Yes, if you are the paying parent and you’re behind on child support payments, your personal injury settlement can be garnished to cover the unpaid child support. Not all creditors have the same ability to collect from a settlement. Certain obligations, like unpaid child support or alimony, are given priority under the law. However, any past-due court-ordered financial obligation, like an alimony or child support order, can be satisfied through a lien or garnishment of your settlement funds.
There are some strategies that your Denver personal injury attorney can employ to protect your settlement, but you need to inform your lawyer right away if you have child support obligations so they can ensure your settlement is properly structured.
happens if you owe unpaid child support and receive a settlement?
If you owe unpaid child support, Colorado Child Support Services may place a lien on your personal injury settlement to recover the amount you owe. This can include additional amounts, such as interest under Colorado law. In some cases, the agency may intercept settlement funds before they reach you or enforce the lien through available collection methods until the arrears are satisfied.
Will child support take your entire personal injury settlement?
It can. If you owe a substantial amount of child support, your settlement is fairly modest, and you receive it in a lump sum, then yes, a significant portion (or even the full amount) could be applied to the past-due balance before other expenses are paid.
How much of a personal injury settlement can go toward child support?
Child support obligations can be enforced against a personal injury settlement, particularly for past-due amounts. How much may be applied depends on the circumstances, including how the settlement is structured and whether certain portions are designated for specific damages. But a court generally can’t require payment beyond the amount owed in arrears
Does it matter how the settlement is structured?
Yes, how your lawyer phrases your personal injury settlement can affect what (if anything) can be seized. Certain damages in a personal injury claim may not be garnished to pay back child support. Money specifically earmarked for attorney fees or medical treatment may be less likely to be subject to collection, since those funds are intended for third parties.
An award for future medical care may also be saved, depending on how it is allocated. However, damages for lost wages can be garnished. If you had earned those wages, your paycheck would be garnished, so any replacement for lost wages may also be subject to seizure.
if you are current on your child support payments?
If you’re current on your child support payments, then the entire settlement amount should be yours (minus your legal fees). However, if you received a very large sum or received punitive damages as part of your settlement, then your children’s other parent may petition the court for a portion of this money.
Can child support delay your injury settlement in Colorado?
Yes, the state can place a lien on your settlement, requiring the insurance company to resolve the lien before sending you your money. How long it takes depends on how quickly the lien is resolved.
Legal guidance for personal injury settlements and child support issues in Denver
The attorneys at Zara Injury Law can help you resolve your personal injury claim and manage the award you receive so the funds are accessible for your medical care and other needs. We can help you understand your options for structuring your settlement and addressing any child support obligations. Contact us today at 866-823-8288 for a free consultation.