Imputing Income on Investments for Alimony & Child Support in a Florida Divorce
When you go through a divorce, how much income you and your spouse can earn may become important for purposes of calculating alimony or child support. If one or both of you have investments and savings—like stocks, rental properties, or savings accounts—these assets may count as income, even if they are not bringing in cash every month. This process is called imputing income on investments.
In a courtroom divorce, each of you would likely hire your own financial expert to argue about how much income should be counted. This often leads to a battle of “dueling experts,” which can be stressful and expensive. But in a Collaborative Divorce, you and your spouse can work with one neutral financial professional to come to a fair decision together.
What Does It Mean to Impute Income?
Imputing income means estimating how much money an investment could make, even if it is not currently earning income. For example:
- A rental property that is sitting empty could still be rented out, and the potential rental income can be counted.
- A stock portfolio may not pay dividends every year, but it has a history of earning money and growing in value.
- A savings account could be invested to earn interest instead of just sitting unused.
By imputing income, you ensure that all financial resources are considered when calculating support payments, helping both spouses and children receive the support they need.
