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What is a Cost of Living Adjustment (COLA) Clause?
What is a Cost of Living Adjustment (COLA) Clause?
What is a Cost of Living Adjustment (COLA) Clause?
A COLA clause in a child support order means that payments are to increase annually at a rate equal to the annual cost of living increase, as determined by an economic indicator (such as the Consumer Price Index). Some judges include COLAs in their orders when setting child support. This eliminates the need for any modification requests based solely on cost of living increases.
What happens if a parent falls behind on child support payments?
When a person does not make child support payments on time, the overdue payments are called "arrearages," and the person is "in arrears" on payments. Judges have become very strict about enforcing child support orders and collecting arrearages. While the person in arrears can ask a judge for a downward modification of future payments, the judge will usually insist that the arrearage be paid in full, either immediately or in installments.
I lost my job six months ago, and fell behind on my child support payments. I just decided to request the court to reduce the amount of child support I have to pay. Can I be excused from the child support debt I accumulated for the last six months?
Courts are supposed to refuse to retroactively modify a child support obligation. In fact, judges in most states are prohibited by law from retroactively modifying a child support obligation. This means if a person becomes unable to pay support, he may petition the court for a reduction, but even if the court reduces future payments, it should hold him liable for the full amount of support due and owing. For this reason, if a parent with a child support obligation starts falling behind because his income has decreased or his debts have increased, he should immediately seek a temporary modification.
Example: Joe has a child support obligation of $300 per month. Joe is laid off of his job, and six months pass before he finds another one with comparable pay. Although Joe could seek a temporary decrease on the grounds of diminished income, he lets the matter slide and fails to pay any support during the six-month period. Joe's ex-wife later brings Joe into court to collect the $1,800 arrearage; Joe cannot obtain a retroactive ruling excusing him from making the earlier payments.
Copyright 2007 Nolo
Copyright © 1994-2006 FindLaw, a Thomson business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
What happens if a parent falls behind on child support payments?
When a person does not make child support payments on time, the overdue payments are called "arrearages," and the person is "in arrears" on payments. Judges have become very strict about enforcing child support orders and collecting arrearages. While the person in arrears can ask a judge for a downward modification of future payments, the judge will usually insist that the arrearage be paid in full, either immediately or in installments.
I lost my job six months ago, and fell behind on my child support payments. I just decided to request the court to reduce the amount of child support I have to pay. Can I be excused from the child support debt I accumulated for the last six months?
Courts are supposed to refuse to retroactively modify a child support obligation. In fact, judges in most states are prohibited by law from retroactively modifying a child support obligation. This means if a person becomes unable to pay support, he may petition the court for a reduction, but even if the court reduces future payments, it should hold him liable for the full amount of support due and owing. For this reason, if a parent with a child support obligation starts falling behind because his income has decreased or his debts have increased, he should immediately seek a temporary modification.
Example: Joe has a child support obligation of $300 per month. Joe is laid off of his job, and six months pass before he finds another one with comparable pay. Although Joe could seek a temporary decrease on the grounds of diminished income, he lets the matter slide and fails to pay any support during the six-month period. Joe's ex-wife later brings Joe into court to collect the $1,800 arrearage; Joe cannot obtain a retroactive ruling excusing him from making the earlier payments.
Copyright 2007 Nolo
Copyright © 1994-2006 FindLaw, a Thomson business
DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.
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