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.

Why a Courtroom Divorce Can Be Complicated and Costly

If you and your spouse go to court, you will likely each hire your own financial expert to argue about how much income should be imputed. This often leads to:

• Confusing and Conflicting Reports: Your expert might say your investments generate very little income, while your spouse’s expert might claim they generate a lot.
• High Costs: Hiring two experts can become very expensive.
• A Judge Deciding for You: A judge will have to choose one side or come up with their own number, which may not feel fair to either of you.

All of this happens in a public courtroom where anyone could have access to your financial information.  Further, these traditional-style divorces are adversarial by there very nature, pitting spouse versus spouse, parent versus parent.

A Better Way: Using One Financial Neutral in Collaborative Divorce

In a Collaborative Divorce, you and your spouse work together with one financial professional who is neutral. This expert helps you both understand your investments and agree on a fair imputation of income.

• Transparency: The financial neutral gathers all relevant financial information so you both see the full picture.
• Lower Costs: Instead of paying for two competing experts, you share the cost of one.
• More Control: You and your spouse make the decisions, rather than leaving it up to a judge.
• Enhanced Privacy:  You and your Collaborative Divorce team hold all discussions privately and confidentially, and you do not have to file detailed financial affidavits if you both agree.
• Less Stress and Conflict: You focus on problem-solving instead of fighting in court.

Work with a Leader in Collaborative Divorce

At Family Diplomacy: A Collaborative Law Firm, you will work with a true leader in Collaborative Divorce. Adam B. Cordover has trained attorneys, financial professionals, and mental health experts in Collaborative Divorce throughout the U.S., Canada, Israel, and France. The American Bar Association published a book he co-authored on Building a Successful Collaborative Family Law Practice. He has also spoken at major international conferences to teach professionals how to help families like yours divorce in a healthier and more peaceful way.

If you want a more private, respectful, fair, and financially smart way to divorce, we can help. Contact Family Diplomacy today by clicking the button below.