Wednesday, May 10, 2006

California Proposal Seeks to Help Collect $19 Billion in Outstanding Child Support

It is estimated that there is $19 billion uncollected child support in the state of California. Last year, the state collected less than 50% of the child support owed.  A proposal called “AB 2440,”  if passed into law,  would make any person or business entity in California that knowingly assists a person with unpaid child support to evade his or her responsibility jointly and severally liable for 10 times the value of the assistance provided, up to the total amount of the child support debt. “Under the bill, “knowingly assists” is defined to include: (1) helping to hide or transfer assets; (2) failing to timely file a new employee or independent contractor with the Employment Development Department (EDD); or (3) engaging in the paying of wages or other forms of compensation through payment of cash or via barter or trade.”  Source.  Californiachronicle.com. Please click here to read the complete story (last visited May 10, 2006, reo).

http://lawprofessors.typepad.com/family_law/2006/05/california_prop.html

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