Are you in the middle of a child support obligation and have recently received funds from a personal injury settlement? Are you wondering if your child support will take those funds in Florida? Many parents worry that their personal injury settlement may end up diminishing the amount of money they can provide for their children. Understanding how the legal process works is critical to ensuring that your financial obligations remain intact while also allowing you to benefit from any potential monetary assistance stemming from an accident.
This article will explore how a personal injury settlement in Hollywood, FL, can affect child support settlements. It will help you make an informed decision while protecting both your financial interests and those of your children.
The best way to protect your interests and ensure that your finances are well-managed is to hire the legal services of a personal injury attorney from the law firm of Jared Spingarn if you are in Hollywood, FL, or the Greater Florida Area. Jared has decades of experience in these matters and will be sure to ensure that your rights are well-protected throughout the court process and afterward.
Can child support be taken from a personal injury claim?
In Florida, the state can take your personal injury settlement or a portion of it to pay child support. However, personal injury settlements must be treated with necessary caution when it comes to paying off any outstanding child support obligations you may have.
The government can take a portion of personal injury settlement funds to pay off any back child support that may be owed. If an individual has past-due child support payments or owes back due amounts in the current month, then their personal injury settlement may be taken away–even if they are using it to pay for essential living costs such as housing and medical care.
This is because child support payments are prioritized by the court first. Thus, a personal injury settlement may be taken as payment before the injured person can receive those funds. This is according to the Child Support Enforcement Program, which gives the Department of Revenue the authority to intercept any money you may receive as compensation for an injury as a part of settling your case.
Does the state consider personal injury settlements to be income?
Settlements received through personal injury claims and court cases are considered income by the state. This means that a personal injury settlement or any other form of litigation compensation is taxed in the same way as income from a job. Additionally, if there is a child support case, it needs to be taken into consideration when assessing a person’s taxable income.
The courts may decide to make personal injury settlements an obligation parents owe to child support groups for them to receive their total amount of money owed. In these circumstances, your injury settlement may become a factor when deciding how much child support can be taken away from you.
How much will the state take from your personal injury settlement?
Usually, personal injury settlements exist so that the person who receives the personal injury award can cover their medical expenses and lost wages from the injury itself. Thus, the amount the state can take will depend on how much child support you owe and how much money you have left after paying your attorney’s fees.
Paying child support can be a stressful ordeal, especially when there are arrears to make up. Depending on the amount you owe and how much of your income goes towards paying an attorney for their fee, the state may take a portion of your income to help satisfy the debt. It is important to stay up-to-date on all financial obligations, as this can greatly affect your financial stability in the coming months and years.
What are child support arrears?
Child support arrears is an amount of unpaid child support that has been owed to a custodial parent or the state of Florida. This amount accumulates over time and can be taken from the non-custodial parent’s income until it is paid off in full. When this happens, the state may step in and take part of the person’s personal injury settlement to satisfy the amount owed. This can be a difficult situation for those that have already been injured and are trying to move forward with their life.
If any child support obligations exist at the time of your settlement, it is advised to pay them proactively, as failure to do so could result in the seizure of funds from your settlement for payment purposes. The state may also impose a child support lien, which means that any settlement funds that are not yet paid out to you will be withheld until the arrears have been paid off.
What are child support liens?
A child support lien is a legal document that your creditor can use to secure a portion of any assets or income you may have accessible in the future. This means that if you are due to receive money from a third party, such as an insurance company, personal injury settlement, court case award, etc., your creditors can use this lien to take some of that money away from you. This allows your creditors to receive full payment for the debt that is owed.
When a lien is placed on your assets and income, this means that any settlement funds received will be taken by the state until the child support arrears have been paid off in full. This can be an unfortunate reality for those who were planning to use the settlement money for other purposes, such as medical expenses, housing costs, and other essential living expenses. It is important to be aware of the risk that a lien can have on your future income before accepting any form of personal injury settlement.
Are there penalties involved if the non-custodial parent has child support arrears?
Yes, if the non-custodial parent has unpaid child support arrears, they may be subject to penalties. These penalties can include wage garnishment, suspension of driver’s licenses or professional licenses, and denial of passport services. Additionally, the non-custodial parent will likely have to pay additional interest on any outstanding debt.
In extreme cases, the non-custodial parent may face criminal charges, and this is something that needs to be taken very seriously. Therefore, it is essential for all parents receiving a settlement from a personal injury case to keep up with their child support payments to avoid any potential penalties down the line.
Being delinquent in child support can also negatively impact your credit score or risk a court order requiring salary deductions taken from a personal account or, to put it simply, a lost income.
When wages are garnished, a certain portion of your paycheck is withheld by your employer and sent directly to a government collection agency for the repayment of outstanding child support debt.
The state can also garnish your tax refunds if you fail to pay child support. This is an important reminder that child support payments should not be taken lightly as they are legally binding. This can come as a surprise to many taxpayers, as the Internal Revenue Service routinely sends individuals a tax return upon filing. The IRS, however, still honors any child support garnishments from states, meaning those who owe child support will receive a lesser refund than expected.
To avoid IRS intervention and possible legal issues stemming from nonpayment of a child support order, individuals are encouraged to fulfill their financial obligations on time and in full. Schedule a free consultation with an experienced attorney from the law offices of Jared Spingarn to be sure that you are familiar with Florida’s laws and regulations regarding child support, as well as any potential penalties that could arise. This way, you can ensure that you are doing everything in your power to protect yourself legally and financially.
Suspension of Licenses
If you fall behind on child support payments, the state can suspend your driver’s license and/or any professional licenses you may have. This is a serious penalty that could prove devastating for someone who relies on their vehicle and/or professional license to make a living. So it’s important to remain aware and abide by all court orders related to child support, as failure to do so can result in severe consequences.
Avoid Unpaid Child Support
Keeping current on paying child support should be a paramount concern for any individual paying or receiving payments. Not paying or letting payments lapse for long periods can result in serious consequences that could prevent you from collecting fair compensation after being involved in a personal injury claim. This is especially important because any settlement amount should be used to cover medical bills that stemmed from the accident.
That is why it is highly recommended to reach an agreement with the other parent to avoid any potential problems down the road. Negotiating an acceptable arrangement early on can save much heartache later and ensure both parties keep up with their responsibilities.
Automatic Payment Plan
One of the simplest solutions to keep up with your child support payments is to set up an automatic payment plan with your bank accounts to ensure you don’t miss a single month.
Another solution is through the Florida State Disbursement Unit, which allows you to make secure payments via credit card or e-Check. It also accepts payments made through cash or checks via mail or at one of its physical locations.
If you and the other parent have agreed on a settlement check for owed child support in Hollywood, Florida, it must be sent directly to the custodial parent within two weeks of being received from the noncustodial parent. Making sure payments are current is the non-custodial parent’s obligation to provide necessary financial assistance for the children and will help both parties uphold their legal responsibilities.
Can child support take my personal injury settlement in Florida? In conclusion, personal injury settlements in Florida can be taken by the state as payment for any outstanding child support payments you may owe. However, it is important to note that this does not happen automatically. It is up to the injured person to take proactive action to ensure that child support debts are paid off before receiving a personal injury settlement.
Additionally, you should also consider hiring a personal injury attorney from the law firm of Jared Spingarn in Hollywood, FL, to ensure that your rights are well-protected throughout the court process and afterward. This will allow you to achieve a favorable outcome and secure the best possible financial assistance for you and your children.
If you sustained a personal injury in an accident in Florida, don’t hesitate to reach out to Jared Spingarn, Accident Attorney, at 1-954-781-2316 for a Free Case Review or drop a message on their Contact Us page.