Child support payments could be impacted if you are awarded a personal injury settlement. There are many things that should be taken into consideration when figuring out how your payment may be impacted if you receive a settlement. Taking a closer look at your income, whether you made late child support payments, and lost wages all must be taken into account in order to calculate if there will be any changes.
Taxable Versus Nontaxable Income
Personal income can be taxed, in the event that you are awarded a personal injury settlement, it is considered as personal income. Because it is part of your income, the amount of child support you pay will reflect this change in finances. This can vary depending on the state that you live in. It is important to take a closer look into this depending on where you live. In some states, there are limitations when personal income reflects a personal injury award. For example, if the award is less than $1,000, it may not have to be recorded as personal income.
Inability to Work
At times, experiencing a personal injury that has a lasting impact, may cause you to miss work. In this case, it’s likely that you were not able to make your child support payment due to lost wages. Most of the time when this occurs, money may be included in your award to pay any missed child support payments in addition to lost wages.
Late Child Support Payments
You may have been late or even missed child support payments if you experienced a personal injury. Regardless of this, you are still required to pay any late or missed child support payments. If you owe back child support, some of your personal injury award may go towards it.
In some situations you may be required to pay more child support, i.e. you receive a very high personal injury settlement. Depending on the amount of money you receive, your child support payment may not change very much. If you are awarded only enough to cover your medical expenses and time away from work, the change in child support may be minut.
Making an appointment to confer with child support lawyers is a good first step if you have recently been awarded with a personal injury settlement. They will be able to take the aforementioned considerations into account to determine if child support payments will need to change. Often sorting through this information can be complex and mind boggling, consulting with an experienced attorney can help guide you through the process.