Imputation of income is the harsh result where the Court requires a party to pay spousal maintenance or (child support) based on earning capacity rather than true income. For example, if one party quits a job and reduces his/her income voluntarily or if a party fails to seek gainful employment though able-bodied, the Court may base that person’s income on earning capacity. Oftentimes, the parson’s prior work history plays a pivotal role in determining what they have the ability to earn.

To award spousal maintenance ("alimony") based on earning capacity, the court must make specific findings that an obligor is underemployed in "bad faith." In fact, Minnesota Statutes § 518.51, Subd. 5B(d) plainly states that "a parent is not considered voluntarily unemployed or underemployed upon a showing by the parent that the unemployment or underemployment:

1. is temporary and will ultimately lead to an increase in income; or
2. represents a bona fide career change that outweighs the adverse effect of that parent's diminished income on the child."

Evidence that may be presented to demonstrate "bad faith" or earning capacity include:

• Past Income information;
• Past employment history;
• Educational history;
• Documents or awards related to education or work achievements;
• Documents demonstrating that previous employment was voluntarily terminated.

Evidence that may be presented to rebut allegations that a person is self-limiting his or her income in "bad faith" include:

• Documents demonstrating that the termination of prior employment was involuntary (eg. Documents indicating that the person was fired or was required to quit for medical reasons);
• Any documentation of efforts to seek substitute employment (eg. Job applications, rejection letters, newspaper ads);
• Documentation that job skills are outdated for a job similar to the one that was terminated.

Call (612) 240-8005 for a consultation.

Call (612) 240-8005

Minnesota Divorce Institute

Wisconsin Divorce
Wisconsin Divorce Issues

Divorce Bulletin Board
Ask a question or review postings on our Family Law Bulletin Board

Divorce Forms
A comprehensive listing of divorce and divorce related forms for all states

Divorce Book Store
Review Books on Winning Custody, Child Support, Property