Coronavirus Update - Helpful Information for Our Clients

Articles Posted in Coronavirus

 As we enter the uncharted territory of the COVID-19 pandemic,  the implications of the virus  changes everyday life as we know it.     As the stock market plummets,   supply chains are interrupted,  workers are furloughed and/or laid off, the implications of the novel coronavirus go well beyond what the pandemic means for individual portfolios.     The most vulnerable  in our society –those in need of family supports, such as child and spousal support may be hit hard.  

 Child support is one of the largest sources of income for families. According to the National Conference of State Legislatures, nationwide, the child support program serves one quarter of all U.S. children and half of all U.S. children in poor families—totaling 17.5 million children.   Research shows it reduces child poverty, promotes parental responsibility and involvement and improves children’s educational outcomes.    Fifty percent of all marriages end in divorce, and  many women, especially mothers with children, fall into poverty after divorce.    As the COVID-19 spreads,  this group may become the silent victims of  this contagion.

 In almost every state,  child support  and spousal support is tied to the income of the parties.  Should that income diminish due to reduced work and layoffs, or dissipate completely as a result of job terminations,  support payments can change radically.  Payments may dry up if pay checks disappear.    Payors  with reduced income may ask for  downward modifications in their support orders.   Payees who receive support and were working at the time an order was entered may lose a job, and be unable to replace it through support, if the payor also has lost income.  The ramifications are broad, and might affect the day to day survival for many.   

At Bookspan Family Law, LLC we meet many  of you at a vulnerable time in your lives.  Our goal is to help you through life transitions and ease your way to a better future.  Foremost in our minds now is the health and well-being of  you —our clients,  our friends and colleagues.  I am continuously reviewing and assessing the recommendations and requirements of applicable state, local and federal authorities, as well as the World Health Organization and the CDC, to implement necessary precautions and protective steps. As we face the coronavirus global pandemic together,  I want to assure you that we are continuing to work for you.

A note about financial obligations such as child and spousal support and alimony…

If you have lost your job, and or been temporarily laid off, it may affect your support payment (obligation and or receipt).    In Pennsylvania,  parties who either pay or receive support have a statutory obligation to report to Domestic Relations  a change in financial circumstances   As we have not faced  before anything like coronavirus and the interruptions in work and financial security it may bring, we may be in uncharted waters.  However, if you are laid off for a significant period of time, or lose you job, this is a change in circumstance that should be reported.  Alimony payments also may be affected.  Depending upon how alimony was provided for in your property settlement  agreement,  it could be impacted by a recent  financial change.    Please let us know if this is the case, and we will evaluate any next steps with you. For further discussion on financial security and cCvid-19, and a financial webinar,  see more information below.