Interest on Child Support Arrears in Colorado: Rate, Simple vs. Compound and When It Applies
The Colorado child support interest rate is 10% a year for arrears due on or after July 1, 2021. The creditor may compound it annually or waive it, and the obligor can ask the court to disallow some or all of it for good cause.
What is the child support interest rate in Colorado?
Ten percent a year for arrearages and child support debt due and owing on or after July 1, 2021: the statute sets interest at two percent greater than the statutory rate in section 5-12-101, which is eight percent per annum compounded annually (C.R.S. 14-14-106(1)(b); 5-12-101). For amounts due before July 1, 2021 the rate was four percent over the statutory rate, and it may be compounded monthly (14-14-106(1)(a)).
Is Colorado child support interest simple or compound?
The statute says the interest may be compounded annually and collected by the judgment creditor, so annual compounding is the creditor’s option, not a requirement. The Colorado arrears calculator lets you choose. It compounds each installment on its own anniversaries and uses simple interest in the part-year; the creditor’s calculation may differ.
| Case | Interest, compounded annually | Total owed | Interest, not compounded |
|---|---|---|---|
| 6 unpaid installments of $500 | $62.50 | $3,062.50 | $62.50 |
| 12 unpaid installments of $500 | $275.00 | $6,275.00 | $275.00 |
| 24 unpaid installments of $500 | $1,177.50 | $13,177.50 | $1,150.00 |
| 36 unpaid installments of $500 | $2,770.25 | $20,770.25 | $2,625.00 |
The difference grows with time: after three years the compounded interest on the $500 installments above is $2,770.25 against $2,625.00 not compounded.
Which rate applies to arrears from before July 1, 2021?
Interest on arrearages and child support debt due and owing before July 1, 2021 was four percent over the statutory rate, and could be compounded monthly. The statute then says that after July 1, 2021 interest on child support arrearages and child support debt accrues at the 10% rate in subsection (1)(b), so older balances also accrue at the lower rate going forward (14-14-106(1)(a)). Ask the creditor how the earlier interest was calculated.
Can the interest be waived or disallowed?
Yes, two ways. The judgment creditor may waive the interest and is not required to maintain interest balance accounts. And the obligor may apply to the court to find good cause to disallow the calculated interest or part of it, with the court considering whether good cause existed for the nonpayment, whether paying the interest would cause undue hardship or substantial injustice for the obligor, and whether disallowing it would do so for the person owed (14-14-106(1)(b), (2)).
Can the court set a repayment period?
Yes. The court may determine an equitable period of repayment of any interest and arrears owed (14-14-106(3)).
From when does interest run?
A support payment becomes a final money judgment when it is due and not paid (14-10-122(1)(c)), so each installment starts earning interest from its due date. A judgment for child support debt owed to the county for public assistance is a separate debt (14-14-104).
How much interest builds up at other support amounts?
Twelve unpaid monthly installments, the newest just due, at 10% a year compounded annually:
| Monthly support | Principal | Interest | Total owed |
|---|---|---|---|
| $300 a month | $3,600.00 | $165.00 | $3,765.00 |
| $750 a month | $9,000.00 | $412.50 | $9,412.50 |
| $1,200 a month | $14,400.00 | $660.00 | $15,060.00 |
Within the first year there is no compounding yet, so compounded and simple interest are the same until an installment reaches its first anniversary.
Where do you get the official figure?
From the judgment creditor, or from the child support enforcement unit if it has your case. See whether Colorado arrears expire or can be forgiven, and file to modify if your circumstances changed, since only later installments can change.
Frequently asked questions
What is the Colorado interest rate on back child support?
10% a year for arrears due on or after July 1, 2021, which may be compounded annually.
Is Colorado child support interest compounded?
It may be compounded annually at the creditor's option; the creditor can also waive it.
Can I get Colorado child support interest disallowed?
Yes, for good cause: the obligor can apply to the court, which considers the reason for nonpayment and the hardship to each side.
Can a Colorado court set a repayment period for arrears and interest?
Yes, an equitable period of repayment.
What was the Colorado rate before July 1, 2021?
Four percent over the statutory rate, and it could be compounded monthly.
Official sources
- C.R.S. 14-14-106: interest on child support arrearages
- C.R.S. 5-12-101: statutory interest rate
- C.R.S. 14-10-122: support judgments, liens and modification
- C.R.S. 26-13-126: professional, occupational and recreational licenses
- C.R.S. 26-13-123: driver’s license and child support
- C.R.S. 14-14-111.5: income assignment
A local family law attorney can review your situation — many offer a free consultation.
This is general information, not legal advice. It is based on the cited Colorado statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Colorado attorney.