What happens if the paying spouse manipulates income to reduce spousal support?

In Washington, if a paying spouse manipulates income to reduce spousal support, it is considered a violation of the state’s laws. This form of income manipulation is called “income shifting” and is not allowed by the state because it is considered a form of fraud. The courts may take any income shifting into account when determining the amount of spousal support to be paid each month. For example, if the paying spouse were to take a pay cut, or move their income to a different account in order to reduce their net income for the purpose of lowering or avoiding spousal support payments, the court could consider this an act of fraud and could find the paying spouse in violation of state law. In order to prevent income shifting, courts will typically consider the paying spouse’s past income, lifestyle, and other financial resources when determining the spousal support amount. They may also require the paying spouse to provide financial records, such as tax returns, so that there is a full and accurate picture of the paying spouse’s financial situation. In any case, the outcome of income shifting can be severe for the paying spouse. A court may order the paying spouse to pay back any money that was fraudulently shifted in order to reduce spousal support. Additionally, the paying spouse may be subject to a fine and could face criminal prosecution.

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What happens if the paying spouse manipulates income to reduce spousal support?

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