Imputation of Income in Illinois Divorce: What It Means and When Courts Apply It
Part 2 of 2
Illinois courts can “impute income” when a spouse or parent appears to be earning less than they reasonably could — or when their reported income does not match their actual financial circumstances. Imputation of income ensures fairness in child support, spousal maintenance, and support modification cases.
This updated guide explains what imputation means under current Illinois law, when courts use it, and how evidence is gathered to prove income that is being concealed or intentionally reduced.
What Does It Mean to Impute Income?
A court may “impute income” when it finds that the income a party reports is not credible, inaccurate, or lower than their true earning capacity. Imputation allows a judge to assign a reasonable income figure based on evidence such as:
- Prior income
- Employment history
- Educational background
- Job opportunities
- Lifestyle and spending patterns
- Unreported or cash earnings
Imputation plays a major role in Illinois child support cases now that the Income Shares Model (effective since 2017) requires accurate reporting of both parents’ incomes to calculate support fairly.
When Can Courts Impute Income? (Illinois Legal Standard)
Illinois courts consistently hold that income may be imputed when one of the following applies:
1. Voluntary Unemployment or Underemployment
A parent is capable of earning more but chooses not to work, chooses lower-paying work, or refuses reasonable employment opportunities.
2. Attempting to Evade a Support Obligation
A parent manipulates finances — such as hiding income, funneling money through third parties, or engaging in cash-only business practices — to reduce reported earnings.
3. Failure to Take Advantage of Employment Opportunities
A parent intentionally turns down well-paying jobs or refuses to maintain employment consistent with their skills and work history.
These standards remain consistent in 2025 and align with long-standing Illinois case law.
Examples of When Illinois Courts Impute Income (Summarized Case Law)
The following are simplified summaries of well-known Illinois appellate cases, rewritten for clarity and modern relevance.
Voluntary Unemployment or Underemployment
Courts may impute income when a parent leaves a stable job for riskier ventures or fails to maintain employment consistent with their skills.
Example (based on In re Marriage of Deike):
A parent left a long-term, higher-income job and started a failing business that paid very little. The court determined that parent could reasonably earn more and imputed income equal to their prior earning level.
Why it mattered:
Child support must reflect a parent’s true earning capacity, not the income of a short-lived business experiment.
Evading a Support Obligation
Courts impute income when a parent’s financial practices are clearly designed to minimize reported earnings.
Example 1 (based on Lichtenauer):
A business owner paid a large salary to his live-in girlfriend—who had no qualifying experience—and shifted company ownership to her on paper. The court found this structure was created to hide his true income.
Example 2 (based on Samfratello):
A restaurant worker claimed low wages for years but routinely deposited large amounts of cash into his personal bank account. His tax filings did not match his lifestyle or bank activity. The court imputed income based on evidence of cash earnings.
Why it mattered:
Courts can infer hidden income when spending patterns exceed reported income or when financial arrangements appear deliberately structured to disguise earnings.
Failure to Accept Reasonable Employment Opportunities
Courts may impute income based on available jobs a parent refuses.
Example (based on Hubbs):
A parent earning far below their prior income turned down a higher-paying job offer—one consistent with their experience. The court imputed income based on the salary the parent could have earned.
Why it mattered:
Parents are expected to pursue reasonable employment opportunities when support obligations are at stake.
How Do Courts Determine the Right Income to Impute?
Courts may rely on:
- Past income averages (often over three years)
- Employment history and qualifications
- Local job market data
- Evidence of unreported cash or business income
- Lifestyle indicators (travel, vehicles, spending)
- Business records, bank statements, or tax discrepancies
Judges do not need to identify the exact amount of hidden or unearned income — only enough to reasonably conclude that reported income is inaccurate.
How Discovery Helps Uncover True Income
Discovery tools commonly used to reveal hidden or understated income include:
- Subpoenas to employers or business partners
- Requests for tax returns and financial statements
- Bank and credit card statements
- Depositions of the obligor or third parties
- Analysis of cash deposits or unexplained expenses
- Business valuation in closely held companies
If the evidence suggests a parent is underreporting income, a court may impute income even without proving exactly where additional income originated.
How Imputed Income Affects Illinois Child Support (Income Shares Model)
Under Illinois’ Income Shares Model, imputed income directly affects:
- A parent’s share of the basic child support obligation
- Allocation of additional expenses (childcare, medical, educational)
- Shared parenting calculations (when parents have 146+ overnights)
- Modification of existing support orders
If the court imputes income, it uses the imputed amount—not the reported amount—when running the Income Shares calculation.
This prevents parents from benefiting financially from artificially low earnings.
Modern Examples of Imputed Income in Illinois Child Support Cases
These simple, practical examples help clients understand how imputation works today:
Example A: The Cash Business Owner
A parent claims to earn $30,000 per year but deposits $80,000 annually into personal accounts.
Result: Court imputes income closer to $80,000.
Example B: The Highly Skilled Parent Working Below Capacity
A software engineer earning $140,000 becomes a rideshare driver earning $35,000.
Result: Court imputes income based on prior experience and job availability.
Example C: The Parent Turning Down Reasonable Jobs
A parent repeatedly refuses well-paying job offers in their field.
Result: Court imputes income based on what they reasonably could have earned.
Frequently Asked Questions About Imputing Income in Illinois
Yes. Imputation applies to both spousal maintenance and child support calculations.
Courts consider health, disability, job market factors, and good-faith job searches before imputing income.
Not automatically—but if the court believes income was reduced by choice, imputed income is likely.
Often yes. If someone’s lifestyle exceeds their reported income, courts may infer they earn more than reported.
Yes. Support orders based on imputed income can be modified if circumstances change in a meaningful way.
Final Thoughts on Imputation of Income
Illinois courts impute income to ensure fairness when a parent or spouse is:
- Hiding income
- Underreporting earnings
- Voluntarily underemployed
- Refusing reasonable job opportunities
If there is sufficient evidence that reported income is inaccurate, the court may determine a more realistic earning level to calculate support.
Schedule a Case Review With Conniff & Keleher, LLC
If you believe income may need to be imputed in your child support or maintenance case, the attorneys at Conniff & Keleher, LLC can help. With offices in Chicago and Oak Park, we have the experience and strategies needed to uncover income, present evidence, and advocate for a fair support order.