Sunday, September 2, 2007

Every Month It's a Little Off

If the divorce decree orders child support of $275 be paid and only $253 is received (consistently for years) where does the other $22 per month go? Does the recipient lose that $22?

The $22 underpayment would not be lost by the custodial parent, but would accumulate in arrearage at the rate of 12% simple interest each year. If, however, the child support is being paid pursuant to the non-custodial parent's employer's wage payment schedule (for example, a bi-weekly payment of $126), you would look at the total amount paid over the year to see if the $275/month amount was being met.

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