In a recent Court of Appeals decision, the Court affirmed the decision of a Johnson County District Judge in assessing interest at 10% of the total support arrears. Some practitioners have interpreted the appellate court’s decision as indicating that only the 10% rate is “correct” and the other provisions of KSA 16-204 are no longer applicable to support arrears.
Read carefully, however, the decision is not quite so broad. For one thing, the district court ruled that the arrears creditor (the wife) did not meet her burden of proof in asserting a different calculation of the interest due. The trial court also applied the 10% interest as a flat percentage assessment, not a “per annum” rate. Finally, the appellate court made no ruling regarding the application of the annual “interest on judgments” rate (which fluctuates from July 1 to July 1), merely finding no abuse of discretion on the part of the trial court (which had actually awarded the Wife a higher dollar amount of interest than she had requested!!).
Bradley Software’s Arrears Master®, of course, makes it simple to apply the statutory annual interest on judgments rate, a user selected rate, or even a “zero” rate. You can even import data from the Kansas Payment Center, and avoid time-consuming keyboarding of payments and dates.