payments.
