2.01(G) Potential Income
When a parent is voluntarily unemployed or underemployed, or has an unexercised ability to earn, income includes the potential income that parent could earn, subject to that parent’s actual ability.
(1) The amount of potential income imputed should be sufficient to bring that parent’s income up to the level it would have been if the parent had not voluntarily reduced or waived income.
(a) The amount of potential income imputed (1) should not exceed the level it
would have been if there was no reduction in income, (2) not be based on more than a 40 hour work week, and (3) not include potential overtime or shift premiums.
(b) Imputation is not appropriate where an individual is employed full time (35 or more hours per week) but has chosen to cease working additional hours (such as leaving a second job or refusing overtime). But actual earnings for overtime, second job, and shift premiums are considered income.§2.01(C)(1).
(2) Use relevant factors both to determine whether the parent in question has an actual ability to earn and a reasonable likelihood of earning the potential income. To figure the amount of potential income that parent could earn, consider the following:
(a) Prior employment experience and history, including reasons for any
termination or changes in employment.
(b) Educational level and any special skills or training.
(c) Physical and mental disabilities that may affect a parent’s ability to obtain or maintain gainful employment.
(d) Availability for work (exclude periods when a parent could not work or seek work, e.g., hospitalization, incarceration, debilitating illness, etc.).
(e) Availability of opportunities to work in the local geographical area.
(f) The prevailing wage rates in the local geographical area.
(g) Diligence exercised in seeking appropriate employment.
(h) Evidence that the parent in question is able to earn the imputed income.
(i) Personal history, including present marital status and present means of support.
(j) The presence of the parties’ children in the parent's home and its impact on that parent’s earnings.
(k) Whether there has been a significant reduction in income compared to the
period that preceded the filing of the initial complaint or the motion for
modification.
(3) Imputation of potential income should account for the additional costs associated with earning the potential income such as child care and taxes that a parent would pay on the imputed income.
(4) The court makes the final determination whether imputing a potential income is appropriate in a particular case.
