Would I have to give child support money I got back if it was garnished from a joint account?

[Childsupporthelp]

What is the name of your state?

They (my ex and his other daughter) live in New Jersey. My daughter and I live in New York.

My ex was very behind on his child support payments. I finally got a big chunk of the money after his account got garnished. Apparently the account that got garnished was actually his daughter’s (not the one we share) account. It is a joint account and he is a co signer.

 

[LdiJ]

What is the name of your state?

They (my ex and his other daughter) live in New Jersey. My daughter and I live in New York.

My ex was very behind on his child support payments. I finally got a big chunk of the money after his account got garnished. Apparently the account that got garnished was actually his daughter’s (not the one we share) account. It is a joint account and he is a co signer.

Your ex can make an argument that it was not technically his money (if he can prove it was not) and perhaps get the child support agency to claw it back, but he would have to have some compelling evidence before they would even consider it. However, if it really was her money (perhaps gifts from other relatives, scholarship money, an inheritance etc) and definitely not his that he was trying to hide, then I personally wouldn't want to keep it. I wouldn't want some other child or young person to be punished for my benefit. And yes, the second part of that is purely a personal opinion, not a legal one.

 

[adjusterjack]

My ex was very behind on his child support payments. I finally got a big chunk of the money after his account got garnished. Apparently the account that got garnished was actually his daughter’s (not the one we share) account. It is a joint account and he is a co signer.

How old is his daughter?

What is he telling you about the money that's in the account?

If he says any of it is hers make him prove it with verifiable documentary evidence, not just say so.

Any money you give back, you'll never see again, so make it as difficult as possible for him.

If you do pay any of it back, make the check out to the daughter, keep what doesn't belong to the daughter.

 

[Childsupporthelp]

How old is his daughter?

What is he telling you about the money that's in the account?

If he says any of it is hers make him prove it with verifiable documentary evidence, not just say so.

Any money you give back, you'll never see again, so make it as difficult as possible for him.

If you do pay any of it back, make the check out to the daughter, keep what doesn't belong to the daughter.

She’s I think 16. Apparently it was a combination of money she’s saved or gotten as gifts according to his daughter. My ex is actually not making a fuss about it.

I hadn’t planned on giving the money back unless order by the court. I would like to know if there’s a case so I can plan accordingly. There have been some thing my daughter needs that I was going to use the money for, but it wouldn’t be very good if I had to pay it back. So if there’s a good chance I’d have to pay it back maybe I would put it in a high interest savings account instead.

 

[Zigner]

So you're ok with taking the money that you know belongs to the child so you can spend it on your own child. Gotcha.

 

[adjusterjack]

She’s I think 16. Apparently it was a combination of money she’s saved or gotten as gifts according to his daughter.

How much money did you get? Dollar amount please.

Hundreds? Sounds reasonable for a 16 year old to accumulate.

Thousands? Nope. Not unless she's been working part time after school, which can be easily verified by pay stubs or W-2s.

My ex is actually not making a fuss about it.

Of course not. He's a scumbag who won't pay his child support obligation and doesn't care that his daughter is losing her money.

I hadn’t planned on giving the money back unless order by the court. I would like to know if there’s a case so I can plan accordingly.

Don't spend any of it until you get this figured out.

 

[Childsupporthelp]

How much money did you get? Dollar amount please.

Hundreds? Sounds reasonable for a 16 year old to accumulate.

Thousands? Nope. Not unless she's been working part time after school, which can be easily verified by pay stubs or W-2s.



Of course not. He's a scumbag who won't pay his child support obligation and doesn't care that his daughter is losing her money.



Don't spend any of it until you get this figured out.

The total amount I got is just under 14.7k. If I were to put it in a high yield savings account would it be okay to spend the interest? I know that is only about $700 a year provided it doesn’t get taken back before then, but it would still be helpful.

 

[Taxing Matters]

What is the name of your state?

They (my ex and his other daughter) live in New Jersey. My daughter and I live in New York.

My ex was very behind on his child support payments. I finally got a big chunk of the money after his account got garnished. Apparently the account that got garnished was actually his daughter’s (not the one we share) account. It is a joint account and he is a co signer.

In general, the way these things work for joint accounts is that if the account holders have the right to take money out of the account on their own without any consent or action by the other owner then a levy or garnishment order for one owner would allow the creditor get all the money in the account. That uses the idea that the creditor steps into the shoe of the debtor and things that the debtor can do with his/her assets on their own their creditors can also do. There may law in NY that if the money in the account can be traced to belonging to only the other account holder that the levy/garnishment order would not attach to that account because the debtor has no money in it. I don't know the details of NJ law on that (which assumes his account is in NJ) so I can't give you a definitive answer. You may well get to keep it, but as adjusterjacks suggests, it's probably best not to spend any of it until you know that the child support agency won't come looking to take that money back.

ETA: You probably can keep the interest you'd get off the money. In at least most states there is no obligation for you to invest the money somehow for the other person's benefit.

 

[Taxing Matters]

By the way, it's because the creditor may generally get the entire amount of a typical joint bank account (other than those held by husband and wife in states that recognize tenancy by the entirety, as both NY and NJ do) for the debts of just one creditor that the IRS is able to zap joint accounts of held by a parent and minor child. A few decades ago the IRS got some bad press because it emptied that sort of account for taxes owed by the parent, which it had the right to do, but unfortunately the levy hit just before Christmas and the money was supposedly the kid's. The IRS got painted as the Grinch and since then the IRS policy has been that no bank levies will go out the last two weeks of the year for individual income tax liabilities unless there is a jeopardy or statute of limitation situation.

 

[adjusterjack]

The total amount I got is just under 14.7k.

$14,700 in a 16 year old's bank account? That doesn't pass the smell test.

Explains why your ex isn't saying much. He probably knows he'd get nailed for a fraudulent transfer if he tried to get it back.

How much more child support arrears are there?

Apparently it was a combination of money she’s saved or gotten as gifts according to his daughter

Has the daughter herself talked to you about the money or are you getting that second hand from somebody else?

 

[LdiJ]

$14,700 in a 16 year old's bank account? That doesn't pass the smell test.

Explains why your ex isn't saying much. He probably knows he'd get nailed for a fraudulent transfer if he tried to get it back.

How much more child support arrears are there?



Has the daughter herself talked to you about the money or are you getting that second hand from somebody else?

I am not so sure that I agree that it smells. If we are talking about a family with fairly affluent relatives and the teen worked hard I could see them saving that much over their lifetime. Yes, it seems a bit on the high side but I have known teens seriously saving for college or for other reasons who have managed to save that much.

Although, the fact that dad isn't having a major fit about it does tend to lend itself towards your opinion.

 

[Just Blue]

My eldest had over 16 k in her savings acct by the time she was 15... she made 30.00 an hour babysitting for Marblehead families. She was in such demand that there was a waiting list.

Yes...she was that good. Kids loved her and parents loved that she was responsible, caring and red cross trained. One family gave her a $500.00 bonus because she managed to teach their 7 year old son to swim... he had swimming lessons but wasn't "getting it". She spent the day with him out at the pool and by the end of day he was swimming laps and diving. Parents got home and kiddo said "Look Mom! Look at what I can do!!" Mom was thrilled.

So, yes. Young people can possibly save a nice chunk of $$$.

 

[commentator]

Yes, but somehow, to me the smell test is that this guy doubtless knew he had the child support arrears, and he shouldn't have screwed the other party and child out of that money. So if the child who had the $14K in her account is truly makin' it on her own, and had been given the money, or saved it through her own hard work, Dad should now make it up, come up with it, pay the darn arrears money to his daugter to make up for the money that was garnished. He owed it, even if they got her money to pay it.

 

[Childsupporthelp]

$14,700 in a 16 year old's bank account? That doesn't pass the smell test.

Explains why your ex isn't saying much. He probably knows he'd get nailed for a fraudulent transfer if he tried to get it back.

How much more child support arrears are there?



Has the daughter herself talked to you about the money or are you getting that second hand from somebody else?

Approx 25-26K more.
It was the daughter who contacted me about it.

 

[adjusterjack]

It was the daughter who contacted me about it.

I dunno. If you have any intention of giving the money to the daughter, she should have the burden of proving it was her money.

If not, then sorry child, your father is a rotter, get the money from him.

Still, put it away and don't spend it. You can make at least 5% on short term CDs on Fidelity.

Here's a thought. If you know where the ex works, file for wage garnishment.