Deciphering the Distribution of Interest on Child Support Arrears in Texas- Who Ultimately Reaps the Benefits-
Who gets the interest on child support arrears in Texas is a question that often arises among parents and legal professionals alike. Understanding the rules surrounding this issue is crucial for ensuring that both parties are aware of their rights and responsibilities. In Texas, the interest on child support arrears is a significant aspect of the child support process, and it is important to navigate it correctly to ensure the financial well-being of the child.
Child support arrears refer to the amount of money that a parent has failed to pay as per the court-ordered child support agreement. This amount can accumulate over time, and it is subject to interest. The interest on child support arrears in Texas is calculated at a rate of 6% per year, compounded annually. This means that the interest amount increases as the years pass, making it essential for both parents to fulfill their financial obligations promptly.
Under Texas law, the interest on child support arrears belongs to the child. This means that the money earned from the interest is intended to benefit the child and is part of the child’s financial support. The Texas Family Code states that “the interest on the arrearage shall be awarded to the child and shall be paid to the child in the same manner as the periodic payments of child support.” This ensures that the child receives the full financial support they are entitled to, including any interest earned on the arrears.
The Texas Attorney General’s Office is responsible for enforcing child support orders and collecting the interest on child support arrears. They work to ensure that both parents fulfill their obligations and that the child receives the necessary financial support. When a parent fails to pay child support, the Attorney General’s Office can take legal action to enforce the order and collect the arrears, including the interest.
It is important for parents to understand that the interest on child support arrears is non-negotiable and cannot be waived. This means that even if both parents agree to forgo the interest, the court will still order the interest to be paid to the child. This ensures that the child’s financial well-being is protected and that they receive the full support they are entitled to.
In some cases, the court may order that the interest on child support arrears be paid directly to the child’s college fund or another designated account. This is done to ensure that the child has access to financial resources for their higher education, which is an important aspect of their future well-being.
In conclusion, the interest on child support arrears in Texas belongs to the child and is an essential part of their financial support. Both parents must fulfill their obligations to ensure that the child receives the necessary financial resources for their well-being. Understanding the rules surrounding child support arrears and interest is crucial for ensuring that the child’s rights are protected and that they receive the financial support they deserve.
