New Jersey recently passed a law requiring that a judgment for child support shall be a lien against the net proceeds of any settlement of a lawsuit, civil judgment, civil arbitration award, inheritance or workers' compensation award. This law went into effect as of August 14, 2000 and would cover all settlements disbursed after that date.
"Net proceeds" is defined as any amount in excess of $2,000 payable to the prevailing party after costs such as attorneys fees, witness fees, court costs, fees for health care providers, Medicaid liens, reimbursement of a workers' compensation lien, and other costs are deducted. "Prevailing party" does not include a minor child, partnership, corporation, limited liability partnership, financial institution or government entity.
