We Have a Settlement but my ex Hasn’t Paid. Can I get Interest?

The short answer is yes. It depends on the Property Orders that were made at your settlement.

You may have to sell your former home so the Orders will allow some time for that to happen and may give options about selling. If you try to sell it by private treaty and that fails, there may be back-up Orders for the home to be sold by auction within 6 weeks after the initial selling period.

This may delay you being paid but you would not get interest because of the failure to sell.

However, when the Court makes an Order for the payment of money by one party to another, unless otherwise ordered, interest is payable on that sum of money.

If the Order does not specify the interest rate or the date on which interest is payable, then interest is calculated in accordance with Section 117B of the Family Law Act 1975 and Rule 17.03 of the Family Law Rules 2004. 

So if the Orders say that you will be paid “within 90 days of the making of these orders, the amount of $500,000” and that does not occur, then interest will be charged on $500,000 until it is paid out. It is calculated in six-month periods: e.g. from January to 30 June and 1 July to 31 December.

The Courts do have the discretion to set the rate of interest and the date from which that interest will accrue. The courts would not normally consider compound interest as this is seen as interest upon interest. However, in certain circumstances you may be able to apply to the Court for Orders for compound interest as a punitive measure if your ex-partner has wilfully or deliberately delayed payment which has created hardship for you and/or your children. 

Each case is decided on its particular facts and merits. Please do not hesitate to contact us if you need further information or assistance.

This article is not legal advice and is provided for information only.