Is a lump sum payment acceptable in lieu of regular child support payments?

In North Carolina, a lump sum payment is not generally accepted in lieu of regular child support payments. The North Carolina Division of Child Support Enforcement (NC DCSE) requires parents to make regular child support payments on a scheduled basis. The NC DCSE has established guidelines for when a lump sum payment may be accepted. Generally, lump sum payments can be accepted only when the paying parent is in arrears on the regular monthly child support obligation. In some cases, the lump sum can be used to pay off the arrears and the regular monthly child support obligations. In other cases, the paying parent may use the lump sum to pay a portion of the arrears to ‘catch up’ with payments and continue making regular, monthly payments. The NC DCSE may also accept lump sum payments to satisfy all future child support obligations for a specified time period. This is known as a termination of the child support obligation. The NC DCSE will review the amount of the lump sum payment and compare it to the amount of future payments the paying parent would have been obligated to pay. The NC DCSE must also ensure that the lump sum payment is in the best interest of the child and does not leave the custodial parent unable to care for the child. Before agreeing to any lump sum payment, it is important that both parties thoroughly understand the details and consequences of accepting a lump sum in lieu of regular payments. It’s also important to consider that, in North Carolina, if the paying parent misses a payment, the lump sum will not be accepted in order to pay it.

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Is a lump sum payment acceptable in lieu of regular child support payments?

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