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Attributing Income for Spousal Support in Arizona

Mon 2nd Dec, 2019 Arizona Alimony Laws

Sometimes a spouse may be concerned his or her spouse is intentionally reducing their income before or during a divorce in Arizona. This leads to the question about whether a court will attribute income for spousal support in Arizona. We are going to answer that question.

A Judge Can Attribute Income for Spousal Support in Arizona

A court may, in some cases, decide to attribute income in a spousal maintenance case if the court feels a person is unemployed or underemployed in an Arizona divorce.

In its published decision in Pullen v. Pullen, 223 Ariz. 293 (App. 2009), the Arizona Court of Appeals examined when to attribute income in a spousal maintenance case.

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Voluntary Under-Employment and Spousal Maintenance in Arizona

Husband and Wife were married in 1978. After 29 years of marriage, Wife filed a petition for dissolution of marriage and requested spousal maintenance.

Prior to her petition, the Wife was unemployed. At the time of trial, Wife was making $9.02 per hour, or $12,191 annually, as a special education teaching assistant. Prior to trial, Husband was a driver for FedEx in Kingman making $64,988 annually.

After Wife filed her petition, Husband voluntarily ended his employment at FedEx and moved to Washington. At the time of trial, Husband was employed as a driver in Washington making $15 per hour. Husband asserted that he chose Washington even though FedEx would not transfer him there and that due to the economy, he accepted a lower-paying job.

The trial court found that Husband was voluntarily underemployed, attributed him his income from FedEx, and determined that Wife was entitled to alimony of $1,000 per month for ten years. The husband appealed, arguing that the trial court applied the wrong standard for attributing his income and the evidence did not support the finding that he was voluntarily underemployed.

Balancing Test for Attributing Income in a Spousal Support Case

The Court of Appeals examined the Supreme Court’s prior decision in Little v. Little, 193 Ariz. 518, 975 P.2d 108 (1999) where it adopted an intermediate balancing test to determine whether to use actual income or earning capacity to calculate child support when a parent voluntarily reduces their income. 

The Five Factors a Judge Considers When Deciding Whether to Attribute Income for Spousal Support in Arizona

The Court of Appeals found that the following five factors should be used when applying the balancing test to a spousal maintenance case:

  1. The reasons asserted by the party whose conduct is at issue;
  2. The impact upon the obligee of considering the actual earnings of the obligor;
  3. When the obligee’s conduct is at issue, the impact upon the obligor of considering the actual earnings of the oblige and thereby reducing the obligor’s financial contribution to the support order at issue;
  4. Whether the party complaining of a voluntary reduction in income acquiesced in the conduct of the other party; and
  5. The timing of the action in question in relation to the entering of a decree or the execution of a written agreement between the parties.

The Court found that although the trial court did not expressly consider the five factors, the record supported the trial court’s decision under the five-factor analysis.

Weighing the Evidence to Attribute a Spouse’s Prior Income When Attributing Income for Spousal Support in Arizona

attributing income for spousal support in arizona

Husband also argued that the evidence was insufficient to show that he was voluntarily underemployed. The Court of Appeals disagreed and found that if the Husband wanted to move from Arizona, he could have transferred with FedEx to Nevada or California.

The Court found that it was within the trial court’s discretion to find that the Husband’s voluntary move to Washington was unreasonable, considering Wife’s pending maintenance needs.

Frequently Asked Questions & Answers

What does it mean for a court to “attribute income” in an Arizona spousal support case?

Attributing income means the court assigns a spouse an income amount they are capable of earning rather than their actual reported earnings. This is used when a judge finds a spouse is voluntarily unemployed or underemployed during a spousal maintenance case.

When can an Arizona court impute income for spousal maintenance?

An Arizona court may impute income when it determines a spouse is intentionally earning less than they reasonably could, such as by quitting a job, reducing work hours, or avoiding available employment without a valid reason.

Courts use a balancing test that evaluates whether it is fair to use actual income or earning capacity. This includes considering the reasons for unemployment or underemployment and the impact on both spouses in the case.

Can a spouse’s prior higher income be used to calculate spousal maintenance?

Yes. If a spouse previously earned more but later reduces income voluntarily, the court may use the prior earning level instead of current income if it finds the reduction is unreasonable or strategic.

What is voluntary underemployment in Arizona spousal support cases?

Voluntary underemployment occurs when a spouse chooses to work below their earning capacity without a legitimate reason, such as leaving a higher-paying job for personal preference or avoiding work opportunities.

How does voluntary underemployment affect spousal maintenance?

If a court finds voluntary underemployment, it may calculate spousal maintenance based on what the spouse could earn, not what they currently earn, potentially increasing the support obligation.

What type of evidence helps courts decide whether to attribute income?

Courts often look at employment history, work qualifications, past earnings, job availability, and whether the spouse could reasonably obtain similar employment again.

Why do Arizona courts consider earning capacity instead of only actual income?

Because courts want to prevent a spouse from unfairly reducing support obligations by intentionally lowering income, and instead ensure spousal maintenance reflects realistic earning ability.

The main principle is fairness—courts aim to base spousal maintenance on realistic earning potential rather than manipulated or reduced income when a spouse is capable of earning more.

Arizona Attorneys Handling Spousal Support Case Involving Attributing Income for Spousal Support in Arizona

If you have questions about attributing income for spousal support in an Arizona divorce case, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona community property and family law attorneys have decades of combined experience successfully representing clients in spousal support, divorce, and other family law cases.

Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine.

Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your Arizona community property or family law case around today.

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