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Imputed Income

Started by ABC, Sep 21, 2004, 06:34:39 AM

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ABC

I was downsized 19 months ago.

I have actively sought employment since that time.

I have hired an outplacement company to assist in my search. I have documentation of this and of the companies we have contacted and of the many thanks but nothing for you letters I have received.

The severance package given me requires that I not take employment with any company that may cause me to perform services at my prior employer. Further, I am restricted for 24 months in dealing with the technology I was involved with with my prior pemloyer.

The State I live in is heavily automotive and jobs at or near my previous level are hard to come by.

I have been working but my salary is 25% of what it used to be. (and it used to be big)

Ex is requesting income imputation.

I am struggling to make ends meet and have never missed payments EVER! in fact most of the time I am overpaid.

If I am forced to pay support on prior salary, I will loose my house and probably go to jail because I simply do not have the money.

I can't even afford an lawyer at this point. I am JUST making minimums and when I have topay property taxes I will be loosing ground.

Question

Do I have a prayer of surviving this?


Thank you in advance

socrateaser

>Do I have a prayer of surviving this?

I'm not religious, so my direct answer is no. ;-) Your facts are vague; you describe your prior salary as "big." My idea of a big salary is over $250,000 a year plus substantial benefits.

Your obligation is to prove a dedicated effort to obtain employment comensurate with your earning capacity. If you can prove many rejections, and you are currently working at 25% your present salary, then in my opinion, you have proven that your earning capacity is your actual income, i.e., 25% of what you used to earn -- which means that you don't need prayers to win -- your evidence should suffice.

On the issue of not being able to afford an attorney, it seems to me that you can't affort to not have an attorney, if the result is that you will save 75% of the child support you will be ordered to pay, should you screw up your case.

On a practical note -- what evidence does the other parent have to demonstrate that you are not working to your earning capacity?

Try not to be vague in your answer, please.


Ref

From your experience

1. Do the courts factor in the severance pay that you get?

2.If you get 3 months severance, does that mean that you can't get support lowered until 3 months is up?

socrateaser

>From your experience
>
>1. Do the courts factor in the severance pay that you get?

Depends on how much and how long. If the amount was so substantial as to permit you ongoing income from the severence as an asset, then yes, otherwise, no.

>2.If you get 3 months severance, does that mean that you can't
>get support lowered until 3 months is up?

If the support mod was filed prior to, or during the 3 months in which the severance was to be used, then the court could use it as a basis to assess retroactive support for the period from the filing date forward. If the mod was filed after the 3 months, then, unless the amount is large, i.e., more than $50K, then the court won't use it at all, and then, only as capital from which to derive interest income, to impute as earnings for the purposes of calculating child support. and, at today's interest rates, we're talking chump change.

ABC

OK  I will avoid vagueness.  

Big = 185,000 base plus incentive comp up to 135% based on predetermined performance measures.  last 3 years prior to downsizing were 85% 103% and 68%.  Additionally, on foreign assignments in obscuer locations like china, venezula, germany -  included all hosuing and personal protection expenses as well as return travel 3 times per year for entinr family.

I have 18 thanks you but no thank you letters,  I have documentation of over 100 directors/ ceo's and or other corporate officers that I have contacted directly to present myself and my qualifications.  I have documentation from "out placement" companies that I have worked with durring this time.  

when I state 25% i am talking 25% of prior base.  or 46,700 annual comp at present with no bonuses or other benefits.  This is based on contract work for companies that is 1099 income and a home based business that I have started.  

I have the contracts that clearly limit my re-entry into certain technical areas of employment that I was an expert in prior to "down sizing"

Former spouse - to the best of my knowledge - has nothing besides her belief that I would do anything to screw her and her hatred of me.  Perhaps she intendsto introduce into evidance that her assett to debt ratio has been negatively impacted by the change in support from 3,718 per month to 944 per month.  

By court order, any time I accepted a new position, I am to notify opposing counsel and notify of same.  O.C. in turn was to request an income review by the friend of the court.  THIS IS WHAT SHE WANTED.  It was her language she demanded in the order

The last round will reduce her support to $800.00 per month neighborhood.  So she has filed the imputed income motion.

PS.  Just because I can't afford an attny, doesent mean I would not retain one.  Your advice in this matter is dead on and I know that from experience.  Thank you for reminding me.


Thank You

socrateaser

>I have the contracts that clearly limit my re-entry into
>certain technical areas of employment that I was an expert in
>prior to "down sizing"

Contracts that prevent a person from earning a living at their chosen profession are generally unenforceable, unless the former employer shows that (1) your services are unique or extraordinary, and (2) that you will not be prohibited from any reasonable means of earning a living.

More than likely, the court will find that your children's need for adequate support outweighs the former employer's need to prevent you from earning a living at your earning capacity. I don't believe this issue has ever been confronted by an appellate court, however, mosts jurisdictions regard supporting one's children as the State's highest interest, and a parent's foremost obligation, therefore, I doubt that an employer would even attempt to enjoin you from working, because the bad publicity would be a windfall for the company's competition.

This may be a rationale that your ex or the FOC could use to claim that you are intentionally unemployed, i.e., you are using an unenforceable contract clause as an excuse to not work.

Not saying that you are -- just that your opponent may argue that you are.

Talk to a local civil attorney about the enforceability of your contracts.