A lien is a claim that effectively places a hold or freeze on property (bank accounts, real estate, a car or truck, insurance proceeds) to ensure payment of a debt by the owner of the property. In the child support context, a parent who is owed child support—or the state’s child support services in the Office of Attorney General—may place a child support lien on property owned by the parent who owes child support.
In most states this child support lien arises automatically and without the need for a court order. Banks, insurance companies, and real estate title companies are given notice of a child support lien (1) by the attorney for the parent who is owed child support; (2) by the state’s child support services; or (3) by checking a lien registry or child support lien network for liens. In some circumstances the parent who is owed child support, or the state’s child support services may force the sale of property to satisfy a child support lien.
In South Dakota, a child support lien can be used as a legal tool to ensure that overdue child support payments are made by the non-custodial parent. The lien is placed on the non-custodial parent's property, such as bank accounts, real estate, vehicles, or insurance proceeds. This action effectively prevents the parent from selling or refinancing the property without first satisfying the unpaid child support. In South Dakota, the Department of Social Services' Division of Child Support may file liens against the property of parents who owe past-due support. The lien arises by operation of state law and does not necessarily require a court order. Once the lien is in place, it is typically the responsibility of the custodial parent or the state's child support services to notify financial institutions, insurance companies, and real estate title companies of the lien. These entities may also check the state's lien registry to identify any child support liens. If necessary, the property can be forced into sale by the custodial parent or the state to satisfy the child support debt.