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How Personal Injury Settlements Can Affect Child Support Payments | The Mckinney Law Group

If you are currently paying child support and just received a personal injury settlement, the settlement received may alter the amount you pay in monthly child support payments. See below for various examples on how your monthly payments can potentially change.

  1. Consideration of Taxable or Nontaxable Income:

Many states view personal injury settlements as a form of income, therefore it is taxed and considered when determining child support payments. There are a few states that are able to put regulations on the amount received for personal injury settlements that are viewed as income. For example, receiving an award that is greater than $1,000 can be seen as a form of income while receiving an award that is less than $1,000 is not seen as an income.

  1. Missed Payments:

If you are a victim of a personal injury, chances are you may have missed a few child support payments. As justifiable this may be, you still have a legal obligation to make child support payments on time. If you were awarded a settlement for a personal injury, at the very least you are supposed to allocate a portion of the money for the missed child support payments.

  1. Reflection of Applicable Worth:

If you received a large award in a personal injury settlement, there is a possibility that the court will require you to pay higher monthly child support payments. But if the personal injury settlement is enough to cover living expenses and medical bills, you may be excused.

  1. Loss of Wages or Ability to Work:

There are some injuries so severe that it may cause you to miss work. If this applies to you, you may have missed out on receiving paychecks and have not been able to make your child support payments on time. Considering the fact that personal injury settlements are designed to provide you income for lost wages, there is a likely chance that some of the award will go towards paying for missed child support payments.

If you have received a personal injury award, it is a smart decision to arrange an appointment with an experienced professional such as the Child Custody Lawyer Scottsdale AZ locals have been turning to for years. They can factor in all the points and conditions in your case and then best assess what portion of your personal injury reward may have to go towards your child support payments. This entire process may seem daunting and distressing but having a lawyer helping you navigate through this process is extremely helpful.

A special thanks to our partners at Hildebrand Law for their insight into Child Custody Law.