Earnings
Capacity of Unemployed Spouse
by
James P. Reape
Trial Courts may consider
earnings capacity of a parent when calculating child support. The
most recent case on this issue involved the divorce of Aisha and
Howard Hinman. The Hinmans are apparently regulars at the Court
of Appeal, First Appellate District. This latest case was their
eighth request for review of their divorce court orders.
Back in April of 1990,
based upon an agreement of the parties, judgment was entered awarding
Aisha and Howard joint physical legal custody of their five children
who were to continue residing in the family home with Howard. Because
of continuing controversies between the parties, the orders were
modified on various occasions. The most recent order in that regard,
granted sole legal and physical custody of the children to Howard
and allowed Howard to relocate with the children to Indiana. Aisha
was awarded supervised visits with the children in Indiana.
A year an a half after
the custody order, Howard filed an order to show cause requesting
child support based upon Aisha's earnings capacity. Howard requested
the court impute income to Aisha based upon her earnings capacity.
To support his request, he prepared a declaration stating that she
was earning, $44,000.00 annually while employed with Kemper Insurance
before the dissolution and $38,400.00 most recently with California
Casualty. Aisha made this job change because of pending spousal
and child support proceedings.
Howard also supported
his request with previous income and expense declarations submitted
by her to the trial court. Aisha's resume indicating her bachelor
degree in computer science, significant employment experience in
the computer field and letters from two employment agencies indicating
her potential earnings of between $35,000.00 and $50,000.00 annually.
Various letters from Aisha's previous employers showed satisfaction
with her work.
Aisha opposed the request
for child support, stating that she had not worked in over four
years and had three children all under the age of three years old
for whom she cared for exclusively. Despite Howards assertions to
the contrary, she remarked that she would be unable to work at any
of the jobs she has held in the past at that time.The trial court
granted Howard's request, stating:
"She can't just
quit work and create a new family and then use that as an excuse
to escape her responsibility to these other children. She is a very
bright woman. I have seen her testify numerous times, and she is
very educated... So I am going to impute some income to her..."
Aisha Appealed contending
that the trial court could not impute income to her unless she were
deliberately avoiding financial family responsibilities. The Appellate
Court stated that while prior law in this area seemed to support
Aisha that the law was significantly changed, first with the AGNOS
Child Support Standards Act of 1994.
Currently Family Code,
Section 5058(b) states:
"The Court may,
in it's discretion, consider the earning capacity in lieu of the
parents income, consistent with the best interest of the children."
The Appellate Court
found in reviewing cases an emerging consensus that the only limitations
against imputing income to an unemployed or underemployed parent
in fact has no earnings capacity or relying on earnings capacity
would not be consistent with the children's best interest. Bad faith
is not a condition precedent to imputation of income in setting
the amount of child support. So therefore, the subjective motivation
for reducing available income is irrelevant to the Courts ability
to consider the earnings capacity of the parent. The Court when
exercising its discretion amy consider arguments concerning the
parents actions in light of all relevant circumstances.
As to those three other
children, the court stated:
"We are not unmindful
that imputation of income to an unemployed spouse may place a significant
burden on that spouse or those with whom the spouse creates a new
family which includes very young children. We also note again that
Aisha had five children in her marriage to Howard, all of whom are
in Howard's custody and most of whom are minors...We are in agreement
that a child support obligation must be taken into account whenever
the obligor wishes to pursue a different lifestyle of endeavor...
child... support is an overhead which must be paid first before
any other expenses... a payor does not have the right to divest
himself (or herself) of his or (her) earning ability at the expense
of... minor children."
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