Hiding income as a means of reducing child support payments in New Jersey is a violation of family law and can result in sanctions. Actions like underreporting earnings, remaining voluntarily unemployed, and hiding assets can result in the New Jersey Courts imputing income.
Can a Parent Hide Income to Reduce Child Support in New Jersey?
No, parents in New Jersey are prohibited from intentionally hiding assets, underreporting their income, or avoiding employment as a means of reducing child support payments. As such, New Jersey can penalize parents who:
- Conceal income
- Underreport wages
- Manipulate self-employment income
- Voluntarily remain unemployed
- Transfer assets to avoid paying child support
What Is Voluntary Underemployment in New Jersey Child Support Cases?
Voluntary underemployment occurs when a parent intentionally earns less income than what is reasonably expected as a method of reducing child support payments.
What May Be Considered Voluntary Underemployment?
New Jersey courts may consider the following as evidence of intentional underemployment:
- Refusing available job opportunities
- Intentionally reducing working hours
- Leaving employment without justification
- Delaying promotions
- Rejecting higher-paying opportunities
What Can Courts Do if a Parent Is Voluntarily Underemployed?
The New Jersey Family Courts may impute income based on the parents:
- Education
- Employment history
- Past income
- Job qualifications
- Earning capacity
- The job market at the time of the evaluation
What Are Common Methods Used to Hide Income During Child Support Cases?
Parents looking to reduce their child support payments often use several methods to conceal assets and hide income to make it look like they have fewer resources than they actually do.
Can Cash Payments Be Used to Hide Income?
Yes, cash payments may be used to hide income. Some parents request this to reduce financial records and wage documentation.
Can Self-Employment Be Used to Conceal Income?
Potentially. Self-employed individuals may conceal income by:
- Underreporting earnings
- Inflating their business expenses
- Deducting personal costs as business expenses
Can Bonuses or Promotions Be Delayed?
Yes. A parent may intentionally postpone:
- Bonuses
- Commissions
- Promotions
- Deferred compensation packages
This may temporarily reduce reported income during support proceedings.
Can Unemployment Impact Child Support Obligations?
Yes, in New Jersey, unemployment can impact child support obligations. However, courts may still impose support obligations if a parent intentionally avoids employment or refuses otherwise reasonable work opportunities.
What Evidence Can Help Prove Hidden Income in New Jersey?
If you suspect your ex-spouse is hiding income to avoid their child support obligation, gathering strong financial evidence is critical to support your claims.
What Financial Records Can Reveal Hidden Income?
Important records can include:
- Tax returns
- Bank statements
- Pay stubs
- Cash-transfer records
- Credit card statements
- Business expense reports
- Investment account statements
Can Lifestyle Evidence Be Used to Prove Hidden Income?
Yes. In New Jersey, family courts can consider whether a parent’s reported income is consistent with the lifestyle they have. Examples include:
- Luxury purchases
- Expensive vacations
- Investing in high-value real estate
Can a Forensic Accountant Help Identify Hidden Income?
In New Jersey, a forensic accountant can help examine a number of financial documents to look for inconsistencies and other signs of concealed income or hidden assets.
What Financial Issues Can a Forensic Accountant Investigate?
A forensic accountant can examine:
- Business revenue
- Account statements
- Expense manipulation
- Tax filings
- Cash-flow irregularities
What Happens if a Parent Lies About Income in New Jersey?
Parents who lie about their income, remain voluntarily unemployed or underemployed, or provide fraudulent financial disclosure can face intense legal consequences imposed by the courts.
What Penalties Can the Courts Impose?
New Jersey courts may:
- Impose financial penalties
- Award attorney fees
- Hold a parent in contempt of court
- Order the payment of outstanding support
- Increase child support obligations
When Should You Speak With a New Jersey Child Support Lawyer?
If you believe your spouse is hiding assets as a means of avoiding their child support obligations in New Jersey, working with an attorney with Paone, Zaleski, & Murphy is in your best interest. We understand how frustrating these matters may be, which is why we will do everything possible to assist you. Contact us today.
