Quick answer: The Kentucky child support interest rate is 12% compounded annually on a judgment for unpaid support, from the date the judgment is entered. Unpaid installments earn no statutory interest until a judgment for them exists. In an assigned case the Cabinet can seek a lien at one month and license action at six months.
This Kentucky child support arrears calculator adds up the unpaid principal and the 12% compounded interest under KRS 360.040 for the years since the judgment, and flags the lien, license and passport thresholds. A court can only modify installments accruing after a motion is filed, so file before installments fall due.
Kentucky child support arrears and interest at a glance
| Rule | What Kentucky says |
|---|---|
| Interest | A judgment for unpaid child support bears 12% interest compounded annually from the date the judgment is entered (KRS 360.040(2)) |
| Before judgment | The statute attaches interest to the judgment; ask whether your arrears have been reduced to one |
| Lien | In an assigned case the Cabinet may file a lien when the obligor owes one month or more and the property exceeds the cost of the lien (921 KAR 1:410) |
| Licenses | Arrears equal to or greater than six months of an assigned support obligation: license denial, suspension or revocation (921 KAR 1:410) |
| Employer fee | An employer may deduct $1 per payment for income withholding (921 KAR 1:410) |
| Passport | Certification above $2,500 of arrears (federal law) |
How do child support arrears work in Kentucky?
- Interest and method. See the Kentucky child support interest rate.
- Collection. See what happens if you do not pay child support in Kentucky.
- Time limits and forgiveness. See whether Kentucky child support arrears expire or can be forgiven.
What does this arrears calculator check?
You enter the monthly support, the number of installments in the arrears judgment and the years since the judgment was entered. By default the years are zero, so no interest is added. The calculator compounds annually at the rate you enter on each anniversary and uses simple interest for the part-year. It flags the one-month lien and six-month license thresholds and the $2,500 passport line, and does not model partial payments. To change the amount going forward, see the Kentucky child support modification calculator, and for when the obligation stops, the Kentucky child support end date calculator.
Frequently asked questions
What is the interest rate on child support arrears in Kentucky?
A judgment for unpaid child support bears 12% interest compounded annually from the date the judgment is entered.
Does Kentucky charge interest before a judgment is entered?
The statute attaches the 12% to the judgment. Ask the court or the Division of Child Support whether your arrears have been reduced to a judgment and from what date.
Is Kentucky child support interest compounded?
Yes, annually.
When can a Kentucky license be suspended for unpaid child support?
In an assigned case, when the arrearage equals or exceeds six months of the assigned support obligation, or on failure to comply with a subpoena or warrant.
Can Kentucky file a lien for unpaid child support?
In an assigned case, when the obligor owes at least one month and the property's value exceeds the cost of filing the lien.