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

By the FigureMyTax Editorial Team · How we calculate

South Carolina child support arrears draw judgment interest at the prime rate plus four points, set each January by the Supreme Court. The Court of Appeals applied simple interest from each due date to child support.

Does South Carolina charge interest on child support arrears?

South Carolina child support interest follows the judgment rate. A money decree or judgment of a court draws interest at the legal rate (S.C. Code 34-31-20(B)). A recorded arrearage has the same force and effect as a judgment (63-17-1600), and the Attorney General concluded in 1991 that the judgment rate applies to recorded child support arrearages (opinion). A Court of Appeals decision held the Family Court should award post-judgment interest from the date each payment came due (SC Lawyers Weekly summary). We did not verify how the state agency applies it, so ask.

What is the rate?

The prime rate listed in the first Wall Street Journal of the calendar year plus four percentage points, and the Supreme Court issues an order each January confirming it (34-31-20(B)). The order for the year that started in January 2024 confirmed 12.50% (order); the order the next year was reported at 11.5%. Check the current order and enter it in the South Carolina arrears calculator.

Is it simple or compound?

The statute says compounded annually, but the Court of Appeals held that the mother was not entitled to compound interest on child support and was entitled to simple post-judgment interest from the date each payment came due. The calculator follows that holding.

Each figure assumes no payments and interest from each due date.

Is there South Carolina interest before a judgment?

The decision applied to post-judgment interest; the sections we read give no prejudgment rate for unpaid support. Practitioners treat the recorded arrearage or an order as the starting point, so ask the court how your case treats earlier installments.

What rates applied to older judgments?

Judgments entered before January 1, 2001 draw 14% a year, those entered from January 1, 2001 through June 30, 2005 draw 12%, and judgments entered on or after July 1, 2005 use the annual prime plus four points (code commissioner’s note to 34-31-20). Ask which applies to your judgment.

Does the rate change each year for an old judgment?

The statute ties the rate to the prime rate listed for each calendar year for which the damages are awarded, so the yearly rate in effect for each year applies to that year’s interest (34-31-20(B)). Keep each year’s Supreme Court order.

Is there a different rate for ordinary debts?

Yes. For accounts stated and sums ascertained that draw interest by law, the legal rate is 8.75% a year (34-31-20(A)); the judgment rate in subsection (B) is the one the Attorney General applied to recorded child support arrearages.

How are South Carolina payments applied?

The sections we read do not set an order of application between principal and interest, so ask for a ledger showing how each payment was applied.

Where do you get the official figure?

From the Child Support Services division or the family court clerk. See whether arrears can be changed and file to modify if your circumstances changed.

Frequently asked questions

Official sources

• S.C. Code 34-31-20: legal rate of interest
• SC Lawyers Weekly: child support interest decision
• South Carolina Attorney General opinion on interest on recorded arrearages
• South Carolina Supreme Court order on the judgment interest rate
• S.C. Code Title 63, chapter 17: withholding, liens, licenses
• 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 South Carolina statutes, rules and court opinions, and every case turns on its own facts. Confirm how the law applies to your situation with a licensed South Carolina attorney.