In Kentucky, child support is a shared parental obligation. It is generally determined by looking at what each parent would have financially contributed to their child’s care if the marriage had remained intact. Each parent’s gross income is used to determine their proportional share of the support based on the total combined, and then adjustments may be made for things like medical insurance coverage, childcare expenses and parenting time.
Sometimes, however, the court feels that it is necessary to assign or “impute” income to a parent when their reported earnings seem purposefully lower than they should be.
How imputed income works
Imputed income is not based on what a parent is currently making. Instead, the figure used is what the court believes the parent could (and should) be earning. Imputed income typically becomes an issue in high-conflict divorces, and can arise when a parent is:
- Unemployed without a clear or valid reason (such as voluntarily quitting)
- Underemployed by choice (such as leaving a high-paying position for a minimum wage job without good cause)
- Working in a position that does not match their education or skills (such as a doctor choosing to work as a grocery store clerk)
- Able to control their reported income (like a small business owner or someone who is self-employed)
When deciding whether to impute income, Kentucky courts look at a range of practical factors. These help determine whether a parent’s current income is reasonable or whether it falls short. The court will usually look at the parent’s prior work history and earnings, their education and professional licenses, the local job market and the availability of work in their chosen field. The parent’s health, too, can be a factor if they allege that they are not working or are underemployed due to medical reasons.
In general, when a parent previously had a steady, substantial income and they suddenly don’t – the court will take notice. The key issue is whether the change is voluntary or not. If a parent loses their job due to a sudden illness, a layoff or other factors they can’t control, the court is unlikely to rush to impute income.
Imputed income is not just for working (or previously working) parents, however. It can come into play with stay-at-home parents, as well. While the courts usually accept that it is appropriate for a parent with young children to stay at home, especially when that offsets prohibitive childcare costs, they may expect that parent to seek work once the children are in school or a bit older.
Disputes over imputed income are common because they can significantly affect child support obligations. Experienced legal guidance is necessary to navigate this kind of situation, no matter which end of the obligation you are on.
