Child Support - A Cautionary Tale
We were recently contacted by a parent who pays arrears of Child Support
direct to the Child Support Agency under an agreed payment plan. Over the Christmas period the parent missed two small payments, totalling $100, and failed to return a phone call from the Child Support Agency which was made on 23 December 2009. As a result of the missed payments, the Child Support Agency seized control of the parent's business bank account and more than $5,000 was removed from the account in a 24 hour period.
The money removed from the account was applied to the arrears of Child Support. The drastic action of the Child Support Agency could have been avoided if the parent had contacted the Child Support Agency to advise that the payments would not be made in December/January.
We were able to assist the parent to resolve the issue, but it is a timely reminder of the extent of the powers of the Child Support Agency to recover funds owed for the maintenance of children. These powers can include payments being deducted from salary or wages (a garnishee order), automatic deduction from any tax refund you might be entitled to receive and lawful withdrawals from your bank accounts. These can be done without prior notice to you or your consent.
In the event you wish to discuss any issue relating to the payment, recovery or assessment of Child Support, you should contact one of our experienced Family Law Solicitors.
Posted on 11th February 2010
