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Enforcing divorce settlements: evidence from child support compliance and award modifications
H E Peters1, L M Argys, E E Maccoby
1Department of Economics, University of Colorado, Boulder 80309.
Demography
|November 1, 1993
Summary
Child support compliance by noncustodial fathers fluctuates monthly. Relationships and changing circumstances often lead to informal modifications of divorce settlements shortly after divorce.
Area of Science:
- Socioeconomics
- Family Law
- Behavioral Economics
Background:
- Divorce settlements, particularly child support awards, are often analyzed through standard economic lenses.
- Existing frameworks may not fully capture the dynamic and relational factors influencing compliance.
- Noncompliance with child support is a significant issue with broad societal implications.
Purpose of the Study:
- To apply an implicit contracting framework to understand the dynamics of divorce settlements.
- To analyze determinants of noncompliance with child support awards, beyond economic ability.
- To examine factors influencing the noncustodial parent's (NCP) willingness to pay, including relationships.
Main Methods:
- Utilized an implicit contracting framework to model divorce settlement dynamics.
- Analyzed factors influencing child support compliance, including economic, relational, and custodial aspects.
- Employed longitudinal data from the Stanford Child Custody Project for empirical analysis.
Main Results:
- Empirical analysis confirmed substantial month-to-month variability in compliance by noncustodial fathers.
- A significant minority of parents informally modified agreements soon after divorce.
- Modifications were often driven by changes in economic circumstances and custodial arrangements.
Conclusions:
- Child support compliance is influenced by a complex interplay of economic factors and relational dynamics.
- The 'state-contingent' nature of child support necessitates flexibility and acknowledges informal modifications.
- Understanding these dynamics is crucial for effective policy and support for divorced families.
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