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The state of Illinois froze our account for back child support.

The state of Illinois froze our account for back child support.

Q: Who pays taxes on joint account with child?

In a joint account, both account holders are typically responsible for any taxes on interest earned. Each person must report their share of the interest income on their tax returns. If the account is used for child-related expenses, the tax implications may also depend on how the funds are used.

Q: Does the state pay child support if the father doesn't?

No, the state does not pay child support on behalf of a non-compliant parent. If a father fails to pay child support, the custodial parent may seek enforcement through the state’s child support enforcement agency. The agency can take actions like wage garnishment or tax refund interception to recover owed support.

Q: Does it matter who is primary on a joint account?

In a joint account, there is generally no primary account holder in terms of ownership; both parties have equal rights to the funds. However, the designation of a primary account holder may affect who receives account statements and who can manage the account in certain situations.

Q: Who is responsible for paying taxes on a joint account?

Both account holders are responsible for reporting and paying taxes on any interest earned from a joint account. Each person must include their share of the interest income on their individual tax returns, regardless of who contributed the funds.

Q: Can child support garnish a joint bank account?

Yes, child support can garnish a joint bank account if one account holder owes back support. Creditors can access funds in a joint account to satisfy the debt of one owner, which means that the non-debtor spouse may also be affected by the garnishment.

Full question:

My husband and I have a joint checking account and on September 4, 2007 the child support collection unit for the state of Illinois froze our account for back child support that he owes in the amount of $4800.00. He doesn't owe any current support because his youngest son turned 18 in March so now he is paying off the arrears. He is and has been paying this since 2003 by way of payroll deduction and income tax interception. Since they froze our account we have had numerous charges that were made on our bank card previous to the freeze go through that were not covered and two checks that were written previous to the freeze that have now bounced. This is a joint account, how can they deny me access to my money for a debt that I am not responsible for? The checks that bounced were written and signed by me, I have never in my life written a bad check and had they not done this those checks would have been paid. Don't I have any rights to that money as a co owner of the account? Please tell me that I can get them to fix this mess they have made.

Category: Divorce
Subcategory: Child Support
Date: 04/07/2025
State: Texas

Answer:

Generally, a spouse is not liable for the debts of the other as long as it is an individual account, the spouse running up the debt is not an authorized user, surety, guarantor, or cosignor, and the couple does not live in a community property state. However, even in a community property state the assets of the spouse not running up the debt could be at risk. For example, in cases involving, among others, bankruptcy, divorce, or other litigation, creditors may go after assets held jointly by the debtor and non-debtor spouse, such as a bank account in both their names. If your spouse agrees to pay off a joint credit card debt but does not, the bank may successfully sue you for that debt. However, state laws vary about which marriage partner is responsible for certain debts, depending upon when the debt was incurred, the identity of the debtor, or the purpose of the debt.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can a joint bank account be seized?

Yes, a joint bank account can be seized by creditors if one account holder has debts. In cases like child support arrears, creditors may freeze or garnish funds in a joint account to satisfy the debt of one owner. However, the non-debtor account holder may have rights to contest the seizure, especially if they can prove the funds are theirs.