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Posted by eric_k_johnson on November 26, 2011
Child support obligations are almost always cash obligations. A court will order a non-custodial parent to pay a certain amount to a custodial parent every month for the welfare and benefit of the child or children living with the custodial parent. In Utah, under very specific circumstances it is possible to get credit for in-kind child support expenditures that were made for the welfare and benefit of the child or children, but anyone seeking to substitute in-kind support for cash payments is facing an uphill battle and must follow very specific procedures (See Utah Administrative Code Rule R527-56. In-Kind Support).
In-kind support is defined by the Office of Recovery Services (“ORS”) as “support provided by the obligor to the obligee in lieu of payment of a cash support amount.” Anything given as payment that isn’t cash qualifies. Stocks, bonds, and other easily converted assets are treated the same by the laws of Utah as paying the rent for your child’s lodgings, or the transfer of an asset like a car (See UAC R527-56-2).
ORS may give credit to non-custodial parents for in-kind support payments when certain conditions exist. If a court has ordered you to pay the house payment rather than writing a check for six months, your obligations are fulfilled so long as the house payment is made on time. Outside of a court order, plan on needing a signed, written agreement between the custodial and non-custodial parent. Getting a signed agreement is only the first step. You then need to file the agreement with the court and notify ORS. Finally, even if you and the custodial parent agree to the terms, your written agreement can still be barred if ORS files an objection with the court (See UAC R527-56-2).
In-kind support must be easily valued. The support must be the same as, or more than, the amount you were obligated to pay by the court, and the value must be undisputed. Generally, if the in-kind support you are seeking credit for was not made prior to the court ordering you to support a custodial parent, you must be receiving financial public assistance to get permission to substitute in-kind support for cash payment (See UAC R527-56-2).
In summary, if you are considering using in-kind support to meet your child support obligations, there is never any time to waste. You must start early, and get permission from the court, ORS, and the custodial parent before getting credit for anything but cash payments. Get ORS involved early. There is no substitute for being proactive when it comes to support payments.
More information can be found at www.ors.utah.gov
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