You may be wondering how child support could be impacted if you have recently been awarded a personal injury settlement. It is possible, depending on the size of the settlement that was received, that the amount of child support you have to pay will be impacted. Given the change in income, an attorney can be helpful in determining how your child support payments will change, if at all. The following outlines some ways that a personal injury settlement could have an impact on child support.
- If you receive a personal injury settlement, depending on the total amount, your child support payment may change.
- It will make sense to take a look at your worth and how much you will have to pay when it comes to medical expenses and living expenses.
- If the settlement just covers your expenses, it’s likely that your child support will not change very much.
Taxable or Nontaxable Income
- Whether a personal injury settlement is taxable or not varies by state.
- In some states that acknowledge personal injury awards as personal income, tax must be taken into account when figuring out what child support payments will change to.
- Other states may put certain conditions on personal injury settlements when they are considered personal income. Depending on the amount you receive, will determine whether or not it is considered personal income.
- It is possible that you have missed child support payments if you have received a personal injury.
- Despite a personal injury, you are still obligated to making child support payments you are responsible for.
- Some of the money received from a personal injury award will need to help pay for any child support that is owed.
- It is common to miss time from your job if you suffer from a personal injury. This could result in lost wages which is likely to have a direct impact on child support payments.
- In most cases, you will receive some relief from lost wages through your personal injury settlement which will help you to catch up on back child support.
It may be a good idea to meet with a family law attorney if you were recently awarded a personal injury settlement. They will be able to determine how child support payments will be impacted by taking a look at the details of your situation and the settlement you received. The legal process can be complex and challenging at times, knowledgeable child support lawyers Plano, TX residents trust can provide you with legal counsel, while navigating you through the process.
Thank you to our friends and contributors at Scroggins Family Law for their insight into family law.