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Casino Winnings & Lawsuit Proceeds to Be Attached for Child Support Arrears

Clarkston Legal June 4, 2009

The Michigan Senate is expected to pass a pair of bills designed to utilize proceeds derived from lawsuits and casino winnings, to satisfy past-due child support. The new law will require the recipient to provide notice of the expected windfall to the custodial parent.

In the context of lawsuit proceeds, the payor’s family court lawyer, or the litigator that obtains the proceeds for the payor, will be responsible to provide notice of the payor’s gain via ordinary mail to the custodial parent.

The bills are currently under consideration in the Senate’s Family and Human Services Committee and is expected to be signed into law this session. The provisions are expected to provide modest indeterminate relief to the State by reducing amounts spent on other “means-tested” assistance programs. The proceeds are also expected to reduce some administrative costs.

If you are receiving support and are aware that the payor in your case is about to come into lawsuit proceeds, or has recently received a casino “windfall”, contact us to explore your rights to such proceeds.