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Insurance Windfalls May Affect Child Support

Posted by Elise Buie | Jun 19, 2015 | 0 Comments

Sometimes a person that owes child support gets an unexpected windfall that isn't linked to their job. An inheritance, lottery winnings, or an insurance claim for instance. How much of that should go to the children? Different states have different opinions on this.

In California, there is a voluntary program for insurers to withhold some or all of an insurance payout for child support purposes if the recipient owes money. About a quarter of insurance companies operating in California follow this guideline. Now California wants to make it mandatory for all insurers to do this.

The bill will set up structures to let the Department of Insurance and the Department of Child Support Services work together to match those receiving payouts and those who owe child support. The bill passed with overwhelming support, 29-4, in the state Senate. The bill now goes to the full assembly.

In Washington, the key word for child support computations is income. If a source of money can be considered income, then it can be garnished for child support. In unusual circumstances like a windfall, it may be good to discuss the implications with a family lawyer. Speak with Elise Buie Law Group, PLLC for a free consultation if you have questions about child support payments.

About the Author

Elise Buie

Passionate, creative, problem-solving attorney who crafts solutions rather than obstacles. Elise spends significant time educating her clients on healthy communication skills. Elise also ensures that her clients make informed decisions by understanding the future emotional and financial implications of their decisions. Your family's future is our first priority. Elise teaches her clients new skills to empower them in the future as they adjust to the new family structure. While divorce ends a marriage, it is the beginning of your new, often times, more authentic life. Elise will help you begin that new life with new skills to handle any future challenges.


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Elise Buie Family Law Group PLLC
1001 Fourth Avenue, 44th Floor   Seattle, WA 98154