Bankruptcy courts addressing the issue have reached a consensus regarding the extent to which a nonfiling spouse’s income should be included in the calculation of current monthly income. The nonfiling spouse’s income is included in current monthly income only to the extent that it is received on a regular basis for the benefit of the household expenses of the debtor or the debtor’s dependents. The nonfiling spouse’s income not dedicated to household expenses may be deducted from current monthly income through a marital adjustment. The burden of proof lies on the debtor to prove that the excluded nonfiling spouse’s income is not for the benefit of the household.
- In re Sharp, No. 07-72222, 2008 Bankr. LEXIS 2861 (Bankr. C.D. Ill. Aug. 21, 2008), finds that while a debtor must report a nonfiling spouse’s income, “the portion of such spouse’s income which is not used on a regular basis for the household expenses of a debtor or debtor’s dependents may be subtracted” from current monthly income.
- In re Coup, No. 07-34195, 2008 Bankr. LEXIS 1792 (Bankr. N.D. Ohio June 6, 2008), finds it appropriate for a nonfiling spouse to contribute income to at least some of the household expenses.
- In re Grubbs, No. 07-32822, 2007 Bankr. LEXIS 4282 (Bankr. E.D. Va. Dec. 14, 2007), holds that a nonfiling spouse’s income is “considered only to extent that the income is regularly contributed to the household expenses of the debtor.”
- In re Barnes, 378 B.R. 774 (Bankr. D. S.C. 2007), finds that a debtor must include a nonfiling spouse’s bonus income in current monthly income “if it is paid on a regular basis for debtor’s household expenses” and that the debtor bears the burden to prove, by a preponderance of the evidence, that the bonus income is not paid on a regular basis for household expenses.
- In re Baldino, 369 B.R. 858 (Bankr. M.D. Pa. 2007), finds that Congress chose to exclude any portion of the nonfiling spouse’s income “devoted to personal pursuits or expenses from current monthly income.”
Committees