If you have recently received a personal injury settlement and also pay child support, your settlement can affect how much you pay in child support payments every month. It’s a good idea to talk to a family lawyer Phoenix AZ trusts to find out how your award will affect your payments. Let’s take a look at several ways your payments may be affected by your personal injury settlement.
- Consideration of Taxable or Nontaxable Income: Most states look at a personal injury settlement as personal income, so they are able to tax it and consider it when calculating child support payments. There are other states, however, that put restrictions on personal injury awards that are considered personal income. For instance, an award more than $1,000 may be looked at as personal income while an award less than $1,000 isn’t considered income.
- Overdue Payments: If you’ve suffered a personal injury, you may have missed a few child support payments. While this is certainly understandable, you still have the responsibility to make these payments. If you receive a settlement for a personal injury, you may have to use at least some of the money to pay for past due child support.
- Reflection of Applicable Worth: If you receive a high personal injury settlement, there’s a chance you may have to pay more in child support. However, if your settlement is just enough to cover your medical bills and daily living expenses, there probably won’t be a big change in child support requirements.
- Loss of Wages or Ability to Work: Some personal injuries are severe enough to cause individuals to miss work. If this sounds like your situation, you may have lost wages and haven’t been able to make your child support payments. Because personal injury settlements often provide money for lost wages, some of the compensation may likely have to pay for overdue child support payments.
If you were rewarded a personal injury settlement, it may be in your best interest to set up a meeting with a child custody lawyer. He or she can look at all the factors in your case and determine how much of your settlement may have to go toward your child support payments. Navigating through this process can be a bit overwhelming, so it is helpful to have a knowledgeable lawyer by your side.
Thanks to our friends and contributors from Hildebrand Law for their insight into divorce and family law practice.