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Appellate Division required further evidence to justify imputed incomes and recalculated child support. Pilkington v. Pilkington, 185 A.D.3d 844 (N.Y. App. Div. 2020)

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In this case, the appellate court reviewed the child support determination made by the Supreme Court, Nassau County. The trial court’s judgment imputed income to both parties and set child support obligations accordingly. On appeal, both parties challenged the trial court’s findings regarding imputed income and the resulting child support calculation.

Background Facts
The parties were married in 2003 and have two children, born in 2006 and 2007. After the plaintiff filed for divorce in 2013, the parties resolved custody and parenting time matters but left financial issues to the trial court’s discretion. The trial court decided these issues based on submissions from the parties in lieu of a full trial.

In its December 6, 2016 judgment, the trial court:

  • Imputed an annual income of $85,000 to the plaintiff, based partly on contributions from his fiancée and income from side jobs.
  • Imputed an annual income of $25,000 to the defendant, based on her limited work history and family contributions.
  • Ordered the plaintiff to pay $1,770 per month in child support.

Both parties appealed. The plaintiff argued that the imputed income overstated his earning capacity, while the defendant contended that her imputed income was too high and that the plaintiff’s income was underestimated.

Question Before the Court
The appellate court considered whether the trial court properly imputed income to the parties and whether the child support obligation was calculated correctly under the Child Support Standards Act (CSSA).

Court’s Decision
The appellate court modified the child support determination, finding that the imputed incomes were not adequately supported by the record. It deleted the child support award of $1,770 per month and remitted the issue to the Supreme Court, Nassau County, for a hearing to:

  1. Determine the appropriate amount of income to impute to each party based on clear evidence.
  2. Recalculate the child support obligation under the CSSA after establishing the parties’ imputed incomes.

Pending the recalculation, the appellate court directed the plaintiff to continue making temporary child support payments of $812.19 per month.

Discussion

  1. Imputed Income: Courts may impute income when a party’s actual reported income does not reflect their earning capacity or financial circumstances. Factors include employment history, earning potential, and contributions from third parties. In this case, the trial court imputed income to both parties, but the appellate court found the record lacked sufficient evidence to support the specific amounts.
    • The court agreed that the plaintiff’s income should reflect contributions from his fiancée and side jobs but found that the exact imputation required further evidence.
    • The defendant’s imputed income was based on her family’s financial support and limited employment history. However, the appellate court determined that $25,000 might not accurately represent her financial situation.

    A hearing was ordered to develop a clearer record of each party’s income and earning capacity.

  2. Child Support Calculation: Under the CSSA, child support is calculated by applying a statutory percentage to the combined parental income up to a specified cap. For combined income above the cap, courts may consider several factors, including the children’s needs, the standard of living during the marriage, and the parents’ financial resources. The trial court’s calculation included imputed incomes but did not clearly explain its methodology, prompting the appellate court to require further proceedings.
  3. Temporary Support Payments: To ensure continuity, the appellate court directed the plaintiff to continue paying $812.19 per month in temporary child support until the matter was resolved. This amount was based on a prior temporary order and did not prejudice the final determination.

Conclusion
The appellate court’s decision highlighted the need for clear evidence when imputing income and calculating child support. By remanding the case for further proceedings, the court ensured that both parties’ financial circumstances would be accurately assessed, and the child support obligation would be fair and in compliance with statutory guidelines.

Child support disputes require careful analysis of financial details and legal standards. For assistance with child support matters or other family law issues, contact Stephen Bilkis & Associates to consult with an experienced New York child support lawyer.

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