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Cromer v. Denmark

Trial court should have considered father's lump sum settlement of his workers' compensation claim as gross income in determining whether he was in compliance with his child support obligation.

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We granted Nicola Cromer’s application for discretionary appeal to consider whether a worker’s compensation award is subject to the parent’s child support obligation. Because a lump settlement of a worker’s compensation claim is primarily for future lost wages, we hold that it is within the scope of gross income and should be considered in calculating the child support obligation. The trial court’s ruling to the contrary is reversed.

When Ernest Chapman Denmark, Jr. and Cromer divorced, their settlement agreement, which was incorporated into the final divorce decree, provided that Denmark was to pay Cromer $100 a week, or 32 of his income, whichever was greater, as child support for the couple’s four minor children. In a contempt action, Cromer contended that Denmark’s settlement of a workers’ compensation claim for $40,000 should be considered as income in determining whether he was in compliance with the requirement that he pay 32 of his income as child support.

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