There are numerous scenarios in which child support can become complex, including cases when parents have very high incomes or compensation that varies from year to year. If this is your situation, you are likely wondering, “How do courts handle imputed income for high earners in Texas support?” It depends on whether there is evidence that a parent is voluntarily unemployed or underemployed and on a parent’s ability to earn income.
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The Law Office of Ben Carrasco, PLLC, focuses solely on family law, so we understand Texas child support laws. Ben Carrasco has been board-certified in family law and earned his law degree at Stanford. We take pride in providing clients with personal service from their attorney through every step. If you are looking to hire a child support lawyer in Austin, Texas, call today to schedule a consultation.
High-income earners often receive compensation through business income, bonuses, or commission. Complex financial records and income disparity are just some of the issues we commonly see in high-income support cases.
Understanding Imputed Income
Imputed income is income that the court assigns to a parent for child support purposes, despite the parent not actually earning that amount of income.
Income can be imputed to a parent instead of basing child support calculations on current income if a court finds that they could be earning more. A court may look at a parent’s:
- Education
- Employment history
- Work experience
- Professional licenses
- Special training
- Skills
- Available job opportunities
Child support issues can be greatly impacted by employment conditions. Texas had a 4.3% unemployment rate in May 2026, according to the U.S. Bureau of Labor Statistics. This means that courts may carefully consider whether a parent’s lower income is the result of voluntary work choices or more general economic difficulties.
Courts do not impute income to punish parents for quitting a job or suffering a downturn in financial fortune. Instead, imputed income allows courts to treat parents according to their ability to earn when the evidence shows that it is appropriate to do so.
When Texas Courts Can Impute Income
Imputed income laws, such as Texas Family Code § 154.066, allow courts to apply child support guidelines to imputed income if a parent is voluntarily unemployed or underemployed. However, when deciding if a parent is deliberately not working or working less than they could, a court must look only at that parent’s ability to find work and their past employment.
Essentially, whether income should be imputed is fact-dependent. Some cases where courts have imputed income include when a parent:
- Quits a high-paying job
- Chooses to work fewer hours without a good reason
- Accepts a lower-paying job, despite having the skills and experience to earn more
However, parents do not automatically become underemployed if they earn less income than they did in the past. Parents may have:
- Been laid off.
- Suffered from health issues.
- Lost a business.
- Been affected by an economic recession.
- Experienced any number of changes that impacted their income.
Courts tend to examine the reason why income has decreased, as opposed to looking strictly at the current income amount.
Hire a Child Support Lawyer to Assist With Income Issues
Many people wish to hire a child support lawyer when they learn that high-income earners face far more calculations than typical child support cases.
Documentation that may be used to decide if income should be imputed can include:
- Employment records
- Tax returns
- Business records
- Compensation agreements
- Financial statements
A child support attorney who frequently handles such cases can:
- Appraise your evidence.
- Discuss any disagreements on income amounts.
- Present information to help the court rule on imputed income, per the Texas child support guidelines.
Imputed Income Cases in the Austin Area
Austin has a wide range of executives, tech professionals, healthcare employees, entrepreneurs, and small business owners. Bonuses, equity packages, and self-employment income can cause income to go up or down significantly, depending on the year. Westlake Hills, Bee Cave, Lakeway, Round Rock, and Dripping Springs parents may earn irregular income from these sources.
Child support cases in Travis County are typically heard in the Travis County Civil and Family Courts Facility, located at 1700 Guadalupe Street, Austin, TX 78703. If the parents live in another part of the Austin area, cases may be filed in either Williamson County or Hays County.
FAQs
Can Imputed Income Be Used in a Child Support Modification Case?
Yes, imputed income could be used in a child support modification, such as when one parent alleges that the other parent has been voluntarily underemployed since the time of the order. The court’s decision on whether to substitute earning potential for actual income, as per Texas law, may hinge on its review of present conditions, job history, and the available evidence.
Does Receiving Severance Pay Prevent Income From Being Imputed?
Receiving severance pay may not prevent income from being imputed. Severance can replace income for a period of time following a job termination, but that does not dictate whether income may be imputed by the court. If a parent is looking for similar work or has been terminated from a job through no fault of their own, those are two factors the court may take into account when assessing their ability to earn and determining future support.
Can Relocation Affect Whether Income Is Imputed?
Yes, relocation may affect whether income is imputed. If a parent moves and takes a lower-paying job, the court may look at whether that move was reasonable. It will decide this based on the job opportunities for the parent, the needs of your family, and the availability of similar work at the new location. All these factors can determine whether the court uses actual income or their potential to earn.
Can a Parent Challenge an Imputed Income Decision?
Yes, a parent can challenge an imputed income decision. Evidence can be provided that lower earnings were due to factors outside the parents’ control, instead of being voluntarily unemployed or underemployed. Medical documentation, job search records, employment market information, and other financial evidence can be brought to prove the parent’s case at the child support hearing.
Protect Your Future Today
Imputing income can cause complexities in a child support case. The Law Office of Ben Carrasco, PLLC, can help. Contact us right away to learn about your rights.
