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Interest on distributive awards is an important ' and at times overlooked ' aspect of matrimonial practice. When a matrimonial action becomes protracted, an award of prejudgment interest, measured from the date of commencement of the action, may be substantial, especially if the award is at the statutory rate of 9%. Similarly, when a court directs a distributive award to be paid out over a period of years, then an award of post-judgment interest on the unpaid balance will substantially increase the ultimate amount paid out over time. Therefore, an understanding of the various statutes and case law applicable to the concept of interest on distributive awards is crucial for family law practitioners.
Prejudgment Interest
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