Can child support in arrears be garnished from an LLC?

UPDATED: Dec 13, 2011

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Can child support in arrears be garnished from an LLC?

Asked on December 13, 2011 under Family Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The child support debt can only be garnished directly from the LLC  (e.g. from money owed to it, as in accounts receivable; or from its bank accounts) if the LLC either guaranteed the debt for some reason or if it can basically be shown that the LLC is not a legitimate business, but is only a sham or fraud designed to hide the debtor's personal assets. This is called "piercing the corporate veil" and is very hard to do.

However, payments from the LLC to an employee, owner, managing member, etc. may be garnished, so, for example, if an owner draws a paycheck or takes draws from the LLC, those payments to him are potentially subject to garnishment.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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