High-asset divorce, child support and business travel

On Behalf of | May 30, 2024 | High-Asset Divorce |

Unpaid child support can have far-reaching consequences beyond just financial penalties. For high net worth individuals, failure to pay child support can hinder their ability to travel for business purposes.

It is important for parents in this position to understand the impact of back support and their options.

Legal penalties and passport denial

When a high net worth individual falls behind on child support payments, they may face legal consequences. For example, wage garnishment, asset seizure or even imprisonment. These legal actions can disrupt their financial stability and impact their ability to conduct business as usual. Additionally, delinquent child support payments can result in a damaged reputation and credibility, which can have a negative impact on business relationships and opportunities.

Another way unpaid child support can affect business travel for high net worth parents is through the suspension or revocation of their passport. According to the Administration for Children and Families, the Passport Denial Program allows states to request the denial of passports for individuals who owe more than $2,500 in unpaid child support. This means that those with significant child support arrears may be unable to travel internationally for business purposes until they resolve their outstanding payments.

Other consequences

Unpaid child support can lead to restrictions on domestic travel as well. High net worth individuals who are delinquent in child support payments may have their driver’s licenses suspended or face travel restrictions within the country. These limitations can hinder their ability to attend important business meetings, conferences or networking events. This can impact their business operations and opportunities for growth.

The stress and guilt associated with failing to meet child support obligations can affect mental well-being. It can become hard to concentrate on business matters and make sound decisions while traveling. By staying on top of child support, high net worth parents can protect their ability to travel and conduct business.