Child Support

Rapper Files Bankruptcy Over $1.24 Million Child Support Debt :: Separation and Divorce Lawyers in Charlotte, North Carolina

Published on: July 25, 2013 | On behalf of Arnold & Smith, PLLC

Attorney Matthew R. Arnold answering the question: “How is the amount of child support decided in North Carolina?”

The rapper known as DMX has found himself in hot water recently, facing criminal charges for possible drunk driving on top of a recent bankruptcy filing. Just this past week DMX, whose real name is Earl Simmons, filed for bankruptcy protection at a court in Manhattan. The bankruptcy filing came only four days after his arrest in rural South Carolina on suspicion of driving under the influence.

The Chapter 11 bankruptcy filing by DMX lists a wide array of debts and only a few assets. The court documents claim that DMX has assets of less than $50,000 and liabilities of somewhere between $1 million and $10 million. The rapper said that he needs the Chapter 11 to enable him to reorganize his financial affairs.

DMX, who is originally from New York but currently resides in South Carolina, acknowledged in his bankruptcy filing that among his many debts is the $1.24 million he owes in back child support. Beyond the whopping child support arrearages, DMX says he owes more than $21,000 on a car lease and his only real asset is his half share in some property located in upstate New York.

DMX’s spokesperson recently released a statement explaining that his financial issues have been responsible for his lack of career success in recent years. The recording artist known for a number of late 1990s hits hasn’t had much chart success in recent years, something his spokesperson says is due his poor prior representation. DMX says he wants to tour oversees to earn more money and pay his debts, but needs the Chapter 11 to help accomplish that goal. The reason is somewhat convoluted and relates to his child support debt.

Child Support Lawyers and Attorneys in Concord, Cabarrus County, North Carolina :: Man Must Support Artificially Conceived Kids

Published on: January 3, 2013 | On behalf of Arnold & Smith, PLLC

According to a recent decision issued by an Indiana appellate court, one man in the midst of a nasty divorce must pay child support for his two children even though they were conceived by artificial insemination from another man’s sperm.

The Indiana Court of Appeals flatly rejected the man’s claim that he ought to be excused from child support payments given that his children were not biologically his. The couple married back in 2001 and began looking into the possibility of artificial insemination after they learned the husband’s vasectomy would not be able to be reversed. A family friend offered his sperm and they went on to have two children. The first, a boy, was born in 2004. Two years later a girl was born with sperm from the same man.

The issue in contention was whether this insemination was done with the man’s consent. The procedure was performed without a doctor and in the privacy of their own home. The husband claims he never consented to the artificial insemination. His wife disagreed, saying the man fully understood what they were doing and was in agreement.

The appellate court pointed out that the husband spent years acting as the father to both children. Even after the two separated he continued paying for the kid’s clothes, medical expenses and daycare. Only after he filed for divorce in 2010 did he change his mind and claim that he should not have to support the children because they were not biologically his.

The case was first heard last year by a lower court which held that the kids were products of the marriage between the couple. As a result, the judge said that the man was responsible for supporting the children, despite the genetic differences. Last week, the state Court of Appeals decided it agreed.

One complication to the matter is that, Indiana lacks any substantive laws regarding parenthood and artificial insemination. A website meant to educate potential sperm donors says that 32 states have laws that state the husband, not the sperm donor, is the child’s legal father. Other states, including North Carolina, have a further stipulation that says the husband’s written consent must be obtained before artificial insemination takes place in order to hold him liable for child support. Indiana, however, has no such requirement.

Child Support Lawyers in Charlotte, NC :: Kansas Sperm Donor Slapped With Child Support Bill

Published on: December 20, 2012 | On behalf of Arnold & Smith, PLLC

File this story under the tagline, “cautionary tale.” According to a recent Yahoo! article, one Kansas man who donated sperm to a lesbian couple has now found himself in the surprising position of being asked by the state to pay child support.

The sperm donor, William Marotta, gave the goods after signing a contract that specifically stated he would not be considered the father of the child nor would he ever be liable for child support. Though the girl who was born as a result of his gift lived for years without incident, this past fall the state of Kansas filed a petition asking that the man be declared the father of the child and be financially responsible for her after the lesbian couple endured financial difficulties.

Marotta has said he will ask the court to dismiss the claim. The state says a law on the books is clear that sperm must be donated through a licensed doctor for a father to be free of any future financial obligation. In his case, Marotta donated the semen after meeting the couple on Craigslist. The state is now asking him to pay child support, including almost $6,000 in expenses dating as far back as the child’s birth.

Marotta’s attorneys have said that the man has no parental rights because of the contract he signed with the girl’s mothers. They claim that the clear language of the agreement means that the man cannot be held financially responsible for the child. Marotta says he responded to the Craigslist ad seeking sperm donations for $50. He turned down the money, saying he and his wife, who have no children of their own, simply wanted to help a couple that wanted a child.

Child Support Lawyers in Charlotte, North Carolina :: Unpaid Child Support Bills Add Up Into the Billions

Published on: November 27, 2012 | On behalf of Arnold & Smith, PLLC

According to the federal Office of Child Support Enforcement, $108 billion in back payments for child support was owed to custodial parents in 2009. The problem is huge nationally and incredibly important in terms of each individual family. If child support payments are not paid, it can result in seriously dire financial straits for the custodial parent, the vast majority of whom (82%) are mothers.

Another downside is that the unpaid bills end up getting picked up by the taxpayers. CNNMoney reports that taxpayers pay nearly half of that total because the children are forced to go on public assistance. Unfortunately, 41% of households headed by single women are below the poverty line, and without the child support payments the family can fall into terribly dire straits.

The Office of Child Support Enforcement’s statistics also reveal that the problem is not as widespread as many people may think. Instead, numbers show that 11% of the debtors owe 54% of the money. The problem is that so few people are causing society, and their families, a lot of pain. The money is crucial in poor families especially where those funds can be used to provide necessary things for children including eye and dental care, clothing and even food.

Child Custody Lawyers in Charlotte, North Carolina :: New HBO Documentary Allows Kids to Give Advice About Divorce

Published on: October 11, 2012 | On behalf of Arnold & Smith, PLLC

It’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.

Child Support Enforcement :: Police Use Facebook To Find Delinquent Dad

Published on: September 27, 2012 | On behalf of Arnold & Smith, PLLC

We 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.

Child Support Statistics Reveal What People Pay Across the Country

Published on: September 6, 2012 | On behalf of Arnold & Smith, PLLC

Parents 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.

Impact of Separation and Divorce on Paying for College

Published on: June 19, 2012 | On behalf of Arnold & Smith, PLLC

Though 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.

Charlotte Divorce Tips – Protecting Finances

Published on: May 17, 2012 | On behalf of Arnold & Smith, PLLC

When 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.

Charlotte, NC Divorce Advice – Tips Your Spouse May Be Hiding Money (According to The Huffington Post)

Published on: May 1, 2012 | On behalf of Arnold & Smith, PLLC

A 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.