Child support payments are distributed in a variety of ways. In cases
where a non-custodial parent is liable for specific expenses such as
school tuition, he or she may pay them directly instead of through the
custodial parent.
In some jurisdictions, non-custodial parents are require to remit their
payments to the governing federal or state child support enforcement
agency. The payments are recorded, any portion required to reimburse the
government is subtracted, and then the remainder is passed on to the
custodial parent, either through direct deposit or checks.
In general, the first payee for child support is the government. For
example, in the United States, US Code Title 42, Section 657, provides
that for families that receive assistance such as welfare, the first payee
is the Federal Government, and the second payee is either the state
government is either the State or the family. Most states choose to
reimburse themselves first when they pay for assistance. For families
formerly on assistance, support continues to repay the Federal Government
until the assistance is repaid. For families which have never received
assistance, and for whom all fees have been paid, the family then receives
the child support disbursement.
Within the United States, a 2007 study conducted through the University
of Baltimore estimates that 50% of all child support arrears are owed to
the government to reimburse welfare expenses. Half of U.S. states pass
along none of the child support they collect to low-income families
receiving welfare and other assistance, instead reimbursing themselves and
the federal government. Most of the rest only pass along $50.00 per month.
The bipartisan 2006 Deficit Reduction Act and other measures have sought
to reduce the amount of money claimed by the government and to ensure that
more funds are accessible by children and families, noting that more
non-custodial parents are willing to pay child support when their children
directly benefit from payments.
