Asset Protection and Child Support

It is not uncommon for us to get calls from clients inquiring about how Asset Protection might affect the calculation of child support payments.  It is reasonable to think that something that can protect assets may also be useful for reducing or even eliminating child support or even Alimony payments; however, this is not the case.  Asset Protection does not help in any definable way in reducing or eliminating these payments.

In most states, Child Support payments are calculated based on the needs of the child as well as the ability of the parent to pay.  They are both required and non-discretionary in almost all instances.  

Asset Protection does not change the amount of income for the calculation of Child Support and for this reason is not useful in reducing those payments.  And while it may seem to some tempting to think that Asset Protection can protect assets in the event Child Support payments are not made, this would be a poor assumption. 

The general rule is that Asset Protection really has nothing to do with how the court calculates Child Support or the requirements of the individual to pay it.  It is worth noting that virtually all Domestic Asset Protection Trust (DAPT) statutes specifically EXCLUDE child support from the protections of the Trust.