California Child Support Earning Capacity and Support Orders

Child Support in California: Evaluating Earning Capacity

Child support in California is determined based on each parent’s circumstances and financial standing. When calculating child support, the court requires both parents to disclose their annual gross income. However, in cases where one parent claims that the other is intentionally earning less or has additional undisclosed income, the court may consider the parent’s earning capacity instead of their reported income. In this article, we will explore how the court evaluates earning capacity in California for child support cases.

What is Earning Capacity?

Earning capacity refers to a parent’s ability and opportunity to work and earn income. It is not solely based on their current income but takes into account their potential to earn based on factors such as education, training, work experience, job skills, and available job opportunities.

How Does the Court Evaluate Earning Capacity in California?

The court employs a comprehensive assessment to evaluate a parent’s earning capacity, which includes the following factors:

1. Education and Training

The court examines the level of education and training a parent has attained, as it significantly impacts their potential for higher-paying job opportunities.

2. Work Experience

The parent’s work history and experience in a specific field or industry are considered in determining their earning capacity.

3. Job Skills

The court assesses the parent’s job skills and expertise, which may affect their ability to secure higher-paying positions.

4. Ability to Work

The court looks into the parent’s physical and mental health to determine their ability to work and earn income.

5. Income-Producing Assets

Income-producing assets, such as rental properties, investments, and non-income-producing assets with potential returns, are considered in evaluating the parent’s earning capacity.

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6. Unearned Income

Unearned income, including disability benefits, trust income, royalties, or other distributions, may also be factored into the assessment.

Examples of How the Court Has Evaluated Earning Capacity

Let’s look at some hypothetical examples of how the court has evaluated earning capacity in child support cases:

Case 1:
The court found that the parent had the ability to work full-time, even though they were currently unemployed.

In this scenario, if the court determines that the parent is intentionally unemployed or underemployed to avoid child support obligations, they may impute income based on their potential to earn in a suitable job.

Case 2:
The court found that the parent had the ability to earn more money, even though they were currently earning minimum wage.

If the court determines that the parent is capable of earning a higher income based on their education, training, and work experience, they may impute income to reflect their earning capacity.

Understanding how the court evaluates earning capacity in California child support cases is essential for both parents involved. If you believe that your co-parent has an unreported earning capacity, you can present evidence to support your claim during court proceedings. Failing to disclose income or intentionally earning less can have legal consequences, including the court imputing income for child support purposes.

For expert guidance on child support and other family law matters, consult with our knowledgeable family law team at Naimish & Lewis. Our attorneys can provide personalized advice based on your specific situation. Schedule an initial consultation by contacting us today.

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Robert J. Allison, Esq.

Mr. Allison is a resolution-oriented associate attorney in our Family Law Practice. Even-keeled and fact focused, he is able to assist our clients understand their rights and obligations through the stress and smoke and mirrors presented in their divorce, custody, and domestic violence matters. During the initial consultation, and again once facts and evidence have been collected, Mr. Allison provides various strategies to help clients present their cases, considering cost, time, and client needs. He prides himself in not making false promises to his clients and is unafraid to speak the raw and sometimes harsh reality of how a Court will decide a matter given a specific set of facts and circumstances, both to his clients and to opposing parties. Many potential clients share that they are unhappy with their previous attorneys because they felt a lack of communication, an uncertainty about the family law process and timeline, and they do not understand the strategy in their case or the invoices they receive. While the legal process is complex, Mr. Allison attempts to reduce the confusion through a reasonable case management process involving client participation, because a family law case is often the most difficult period of time in a client’s life.