Divorce is never something you plan on in your life. When you walk down the aisle on your wedding day, you’re not anticipating having to consider what a wage garnishment is, if divorce happens. If you’re in the middle of, or anticipating a divorce is in your near future, you will want to know what a wage garnishment is.
In general, a wage garnishment is a legal or equitable way that a portion of an individual’s earnings are required to be withheld by an employer for a payment of an existing debt. They are typically court ordered.
The government regulates the amount of wage garnishments that can be taken based on many factors. The IRS or state tax collection agency can garnish wages for unpaid taxes. There are also federal wage garnishment limits for judgment creditors. If a judgment creditor is garnishing your wages, federal law states that is can only take a portion of your disposable income, or up to the amount that your income exceeds thirty times the federal minimum wage, whichever is less. There are also wage garnishment limitations for student loan debt.
In the event of a divorce, there are specific wage garnishment laws. The Consumer Credit Protection Act (CCPA) is a law that deals with the garnishment of wages after divorce. Title III of the CCPA applies to what personal earnings are. Personal earnings include wages, salaries, bonuses and commissions.
You’ll need strong legal advice when it comes to your divorce and potential wage garnishments. The government has set very specific laws and regulations of wage garnishments after a divorce. M. Qader A Baig & Associates, LLC understands these laws and can help you with all of your divorce needs. Call our offices today.