When it comes to income, divorce facts men need to know include understanding how their earning might affect the court’s determinations for support and property division. While all state laws are not the same, most state laws are drafted with the intention of providing an equitable division of property and income following a divorce. Equitable does not mean 50% to each spouse. Equitable means that the end result will be fair for both parties. If one spouse has the potential to earn a higher income over his lifetime, that is a consideration in establishing spousal support, child support as well as property division.
Earning Power is Harder to Establish in a Bad Economy
A man (or woman) who is unemployed at the time of his divorce may be assigned his prior income when the court establishes spousal maintenance and child support amounts. Courts look at earning power for both spouses when establishing an equitable property division and setting support. A court may not look at income at the time of the divorce because a spouse could be underemployed or even unemployed simply to avoid paying support or to mislead the court by presenting a lower income than s/he had prior to the divorce. To determine a person’s “earning power” the court looks at the income one has earned in the past as well as opportunities for the future. Historically, a person’s earning power could be established by looking at income and opportunities, but it is extremely difficult in the current market where so many people are underemployed and simply are not able to earn as much as they might have earned in the past.
Earning Power Effects on Support
Child support is often based on a calculation which considers how much income each parent is capable of making and the monthly living expenses each parent has. There are different calculations in different states, but earning power, or imputed income, is often used to help courts determine a reasonable expectation for income for both parents. Similarly, when establishing spousal support, a court must look at earning power (or potential) and guess as to how long or how much support is appropriate for a spouse based on the work history and education of both parties.
Earning Power Effects on Property Division
Property division might also hinge on earning power because a spouse with less earning power may be awarded more investment accounts or retirement assets to make up the projected difference in ability to provide for future expenses. Whether a court will consider earning power in property division matters will depend on how the law is written in any given state.
Talk to an Attorney for Advice
An experienced family law attorney can work with a man to determine possible earning power amounts based on a man’s work history, education and opportunities. An experienced attorney can also argue within the limits of the law for the court to use a man’s current income rather than impute a higher amount when a man may not be able to make what he had made in the past.
