If you’re facing an alimony issue or child support matter, you may be wondering what your options are if your spouse or the other parent is alleging income that doesn’t seem to add up to what they used to earn or could be earning. Importantly, courts in Maryland “impute income” to make sure a fair support order is entered when the spouse’s income is lower than their skills. It’s essential to understand what imputing income means in your case, how judges determine when this applies, and how the standard differs between child support and alimony.

Key Takeaways

• Maryland courts may calculate a support obligation based on a party’s reasonable earning potential (rather than their actual reported income) if it is determined that the party has voluntarily impoverished (intentionally reduced their income) themselves to avoid support obligations.
• When deciding whether to impute income for child support, courts evaluate various factors, such as the parent’s age, skills, physical condition, and assets. There are specific statutory exceptions for parents with disabilities or those caring for a child under the age of two.
• Unlike child support, which requires a finding of voluntary impoverishment, alimony determinations are more discretionary. Courts weigh earning capacity with a number of other statutory factors, such as marriage length and the ability to become self-supporting.

What Does “Imputing Income” Mean in Maryland?

Maryland courts don’t have to take the word of a spouse or parent who is a party to a support case when it comes to what they earn. “Imputing income” means the court calculates support based on what someone could reasonably be earning, not just what they claim to earn or what their income is at the time.

Specifically, Maryland courts consider whether a party “voluntarily impoverished” themselves in an attempt to avoid support obligations. This means a court assesses whether it was the party’s free and conscious choice to be without adequate resources, not based on factors beyond their control. While Maryland courts have been building on this concept with case law for decades, the definition of involuntary impoverishment for child support was codified in 2022.

How Courts Decide Whether to Impute Income for Child Support

A parent cannot avoid paying child support by simply refusing to work. To determine whether income should be imputed in a child support matter, Maryland courts generally consider the following factors:

• The parent’s age, physical and behavioral condition, educational level, special training or skills, and residence.
• The parent’s occupational qualifications, employment history, record of efforts to obtain employment, and any criminal records or barrier to employment.
• The parent’s assets
• The parent’s actual income from all sources
• Any other factors that impact a parent’s ability to gain funds for child support

A judge is not required to walk through every factor on the record. However, their findings must be supported by some competent evidence. In addition, there are two statutory exceptions to the income imputation rule that should be noted. Maryland courts cannot impute income for a parent who is unable to work due to physical or mental disability, or for a parent who is staying at home to care for a child under the age of two for whom both parents share responsibility.

Imputing Income for Alimony: A Different, More Flexible Standard

Alimony works differently from child support in Maryland. There is no fixed guideline formula that determines the amount or whether income should be imputed. When determining whether to impute income for alimony, a court weighs each party’s earning capacity as one of the statutory factors set forth under Md. Code Fam. Law § 11-106, along with the duration of the marriage, the parties’ standard of living, and each spouse’s ability to become self-supporting. In contrast with child support (which requires a specific finding of voluntary impoverishment first), a court may exercise its discretion to consider a party’s potential income while weighing the statutory alimony factors.

What This Means If You Suspect Hidden Income, or Worry Income May Be Imputed to You

If you are involved in a support matter and suspect the other side is underreporting their income, it’s crucial to build a solid case to present in court. Job postings in the relevant field, the other party’s resume or LinkedIn history, and past paystubs or tax returns can all be relevant evidence to show voluntary impoverishment. In high-conflict cases, a vocational expert’s evaluation may be necessary.

Similarly, if you are the party who is concerned that income may be imputed to you, it’s important to be prepared with a strong argument. A genuine layoff, health issue, family caregiving responsibility, or honest career change is usually treated very differently by courts than a deliberate cutback in hours that is strategically timed around a support case. The record should reflect that any reduction in income was based in good faith, rather than an attempt to avoid a support obligation.

While income disputes are common in divorce and family law matters, they do not always need to be decided in the courtroom. Mediation can be a useful tool that helps the parties reach an agreement between themselves, rather than let a judge determine the outcome.

Contact an Experienced Maryland Divorce and Family Law Attorney

If you are facing a child support or alimony matter that involves imputing income, it’s vital to have a skilled attorney by your side to ensure your rights are protected. Lindsay Parvis is committed to helping clients navigate a wide range of divorce and family law matters, whether they are resolved with mediation, negotiation, or in litigation. Contact Lindsay Parvis today to schedule an appointment to discuss your case.