Your personal injury settlement is intended to cover all losses you experienced after being hurt due to someone else’s negligence, so it is not unreasonable to assume that the money would go to you. After all, it was you who was hurt, and your life may be permanently changed.
That said, New Hampshire courts view certain types of damages awarded in personal injury settlements as income and assets for the purposes of calculating child support payments. If you are behind on your child support obligations, then the courts may seize part of your settlement to cover your child support arrears.
If you are the paying parent, and you know that you have unpaid child support, talk to your Dover, NH personal injury attorney about how to best manage your child support obligations while holding on to your settlement funds.
When can child support be taken from a personal injury settlement?
If you are legally required to pay child support and you fall behind with payments, a family law judge can issue a court order to place a lien on the settlement. This works similarly to a wage garnishment. The court can seize the amount of outstanding child support and give it to the receiving parent.
If you are current on child support, though, the questions of whether your personal injury settlement affects the amount of child support you have to pay and whether you will have to give your child’s other parent a portion of your award become more complicated.
Settlements paid in New Hampshire personal injury cases compensate the plaintiff for their material losses stemming from the incident, such as medical expenses, lost wages, and property damage. Plaintiffs are also entitled to a fair amount for their pain and suffering and diminished quality of life.
The settlement is also intended to be used for your outstanding personal injury-related bills, including legal fees. You may have also received compensation for lost wages if you missed work because of your injuries; your settlement can allow you to catch up on outstanding bills, too.
A family law judge may view your non-economic damages as an increase in assets. Any money not specifically designated for an injury-related expense (medical bills, paying your law firm, fixing your car, etc.) may be calculated as an increase in your monthly income (if you chose a structured settlement payout) or your material assets (if you received a lump sum).
If you pay child support, your child’s other parent may petition the courts for an increase in payments or for a portion of the lump sum payment.
The New Hampshire Division of Child Support Services (DCSS) may work with you to initiate the garnishment process if they find a match between an outstanding child support obligation and a settlement. However, your settlement may not be automatically garnished; there is a legal process, and a court order is required. That’s why it is important to talk to your lawyer throughout the process. Failing to disclose your settlement could lead to enforcement actions, and your attorney can help you make sure your finances are protected.
How a lawyer can help protect your settlement money
Your attorney may not be able to prevent your child’s other parent from filing a motion to increase support payments or demanding part of your non-economic or punitive damages.
What your lawyer can do is:
- Help establish a trust or other protected account to manage your settlement funds safely. You can financially benefit from the funds while no longer being considered their legal owner
- Negotiate a lower settlement with the DCSS
- Maximize the exemptions for your settlement. Exemptions are those damages that are exempt from garnishment or seizure
- Challenge garnishment in court
- Recommend a structured settlement rather than a lump sum, which may prevent a large one-time increase in your income calculation
Legal help managing your child support obligations and settlement funds
Proper management of your personal injury settlement, including planning before you receive the check, ensures that you are able to cover all debts outstanding from the accident, such as your medical bills, and remain compliant with your child support order.
Our personal injury attorneys can help you avoid a child support lien on your settlement by taking a few different proactive measures, designed to address your specific circumstances. At Shaheen & Gordon, we offer comprehensive representation for injured people like you, from litigating your personal injury claim to ensuring you keep as much of your award as possible. We offer a complimentary case review; book yours by dialing (800) 451-1002.
