Income Imputation in Virginia Support Cases

Introduction

In Virginia, when calculating child or spousal support, courts may assign a higher income to a party than they currently earn, a process known as ‘imputing income.’ This tool is used to prevent individuals from avoiding their financial obligations by voluntarily remaining unemployed or underemployed. Whether a court chooses to impute income is highly fact-specific and rooted in a detailed review of each party’s earning potential and employment history.

 What is Income Imputation?

Imputing income involves treating a party as if they earn a certain amount, even if they do not. This typically occurs when a party is found to be voluntarily unemployed or underemployed. Virginia courts look first at present income, but when that income does not reflect a party’s true earning capacity, the court may assign an income that better aligns with what the party should be earning. Importantly, courts cannot compel someone to seek specific employment; they can only calculate support as though the person already earns that higher amount. Under Virginia Code § 20-108.1(B), a court may impute income based on several factors, including a party’s education, work history, earning potential, and access to childcare. This decision lies within the trial court’s sound discretion.

Voluntary Unemployment and Underemployment

A party may be deemed voluntarily unemployed if they choose not to work despite being capable of doing so. If a person quits their job without cause or is fired due to misconduct, courts may infer that their lack of employment is voluntary. For example, in Parham v. Parham, the Court of Appeals affirmed imputation where a party lost his job due to his own neglect. Voluntary underemployment involves individuals who are employed, but not at the level their background and skills would allow. Courts consider the person’s education, qualifications, and employment opportunities.

Involuntary Employment Status

Not every reduction in income leads to imputation. A party may rebut the presumption of voluntariness by showing good reason for their employment status. For example, under Code § 20- 108.1(B)(3), courts cannot impute income to a custodial parent when appropriate child care is unavailable and not factored into support calculations. Likewise, since 2022, incarceration of 180 or more days is no longer considered voluntary unemployment and is grounds for support modification.

Vocational Experts and Earnings Potential

In cases where a party’s earning potential is disputed, a vocational rehabilitation expert may be brought in to assess employment prospects. These experts evaluate education, experience, and the local job market to offer testimony on what the party is realistically capable of earning. Even with compelling evidence, income imputation is never guaranteed. In Morrison v. Morrison, the Court upheld a trial court’s decision not to impute income to a wife who had a law degree but had never practiced, and had homeschooled the children at the husband’s request. The Court deferred to the lower court’s discretion given the unique family circumstances.

Smith Strong Can Help

Disputes over voluntary unemployment, career changes, or caregiving responsibilities can significantly affect your support obligations. Whether you are seeking a fair support order or defending against imputation, our experienced family law attorneys at Smith Strong, PLC will guide you through the process and fight for a result that reflects your true financial situation. Call our Richmond office at (804)-325-1245 or our Williamsburg office at (757) 941-4298 to schedule a consultation today.