Common questions
Interest & penalties, answered
- How much interest do unpaid child support arrears accrue in Nevada?
- Nevada's statutory rate is the prime rate at the state's largest bank plus 2%, published by the Financial Institutions Division and reset every January 1 and July 1 (NRS 99.040(1); NRS 17.130(2)). It is simple interest, not compound.
- What is the penalty for unpaid child support in Nevada?
- Historically, under former NRS 125B.095, once an installment was delinquent by a month's support, a penalty of 10% per year - or any portion of a year - was added for as long as that installment remained unpaid, per installment. That statute was repealed by AB 278 (2017), effective February 1, 2020, with the NAC 425 guidelines: penalties that accrued before that date remain due, but nothing accrues on or after it. No penalty applied where the court found the delinquency was caused by the obligor's employer or a public enforcement agency.
- Is Nevada judgment interest simple or compound?
- Simple. In Torres v. Goodyear, 130 Nev. 22 (2014), the Nevada Supreme Court held that NRS 17.130(2) authorizes only simple interest - the rate resets each January and July, but interest is always applied to principal, never to accrued interest.
- What is the current Nevada statutory interest rate?
- It changes every six months. The rate in force is the prime rate at Nevada's largest bank on the preceding January 1 or July 1, plus 2 percent. Because it resets, interest on a long-running arrears is computed segment-by-segment across each half-year period.
Informational only, not legal advice. Consult a licensed Nevada attorney. Authorities: NRS 99.040, NRS 17.130, former NRS 125B.095 (repealed eff. Feb. 1, 2020 by AB 278 (2017)); Torres v. Goodyear, 130 Nev. 22 (2014).