Meriwether & Tharp, LLC
6788799000 Meriwether & Tharp, LLC 1545 Peachtree Street NE, Suite 300 Varied
If you have divorce questions

Are Personal Injury Settlements or Awards Considered Income for Purposes of Calculating Child Support in Georgia? – Part 3

In the first two parts of the discussion regarding personal injury awards in Georgia divorce cases, we examined whether personal injury awards were subject to equitable division. In part 3, we discuss how personal injury settlements and awards are handled when calculating child support in Georgia.

The first step when calculating child support in Georgia is to accurately determine the amount of each parent's gross monthly income. So the question is, is a personal injury settlement or award included in gross income for purposes of calculating child support in Georgia? According to Georgia's Child Support Statute, gross income is defined to specifically include personal injury awards as well as awards from other civil actions. OCGA § 19-6-15(f)(1)(a)(xvi). Nevertheless, even if a personal injury award is included in gross income, the statue allows a Court the authority in these types of situations to calculate gross income differently.

The frame of reference most often used in determining an individual's gross monthly income is examining the parent's income over the last year. For parents who have received certain types of settlements or awards, however, reviewing their income over the typical one year time period may result in the imposition of an inequitable child support obligation. Everyone loses when child support is set at an unsustainable amount and a parent is unable to meet their support obligation on an ongoing basis.

Fortunately, the legislature contemplated this potential inequity and crafted the Child Support Statute to allow for situations in which a parent's sole income is from irregular payments or a single, lump-sum payment as a result of a personal injury suit. Under the law, when a parent has received such an award, the fact finder may permit gross income to be computed by averaging the amounts received over a reasonable period of time or permit a one-time lump-sum child support payment to be made of a percentage of the total award received. OCGA § 19-6-15(f)(1)(a)(xvi). If you have received an award or settlement as a result of a personal injury suit, an experienced Georgia family law attorney can assist you in determining the appropriate amount of child support in your particular situation.

By Alyssa Vaughn, Associate, Meriwether & Tharp, LLC

Back to Blog