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Lifestyle
Woman talking on phone while standing outdoors, rolling her eyes and looking annoyed. svitlanah/Envato

My ex chose to take a $100K pay cut — just to spite me and slash my child support. What can I do?

Divorce is an emotional and expensive process. But many separating couples who share children do their best to protect their kids from that reality.

Unfortunately, for some, that’s not always possible. In fact, in 10% to 33% of separations, former partners may become involved in “severe, sometimes violent conflict that may persist for several years.”

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These divorces are considered “high conflict,” and they can involve one or both parties engaging in behaviors designed to punish their ex, even if it hurts everyone in the end.

Money advice that fits your real life.

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Say, Natalia and Gregory recently got divorced. The couple has three kids, and Gregory was a high earner, so he was ordered to pay a substantial amount of child support. Now, however, Gregory has suddenly opted to take a $100,000 pay cut. Natalia suspects he’s made this move just to spite her and reduce his child support.

Fortunately, if that’s really the case, the law protects Natalia and her kids from exactly this type of behavior.

Gregory can’t just cut his child support

The first piece of good news for Natalia is that a pay cut doesn’t mean child support automatically declines.

“A parent can’t unilaterally reduce court-ordered child support because their paycheck got smaller. They have to ask the court to modify the order,” Katherine Miller, managing partner and founder at Miller Law Group told Moneywise. “The other parent can oppose that request and present evidence that the drop in income was intentional.”

R. Deno Cole, an attorney at Cole, Guindi & Pienkowski agreed, commenting, “If a child support order is already in place and a parent wishes to reduce the amount, the burden is on that parent to prove a ‘material change’ in income or other circumstances. A parent cannot simply decide to pay less on their own. They must return to court and obtain a modification.”

Cole explained that there are serious consequences if Gregory simply reduces the payments on his own. “Failing to pay the ordered amount can result in a judgment for arrears and a finding of contempt, which may lead to fines or even incarceration.”

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Voluntary underemployment doesn’t lead to a lower support bill

Should Gregory decide to persist in his plan and go to court to ask for a reduction on the basis of his lower income, if he really did reduce his income for purposes of avoiding support, his request is likely to be unsuccessful.

“I once represented a dentist who earned well over $100,000 a year in his divorce,” Cole said. “He was frustrated that he would have to pay the maximum child support amount and threatened to leave dentistry to work as a carpenter or a fast-food clerk. I advised him that his wife’s attorney would have a strong argument that he was ‘voluntarily underemployed.’”

Cole explained that when someone purposefully lowers their income to avoid their obligations to their kids, just as his client considered and as Gregory is trying to do here, “the court could still base his child support obligation on his earning capacity as a dentist rather than on whatever lower wages he chose to accept.”

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Miller confirmed, telling Moneywise, “If a parent deliberately takes a pay cut to avoid paying child support, the court can ‘impute’ income. That means the judge can calculate support based on what that parent was earning before the pay cut. The risk for the parent who takes the cut is that they could end up earning $100,000 less and still owe the same amount in child support.”

Miller also said that if Gregory is working “off-the-books” or hiding income, there’s a way to address that as well.

“One option is a lifestyle analysis,” she said. “If someone says they make $10 but they’re spending $100 and they’re taking on no debt, the obvious question is where the money is coming from. A judge can consider what it costs to maintain that lifestyle when deciding how much income to impute.”

Miller acknowledged that all of this legal fighting, especially the lifestyle analysis, could come at a financial cost in the form of high legal fees and an expensive evidence-gathering process. Still, it may be a necessary solution if Gregory is really committed to trying to avoid support.

“It can be expensive to build that case, but it’s a way to make the argument when pay stubs and tax returns don’t tell the whole story,” she said.

Natalia should take comfort in the fact that Gregory’s plan is likely to be foiled. And, as Cole urged, “If the other parent stops paying child support or begins paying less than the court ordered, you should promptly seek enforcement through your local child support office, a private attorney, or both.”

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Christy Bieber Contributing Writer

Christy Bieber is a US based personal finance and legal writer who has 15 years of experience. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.

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