Because divorce is a matter of state law, whether interest on past due child support is allowed and how it is calculated depends on the state. Most states charge interest on past due child support. The amount of interest you can collect varies by state. Most states have a fixed annual interest rate — often 10% or higher. A few states have a monthly interest rate, a few allow the court to determine an interest rate and there are those states which do not allow for interest at all. States that charge interest typically begin its accrual on the day the relevant child support payment is due and not paid.
Is Interest Mandatory?
In some states, the interest is mandatory and the court automatically imposes it. In many states, it is up to you to decide if you want interest to be imposed on past due child support. Because the interest owed can become very large over time, this can sometimes be used as an enforcement strategy should you ever decide to negotiate a settlement.
Often you can’t collect interest on past due child support payments you have already accepted. For example if a payment is a week late you can’t accept it and then get interest for the time it was late.
Collecting the Interest Due
You must first confirm that the language in your child support order includes interest. Whether or not the state in which you reside allows for interest to be collected, your order must state that the obligor will owe you interest (whatever amount your state allows) once the payments become overdue. If your child support order does not include this information you must go back to order and request that it be modified to include such language. Be sure to include that the interest becomes an automatic child support judgment otherwise you will find yourself running back and forth to court in order to collect your dues. Of course it is easier to get this accomplished at first rather than having to go back and clean up your messy work but better late than never.
Once the interest rate clause appears in your order, you can then enforcement it through all of the means available to you under child support enforcement laws, including but not limited to wage garnishments and wage executions.
Waiving Interest Due
You may be allowed to waive any interest due to you on your child support order. This is a state by state issue and depends on where you live. The only reason I can think of to waive interest on past due support is to make it a part of a larger strategy. Sometimes it’s about winning the war and not the battle.
Want to know where your state stands on the interest issue? Check out my next blog which will list where each state stands on the issue. Be in the know.
My best to you in knowing where your state stands on the interest on arrears issue because as corny as it sounds, knowledge is power.
Have you included interest on your child support arrears?
If you have included interest, why did you make that decision?
If you have not included interest, why not?
Please share your thoughts by leaving a comment below.
Wishing you the best,
Simone Spence
Deadbeat_Hunter
Just went to court and the judge set a new court date for a payment plan on arrears. I just want to pay if off now by getting a loan from a family member. Went in to the child support agency and they will not accept a bulk payment because it’s already in court. Does that make sense? Can I request to have that interest wAived. My court date is two months away. This will accrue 100.00 more in interest.
42 US Code 654(21)(a) caps the amount of interest that a state may charge on child support arrears at 6-percent.
If you are being ordered to pay more than the interest allowed by Federal law, this should be brought to the court’s attention. If you have paid more interest on child support arrears than allowed by Federal law in the past, you should be entitled to a recalculation of your child support obligation,and a credit or refund of your child support overpayment.
My family court judge was …upset to learn that the amount of interest that she had ordered me to pay on my retroactive child support obligation was illegal. My local prosecutor (reluctantly) recalculated my child support payments, and I got a small refund for overpaying child support.
I can’t guarantee that every court or local prosecutor will obey this federal law, but they are supposed to.
Thank you for that. I had no idea. I am going to ask for it to be adjusted.
I didn’t knew there is interest on child support. Thanks for the information.
I filled for support in Pennsylvania where myself and children live. The non custodial parent lives in California. CA charges interest on the support, then every single year, too his income tax and put it towards the interest, and never paid me or his arrears. I think that’s shady and should be illegal.
I am in Iowa I collect $193.00 (SSI) and $309.00 (SSA) because they take out $309.00 from (SSA) for back support. Plus they charge Interest and the interest which makes the Principle larger. I feel like i am getting charged interest on interest and I can’t seem to win. Can the legely do that ???
Actually, FEDERAL LAW [42 US Code 654(21)(a)] limits the amount of interest that states may charge on child support arrears to 6-percent simple interest per year.
My family court judge was not happy to learn about this Federal statute, because my local family courts charge 12-percent interest per year on child support arrears. After a retroactive recalculation of my child support obligation, the courts realized that I have a significant overpayment of child support.
It is my belief that if ALL child support obligations were retroactively recalculated, that we would find that the child support debt that government bureaucrats keep harping on would be a fraction of what the bureaucrats claim that it is due solely to excessive and illegal interest charges.
My 2 boys are 38yr. & 40yr. I am 65yrs old on disability and going on retirement I was told by san Bernardino Ca Child Support that I don’t owe Child support nor arreas but they are deducting $$$$, from my disability because they say I have to pay her interest $15,000
I ask what program is available I can not make these payments.
I have paid my child support with interest in monthly payments and now that the child support is paid in full child support center is saying I still need to pay interest again and it’s more than the Original interest that I have already paid?
if your child support is finished and there is NO order anymore can they garnish your pay check for interest in texas
My husband paid off all child support arrears. He had to file a motion to terminate child support order and judge granted it. The court sent paperwork to social security administration so they would stop garnishment of his retirement benefits. Yesterday he received a letter from the department of revenue saying they are no longer collecting support from him because its paid off but our clerk of court now says he owes 87,000 in interest. He’s paid support for 20 years, including arrears that accumulated when he was laid off years ago for 6 months. How can interest be that much? He has to now file a motion to see if the interest can be waived. The clerk of court will receive the interest not the state or his ex wife.
I object to your prejudging all parents who owe child support as “deadbeats”, especially with the number of parents who have lost jobs or who have been laid off during this pandemic.
You should differentiate between “deadbeat” parents who have the means to share the responsibility for providing for their children’s needs but who refuse to do so without good cause and “deadbroke” parents who have the desire to share the responsibility for providing for their children’s needs, but not the means.
My previous county prosecutor did not make this distinction, but the current county prosecutor does and the current prosecutor has been referring parents (both custodial and non-custodial) to job training programs to give them the opportunity to become self-supporting and able to support themselves and their children.
my ex was 14,000 behind that is counting interest, we are in Wisconsin , but he still has about 7,000 interest … he does not think he needs to pay that