Imputation of Income for Underemployed or Unemployed Spouses

Section 19(1)(a) of the Federal Child Support Guidelines and Peters v. Atchooay, 2022 ABCA 347

In family law, determining a proper child support amount can be complicated. In Jordan Lantz’s prior blog post, he explained the concept of Guideline Incomes. This blog keys in on determining Guideline Incomes when one parent is underemployed or unemployed. Under Section 19(1)(a) of the Federal Child Support Guidelines, the court may impute income to a parent who is intentionally not working or earning less than they are capable of. This post will clarify when and how the court can apply imputed income in child support calculations, based on the case Peters v. Atchooay.

Section 19(1)(a): The Legal Framework

Section 19(1)(a) allows the court to impute income to a spouse when that spouse is intentionally underemployed or unemployed. However, the law recognizes exceptions where underemployment or unemployment may be necessary for the child’s needs, the spouse’s reasonable education, or health needs. Specifically, the court may only impute income when:

• The underemployment or unemployment is intentional, not caused by involuntary circumstances like layoffs or medical issues.
• The underemployment does not arise from the reasonable needs of a child or the spouse’s education or health.

The Three-Part Test from Peters v. Atchooay

To determine whether imputation of income is appropriate, the Alberta Court of Appeal in Peters v. Atchooay set out a three-part test:

• Is the Parent Intentionally Underemployed or Unemployed?

The court will only impute income if the underemployment or unemployment is voluntary. If a parent’s inability to work is involuntary (e.g., job loss, reduced hours), income may not be imputed. However, the court may still impute income if prolonged underemployment or unemployment becomes unreasonable.

• Do the Exceptions Apply?

Section 19(1)(a) includes exceptions where the parents’ underemployment or unemployment is necessary for the needs of a child or for the spouse’s reasonable education or health needs. For example, a parent may need to reduce their work hours to care for a young child or attend to health issues. These exceptions are not automatic, and their application depends on the specific circumstances of each case.

• Should Judicial Discretion Be Exercised?


If the underemployment or unemployment is voluntary, and no exceptions apply, the court can exercise discretion to impute income. The court will assess whether the parent’s choice to work less is reasonable, considering all the circumstances.

Onus of Proof

The party seeking the imputation of income carries the initial responsibility to establish an evidentiary basis. This means they must show that the parents’ underemployment or unemployment is intentional and not due to circumstances beyond their control. If a prima facie case is made, the onus shifts to the parent opposing imputation to prove their income is reasonable or justified.

For example, if a parent claims to have dropped their income due to health issues, medical evidence must be provided. Similarly, if the parent claims underemployment is due to a lack of work, they need to show they’ve made efforts to find employment.

Why It Matters

Imputing income is essential in ensuring that both parents contribute fairly to the financial needs of their children. Without imputation, a parent who is capable of earning more could avoid their child support responsibilities, which could leave the other parent to bear a disproportionate share of the financial burden. It should be noted that, on the issue of amount, the court must choose a number on a rational basis grounded in the evidence.