Will My Personal Injury Settlement Affect Child Support?
The money you collect through a personal injury settlement might result in paying more or receiving less in child support, depending on which side of the issue you’re on. A change in income may be a valid reason for a parent to ask a judge to modify a child support order, depending on the circumstances.
What is Child Support?
State law requires parents to share the financial responsibility of raising their children. Parents can decide between themselves how much the non-custodial parent should receive (subject to court approval), or a family court judge will determine the matter and issue a court order.
Child support is money a court tells a non-custodial parent to pay monthly to the custodial parent. It’s to help pay for the children’s living expenses, not to benefit the other parent personally. A child support order states how the parents will share their financial obligations to their child.
Generally, an obligation to pay support ends when a child turns 18 or graduates high school, whichever comes first. It can be extended to help pay for the child’s post-high school education or if the child is disabled and needs financial help.
How are Child Support Payments Calculated in California?
Judges use the state’s child support payment guideline, which considers:
- Each parent’s income
- How each files tax returns
- How much time they spend with the child
- Other factors
The guidelines are presumed to be fair, but a parent can rebut that presumption with evidence showing following them would be unjust or inappropriate.
If you settle the case before the other parent seeks a child support order, the settlement will probably increase your income and, depending on the settlement, result in you paying more than if there was no settlement.
If you’re the custodial parent and the settlement takes place before a child support order, you’ll have an increased income, and, depending on the situation, the other parent may argue they should pay less because you can pay more.
How Can Child Support Payment Orders Change?
It’s common for a family court to change a child support order. If you settle your case after child support has been ordered, either parent can ask a family court judge to modify the child support order. It can be a parent requesting that the other pay more, or a parent can ask to pay less.
Either way, the parent seeking the change has the burden of proving a material change of circumstances occurred after the court’s order. This can apply to child support payments agreed upon by the parties or an order after a hearing, whether the order was intended to be temporary or permanent. Modifications can be made any time a judge sees them as necessary.
What is a Material Change of Circumstances?
The more common reasons for requesting a modified child support order are the amount of time with a child change or one or both parents’ incomes change. How “material” an income increase would be depends on the circumstances. It may not be under these circumstances:
The parents are well off, and the settlement is relatively minor, given their wealth
The settlement amount is not large and doesn’t have much of an impact on the person’s finances
You may accept a settlement paid in installments instead of a lump sum. If that’s the case, you could argue a $10,000 increase in annual income over ten years is less material than a $100,000 one-time income boost.
If you are in arrears and have not fully paid child support in the past, a lien can be put on the amount you settled for to compensate you for lost wages or missed income. Compensation for pain and suffering damages, medical expenses, and other awards cannot be pursued.
A personal injury settlement can impact how much you pay or receive in child support, depending on whether it’s a “material” change of circumstances and, if so, how much. That’s determined by your particular situation.
Aaron Hicks is an Orange County Personal Injury Lawyer You Can Trust
If another party injures you or a loved one, Aaron Hicks and the Hicks Law Firm will assist you in any way we can. We represent personal injury clients throughout Southern California and Orange County, including Costa Mesa, Irvine, Tustin, Newport Beach, and Huntington Beach.
Our personal injury attorney have assisted many injured plaintiffs in Orange County over the years and look forward to helping you, too. Call 949-541-9944 or fill out our online contact form so we may discuss your case.
Aaron Hicks is a civil trial attorney and founder of Hicks Law Firm, based in Orange County with offices in San Diego and Tennessee. His practice includes representing plaintiffs in personal injury cases including motor vehicle accidents, premises liability, dog bites and wrongful death. Mr. Hicks is and AV Rated attorney, Super Lawyer and is currently on the Board of Directors of the Orange County Trial Lawyers Association where he serves as 1st Vice President.
