Mack v. Mack (App Div., 3rd Dep’t)

Plaintiff (hereafter “the wife”) and the defendant (hereafter “the husband”) entered into a judgment of divorce dated October 30, 2017. Pursuant to the judgment, the court imputed annual income to the husband of $200,000. The husband appeals this amount.

Per the husband, he worked as an electrical engineer earning $115,000 in 1995 and earning $125,000 by 2000. He left his job as an electrical engineer and started Pragmatic Technologies, Inc. (“PTI”). According to the business tax returns of PTI, the company showed losses and the husband showed no income. According to the husband, he did not draw a regular paycheck and had no earnings.

Based on the parties’ lifestyle, the court found the husband’s assertions of no earnings to be implausible. The court heard testimony of the husband’s accounting practices, specifically testimony of paying personal expenses through corporate accounts.

In light of said testimony, husband’s education, professional qualifications and earning potential demonstrated in prior employment, the Supreme Courts imputation of $200,000 of annual income was upheld.