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Income Deduction Orders

© Annelies Mouring

Most people hear terms and phrases through their divorce that mean nothing to them. The divorce proceeding has been simplified a great deal in most jurisdictions but can still be cluttered with many terms that are hard to understand. An income deduction order is a document that many courts use but is not always explained properly. This guide will help explain what an income deduction is, how it works and to whom it applies.

What is an income deduction order? An income deduction order is an order of the court. This order allows for child support to be paid directly from the paying parent’s place of work directly to a central depository and then disbursed to the other parent. This is deducted directly from the payor’s pay as a deduction before taxes. Once an order has been established, the payor’s employee can take out the child support much as it does health or life insurance. This can also reduce the gross taxed amount lowering the amount of taxes for the payor.

What purpose does an income deduction serve? An income deduction order can be beneficial to both parents. The recipient of the child support can get their support without having to worry if the payor remembered or not. The payor can know that that they met their obligations. Paying this way is hassle free-never a check to write or letter to mail. The payor will also reduce their gross income resulting in lower taxes.

Are there any benefits? Beyond those benefits mentioned to preceding paragraph there are also others. An income deduction order is a legal document. Once ordered the payor’s employer and employee are forced to abide by the terms of the order. Not following the terms could result in contempt for the employer and payor. Should either choose to not abide that could mean jail or a fine or even both. That means that a recipient could be guaranteed the money in order to provide the monetary support needed b the custodial parent.

What are the drawbacks? The major drawback is that each order applies to only one employer at a time. Should the payor change jobs then a new income deduction order must be issued. Should the payor be a contractor and have short-term contract with various persons/ companies then the income deduction order will be relatively useless.

How do you get one? Every jurisdiction is different. Contact a local attorney, self help clinic or other legal professional for specific details to determine whether an income deduction will be applicable to your situation.

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