Work is underway to include automatic calculation of Consolidated Judgments in ArrearsMaster®. The consolidated judgment concept (whether known by that name or not) is available in many states, and simply refers to the reduction to a single judgment of all accrued support arrears and interest through a certain date. The new consolidated judgment then continues to accrue interest until finally paid. It represents the only method of collecting a type of “quasi-compound interest” (interest on interest) in those states which mandate the application of simple interest rates to support arrears. Each consolidated judgment includes the remaining unpaid balance on any prior consolidated judgments.
In Texas, the calculation of support arrears, interest and consolidated judgment balances is made more complex because payments in excess of the current monthly support obligation are applied in a specific order (an order that was changed for payments received after 2010).
Inclusion of a new consolidated judgment category allows the automatic calculation of arrears, interest and consolidated judgment balances regardless of when the payment was received.





