Child Support Lien

[map777]

What is the name of your state (only U.S. law)? Wisconsin

I am selfemployed and, due to the poor economy, I have been unable to make child support payments. The agency is threatening to sieze my financial accounts and my real estate. My real estate rentals are held under an LLC. Shouldn't the LLC offer protection from personal obligations? Can the agency take control of accounts and property that is not held in my name?

 

[CJane]

So, you HAVE cash in accounts, and you HAVE income (rental)?

At what point did your child stop requiring food/clothing/housing/water/electricity/child care (if very young)/heat/transportation/etc?

Because I'd really like to stop paying child support too. I'd also like to have money in my "financial accounts", but I can't and I don't.

Federal law requires all States to have procedures for imposing a lien on real and personal property of a noncustodial payment [sic] for the payment of past-due support. This lien can be foreclosed on, forcing the noncustodial parent to pay up the past-due support or lose the property to cover the amounts of support past-due. Under all State laws, the government enforcement agency can seize the financial assets of a noncustodial parent held by financial institutions, such as banks and mutual funds.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) requires States to have laws for suspending or revoking drivers, professional, occupational and recreational licenses for unpaid support arrearages.

Asset Protection Concepts

Also child support matters are unaffected by any asset protection structuring.

I'm thinking, if you're far enough in the hole, the corporate veil is easily pierced. Especially if you're the only "employee" of the LLC.

 

[The_Non-Mom]

Not saying that Dad shouldn't be paying his support but....

If the money in the LLC's accounts are the security deposits of his renters, can that be considered OP's money and seized for CS? What happens when he needs to return those security deposits to his renters?

 

[LdiJ]

Not saying that Dad shouldn't be paying his support but....

If the money in the LLC's accounts are the security deposits of his renters, can that be considered OP's money and seized for CS? What happens when he needs to return those security deposits to his renters?

The LLC is a separate legal entity. They cannot seize assets of the LLC without jumping through some pretty serious hoops, and even then, its not supposed to be possible. Unless of course he is a single member LLC and has made the mistake of holding any of the LLC's money or the renter's deposits in an account with his social security number rather than the LLC's EIN number.

An LLC is not a corporation. It does not have shares, it has members. Therefore only the income stream from the LLC (money that goes from the LLC to the members) is seizable.

Now, if it was a corporation instead of an LLC, then the same would apply, but they could put a lien on his shares in the corporation.