Child support is an important part of many divorce proceedings. The law values child support payments so highly that states such as New Jersey are permitted to garnish the wages and freeze the bank accounts of those who do not meet their obligations. States can even garnish federal benefits payments from parents who are required to pay child support.

There are limits to how much a state can take, but a change in the way the Treasury Department issues those benefits could mean that a state could be able to take everything. Traditionally, the Treasury issued benefits using paper checks. But in an effort to save money–approximately $1 billion during the next decade–the government will now disburse benefits electronically, either issuing a prepaid debit card or depositing them directly into bank accounts. If the state has frozen the person’s bank account, it would have access to the whole benefits payment. The change takes effect next March.

Opponents of the new rule argue that the conversion to electronic disbursement disproportionately affects the poor and disabled, who depend on federal benefits for subsistence. They say that giving states the ability to take the whole of a benefits payment will leave some parents homeless. In addition, they note that much of the money that states would collect is interest owed on past due payments. The majority of the money would go to the states and not to support the children, many of whom are now adults.

Supporters of the measure counter that states must be allowed to force the collection of money to fulfill child support payments when people demonstrate an inability to make payments themselves.

The President’s Administration is currently inspecting the rule.

Source: The Washington Post, “Move to electronic benefits could leave thousands who owe child support with no income,” Feb. 26, 2012.