Failure by the obligor to pay child support to the obligee can result in penalties from both federal and state governments.
Both federal and state laws impose a “tax offset” against a person who owes child support and is due a tax refund. In a tax offset, the money that the obligor owes the obligee is taken directly from the tax refund and sent to the obligee.
The federal tax offset process begins when a state child support agency reports an arrearage to the federal Office of Child Support Enforcement for any amount over $150. The Office of Child Support Enforcement then reports these arrearages to the IRS. The IRS is authorized to offset the arrearage amount and send it to the state’s child support agency through the Treasury Department’s Bureau of Fiscal Service, which issues tax refunds. The state agency then distributes the funds to the obligee.
States may also offset state tax refunds using similar procedures.
Both state and federal law allow for the garnishment of wages for support arrearages.
Both federal and state governments can place liens on real estate and personal property for support arrearages.
Once an obligor has an arrearage registered with the federal Office of Child Support Enforcement, that office is authorized to impose several penalties beyond payment offsets.
Note on spousal support (alimony): While federal law does not provide for income garnishment for spousal support, many state laws do. Federal enforcement procedures for child support often apply to spousal support cases at the state level.
An obligor may be denied a U.S. passport if the arrearage is $2,500 or more. The process includes notification to both the U.S. State Department and the obligor. The passport may be denied unless the arrearage is paid in full, the case is dismissed, or the state requests that the passport not be denied.
Child support arrearages can be reported to credit bureaus.
The government can attach assets held by financial institutions, such as bank accounts or other financial instruments, for child support arrearages. This authority is established by the multistate Financial Institution Data Match program, created under welfare reform legislation in 1996.
The Federal Parent Locator Service within the Office of Child Support Enforcement helps states match child support debt records with account records from multistate financial institutions. When a match is found, an attachment may be placed on the account, up to the amount of the arrears.
All multistate financial institutions, including banks, credit unions, insurance companies, and money-market mutual funds, must participate in this program. Accounts subject to attachment include checking, savings, demand deposit, negotiable withdrawal, and time deposit accounts. Institutions operating only within a single state do not participate in this program.
The federal child support office transmits arrearage information to these institutions. If an account is located, the institution notifies the federal agency, which then shares this information with the state child support agency. The state may then impose a lien or levy on the account.
If the obligor and obligee reside in different states or if the financial institution is located in a different state than the court order, funds are directed to the relevant state child support agency.
Different states vary in their punishments for non-payment of support. However, many state punishments align with federal penalties. States may set different thresholds for the amount owed or the duration of arrears before imposing sanctions.
When the obligor, obligee, payment source, and court jurisdiction are all within the same state, the state support enforcement agency handles all paperwork. If any element involves another state or federal income sources, the federal penalty section can be engaged.
Courts have the authority to enforce or modify their orders. An arrearage case often begins when the obligee files a Motion for a Citation in Contempt against the obligor, though the court may also issue its own arrest or bench warrant. The obligor is then required to attend a “show cause hearing.” If found in contempt of the court’s support order, the law allows various punishments.
Some penalties are statutory, while others are at the court’s discretion.
A court’s contempt power operates alongside state and federal child support enforcement authority, allowing an obligor in arrears to face penalties from multiple sources concurrently.
Courts possess the unique authority to enforce orders through “civil contempt.” This rare measure is typically applied when the obligor willfully disobeys a court order.
In civil contempt cases, the judge may jail the obligor until payment is made. Though the obligor cannot earn income while jailed, this measure can lead to prolonged incarceration in cases of defiance. In a notable example, Philadelphia lawyer H. Beatty Chadwick was jailed for 14 years for refusing to disclose financial documents, ultimately being released without complying.
All states have some form of criminal punishment for obligors in arrears, though jail time is rarely enforced. Some states permit misdemeanor charges, some allow felony charges, and others progress from misdemeanors to felonies under specific conditions.
Under federal law, non-payment must be “willful” for criminal charges to apply.
All states impose driving restrictions for non-payment of child support, with some allowing limited driving privileges for work purposes or easing restrictions if a portion of the arrearage is paid.
While these laws generally focus on driver’s licenses, they apply to all types of licenses, including professional, medical, legal, and even hunting and fishing licenses.
The federal government can also suspend driver’s and professional licenses through the Office of Child Support Enforcement.
States may garnish an obligor’s wages. Federal and state laws require employers to comply with garnishment orders.
Beyond wages, states may garnish Social Security payments, unemployment benefits, retirement funds, insurance claims, and other income sources. Some restrictions apply, such as a 15% limit on garnishing Social Security payments.
As with federal tax refunds, state tax refunds may also be offset to cover child support arrearages.
A state court may impose a Qualified Domestic Relations Order on a qualified pension to satisfy support arrearages, allowing monthly pension payments or a single payment to be directed to the obligee.
Courts may impose a small surcharge on arrearages, often 1-2% of the amount owed, commonly known as “poundage.”
States may report support arrears to credit bureaus, with some requiring this after a certain period of non-payment.
A court’s contempt power runs parallel to the state’s support enforcement’s power and the federal child support enforcement power. That means that an obligor in arrears can be hit from three directions at the same time.
Civil Contempt
One unique power that a civil court must enforce its own orders is called “civil contempt.” This is a very unusual punishment and is used very rarely—usually when the obligor deliberately disobeys a court order.
Under a court’s civil contempt power, the judge can literally send the obligor to jail until the obligation is paid. Of course, the obligor can’t make any money in jail, which means that there are times when the obligor could be in jail for a long, long time.
In one famous case, Philadelphia lawyer H. Beatty Chadwick was jailed for 14 years for refusing to give the court his financial documents. He eventually was let out of prison without ever giving the documents over to the court.
Criminal Charges
All states have some form of criminal punishment for obligors who are in arrears, although they are rarely enforced with jail time. Some states allow only misdemeanors charges, some allow only felonies, and some start with misdemeanors and graduate to felonies under certain circumstances.
Under federal law, non-payment must be “willful” for there to be a criminal conviction for non-payment of support.
License Suspension
All states have some sort of restrictions on driving privileges that can be invoked for non-payment of child support. Some states will allow work driving privileges, or to ease license restrictions if the obligor pays a certain percentage of back support.
While the emphasis may be on suspension of the obligor’s driver’s license, state laws do not make a distinction among the licenses that can be suspended. A license is a license. These will include any kind of license—medical, law, or any professional license, and even hunting and fishing licenses.
Note: the federal government can also suspend driver’s and professional licenses through the Office of Child Support Enforcement.
Income Withholding
A state can garnish an obligor’s wages. Both federal and state laws require employers to honor these garnishments.
In addition to wage withholding, states can also garnish Social Security payments, unemployment payments, retirement payments, insurance claims, worker’s compensation claims, and other forms of income from a child support obligor who is in arrears.
Some of those laws have limits on the amount of money that can be garnished. For instance, Social Security payments can only be garnished up to a total of 15% of the payment amount.
State Tax Refund Offset
As mentioned, state tax refunds can be offset the same as federal tax returns.
Pension Account Attachment
A state court can impose what is called a Qualified Domestic Relations Order on a qualified pension to satisfy support arrearages. This attaches monthly pension payments in favor of the obligee and can also sometimes be converted to a single payment.
Surcharge
A court can impose a small surcharge on arrearages, adding one or two percent of the amount owed to the obligation. This is often called “poundage.”
Credit Reporting
States can report support arrears to credit bureaus. Some states mandate this reporting after support is in arrears for a certain period.
