Receiving personal injury awards or workers’ compensation may impact child support calculations in Illinois in the following ways:
Receiving personal injury awards or workers’ compensation may impact child support calculations in Illinois in the following ways:
Personal Injury Awards
Personal injury awards, such as settlements or judgments, may be considered income for child support purposes. However, not all parts of the award are included. Typically, only the portion of the award that compensates for lost income is considered income for child support calculations. For example, damages for pain and suffering, medical expenses, and emotional distress tend to be excluded from the calculation process.
Workers’ Compensation
Workers’ compensation payments are also considered income for child support purposes. This includes both ongoing payments and lump-sum settlements. The Illinois Supreme Court has ruled that workers’ compensation settlements are to be treated as income when calculating child support. The general guideline is that 20% of the net proceeds from a workers’ compensation settlement may be allocated towards child support.
In re Marriage of Plowman serves as an example of the impact of personal injury settlement / workers compensation on Illinois child support. In Plowman, a divorced father modified his marriage dissolution to become the custodial parent of his child. The non-custodial parent, the mother, was a full-time student at the time. Instead of filing for child support while she was enrolled in education, the father waited two years for her to graduate to file for child support. It was then discovered that the mother had received a $158,972.77 personal injury settlement after a car accident that left her with numerous injuries:
● The mother claimed that the entire amount was for pain and suffering and not loss of income.
● The father argued that the entire settlement should be considered income because it was a substantial amount which was spent as income.
○ The mother bought a house, two cars, clothes, and paid off debts with the settlement amount. By the time of judgement, the settlement was completely depleted.
The court determined that $2,430.00 from the settlement was deemed for loss of the mother’s wages and awarded 20 percent of the remaining amount to the father.
Practical Implications
- Disclosure: It’s important to disclose any personal injury awards or workers’ compensation settlements during child support proceedings.
- Adjustments: The court may adjust the child support amount based on the additional income from these awards or settlements.
- Fairness: The goal is to ensure that the child receives a fair share of the parent’s financial resources, reflecting what they would have received if the parents were still together.
In conclusion, personal injury awards and workers’ compensation payments play a significant role in child support calculations in Illinois. While only the portion of personal injury awards that compensates for lost income is considered, workers’ compensation payments are fully regarded as income. These additional financial resources must be disclosed and can lead to adjustments in child support amounts, ensuring that the child’s needs are fairly met. This approach aims to reflect the financial support the child would have received if the parents were still together, promoting fairness and transparency in child support proceedings. If you need help with pursuing or defending your Illinois child support lawsuit please click the link below contact our Chicago office and speak with one of our experienced family law attorneys https://jacobsonlegalservices.com/!
