Imputed Income in South Carolina Divorce
While most cases involve two incomes, sometimes one spouse stops working after children are born. Then, in divorce, that party tries to avoid paying their fair share. As a result, family court judges can use imputed income to make things more fair. While imputed income is not traditional wages, the court assigns value to what the party is capable of earning. Consequently, if a court imputes income, a party’s options can change significantly. For example, alimony and child support figures will increase or decrease. Therefore, the recent case of Burgess v. Burgess explains this very important divorce issue.
Case Facts
In Burgess, the wife had a B.A. in psychology and worked at a bank until their first child was born. Subsequently, she did not work again until years later. On the other side, husband had a B.S. in business administration and worked at several real estate firms. While he became an owner in his firm, he was later forced out by his partners. As a result, he had to start his own firm, and his income decreased from $400k to $32k. So when wife sought divorce, the court imputed income of $100k to Husband who appealed this part of the Order.
Based on a review of the evidence, the Court of Appeals reversed the imputed income. Because he was not voluntarily underemployed, husband argued the Court could not impute income. In addition, wife did not show husband was able to earn the imputed income with his best efforts. As a result, the Court of Appeals found the family court did not consider proper factors in its award. Therefore, the Court of Appeals sent the case back to reconsider a proper imputed income amount.
The Court Decides If You Cannot Agree
While most cases resolve at mediation, sometimes the parties cannot agree on their won. Consequently, a family court judge will have to decide for the parties. While we prepare every case for trial, we always prefer agreement because you retain more control of your final outcome. But if you need us to fight, we will suit up and get in the ring. After all, you are only one half of the equation. Either way, we are there for you to the end.