§1.12 Income Imputed From Assets

You may impute income based on the value of an asset. The imputed income may be based on the earning capacity of "income producing assets." For example, you may impute rental income based on the fair market rental value of a parent's non-community real property and that parent's equity in that property. [See Marriage of Dacumos (1999) 76 CA4th 150, 154–155.] You may even impute income based on "non-income-producing assets," such as real estate investments. [See Marriage of Destein (2001) 91 CA4th 1385, 1396–1397.]

However, do not include a parent's share of increased equity value in a residence, as opposed to investment property, when calculating income for support. [Marriage of Henry (2005) 126 CA4th 111, 118–119; Marriage of Williams (2007) 150 CA4th 1221, 1241–1244.]

Nor should you include the market value of unsold shares of stock received by a business owner in connection with the sale of a business. Unlike stock options, these shares are not received as compensation. If, however, the shares are sold and the proceeds used to pay expenses, not reinvested, you may consider the proceeds as income. [Marriage of Pearlstein (2006) 137 CA4th 1361, 1372–1376.]