Understanding the Distribution of Interest on Child Support Arrears in California- Who Reaps the Benefits-
Who gets the interest on child support arrears in California is a question that often arises among parents and legal professionals alike. In California, child support arrears accumulate interest, and understanding who benefits from this interest is crucial for both custodial and non-custodial parents. This article delves into the intricacies of child support interest in California and clarifies the distribution process.
Child support is a critical aspect of ensuring the well-being of children when their parents are separated or divorced. The California Family Code mandates that both parents contribute financially to the upbringing of their children, and when one parent fails to meet their obligations, the accumulation of arrears can be significant. The interest on these arrears serves as an incentive for non-custodial parents to comply with their financial responsibilities.
Interest on child support arrears in California is calculated at a rate of 10% per year, compounded annually. This means that the interest grows over time, adding to the total amount of the arrears. The interest is collected by the California Department of Child Support Services (DCSS) and is not directly distributed to the custodial parent.
The custodial parent, who is responsible for the child’s care and maintenance, is the primary recipient of the child support payments. However, when it comes to the interest on arrears, the situation is different. The interest is part of the overall child support obligation and is intended to compensate the custodial parent for the delay in receiving the funds. Therefore, the interest ultimately benefits the child, as it increases the total amount of support available for their care.
While the interest on child support arrears is intended to benefit the child, the actual distribution process is governed by the DCSS. The agency is responsible for collecting the interest and ensuring that it is included in the total amount of child support owed. The custodial parent is then entitled to receive the full amount of the child support, including the interest, as long as they have not waived their right to receive the interest.
It is important to note that the custodial parent can choose to waive their right to receive the interest on child support arrears. In some cases, parents may agree to a settlement that does not include the interest, particularly if they have reached a mutual understanding about the circumstances surrounding the non-custodial parent’s inability to pay. However, this waiver must be made in writing and is subject to the approval of the court.
In conclusion, the interest on child support arrears in California is a critical component of the child support system. It serves as a financial incentive for non-custodial parents to meet their obligations and ensures that the custodial parent receives the full amount of support, including interest, for the child’s care. The California Department of Child Support Services plays a pivotal role in collecting and distributing this interest, ultimately benefiting the child in need.
