Income Imputation in Alberta: The Peters v Atchooay Test

Does a person have to deliberately reduce their income to avoid support before a court can impute income? Not anymore.

The decision

In Peters v Atchooay, 2022 ABCA 347, the Alberta Court of Appeal changed the way income imputation is approached in Alberta. The focus is no longer primarily on proving that someone intentionally reduced their income to avoid paying support.

Instead, the court can consider whether the individual is earning what they are reasonably capable of earning given their skills, qualifications, and employment opportunities. The question is one of reasonableness, not bad faith.

What the court looks at

• The person's age, education, skills, and work history;
• Health and other personal circumstances;
• Available employment opportunities;
• Whether the current employment choice is reasonable in light of support obligations; and
• The needs of the children or the recipient spouse.

Why it matters

That distinction can have significant consequences in both child-support and spousal-support disputes. Earning capacity can matter even where there is no evidence of an intention to avoid support — for example, after a voluntary career change or a decision to remain under-employed.

If income imputation may be an issue in your matter, speak with our team.