Opinion ID: 895835
Heading Depth: 1
Heading Rank: 1

Heading: Ballisti-Cast Income

Text: [¶ 6] When the motion to establish support was filed in February 1996, Edwards' primary income, according to his own testimony, was his salary as a machinist with Ballisti-Cast, a business manufacturing and selling bullet casting machines. As a machinist with this company Edwards earned a gross salary in 1995 of $18,000. However, on March 1, 1996, Edwards purchased the business for $42,500. He testified he had no earnings or profit from the business in 1996 and was uncertain when the business would generate a profit for him. The trial court did not attribute any income to Edwards from the Ballisti-Cast business in establishing Edwards' child support obligation. In its findings, the trial court stated: In attempting to establish a current child support payment, it is neither fair, equitable, or reasonable to take into consideration the monthly income of $1,500 per month that [Edwards] used to make as an employee of Ballisti-Cast, since he no longer receives such a monthly pay check. Since there is no experience of income for this Court to review at the present time, there is no current basis for the Court to make a finding as to what [Edwards'] income may be from this business in order to establish current child support payments. Blore asserts this finding is clearly erroneous and constitutes a misapplication of the child support guidelines. We agree. [¶ 7] An obligor's ability to pay child support is not solely determinable from actual income, and income compatible with an obligor's prior earning history may be imputed in calculating the child support obligation. Nelson v. Nelson, 547 N.W.2d 741, 744 (N.D.1996). N.D.A.C. § 75-02-04.1-02(8), provides in part: Calculations made under this chapter are ordinarily based upon recent past circumstances because past circumstances are typically a reliable indicator of future circumstances, particularly circumstances concerning income. On this issue Edwards testified: Q What capacity were you employed or did you work for Ballisti-Cast in 1995? A Machinist. Q How much did you make in 1995 to the best of your knowledge? A $18,000.00.       Q Has this business been a profit making venture for the owner? A I don't know.       Q You purchased this business to make a profit though, didn't you? A I hope so.       Q Is there anyway possible that you can lose money on Ballisti-Cast? A No unless I over borrow myself.       Q But you arethere's no certainty in how much you're going to make next year. A No. Q There's no certainty in how much you're going to make this year. A No. Q Other than the money that you've gotten paid while you were an employee. A Correct. Edwards was uncertain what profit Ballisti-Cast would generate for him as its owner. However, he remained the sole machinist operator of the business which could continue to generate the $18,000 annual income paid to Edwards as its only machinist employee. That past machinist income is, under these circumstances, the best current predictor of Edwards' expected income from the business. Under the guidelines it is therefore both appropriate and necessary to impute that income to Edwards in determining his ability to pay child support now. We conclude the trial court's failure to impute Edwards' past earning capacity as a machinist was clearly erroneous. We, therefore, impute an annual income of $18,000 to Edwards for the Ballisti-Cast business.