Articles Posted in Child Support

Child Custody Lawyers in Charlotte North Carolina.jpgIt’s pretty easy for one adult to share advice with another on how to handle your divorce. But for many parents, the divorce process is so full of concerns unique to their family that tips from well-meaning friends, family members and colleagues can easily go in one ear and out the other. A new documentary film aims to grab the attention of these parents by reminding them that kids have some good ideas, too.

One of the most stressful aspects of divorce is child custody. Deciding where your kids will live and when they’ll see their other parent greatly impacts them, but they are often not consulted in any of the decision-making. Parents can inadvertently make the divorce even more overwhelming by throwing a lot of changes their child’s way and expecting them to simply go along with everything, new living arrangements, rules, routines and all, without giving them any input in their future. According to the kids in the new documentary, that’s not fair. The HBO movie, “Don’t Divorce Me! Kids’ Rules for Parents on Divorce,” debuted last month and will be repeated several more times.

One girl in the movie says that parents should instead give their kids some time to process changes and then listen to what they say in response, no matter if those opinions conflict with your own plans. By working together you may be able to develop some new routines that work for everyone. One of the film’s participants described a system for making sure she has everything she needs for stays at her dad’s house.

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Child Support Lawyers in Charlotte, NC.jpgWe have previously written (Divorce in Mecklenburg County, NC and Facebook) about the dangers associated with Facebook when it comes to divorce, but we have never talked about the impact Facebook can have on child support arrangements. It’s common knowledge that these days North Carolina courts and law enforcement agencies are aiming to ensure that parents who owe court-ordered child support fulfill their financial obligations.

Obligors who fail to pay may be charged with contempt of court. If payments become severely delinquent, law enforcement and governmental agencies can sometimes step in and garnish wages, suspended a drivers’ license, or even put the delinquent parent in jail.

While child support is usually handled at the state level, the federal government sometimes gets involved in special situations, including when the debtor crosses state lines to avoid paying child support. In a recent federal case involving felony charges for unpaid child support, authorities succeeded in tracking down the debtor using a tool that is becoming increasingly common in such cases: Facebook.

The man is a native of Milwaukee, Wisconsin, but now lives in Southern California. He was ordered to pay child support for his daughter but allegedly has not made any payments since 1996. In 2008, authorities charged him with six felony counts of unpaid child support, and he now reportedly owes over $100,000 in past due support payments.

Investigators recently learned of information concerning the man’s location only after filing a search warrant related to his Facebook information. The social media site contains such a wealth of user-provided personal data that it is often seen as a valuable tool in criminal investigations as well as civil cases.

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Divorce Lawyers in Concord, NC.jpgParents sometimes wonder if the payments they make for child support are fair. They wonder what their friends are paying and what number average families across the country face when it comes time to write a check. Non-custodial parents may be curious to know if the support they pay is in line with other parents in the same position.

Well wonder no more; the U.S. Census Bureau recently released a new report titled “Survey of Income and Program Participation,” which examines child support statistics gathered from across the country. The data used to compile the report was pulled from the most recent national census in 2010. The report is quite comprehensive and sheds some light on who pays support, how many children receive it and the averages for monthly and yearly child support payments.

The numbers show that the average monthly child support payment in America is $430. Children below the age of 21 receive $5,150 on average each year for support. Unsurprising to many is the news that male non-custodial parents provided more child support by percentage than female parents, though the difference was stark. Eighty-five percent of all U.S. child support payers were men and only 15 percent were women. The report also found that child support payments made by men were higher than a woman’s average of $3,500 in yearly financial contributions.

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Diploma and Cap.jpgThough college has always been expensive, the amount of money needed nowadays is bordering on ridiculous. According to U.S. News and World report, the average tuition for a private university now exceeds $35,000 per year while kids in public schools can expect to pay almost $20,000. With costs so high it is no wonder that parents have difficulty affording putting their children through school. Unfortunately, the children of divorced parents are often the hardest hit, making a bad situation even worse.

One case that recently made the news highlighted the extent of the problem. Dana Soderberg, a young woman in Connecticut, filed suit against her father for his failure to pay her college tuition. Her parents were divorce back in 2004 while she was attending college. Her father signed a contract with Soderberg saying he would agree to finance her education until she was 25 so long as she diligently attended class. During her senior year her father stopped paying and his daughter slapped him with a lawsuit. The judge sided with the daughter, awarding her $47,000 plus attorney’s fees.

Thankfully it’s very rare for a legal dispute to rise to such a level. Typically, when a parent falls behind thing are worked out long before a lawsuit becomes necessary. However, the suit does point out a larger problem that disproportionately affects the children of divorced parents.

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Money Bag.jpgWhen North Carolina couples are confronted with the possibility of divorce once the emotional pain subsides, many begin to think about their financial wellbeing. There are some things you can do to help ensure that your assets are protected as divorce looms. Lynette Khalfani-Cox, a financial expert with AARP, gives the following suggestions:

Get the right family law attorney. Going through the phone book or randomly calling numbers will cast too wide of a net. Referrals from friends and family members are a good place to start and, given the high divorce rate, it’s likely you’ll know someone who’s been through the process.

Once you’ve reached out to an attorney it’s a good idea to have an in person meeting. Meet with them to make sure everything feels right; that they understand your particular needs and concerns and are skilled enough to do the work you need accomplished. If you trust them then listen to your instincts, if you get a bad vibe then it’s time to move on.

Don’t rely on mediation. Ms. Khalfani-Cox says that mediation is a good first step but that it should only be considered early on, to help get a feel for the tenor of the divorce. Making nice is what many women are prone to try to do and mediating your way out may not be the best way to protect your interests. A mediator’s job is to reach a resolution, not necessarily one that’s right for you.

Khalfani-Cox says the agreed upon settlement can be very one-sided and the mediator may not intervene. Only a good attorney can help tell you what’s reasonable and customary and what to realistically expect.

Set up separate accounts. One of the first things on the agenda should be shutting down the credit cards. No one needs to worry about one party going on a shopping spree and leaving the other with a hefty bill to pay.

Mortgages can’t be simply split up, there’s a process that must be gone through. Bank accounts can and should be divided right away. Also don’t forget that both parties are liable for credit card debt if they signed for the card, regardless of what agreement you have with your ex. If you were on the card and your ex doesn’t pay the company will come knocking on your door.
Know your assets and debts. Sit down and make sure you understand where you’re at financially. Calculate assets and debts. Take special attention when going through retirement accounts, pension, deferred compensation plans, etc. Things can get confusing and you’ll want to make sure nothing is missed. Information is power and you don’t want to be the party unaware of what assets are up for grabs when settlement time rolls around.

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Piggy Bank.jpgA recent article in the Huffington Post discusses clues that should set off alarm bells about whether one spouse is hiding money in preparation for a divorce.

People have special motivation to hide income and assets during a divorce in an attempt to avoid paying higher child support or alimony. One positive note is that hidden income can always be uncovered and the spouse who’s been kept out of the loop can eventually reclaim his or her rightful share.

If you’re afraid that your spouse may be hiding money consult with an experienced alimony lawyer in Charlotte, North Carolina to make sure that a search would be worth your time and expense. After all, forensic accountants can be quite costly so you’ll have to weigh whether the amount is worth chasing after.

Some important warning signs to watch for include the following:

1. If your spouse is self-employed and more knowledgeable about the family finances than you are and has expressed strong feelings about not involving lawyers or financial planners in your divorce.

2. Compare your lifestyle with your reported income. If there is a mismatch, further investigation is likely needed.

3. Look at the ratio of living expenses to income. If a mortgage payment is 75 percent of the reported income, it’s a good bet that there is hidden income floating around somewhere.

4. Pay attention to whether a business owner has multiple tax entities that do not seem to be necessary.

5. Are there any unusual business expenses? If a business is showing expenses that have nothing to do with the work they do it might be time to more fully analyze the books.

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dollar bills.jpgDivorce is a difficult process, emotionally and financially. Before you blindly step into the mess, there are steps you can take to empower yourself by getting your finances in order. Taking the following steps can help make things run more smoothly and even lower your eventual legal bills by being ready for what’s to come. According to a recent FoxBusiness article, the following five tips are some that every soon-to-be-divorced couple should pay attention to for help making it through the process:

1. Evaluate your assets
The house is the biggest asset that most couples possess but there are still usually many more that qualify as marital assets that will need to be divided. People often forget about pensions from past jobs or stock options and deferred compensation plans. Such assets have values that are paid out in the future, not always simple divisions today.

2. Weigh your debt
To begin, prepare a summary of the last 12 months of all credit card and utility bills as well as personal and jointly held loans. Such a history will help you decide who should take on which debts. It’s important not to take on responsibility for debt associated with property you don’t control. For instance, if you are responsible for paying the car loan, you should be the one driving the car. This helps eliminate a lot risk and being liable for the actions of a soon-to-be former spouse.

3. Run a credit check and history
Everyone should conduct an annual credit check with all three agencies. Knowing where your credit stands prior to divorce can help prevent headaches down the line. It’s possible that you’ll discover a credit card or line of credit that you never knew existed, correcting inaccuracies (or preventing fraud) is important.

4. Track how much you spend
Taking stock of your spending habits and creating a realistic budget for your post-divorce life is crucial. Understanding that your old income will now be used to support two households is important. The same amount of money is now going to pay two rents or two mortgage payments, thus lifestyle adjustments will need to be made. People often underestimate how much they spend and putting everything down on paper forces couples to face the hard truth.

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Dollar Sign.jpgAccording to a recent article in the Atlanta Journal-Constitution, parents who are delinquent on their child support payments in Georgia have reason to hope that they’ll see their children rather than the inside of a jail cell thanks to a new program instituted by courts in the state.

The reason for the change is the introduction of an innovative program in Georgia called parental accountability court. Thanks to the program, parents can avoid jail and instead chip away at their back child support.

Parental accountability courts have lately been popping up across the state. They are the product of a joint effort by Georgia’s Child Support Services department and local court systems and designed to offer an alternative to jail. Using resources that exist in the county the courts address specific problems of each person including unemployment, drug use, lack of transportation, etc. that prevent them from making regular child support payments.

“There’s a lot of guys sitting in jail before this program came and they were getting further and further behind,” Smith said of other fathers late with support payments. “If it weren’t for this program, I’d probably still be sitting in jail wondering how I was going to get out.”

In Georgia the problem is massive with a recent report from the Department of Human Services indicating that four out of every 10 parents required to pay child support are delinquent. In child-support cases, the parent that’s behind on the payments can wind up in jail for up to three months, costing the taxpayers $1,500 per month. Moreover, when they’re released they have the same problem as before, no job and no money to pay support with. As a result, many constantly circulate between jail and court with no problems being solved all the while.

Of the programs that have been started across the state there appears to be tremendous potential. In the Smith’s home of Hall County, the court’s first year of operation saw child support payments from non-custodial parents grow by $45,000. Simultaneously, the cost of incarcerating non-paying parents fell by $178,000 as the program helped people find work.

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taxes.jpgAccording to a recent article by The State, a single South Carolina mother occupied with running a day care and raising two sons won a South Carolina Supreme Court case recently that may end up requiring divorced parents who pay child support to also pay for their kids to go to college.

The woman, Kristi McLeod said she was so shocked she had to stop by her lawyer’s office to ensure that she had heard the news correctly. The justices voted 3-2 in her favor, ruling that college education is now so critical to success in today’s world that the state has an interest in ensuring that it is paid for.

McLeod and her husband divorced in 1993. His income subsequently skyrocketed from $29,000 to almost $250,000 a year by 2008. Despite this vast increase child support for Kristi McLeod stayed at $175 a week for the two children. The whole time she never made more than $40,000 running a day care.

When McLeod’s son decided to go to college his father agreed via email to repay student loans and pick up miscellaneous expenses. The father also unilaterally decided to reduce his child support payments for his other son to $100 per week.

The father ultimately failed to hold up to his end of the bargain and McLeod decided to sue. A Family Court judge ruled in the father’s favor, saying he wasn’t required to pay college costs. The lower court judge also reduced how much support McLeod collected and refused to require her ex-husband to pay her attorney.

But the South Carolina Supreme Court decided to hear the case and reversed all previous lower court decisions on the subject.

In her majority opinion, Justice Kay Hearn wrote that, “Although the decision to send a child to college may be a personal one, it is not one we wish to foreclose to a child simply because his parents are divorced.”

The son has since graduated from college and is working as a fingerprint analyst for the FBI.

Two justices dissenting, citing current state law which specifically mentions paying support until a child finishes high school but does not mention college costs at all. “Had the Legislature intended for a parent to pay college expenses as an incident of continuing child support, I believe it would have specifically included the phrase ‘college graduation.'”

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Pocketbook.jpgAccording to a recent article in the Charlotte Observer, an important change could soon have an unexpected impact relating to child support debts. The change has come about as an attempt to reduce money spent by the federal government in mailing out paper checks. The Treasury Department has decided to begin making government benefits payments electronically in March of 2013. This will put a stop to the paper checks that many rely on to shield a portion of their monthly income from states that attempt to collect back child support.

States have the power to put a freeze on bank accounts of those who owe child support. A relatively recent ruling by the Treasury Department now authorizes states to freeze Social Security, disability and veterans’ benefits that appear in bank accounts. Once the decision to eliminate paper checks is implemented some 275,000 people could lose access to all of their income.

This presents huge problems for a certain segment of the population, the often poor men behind on their child support. There are many instances where these back payments are decades old and concern child who are long since grown. Much of the money owed is for interest and accumulated fees.

Of the money that is collected most will go to governments, not to the children of the men who were owed the money. States are permitted to keep this money as repayment for money they spent on providing welfare services for these children.

Though the goal is a good one, cracking down on deadbeat dads not paying the money they owe to their children. Unfortunately, the method of going about this will likely produce complicated and even counterproductive effects. Many of the men on the receiving end of this new collection practice are already facing financial ruin in the form of eviction, foreclosure and inability to pay other bills. By allowing states to seize federal benefits, these men may very well be left penniless.

Beginning next march the Treasury Department will deposit all federal benefits directly into bank accounts or load them onto prepaid debit cards. Regardless of the chosen method state governments will be allowed to reach the money. According to the Treasury Department these electronic payments are expected to save the government $1 billion over the next 10 years. The savings result from the shipping costs: about $1 to mail a check compared with about 10 cents for an electronic transfer.

States are currently only permitted to garnish only 65% of the benefits an individual is entitled to before they are disbursed. This same limit does not apply once the money is in an account and states are then allowed to have banks freeze it.
Other federal agencies are calling the practice into question, starting with the Department of Health and Human Services. DHHS does not want states to collect child support so aggressively that poor people are left with nothing, spokesman Ken Wolfe says. Though details are scarce, Wolfe said HHS is developing guidelines for states to “make sure we’re not putting someone into deep poverty as a result of an automatic collection.”

DHHS says they have research indicating that the policy could make life harder for people collecting government benefits. People who owe large amounts of child support are almost exclusively poor. The figures are stark: among those owing $30,000 or more, three-fourths had no reported income or income of less than $10,000.

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