Imputation of Income to an Unemployed/Underemployed Party

In cases where child support or alimony is at issue, the Court is permitted to impute income to a party that is voluntarily underemployed or unemployed.  To "impute income" means to assume that a party is earning a certain level of income, for purposes of calculating support, even if that party is not actually earning income or earning at that level.  It is a discretionary decision that requires Courts to appraise job availability and the individual’s capacity to earn from employment. However,  Courts will also consider the individuals assets, such as real estate, capital assets, investment portfolios and income derived from “diligent attention to business.”  See Miller v. Miller, 160 N.J. 408, 420-21 (1999).  Given this, in any case involving an underemployed or unemployed party, it is vital to have legal representation to ensure that support is calculated fairly. 

Presenting data on wages for certain relevant fields can be a persuasive way to convince a Judge that a party is capable of earning more than their current income.  In some cases clients may want to present this information through an employability expert.  An employability expert will produce a report after meeting with the alleged underemployed or unemployed party and considering commonly relied upon data.  The expert examines the party’s education, job skills, work history and the job availability in particular market. The expert will then render a report on the subject’s potential earning capacity in a scientific manner.  In response, the party who is alleged to be unemployed or underemployed, can obtain their own expert report, which can rebut or dispute the conclusions of the other party's expert.  While an expert can assist the Court in making a determination, not every case requires expert testimony. 

Deciding how to approach the issue of imputation and presenting the data in a persuasive manner can be daunting.  The attorneys at Maleski, Eisenhut & Zielinksi are available to craft and execute the best strategy for your case that will assist you in obtaining a fair result.