Interest on Child Support Arrears in Kentucky: Rate, Simple vs. Compound and When It Applies

By the FigureMyTax Editorial Team · How we calculate

The Kentucky child support interest rate is 12% compounded annually on a judgment for unpaid child support, from the date the judgment is entered. That is double the 6% rate for ordinary judgments, and unpaid installments earn no statutory interest until a judgment covers them.

What is the interest rate on child support arrears in Kentucky?

Twelve percent, compounded annually, on a judgment for unpaid child support payments, from the date the judgment is entered (KRS 360.040(2)). The general rate for other judgments is 6% compounded annually, so support gets the higher rate. The 2017 amendment applies to judgments entered on or after June 29, 2017, so ask which version governs an older judgment (enforcement rules describe how the Cabinet collects).

Does interest run before there is a judgment?

The statute speaks of interest on the judgment from the date it is entered; it does not state interest on unpaid installments before that. Court forms warn that interest may be charged on delinquent support (KRS 360.040 and 405.467). Ask the court or the Division of Child Support whether your arrears have been reduced to a judgment, in what amount and as of what date.

How does annual compounding work?

Each year on the anniversary of the judgment the interest earned in the year is added to the balance, and the next year’s 12% is computed on the larger balance. The Kentucky arrears calculator compounds on each anniversary and uses simple interest for the months after the last one.

The figures are for the judgment as entered with no later payments.

How does 12% compounded compare with simple interest?

After 5 years, $10,000 in a judgment would owe about $7,623.42 in compounded interest at 12%, against $6,000 at simple 12%. The difference grows each year, which is why paying down the judgment early matters more in Kentucky than in a simple-interest state.

Does the interest rate change if the court is asked?

The statute sets the rate for a judgment for unpaid child support payments; the court rule that lets a judge pick a lower rate applies only to unliquidated damage judgments (KRS 360.040(4)). So do not expect a lower child support rate just by asking.

Can I ask the court to enter the judgment?

Yes. A person owed support can ask the court to determine the arrearage and enter a judgment, which is what starts the 12% (KRS 360.040(2)). Bring the payment history from the clerk or the Division and a computation of the amount unpaid as of the hearing date.

What about installments that come due after the judgment?

They are not part of the judgment, so they do not earn the 12% until a new judgment covers them. They are still owed and can be enforced; ask the court to update the arrears judgment when the amount has grown.

Is the Kentucky interest collected like support?

Interest on a judgment is collected as part of the judgment. In cases the Division handles, ask whether income withholding includes interest and how payments are applied.

Where do you get the official figure?

From the Division of Child Support or the circuit clerk. See whether arrears expire or can be forgiven and file to modify if your circumstances changed.

Frequently asked questions

Official sources

• KRS 360.040: interest on judgments; 12% for child support
• 921 KAR 1:410: child support collection and enforcement
• KRS 403.213: only installments after filing can change; arrears survive emancipation
• 15 U.S.C. 1673: restriction on garnishment
• 42 U.S.C. 652(k): denial of passports

This is general information, not legal advice. It is based on the cited Kentucky statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Kentucky attorney.