In high-asset divorce cases, disputes often turn on what is not obvious. This can, sometimes, include unreported income, deferred compensation or complex business distributions. Nonetheless, Florida courts can impute income when a party is under-reporting or voluntarily underemployed, which affects alimony and child support calculations.
Where the law starts
Alimony turns on statutory factors like need and ability to pay, the standard of living and financial resources. When income is obscured, courts may look beyond tax returns to lifestyle, bank activity and business records to determine ability to pay, which is explained in Florida Statutes, Section 61.08.
Imputing income and support
For child support, Florida’s guidelines allow courts to impute income when a parent is unemployed or underemployed, considering work history, qualifications and prevailing earnings. In high-income families, guideline calculations still apply, but courts can deviate when justified by the child’s needs and best interests, which is explained in Florida Statutes, Section 61.30.
Practice realities in complex cases
Tracing cash flow through K-1s, retained earnings or pass-through entities often requires forensic accounting. Forensic accountants and other financial experts can help in divorce cases to find these hidden assets. These experts, along with careful discovery and lawyering practice, can help to distinguish legitimate business decisions from attempts to shield support obligations.
If numbers do not align with your lifestyle or records, you do not have to take your soon-to-be ex-spouse’s word about it. Florida courts have tools to uncover true income and set fair support and alimony based on a reliable picture of finances.
