Nonpayment of settlement agreement

[sarus75]

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

Due to a severe financial downturn of my business (I am part-owner), my salary is half of what is was prior to my 2006 divorce. I had a settlemenet agreement to pay down my ex's interest in the company in the amount of $1400 per month. Added to $2600/month child support payments (which I have never missed), it is now a sum that I cannot afford. I have tried to negotiate a reduced monthly amount to pay her, but she has refused, wanting me to pay the now $20,000 that is owed in arrears, and rather has filed "contempt" charges against me for failure to make the settlement payments. I have filed for child support modification, but my hearings keep getting postponed (for the past 9 months already) and I am now $50,000+ in debt trying to continue to make my CS payments. I have no way to come up with $20,000 unless I sold my interest in my company, which would leave me unemployed. Is there any other recourse I can take?What is the name of your state (only U.S. law)?

 

[mistoffolees]

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

Due to a severe financial downturn of my business (I am part-owner), my salary is half of what is was prior to my 2006 divorce. I had a settlemenet agreement to pay down my ex's interest in the company in the amount of $1400 per month. Added to $2600/month child support payments (which I have never missed), it is now a sum that I cannot afford. I have tried to negotiate a reduced monthly amount to pay her, but she has refused, wanting me to pay the now $20,000 that is owed in arrears, and rather has filed "contempt" charges against me for failure to make the settlement payments. I have filed for child support modification, but my hearings keep getting postponed (for the past 9 months already) and I am now $50,000+ in debt trying to continue to make my CS payments. I have no way to come up with $20,000 unless I sold my interest in my company, which would leave me unemployed. Is there any other recourse I can take?What is the name of your state (only U.S. law)?

Have your attorney try to speed up the process. Until the court changes your terms, you're stuck.

 

[sarus75]

What about this "contempt" business...can I really go to jail over this, not paying down a debt because of financial hardship? Or can they make me sell my company, thereby making me unemployed?

 

[LdiJ]

What about this "contempt" business...can I really go to jail over this, not paying down a debt because of financial hardship? Or can they make me sell my company, thereby making me unemployed?

The settlement payment of 1400.00 is a debt, but the support of your children is not...yes, you can be jailed for contempt of court for not supporting your children. If you are 20k in arrears on the settlement and 50k in arrears on your child support, you haven't been paying for quite a while.

 

[sarus75]

No, as I mentioned in the initial thread, I have NEVER missed a child support payment. It is well above my means, but I have gone into credit card debt to keep paying the child support IN FULL all this time. There are zero missed payments. It is only the debt that is in arrears.