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Mexico City cracks down on parents evading child support via retirement funds

Parents using retirement savings to avoid child support may soon face consequences. A bold reform shifts power to judges—but will it hold up?

The image shows an open book with a map of Mexico on it, set against a black background. The map is...
The image shows an open book with a map of Mexico on it, set against a black background. The map is detailed and shows the various states and cities of Mexico.

Mexico City cracks down on parents evading child support via retirement funds

Mexico City lawmakers have moved to close a legal gap that lets parents dodge child support payments by shielding money in retirement accounts. The city’s Congress approved changes to the Retirement Savings Systems (SAR) law and the ISSSTE law to address the issue. The reform now heads to the Chamber of Deputies for further review. The proposed changes allow courts to seize part of a parent’s retirement funds if they fail to pay child support. This measure applies only when no other assets are available to cover the debt. Judges will have the power to order garnishment of retirement subaccounts in these cases.

The reform follows a Supreme Court of Justice (SCJN) ruling that previously blocked the seizure of retirement funds. Lawmakers adjusted local legislation to align with this decision while still ensuring child support obligations are met. Strict limits have been set to keep garnishment fair and proportional, focusing on the child’s best interests. By targeting this loophole, the reform aims to prevent parents from using retirement savings to avoid financial responsibility. The resolution now awaits further legislative steps before becoming law.

If passed, the reform will give judges a new tool to enforce child support orders when other options are exhausted. Retirement funds will remain protected except in cases where they represent the only means of securing payment. The change seeks to balance legal protections with the need to uphold financial obligations to children.

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