How Is Income Imputed When a Spouse Quits Their Job the Day Divorce Papers are Filed?
The breakdown of a marriage is an already challenging situation. Determining alimony and child support during a divorce can further complicate proceedings, but what happens if your spouse quits their job just as the divorce papers are filed? Doing so can disrupt that spouse's reliable income and raise concerns about their ability to pay alimony or child support.
At Abrahamson Law Office in Omaha, Nebraska, we understand that divorce proceedings can bring unexpected complications. If your spouse has suddenly quit their job the day you filed for divorce, our attorneys can help you understand how Nebraska law will estimate your spouse's income if they report little or no income.
What Does It Mean to Impute Income?
The concept of imputing income refers to a legal process in which the court assigns an income level to a person, regardless of their actual earnings. This typically occurs when one party in a divorce voluntarily becomes unemployed or underemployed to avoid financial obligations, such as child support or alimony.
Whether the decision was intentional or not, Nebraska courts have the authority to make sure the other spouse fairly meets all court-ordered financial obligations, such as alimony and child support, and they strive to be fair and equitable in resolving issues surrounding income imputation.
While ensuring financial obligations to children and former spouses are met, they also remain mindful of the current personal and economic circumstances of both parties. The primary goal is to promote the well-being of your children and to make sure responsibilities are shared equitably between both parents.
How the Courts Evaluate a Spouse’s Earning Capacity
If your spouse has quit their job just as your divorce is being filed, the courts will thoroughly investigate to discover why and evaluate their earning capacity for use in court-ordered financial obligations.
Evidence plays a considerable role in determining your spouse's earning potential. To arrive at a number that represents their "potential income," the court will consider evidence from both parties to determine your spouse's earning capacity before imputing their income. The primary types of evidence include:
Education and work experience: The courts will review your spouse’s educational background and previous work experience to determine what career roles they are qualified to perform.
Employment records: The court will examine your spouse’s recent employment history and earnings from previous jobs to determine their recent earning capacity. For example, if they consistently earned $50,000 annually in the past, the court may use this figure as an imputed income level.
Job availability in the local market: Nebraska courts will examine the availability of relevant employment opportunities. For instance, if the job market supports your spouse's skills and qualifications, the court may expect your spouse to actively seek employment. Records of job applications or listings can help identify whether their search is genuine and identify the salary ranges they are applying for.
Statements and admissions: If your spouse has made statements about quitting their job to avoid support obligations, these can be used as pivotal evidence in court. If the court determines that the spouse quit their job deliberately to avoid support obligations, it is more likely to impute income based on their previous earnings or earning potential.
Health considerations: If medical issues or health concerns are cited as the reason for leaving employment, the court may require your spouse to submit medical documentation to evaluate whether these claims are valid and whether they justify unemployment or underemployment.
When your spouse quits their job right as the divorce is being filed, the court will look into the reasons why to determine an estimated income that can be used as a basis for making alimony and child support payments. These factors can make sure the court has the information it needs to determine your spouse's true earning potential.
Nebraska Statutes for Child Support
Nebraska law places a strong emphasis on the welfare of children in divorce proceedings. According to the Nebraska Child Support Guidelines (Neb. Rev. Stat. § 4-218), child support is calculated based on each parent’s income and their proportionate share of the combined income. When one spouse attempts to evade these responsibilities by quitting their job, the court may need to step in and impute income to make sure the children’s needs are met.
This means the court will evaluate what the spouse has the potential to earn, based on their education, work history, and available employment opportunities in the current job market. The imputed income will then be used as a basis for determining child support payments so that one parent cannot manipulate their financial situation to the detriment of their children.
Nebraska Statutes for Alimony and Voluntary Unemployment
The imputation of income doesn’t only apply to child support; it’s also relevant when determining alimony. Under Neb. Rev. Stat. § 42-365, alimony can be awarded to provide financial support to a lower-earning spouse after a divorce. When one spouse deliberately reduces their income by quitting a job, the court may still calculate alimony based on their earning capacity rather than their actual income at the time of the hearing. This enables the court to establish equitable alimony arrangements that reflect the financial circumstances of both parties.
How Our Attorneys Can Help
At Abrahamson Law Office, we hear from many clients who are confused or frustrated when their spouse’s sudden unemployment disrupts their divorce proceedings. However, Nebraska law provides mechanisms to handle these situations. By imputing income where appropriate, the court can hold both parties accountable and prevent one party from unfairly shouldering the burden.
If you’re dealing with a similar situation, our skilled attorneys can advocate for your interests and ensure compliance under Nebraska's family law statutes. We will work closely with you to gather the evidence needed, address your concerns, and develop a strategy to provide a clear understanding of both your and your spouse's financial circumstances.
Contact Our Experienced Family Law Attorneys in Omaha, Nebraska, Today
Facing a divorce can be stressful, especially when unexpected challenges arise. If your spouse has recently quit their job just as you were filing for divorce, you don’t have to face this situation alone. Contact Abrahamson Law Office today to schedule a consultation.
Located in Omaha, Nebraska, we serve clients throughout Douglas County, Sarpy County, and the surrounding areas. Together, we can work toward a resolution that protects your interests and promotes a fair outcome. Call now.