How Does Workers Compensation Affect Child Support?

 

Learn How to Increase the Value of Your Workers Comp Case When You Owe Child Support

 

If you are reading this article then three things are probably true: (1) you were hurt at work, (2) you have an obligation to make child support payments because of a court order, and (3) you want to know how your child support obligations or arrears will affect your workers compensation benefits.

 

The purpose of this article is to answer your questions about workers comp and child support. After reading it you will know:

 

  • Whether your workers compensation benefit check or lump sum settlement is subject to garnishment because of past due child support.

 

  • How the Department of Child Support Enforcement can find out that you have a pending workers comp claim.

 

  • How the garnishment of workers comp checks is done.

 

  • How much money can be deducted from your workers comp check or settlement because of past due child support.

 

  • What to do if you disagree with the lien that DCSE puts on your workmans comp case because of past due child support.

 

Keep reading to learn more. And call me for a free consultation if you have any questions about Virginia workers compensation: 804-251-1620 or 757-810-5614.

 

I help injured employees throughout the state get the lifetime medical treatment, temporary total disability benefits, permanent partial disability payments, and workers compensation settlements they deserve. And I’m ready to work for you.

 

Can the State Garnish My Weekly Workers Compensation Checks for Spousal and Child Support?

 

Yes.

 

The Commonwealth of Virginia’s Department of Child Support Enforcement (DCSE) may order garnishment of your workers comp check to pay child support you owe.

 

Under the Virginia Workers Compensation Act your weekly workers compensation check is exempt from all claims of creditors. Collection agencies, medical providers, and other creditors may not garnish your workers comp check. In fact medical providers cannot pursue debt collection activities when you have a workers compensation claim pending.

 

But there is an exception: your workers compensation check is subject to claims for spousal and child support.

 

If the workers compensation insurance carrier receives an administrative order from the DCSE stating that you owe back child support, then the carrier must comply with the order.

 

How Will the Department of Child Support Enforcement Find Out That I Have a Workers Comp Claim?

 

When you file a workers comp claim in Virginia, the DCSE receives notice of your claim.

 

The U.S. Department of Health & Human Services’s Office of Child Support Enforcement administers an Insurance Match Program. Participation is voluntary, but all state child support agencies, the U.S. Department of Labor, and more than 1,000 insurance carriers and workers comp agencies participate.

 

Here is how the Insurance Match Program works:

 

  • State child support agencies submit information about parents who owe past-due child support.

 

 

  • The Insurance Match Program compares information from state child support agencies with the information received from insurance carriers.

 

  • The Insurance Match Program sends matches to the state child support agencies.

 

  • The state child support agency decides whether to act on the match and obtain an Order to Withhold. Doing so is up to the specific agency.

 

If the Virginia DCSE issues an order to withhold, then the workers compensation insurance carrier must garnish your weekly checks.

 

How are My Workers Comp Checks Garnished?

 

Either the Virginia Workers Compensation Commission, the insurance company, or the self-insured employer will deduct money from your benefit check to satisfy the Child Support Order.

 

Usually the Commission or the insurance carrier sends the check to the Virginia Department of Child Support Enforcement directly. And the DCSE sends it to the custodial parent.

 

Rarely will the Commission or the insurance carrier rely on you to make the payment.

 

How Much Can the Insurance Carrier Deduct from My Workers Comp Check for Child Support?

 

Section 65.2-531 of the Workers Compensation Act states that claims for spousal and child support are subject to the same exemptions allowed for earnings in Code Section 34-29.

 

And Code Section 34-29, entitled Maximum Portion of Disposable Earnings Subject to Garnishment, states that the insurance carrier may not garnish more than:

 

  • Sixty percent of your disposable earnings for that week; or

 

  • If you are supporting a spouse or dependent child other than the spouse or child with respect to whose support the garnishment order was entered for, 50 percent of your disposable earnings for that week.

 

But the insurance carrier may garnish more the further behind you are with child support payments. If your earnings are subject to garnishment to enforce an order for support for a period which is more than 12 weeks prior to the beginning of that week, the amounts listed above increase to 65 percent and 60 percent, respectively.

 

If I Settle My Workers Comp Case, Will Child Support Be Deducted from the Settlement?

 

Whether child support is withheld from your workers comp settlement often depends on whether you are current with your child support payments or behind on them.

 

If you negotiate a lump sum settlement of your workers comp case and the Virginia DCSE has issued a garnishment order, then the DCSE has a lien on the settlement. Part of your settlement will go toward child support, with you receiving the rest.

 

It is important that you know the specific amount that will be deducted so that you can decide whether it makes sense to settle your work injury case. Sometimes it is a bad financial decision to accept a settlement. For example, if you are unable to work because of your industrial accident and will receive only a small percentage of the settlement proceeds because of past due child support, you may be better off trying the case at a workers comp hearing.

 

If you are current on your child support obligations then it’s unlikely that any money will be deducted from your settlement. But don’t be surprised if DCSE tries to recover some of the funds after the fact.

 

What Do I Do if I Disagree with the Amount of Child Support that DCSE Says I Owe?

 

I have represented many clients who were close to negotiating a settlement of their workers comp case when we received notice that DCSE had a lien on the case.

 

While my clients did not dispute that they owed some past due child support, they disagreed with the lien amount. Either because of incorrect calculations or because they had reached a separate agreement with their ex spouse or the child’s legal guardian.

 

If you are considering settling your case, do not sign a final agreement until you have cleared up the child support dispute or negotiated a lower lien.

 

The Workers Compensation Commission does not have the authority to invalidate a Department of Child Support Enforcement administrative support order because doing so is outside of the Commission’s jurisdiction. You must deal with DCSE directly or seek help in civil court.

 

In many cases I was able to help my clients negotiate lower child support liens or more favorable terms, which helped them net more money and helped their children receive financial support. Then we settled the case. Without the change in terms it made no sense for my clients to accept a settlement. And without a settlement there would not have been as many funds available for the dependent children.

 

Can I Pay Less Child Support Because I’m Out of Work and Receiving Workers Comp?

 

At most workers comp pays two-thirds of what you made before your injury. Those of you who are high wage earners may receive even less because Virginia has a maximum compensation rate.

 

Because your amount of child support owed is likely based on your income and earnings before you were hurt, you may have difficulty making full payments.

 

Your obligation to pay the full amount will stay the same while you are on workers comp. Unless you take action to modify the existing child support agreement.

 

If you think your child support payments should be less because you were hurt at work and your income has changed, you must take action to get those payments modified. Workers comp benefits are considered income for the purpose of calculating child support payments, but if your income is less you may owe less. A family law attorney can help.

 

Why Does Workers Comp Treat Former Spouses and Children Different Than Other Creditors?

 

In the past the surviving spouse and dependent children of an injured worker had no greater rights than other creditors. But that has changed over time.

 

Many states, including Virginia, recognize that the needs of an injured employee’s children are different than the claims of other creditors, such as banks and mortgage companies. And they have passed laws to protect a child’s right to  financial support.

 

Get Help Maximizing the Value of Your Work Injury Case When You Have Child Support Obligations

 

Call me – 804-251-1620 or 757-810-5614 – to discuss how to protect your rights after a workplace accident and how your child support obligations or arrears will affect your workmans comp settlement.

 

Depending on the nature and extent of your injury you may be eligible for other benefits. For example, I have helped persons who suffered a herniated disc or spinal cord injury in a car accident while on the job, as well as persons who suffered a shoulder injury and traumatic brain injury resulting in post concussion syndrome because of a fall from a height, receive Social Security Disability and Long Term Disability benefits.

 

No matter where you’re located in Virginia – Richmond, Newport News, Virginia Beach, Norfolk, Roanoke, Fredericksburg, or Fairfax – I can help. Call now to speak with a top rated workers compensation lawyer.

 

Corey Pollard
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