Child support is money that parents have to give to support their kids. Not paying child support can cause problems, even for wealthy people who often travel for work.
Entrepreneurs who owe child support and those working through a high-asset divorce should understand how falling behind on these obligations could affect their ability to travel for business.
If someone owes a lot of child support, the government can stop them from renewing their passport. This can make it hard to travel for work, especially to other countries. Without a valid passport, professionals and business owners may not be able to go to important meetings, make deals or grow their business overseas. According to the Department of State, parents lose passport privileges when their child support arrears exceed $2,500.
Some places have strict rules about child support, and immigration officials may not let someone in or put restrictions on their travel if they owe a lot of child support. This can make it difficult for those with a high net worth to attend important events, meet new people or do business in certain countries.
Not taking care of child support can hurt one’s reputation and relationships with others in business. People talk, and if they find out someone is not paying child support, they might think they are not responsible or trustworthy. This can make it hard to find new business partners, clients or investors. It can also damage existing relationships and make it harder to grow a business.
Not paying child support can also lead to legal problems and financial penalties. Courts can take away a person’s things, freeze their bank accounts or take money from their paycheck to pay the child support. These legal issues can take up a lot of time and money, which can distract from work. Also, not paying child support on time can make the amount owed bigger because of added fees and interest. These challenges highlight the importance of staying current on child support.