Can My Settlement Funds Be Used to Calculate Child Support?

November 25th, 2024 by Tiffany Hughes

Child support is a critical aspect of a case, ensuring that children receive the financial support they need following the dissolution of their parents’ relationship. In Illinois, as in many other states, child support calculations are based on various factors, including the income of both parents. However, when settlement funds come into play, the situation can become more complex. Knowing if a large payout or settlement funds can change the child support payments is important to decipher before a parenting agreement is enacted.

What is Child Support?

Child support is a legal obligation that requires one or both parents to provide financial assistance for the upbringing and care of their child or children, typically following a separation, divorce, or legal separation. The primary purpose of child support is to ensure that children have access to the financial resources they need to meet their basic needs, such as food, clothing, shelter, education, and healthcare.

Child support arrangements are established through legal proceedings, often as part of a divorce decree, separation agreement, or paternity determination. The amount of child support to be paid is usually determined based on state-specific guidelines.

Child support payments are typically made on a regular basis, such as monthly, and are intended to continue until the child reaches the age of majority, which is usually 18 years old. However, in some cases, child support obligations may extend beyond the age of majority, such as if the child has special needs or is still in school.

It’s important to note that child support is separate from other financial arrangements, such as alimony or spousal support, which are intended to support the ex-spouse rather than the children. Child support payments are typically enforceable by law, and failure to pay can result in legal consequences, such as wage garnishment, seizure of assets, or even imprisonment in extreme cases.

What Factors Calculate Child Support?

1. Income Considerations:

In Illinois, both parents have an obligation to financially provide for their children. The Illinois child support guidelines calculates child support primarily dependent on each parents’ respective incomes. Income in Illinois includes wages, salaries, bonuses, commissions, pensions, Social Security benefits, and other sources of income.

2. Percentage Guidelines:

The Illinois child support guidelines follows the Income Shares Model, which calculates child support based on the combined net income of both parents, each parents’ respective parenting time, and the number of children requiring support.

3. Deviation Factors for Child Support:

While the guidelines provide a framework for child support calculations, deviations may occur based on various factors, such as healthcare expenses, educational needs, and the financial resources of both parents.

Can Settlement Funds Impact Child Support Calculations in Illinois?

Settlement funds, such as those received from a personal injury or wrongful death lawsuit, are generally considered as income for child support purposes in Illinois. However, the treatment of settlement funds may vary depending on the specifics of the case.

If a parent receives a lump-sum settlement, such as a one-time payment, the settlement funds may be treated differently from ongoing income. In such cases, the court may assess whether the settlement funds should be factored into child support calculations as a one-time windfall or whether they should be considered as an ongoing source of income.

Generally, if the parent paying child support is current on their payments to the other party, there isn’t much ground to change the status quo on child support payments as the law requires that there be a substantial change in circumstances. However, if the settlement receiving party is behind or refuses to pay, or if the settlement funds are big enough and may be considered an ongoing source of income, the Court can re-open the negotiations.

Ultimately, the court’s primary concern in ordering child support is the best interests of the child. When determining the impact of settlement funds on child support, the court may consider the law’s factors to calculate child support such as the child’s needs, and deviation factors for child support such as the financial resources of both parents and the nature and purpose of the settlement funds.

Navigating Child Support with Settlement Funds

Given the potential complexities, parents navigating child support matters involving settlement funds in Illinois should consider the following steps:

1. Consultation with Legal Counsel:

Seek guidance from an experienced family law attorney in Illinois who can provide insights into how settlement funds may impact child support calculations and advocate for your rights and interests.

2. Disclosure of Financial Information:

Be transparent about any settlement funds or other sources of income during child support proceedings. Failure to disclose relevant financial information could have legal consequences.

3. Court Evaluation:

Trust the court to evaluate the specifics of your case and make determinations that prioritize the best interests of the child. Provide any necessary documentation or evidence to support your position regarding the treatment of settlement funds.

In Illinois, settlement funds can indeed play a role in the factors to calculate child support and deviation factors for child support, but the specifics may vary depending on the nature of the settlement and the circumstances of the case. By understanding the relevant laws and considerations, parents can navigate child support matters involving settlement funds with greater clarity and confidence, ensuring that the needs of their children are adequately addressed.

Need More Information or Representation?

If you or your ex have received settlement funds and you are negotiating child support, or want to know more about how your income and financials are used to calculate child support, give The Law Office of Tiffany M. Hughes, P.C. a call today at 773-893-0228 for a confidential, complimentary 30-minute phone consultation or email Tiffany Hughes directly at Tiffanyhughes@thugheslaw.com. Our entire practice is solely dedicated to the area of family law. We are highly experienced in providing legal representation to anyone getting a divorce with children, have received settlement funds and are worried about it affecting child support arrangements, frequency of child support payments, parenting agreement, spousal support, or alimony, helping parents evaluate factors to calculate child support and deviation factors for child support pursuant to the Illinois child support guidelines, or wanting to negotiate the amount of child support they are receiving or giving.

      About Tiffany M. Hughes, Divorce Attorney, Principal, Managing Partner, The Law Office of Tiffany M. Hughes, P.C.:

Tiffany M. Hughes is a divorce attorney and Managing Partner of The Law office of Tiffany M. Hughes. Recognized as a Top 100 Lawyer in Lawyers Magazine in 2018 and 2019, Super Lawyer from 2016 to date, and in addition to numerous other accolades, Ms. Hughes represents individuals in all aspects of family and matrimonial law proceedings, including litigation, mediation, allocation of parental responsibility (formerly known as custody), parentage, divorce and other child-related matters.

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This blog is made available by The Law Office of Tiffany M. Hughes, P.C. for educational purposes only as well as to give you general information and a general understanding of Illinois law, not to provide specific legal advice. By using this website you understand that there is no attorney client relationship between you and The Law Office of Tiffany M. Hughes, P.C. The website should not be used as a substitute for competent legal advice from a licensed professional attorney in Illinois.  The law changes constantly and we do not go back in time to edit old posts that may be affected by these changes.  If you have any questions about Illinois law, which is the only State this blog and website discusses, please call The Law Office of Tiffany M. Hughes, P.C. for a complimentary phone consultation and do not draw any legal conclusions without speaking to a competent attorney in Illinois first.