What you need to know about child support obligations and how your workers comp settlement could be affected.
We have blogged in the past about the pros and cons of settlement. How you can trade workers comp benefits for a lump sum cash payment. This allows you the freedom to do your own medical treatment and vocational rehabilitation.
The value of a case is dependent upon how much the insurance company anticipates paying in workers comp benefits. The amount you owe for back child support is not a factor in this calculation. The insurance company really does not care about your problems.
A lien for child support can be enforced against any settlement or award. Here is some information about Michigan child support law and workers comp.
Friend of the Court
Michigan law requires that you address child support obligations as part of your workers comp settlement. Friend of the Court (FOC) is responsible for enforcement and collection.
A magistrate will not approve your settlement unless you have appropriate legal documentation. A letter from FOC will usually satisfy this requirement.
Expect to give up a portion of your settlement if money is owed for back child support. However, collection may not exceed 50% of your net proceeds. You will not give up more than half of what should go in your pocket.
Many of our clients are happy to pay a share of their settlement to FOC. This means that a portion of back child support is being paid. Sometimes the entire obligation can be paid off in full.
Some cases require compromise with FOC to create additional incentive to settle the case. It does neither side any good if the case will be lost at trial and no money will be recovered.
Call (855) 221-2667 to speak with one of our workers comp lawyers in Michigan. We can help you resolve these difficult child support issues.
– Alex Berman is the founder of Michigan Workers Comp Lawyers. Hes been representing injured and disabled workers exclusively for more than 35 years. Alex has helped countless people obtain workers comp benefits and never charges a fee to evaluate a case.
– Photo courtesy of Creative Commons, by danielmoyle.