Judgment for child support lien against net proceeds of probate or settlement; priority

      The statute specifically states that the lien shall stay the distribution of net proceeds to a prevailing party or beneficiary until the child support judgment is satisfied. 

     How does this impact an estate? If a beneficiary of an estate in NJ is an individual of legal age, and the net proceeds to that individual beneficiary exceeds $2,000, a child support judgment search must be ordered from a search company capable of certifying the results of that search. 

     No proceeds of the estate may be distributed to that individual beneficiary until and unless the judgment search shows that the beneficiary is not a child support judgment debtor or if he/she is a child support judgment debtor, until the judgment is paid off and a warrant of satisfaction is in possession of the estate.

Compliance with Child Support Lien Law 

N.J.S.A. 2A:17-56.23b requires Executors to undertake a search, using a private firm, to determine if the party receiving money as a result of a settlement or judgment, or in a number of other situations, is a child support debtor. If so, the amount of child support owed is a lien against the net proceeds. The statute provides as follows: 

· Before distributing any net proceeds of a settlement, judgment, inheritance or award to the prevailing party or beneficiary: 

1.   The prevailing party or beneficiary shall provide the attorney, insurance company or agent responsible for the final distribution of such funds with a certification that includes the prevailing party’s or beneficiary’s full name, mailing address, date of birth and social security number; and 

2.   The attorney representing the prevailing party or beneficiary shall initiate a search of New Jersey judgments, through a private judgment search company that maintains information on child support judgments to determine if the prevailing party or beneficiary is a child support judgment debtor. N.J.S.A. 2A:17-56.23b(b);

· If the certification of the search company shows that the prevailing party or beneficiary is not a child support judgment debtor, the net proceeds may be paid to the prevailing party or beneficiary immediately. If the certification shows that the prevailing party or beneficiary is a child support judgment debtor, the attorney, insurance company or agent that initiated the search shall contact the Probation Division of the Superior Court to arrange for the satisfaction of the child support judgment. N.J.S.A. 2A:17-56.23b(c). See Strickland v. 212 Corp. of N.J., 380 N.J. Super. 248 (Law Div. 2005). 

https://www.njcourts.gov/attorneys/assets/appellate/practitionersguide.pdf