You just settled a big case and you're ready to hit the slots in Atlantic City?Not so fast.
If you are overdue in your child support payments, that trip to the Jersey Shore may have to wait.
On July 7th, 2006, Pennsylvania Governor Ed Rendell signed into law Senate Bill 1205, which involves litigation settlements and back due child support.
Your state may have a similar law.
This law affects any settlements, judgments, arbitration awards, workers' compensation awards or occupational disease awards with net proceeds to the plaintiff in excess of $5,000.
00.
Before the plaintiff can receive the proceeds from such a settlement or award, he or she must provide a sworn statement and documentation from the Pennsylvania Child Support Enforcement website of either (1) the amount of arrears or (2) documentation that there are no arrearages.
An attorney that distributes funds after receipt of the said sworn statement and documentation is immune from any civil, criminal, or administrative penalties for making an erroneous distribution.
The policy behind this law is obvious.
The legislature seeks to prevent adults flush with new cash from dissipating that wealth without first ensuring that their children receive the financial support to which they are entitled.
Do you think this type of law is fair? How would you change it if you were a lawmaker? The Pennsylvania Child Support Enforcement website has the full text of this new law.
You can review it and then let me know what you think of it.
I'll be happy to discuss it with you.