I. Purpose

Interest on maintenance arrears is to compensate maintenance payees for the loss of interest on their savings, or for the interest payable by them in respect of loans they have to obtain due to the maintenance payer's default or delay in making maintenance payment(s).

II. When will a Maintenance Payee be entitled to Interest on Arrears of Maintenance?

Under the Ordinance, where a maintenance payer does not pay the FULL amount or does not pay PUNCTUALLY according to a maintenance order, a maintenance payee is entitled to interest automatically in respect of the maintenance arrears accrued on or after 1 May 2005.

III. Simple Interest

Arrears in respect of a maintenance order is to carry simple interest

1. at the rate the court orders; or
2. in the absence of an order, at the prevailing Judgment Rate determined by the Chief Justice from time to time

on the total amount of the arrears of maintenance , or on the part that for the time being remains unpaid, from the date on which the payment is due as specified by the maintenance order until payment.

As the arrears of maintenance are to carry simple interest, interest accrued and yet to be discharged will NOT attract interest.

Judgment Rate may vary from time to time. Please click here  for Judgment Rate of respective periods.

IV. Priority of Calls on Payment

Where a maintenance payee institutes enforcement proceedings against the payer, apart from interest and the regular payments under a maintenance order, the maintenance payer may also be required to make the following payments by order of court -

1. surcharge on arrears of maintenance on application from the payee;
2. costs of proceedings; and
3. repayment of arrears of maintenance accrued in the period concerned.

After interest on arrears of maintenance has accrued, a payment by the maintenance payer is deemed to be made in the following order in or towards the discharge of -

1. interest accrued;
2. surcharge;
3. the costs ordered by the court to be paid under the proceedings instituted for enforcing the maintenance order;
4. any sums from time to time falling due under the maintenance order, with the most recent arrears being discharged first; and
5. if the court makes an order in any proceedings instituted for enforcing the maintenance order, the amount of the maintenance in arrears, whether in one amount or by instalments, payable by the maintenance payer under the order.
   NOTE: Only outstanding payment(s) in (d) above will attract interest.

V. Leave of the Court to Enforce Arrears of Maintenance that are Due for more than 12 months

Under Section 12 of the Matrimonial Proceedings and Property Ordinance (Cap. 192), a person shall not be entitled to enforce through the court the payment of any arrears due under a maintenance order without the leave of the court if those arrears became due more than 12 months before the enforcement proceedings are begun. A maintenance payee may apply to the court for grant of leave under the said section in accordance with the relevant court rules if necessary.

If the court grants leave to enforce arrears of maintenance which became due for more than 12 months, the interest on arrears of maintenance may be calculated from the date specified by the court as being the date on which the payee is entitled to enforce the payment of the arrears

VI. Can a Maintenance Payer Refuse to Pay Interest?

If a maintenance payer considers that he has reasonable ground(s) not to pay the interest on arrears of maintenance, he may, within a reasonable time after having knowledge of the requirement to pay, apply by summons to the court not to pay the interest and set out his ground(s) in the application.

In deciding whether to require the maintenance payer to pay interest, and if so, the amount of interest, the court shall take into account all the circumstances of the case. The factors to be considered include, among other things, the following -

1. whether the maintenance payer has a reasonable excuse for his failure to comply with the maintenance order;
2. whether the maintenance payer has evaded service of court documents;
3. the maintenance payer's past record and conduct in connection with the making of maintenance payments to the maintenance payee under the maintenance order or an undertaking in any proceedings;
4. whether the maintenance payer has given the payee a reasonable explanation for his failure to comply with the maintenance order; and
5. the maintenance payer's ability to pay.

VII. Appeal

A maintenance payer who is aggrieved by a requirement by the court to pay interest on arrears of maintenance may appeal to the Court of Appeal against the decision under section 63 of District Court Ordinance (Cap. 336).