A New Jersey bodega owner has gone from rags to riches after winning the Powerball lottery. But before he spends any of the $338 million jackpot, he will have to pay a substantial child support bill.
According to officials, the $29,000 he currently owes in unpaid child support, along with interest since 2009, will be taken of the top of his payout. It is expected that after taxes, the man will be worth $152 million.
While the amount he already owes will not increase due to his new fortune, it is almost certain that his future payments will. According to a legal expert, the courts usually use a child support formula that gives the children about 20% of half of the parent’s annual income, with a maximum cap of $300,000. So in the lottery winner’s case, may be likely to start paying the maximum amount which is about $60,000 a year for each child who is owed child support.
With five children, the man’s child support payments could significantly increase. His oldest son, age 23, and youngest daughter, age 5, were both residing in New Jersey when he won. His three other children – two daughters aged 10 and 17, along with a 15 year old son -currently live in another state.
In New Jersey, child support ends at the age of 18. However, his oldest son could file a claim for back support. But, according to the lottery winner, he intends to be generous with his winnings, so it may not be necessary for any of the children to file a claim.
Source: NY Daily News, “Powerball winner Pedro Quezada riches will be cut down by $29,000 in past-due child support, and thousands more per year could be claimed,” Vera Chinese and Ginger Adams Otis, March 28, 2013
