Do Personal Injury Settlement Affects Child Support
A personal injury settlement could affect child support payments. For example, if you owe backpay, the state could garnish some of your settlement for those purposes. However, if your injury affects your long-term earning power, you could fight to have your child support payments reduced.
The Law Offices of Wolf & Pravato offers legal help to personal injury claimants. We can assess your situation and explain your options. Call (954) 633-8270 today to learn more.
A Personal Injury Settlement Could Affect Your Child Support Payments
Your personal injury settlement could affect child support if:
You Owe Backpay
If you’re not up-to-date on your child support payments, the Child Support Program could kick in. Here, the organization would receive part of your settlement to pay for child support. It’ll send you a letter regarding your child support rights and responsibilities, if applicable.
Your Earning Power Changes
Suppose that you’re current on your child support payments and suffer grievous harm in an accident. This could hurt your earning power and affect how much you could pay in child support each month. Here, you could request to have your child support agreement modified to reflect your financial situation.
There are other situations that could affect how you pay child support after getting injured. An attorney from our firm will first examine the accident’s impact on your health and resources. Then, we’ll implement a course of action to benefit you.
A Personal Injury Settlement Can Affect More Than Child Support
In a perfect world, you could recover compensation and use those funds to pay for your losses. However, not every situation is that clear-cut. A personal injury settlement can also affect:
- Alimony payments. As noted, your injuries may have affected your earning power. This could affect how much you can afford to pay your former spouse each month. This may warrant a change in your agreement.
- Bankruptcy. Filing for bankruptcy is already confusing. Suffering harm due to negligence only compounds matters. Your personal injury settlement could affect your bankruptcy case, depending on what chapter you’re filing.
- Disability benefits. A personal injury settlement can affect your eligibility for Supplemental Security Income (SSI). This program depends on your financial resources. If your financial resources increase because you recovered damages, this could affect your benefits.
- Your taxes. Generally, the state does not withdraw taxes from your personal injury settlement. However, if the court awards punitive damages, the state may tax those proceeds.
- Divorce proceedings. Your personal injury settlement is considered marital property. If you don’t keep your settlement separate from your spouse’s shared finances, this could affect the distribution of your assets.
You can learn more about what your settlement can affect when you connect with our team.
Your Personal Injury Settlement Could Account for These Losses
You may wonder, “Will my entire settlement go to child support?” The answer is no. the state acknowledges that you have damages stemming from your injuries. Most of your settlement will account for these injury-related hardships. Yet, matters change if you owe child support backpay.
That being said, your settlement could account for your:
Monetary damages compensate the injured party for the financial losses their injuries caused. Examples include:
- Medical expenses: This includes out-of-pocket expenses for medical care. Examples include (but are not limited to) emergency room services, ambulance rides, hospitalizations, surgeries, medications, rehabilitation treatments, and more.
- Lost income: You can recover any lost earnings related to your injuries and subsequent recovery period.
- Lowered earning capacity: If you cannot return to work in the same capacity (or at all), you can recover compensation for your future loss of income.
Your lawyer will use your billing statements, receipts, employment records, and other documentation to calculate your losses. They will also evaluate your portion of fault for the accident, among other factors.
You can recover more than your financial hardships after getting hurt. You can also recover:
- Pain and Suffering
- Mental anguish
- Loss of companionship
These losses don’t come with documentation, like receipts. Your Fort Lauderdale personal injury lawyer will evaluate and pursue these losses based on your situation. They will consider your injuries’ severity and other factors in their calculations.
Injured victims could recover punitive damages if the liable party acted with egregious negligence. For instance, suppose you were injured by a serial drunk driver. The court could impose punitive damages to punish the driver for their negligence. Punitive damages aren’t awarded in every case. When they are, the state may tax them.
Our Legal Team Can Explain Your Options
A personal injury settlement can affect more than child support. It could affect other financial obligations you have. Our Florida personal injury law firm wants to recover everything you need to account for your losses. In addition to evaluating your financial recovery options, we can file your claim, negotiate for what you need, and explain your options. To begin your free case review, Contact us at the Law Offices of Wolf & Pravato at (954) 633-8270. We’re ready to listen to your story and advocate for what you deserve.