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

By the FigureMyTax Editorial Team · How we calculate

Nevada child support interest is set at the NRS 99.040 rate, the Nevada prime rate plus 2% adjusted each January 1 and July 1, from the time each amount became due, and it keeps accruing until paid.

Does Nevada charge interest on child support arrears?

Yes. When the court determines the amount of arrearages at the hearing that comes before execution, it must include interest on the arrearages at the rate established under NRS 99.040 from the time each amount became due, and a reasonable attorney’s fee, unless the responsible parent would face undue hardship. Interest continues to accrue on the ordered amount until it is paid, and further attorney’s fees may be allowed for collection (NRS 125B.140(2)(c)).

What is the NRS 99.040 rate?

When there is no express written contract rate, it is the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on the January 1 or July 1 immediately preceding the transaction, plus 2 percent, adjusted accordingly on each January 1 and July 1 until the judgment is satisfied (NRS 99.040(1)). The rate changes, so we do not state a figure. Ask the court or the district attorney which rate your judgment uses.

Is Nevada interest simple or compound?

The statutes we read do not say. The Nevada arrears calculator shows a simple scenario at the rate you enter, month by month from each due date.

The 9% is an illustration only, not the Nevada rate.

When does Nevada interest start?

From the time each amount became due (125B.140(2)(c)), which is when each installment becomes a judgment by operation of law. There is no grace period in the text we read.

What about the Nevada 20-day hearing?

Before execution the person seeking to enforce sends a certified-mail, restricted-delivery notice that names the issuing court and order date, states the arrears, says they will be enforced as a judgment and tells the parent he or she may ask for a hearing within 20 days after it is sent. The hearing is limited to the amount of arrears and the issuing court’s jurisdiction (125B.140(2)(a)-(b)). If a court already set the amount, the notice rule does not apply (125B.140(3)).

Can the interest or fees be reduced?

The court must include interest and attorney’s fees unless the parent would experience an undue hardship if required to pay them (125B.140(2)(c)). Ask the court to find undue hardship if paying them would hurt your ability to pay current support.

What is the interest base: arrears only?

Interest is on the arrearages from the time each amount became due, so it runs on each missed payment. It is not charged on current support that you have paid on time.

How does the rate change over time?

The NRS 99.040 rate is adjusted each January 1 and July 1 until the judgment is satisfied (NRS 99.040(1)), so the interest on an old balance does not stay at the rate on the day of the order. Ask for a ledger by period.

Where do you get the official figure?

From the district attorney’s child support office or the court clerk. See whether arrears expire or can be forgiven and file to modify if your circumstances changed.

Frequently asked questions

Official sources

• NRS 125B.140: enforcement; interest
• NRS 99.040: interest rate
• NRS 125B.050: period of limitations
• NRS 425.500: arrears definition
• NRS 425.510: reporting to the DMV
• NRS 125B.145: review
• 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 Nevada statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed Nevada attorney.