Financial disputes are a part of the separation process. It can impact child or spousal support calculations, potentially leaving basic needs unmet. These arise because of false or intentional income manipulation, but you can take steps to correct them.
Our Whitby-based family law firm is here to help you understand your rights and guide you through the process of imputation of income to ensure fair outcomes.
What is imputation of income?
Imputation of income happens when the court assigns a specific income to an individual for calculating child or spousal support, regardless of their actual earnings. This means that the payor parent may be voluntarily unemployed or underemployed.
When is Income Imputed?
Common circumstances where income is imputed include:
- Deliberate unemployment or underemployment: When payor chooses to work fewer hours or in a lower-paying role without valid reasons, such as health issues or caregiving responsibilities
- Non-disclosure of income: Fails to provide complete financial documentation or hiding sources of income
- Unrealistic expenses or deductions: Claims excessive business expenses or deductions that reduce reported income unreasonably
- Lifestyle inconsistencies: Displays spending patterns that suggest a higher income than what is declared
- Income from assets: Undervalues income generated from investments, rental properties, or other assets
- Voluntary early retirement: Chooses retirement without reasonable justification while still having support obligations
- Income potential in another field: When someone earns less by not pursuing a role they are qualified for or capable of performing
Ontario courts demand extensive documentation to support your income imputation claims. Our family lawyers will help you prepare your case with the evidence needed for a fair outcome. Book a consultation today.