My Spouse is Hiding income. Is that Imputed Income?

By Anthony C. Adamopoulos, Divorce Mediator and Collaborative Divorce Attorney

Yes, it may be. Imputed income is an amount that a judge assigns to your spouse when your spouse’s Financial Statement does not report the assigned income.This comes up when you are able to show the judge at least one of two types of evidence about your spouse’s real income.

In the first type, there is evidence showing your spouse spending way above his or her means. For example, your spouse is leasing a Ferrari at a monthly cost of more than half of his or her monthly income.

In the second type, your spouse receives reimbursements or employer payment for expenses that are not reported in his or her Financial Statement, for example per diem payments or cell phone payments.

If the judge accepts the evidence of unreported income, an amount representing the unreported income may be imputed, or assigned, to the non-reporting party.

However, in court litigation, you have to consider the consequences of disclosing unreported taxable income because the judge is obligated to report the matter to the IRS. If you filed joint returns, an IRS audit may hurt you in an unexpected way.

One of the many advantages to using Collaborative Divorce or Divorce Mediation is that the process is confidential and the parties can negotiate an agreement as to all money being earned.

© Anthony C. Adamopoulos 2019

Anthony is available to discuss and explain Collaborative Divorce & Divorce Mediation to private and public groups. Call for more information.

ANTHONY C. ADAMOPOULOS’ DIVORCE MEDIATION &

DIVORCE RESOLUTION SERVICES   

(978) 744-9591

ACABOSTON@AOL.COM

 

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