Imputing income is a legal term used to describe the process of assigning a specific amount of income to a party in a divorce case.
This can be done for a variety of reasons, such as if one spouse is voluntarily unemployed or underemployed.
The goal of imputing income is to ensure that each party is contributing their fair share toward alimony and child support, as well as to the division of debts.
In New Jersey, the process of imputing income is governed by a set of laws and guidelines.
According to NJ Statute 2A:34-23, the court may consider the income and earning capacity of each party when making determinations regarding the division of property and the payment of alimony.
This means that if one spouse is not working or is working in a job that pays significantly less than their earning potential, the court may impute income to that spouse based on what they could reasonably be expected to earn.
There are several factors that a court will consider when imputing income in a divorce case.
These include the education and training of each party, their work history and experience, the current job market, and their physical and emotional health.
The court will also look at the standard of living that the couple enjoyed during their marriage, and the lifestyle that each party can reasonably be expected to maintain after the divorce.
Imputing income can have a significant impact on the outcome of a divorce case.
For example, if one spouse is voluntarily unemployed or underemployed, the court may impute income to that spouse based on what they could reasonably be expected to earn.
This means that the unemployed or underemployed spouse may be required to pay alimony or a larger share of the division of assets and debts.
However, imputing income is not always a straightforward process.
In some cases, the party who is being imputed income may dispute the amount that the court has assigned to them.
They may argue that they are unable to find work in their field or that their earning potential is limited by factors outside of their control.
In these cases, it is important to have an experienced divorce attorney who can help to present evidence and arguments to the court.
Overall, imputing income is an important tool that courts can use to ensure that each party is contributing their fair share to the division of assets and debts in a divorce case.
By taking into account a range of factors, including each party's education, work experience, and earning potential, courts can make fair and equitable decisions that reflect the unique circumstances of each case.
IF THIS ARTICLE WAS HELPFUL, THEN LET ME HELP YOU CONTINUE YOUR DIVORCE EDUCATION
I'll teach you how to protect yourself.
You'll learn how to make a fair deal.
I've written hundreds of brief articles, just like this one, on New Jersey specific divorce-related topics.
For example, DO YOU NEED MONEY from your spouse for your needs during the divorce case?
Or IS YOUR SPOUSE A NARCISSIST?
Do you want to move out and actually physically separate? Or is moving out going to hurt your CHILD CUSTODY CASE?
Is your spouse ABUSING ALCOHOL OR DRUGS? And if so, how can you protect your kids?
Should you talk to a divorce lawyer? And if so, how do you find a really good one? I'll give you a formula for finding just THE RIGHT DIVORCE LAWYER FOR YOU.
And finally...if either this article on Legal Separation or any of the above articles were useful to you, then I want you to know that there are hundreds more articles just like these that I will share with you at no cost!
Just ENROLL IN MY FREE NJ DIVORCE EDGE 2023 course.
It takes under 10 seconds to enroll.
When you sign up, you'll immediately receive a powerful article called "Steve Kaplan's Guide To Divorce In New Jersey".
This article is an easy read that takes you through the entire New Jersey divorce process in under 10 minutes.
I cannot tell you how many people have told me that this article has helped them make better divorce-related decisions that led them to a favorable divorce settlement.
It will help you, too, as will all of the other brief, easy to understand articles that I will send to you, one each day.
Start your free subscription to NJ DIVORCE EDGE 2023 right now...you'll be so glad that you did!
I cannot wait to start helping you get the "edge" in your New Jersey divorce case!
Until next time,
Steven J. Kaplan, Esq.
Specializing In Divorce
Throughout New Jersey
5 Professional Circle
Colts Neck, NJ. 07722