Owing child support can make it harder to buy a home in Colorado or anywhere else in two different ways. First, child support is counted as a debt when determining a borrower's debt-to-income ratio. Second, owing past support can have a negative impact on a person's credit report and score. However, there is no guarantee that back child support will even show up on a credit report.
Applying for a mortgage while owing child support
Understanding the basics of child support
Colorado parents may be confused when they first encounter the child support system. For many parents, child support first comes up at a difficult time such as a divorce, separation or breakup. Most people know that non-custodial parents have an obligation to provide financial support to their minor children, but they may not know how child support decisions are made and how the obligation is established.
Bankruptcy won't relieve child support debt
Debt following a divorce can mount up fast. People may find supporting a household on one income is tough when they're used to a spouse sharing this responsibility. Add in child support and alimony, and some Colorado parents may find themselves facing a heavy financial burden. When this happens, it's easy to get behind on child support and alimony. Non-custodial parents who get behind in these last two items could end up back in court or, even worse, be sentenced to jail, further exacerbating their financial issues.
Income and the child support guidelines
In divorces here in Colorado, among the things that can have big impacts on parents and families are the state’s child support guidelines. These guidelines are what courts in the state use to calculate payment amounts when child support decisions come before them.
