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

By the FigureMyTax Editorial Team · How we calculate

New Mexico child support interest is 4% on delinquent support from the date it is delinquent until paid. Payments go to current support first and interest last, and the state may forgive interest on support assigned to it.

Does New Mexico charge interest on child support arrears?

Yes. Interest accrues on delinquent child support at the rate of 4%, from the date the support is delinquent until the date it is paid, and at 4% on a consolidated judgment for delinquent child support from the date the judgment is entered until it is satisfied (NMSA 40-4-7.3(A)-(B)). That is the 2004 amendment; we read the enacted bill text, so ask the court or the division whether any later change applies to your order.

How is New Mexico child support interest different from the general judgment rate?

The general rate for money judgments is 8.75% a year (NMSA 56-8-4), but for judgments based on unpaid child support the 2004 act treats interest separately and removes the optional higher prejudgment interest for child support. The delinquent support rate is 4%.

When does New Mexico support become delinquent?

Unless the order, judgment, decree or wage withholding order specifies another due date, support is due on the first day of each month and, if not paid by that date, is delinquent (40-4-7.3(C)). The New Mexico arrears calculator starts interest the day after the first.

Each figure assumes no payments and simple interest.

How are New Mexico payments applied?

First to the current support obligation, next to any delinquent support, next to any consolidated judgment of delinquent support, next to accrued interest on delinquent support and last to interest on a consolidated judgment (40-4-7.3(D)). So interest is the last thing paid.

Can New Mexico interest be forgiven?

The human services department can forgive accrued interest on delinquent child support assigned to the state, if the secretary judges that forgiveness will likely result in collecting more support and in satisfying the judgment or withholding order; that authority includes authorizing the return of suspended licenses (40-4-7.3(E)). The 2004 act also required an arrears management program for interest amnesty, for up to 12 months at a time and authorized every two years (section 3). Ask the division whether one is open.

Is the 4% a yearly rate?

The statute says four percent without a period. A rate of 4% on a debt is read as a yearly rate, and the national summary of state arrears interest lists New Mexico at 4% per annum (NCSL, interest on child support arrears). The calculator uses a yearly rate.

Does the 4% apply to old orders?

The 2004 amendment sets interest at 4% from the date support is delinquent for delinquent child support generally. Earlier periods may have been charged at a different rate, so ask the division for a ledger that shows the rate used in each period.

Where do you get the official figure?

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

Frequently asked questions

Official sources

• NMSA 40-4-7.3 (as amended 2004): interest on delinquent support
• NMSA 56-8-4: interest on judgments
• NMSA 40-5A-5: license renewal and support compliance
• NMSA 40-5A-2: Parental Responsibility Act purpose
• 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 New Mexico statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed New Mexico attorney.