Legal Definitions - income stock

An income-withholding order is a legal directive issued by a court that compels an employer to deduct a specific amount of money directly from an employee's wages or other income and send it to a designated recipient. This type of order is most commonly used to ensure the regular payment of financial obligations, such as child support or spousal support (alimony).

Also known as a wage-withholding order, wage-assignment order, or simply wage assignment, its purpose is to ensure consistent and timely payments by having funds deducted directly from the source of income, rather than relying on the individual to make payments themselves.

• Example 1: Child Support Enforcement

  After a divorce, a court orders David to pay $800 per month in child support to his ex-spouse, Sarah. David initially makes payments inconsistently, often missing deadlines. To ensure reliable support for their children, Sarah petitions the court for an income-withholding order. The court grants the order, directing David's employer to deduct $800 directly from his bi-weekly paycheck and send it to the state's child support collection agency, which then forwards the funds to Sarah.

  This example illustrates how an income-withholding order provides a consistent mechanism for collecting child support, ensuring the custodial parent receives funds regularly without relying on the paying parent's direct action.

• Example 2: Spousal Support Collection

  Following a separation, Maria is ordered to pay her former husband, Robert, $1,500 per month in spousal support for a period of three years. Maria, who works a demanding job with variable hours, finds it challenging to remember to send the payment each month, leading to occasional late payments. Robert requests the court to issue an income-withholding order. The court then directs Maria's employer to deduct the $1,500 spousal support amount from her monthly salary and send it directly to Robert, ensuring he receives his payments on time.

  Here, the income-withholding order is used to enforce spousal support obligations, demonstrating its application beyond child support to other court-mandated financial duties between former spouses.

• Example 3: Collecting Back Payments (Arrears)

  Years ago, Lisa fell behind on her child support payments, accumulating $10,000 in arrears (past-due amounts). A court later issues an income-withholding order that not only covers her current monthly child support obligation of $600 but also includes an additional $200 per month to gradually pay down the $10,000 in arrears. Lisa's employer is instructed to deduct a total of $800 from her paycheck each month until both the current support and the outstanding arrears are satisfied.

  This scenario demonstrates that an income-withholding order can be a powerful tool for collecting not only ongoing financial obligations but also significant accumulated past-due amounts, ensuring that all court-ordered debts are addressed.