5. CALCULATING CHILD SUPPORT WITH FACED WITH HIDDEN OR UNDISCLOSED INCOME
Calculating the proper amount of child support under the guidelines is based on the assumption that both parents have fully disclosed their incomes. Unfortunately, some parents attempt to hide, artificially reduce or otherwise fail to disclose their true income. When this occurs, there are several options available to the other party.
(a) Discovery
Both parties to a child support proceeding are required to make certain financial disclosure. Mandatory disclosure includes financial affidavits, tax returns, pay stubs and W-2 forms. If either party believes the other party failed to disclose additional income, that party is free to engage in additional discovery for information. This includes an examination before trial (also called a deposition), interrogatories, and a request for documents. In some cases, this type of discovery may lead to additional clues as to actual income. The retention of a private investigator is also an option.
(b) Imputed Income
When a court determines that one party is earning less than they are capable of, such as when a party intentionally reduces his or her income, the court is empowered to impute additional income to that party and base child support on actual earning capacity. When the actual earning capacity is unknown, the court may impute income to a party if the proven expenses are greater than the stated income.
(c) Preclusion orders
In addition to the above, whenever a party fails to disclose required financial information, another penalty the court may impose is to preclude (prohibit) that party from offering any evidence at trial.
(d) Failure to Disclose needs based award of support
DRL 240 1-b(k) and Family Court Act 413(k) gives the court an additional remedy to deal with the failure to disclose. When one side, usually the non custodial parent, defaults or has presented insufficient evidence to determine income, the court may order child support based on the greater of either the needs or the standard of living of the child. In addition, if the income of the non custodial parent is later determined and the guidelines would have given a higher award, the custodial parent may obtain an upwards modification, retroactive to the date of the first petition, without a showing of a change in circumstances.
New York Child Support is continued at Part 3: Child Support Modification.
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