Prejudgment Interest in Florida Family Law Cases
Money has a time value. If a former spouse should have received $200,000 several years ago but was deprived of that money while the other spouse retained its use, simply paying $200,000 today may not make the deprived spouse whole. Prejudgment interest is intended to account for that lost time.
In Florida family law cases, interest can arise from unpaid child support, alimony arrearages, delayed equitable distribution, an uncompleted sale of marital property, unreimbursed expenses, attorney’s fees, or a party’s failure to perform a financial obligation imposed by a marital settlement agreement or final judgment. The terminology can be confusing because an interest award may still be called “prejudgment interest” even when it is entered years after the original divorce judgment.
The amount can be substantial. It can also become a contested issue involving valuation dates, historical interest rates, partial payments, credits, offsets, appraisals, mortgage balances, and the exact date on which the financial loss occurred. A successful claim requires more than asserting that the other party caused delay. The requested interest must be connected to a legally recognized financial obligation and supported by evidence establishing the principal amount, the date of loss, and the correct calculation.
The Short Answer: What Is Prejudgment Interest in a Florida Family Law Case?
Prejudgment interest compensates a person for losing the use of money that should have been paid or distributed earlier. It ordinarily runs from the date of the financial loss through the date the court enters a money judgment fixing the amount due.
Florida follows the “loss theory” of prejudgment interest. Under Argonaut Insurance Co. v. May Plumbing Co., 474 So. 2d 212, 214–15 (Fla. 1985), uncertainty about the amount of a claim does not necessarily prevent an interest award. Once the court determines the amount of the loss, that amount may be treated as liquidated as of the earlier date on which the loss occurred.
Prejudgment interest is compensatory. It is not supposed to punish a former spouse for being difficult, unreasonable, or slow. The central question is whether money or property should have been available to one party at an earlier date and whether an interest award is legally available to compensate for the lost use of that value.
Prejudgment Interest Versus Postjudgment Interest
The difference between prejudgment and postjudgment interest depends on which judgment fixes the monetary obligation.
Prejudgment interest generally covers the period from the date of loss until entry of the judgment that determines the amount owed. Postjudgment interest generally begins after a money judgment has been entered and continues until the judgment is paid.
This distinction becomes complicated in post-divorce litigation. A final judgment of dissolution may require a future act—such as selling a house, transferring an account, paying certain expenses, or dividing sale proceeds—without fixing the ultimate dollar amount. If the obligated party does not comply, the court may later determine the resulting monetary loss in an enforcement proceeding. Interest accruing before that later money judgment may properly be characterized as prejudgment interest, even though the enforcement proceeding occurred after the original divorce judgment.
For example, a divorce judgment may require the marital home to be sold within one year and the net proceeds divided equally. If one spouse prevents the sale for four years, the original judgment established the obligation but did not state the exact amount each spouse would receive. A later enforcement judgment may determine the historical net proceeds, the injured spouse’s share, and the interest accruing from the date the sale should have occurred. After that monetary judgment is entered, postjudgment interest ordinarily accrues under section 55.03, Florida Statutes.
Florida’s Loss Theory of Prejudgment Interest
The Florida Supreme Court explained in Argonaut that prejudgment interest is an element of pecuniary damages designed to make the claimant whole from the date of the loss. Once the factfinder determines liability and the amount of the loss, uncertainty before trial does not automatically defeat interest.
That rule matters in family law because many financial obligations cannot be precisely calculated until the court resolves competing evidence. The parties may disagree about the value of real estate, the balance of a mortgage, responsibility for expenses, credits for payments, or the amount of support owed during different periods. Those disputes may make the amount uncertain, but they do not necessarily change the date on which the money should have been paid.
In Schuenzel v. Schuenzel, 320 So. 3d 214, 216–17 (Fla. 3d DCA 2021), the court addressed mortgage, insurance, and tax payments that one former spouse made even though the marital settlement agreement required the other spouse to make them. The appellate court held that, after the factfinder determined the amount, the damages were retroactively treated as liquidated. Interest was to be calculated separately from the date each payment should have been made.
That installment-by-installment approach is especially important in support and reimbursement cases. The court should not simply apply interest to the entire balance from an arbitrary date. Each missed payment may have a different accrual date.
Prejudgment Interest and Equitable Distribution
Florida’s equitable-distribution statute, section 61.075, authorizes courts to use equitable remedies when dividing marital assets and liabilities. Florida law now recognizes that prejudgment interest may be available as part of an equitable-distribution award, but it is not automatic in every divorce.
In Catalfumo v. Catalfumo, 704 So. 2d 1095, 1100 (Fla. 4th DCA 1997), the court concluded that prejudgment interest was appropriate where one spouse had enjoyed the use and benefit of the other spouse’s share of marital assets for years. The purpose was to compensate the deprived spouse for the loss of use, not to penalize the spouse who retained the assets.
Similarly, Vindel v. Stewart, 388 So. 3d 228, 236–38 (Fla. 3d DCA 2024), recognized that the primary purpose of prejudgment interest is to compensate a spouse for losing access to funds during a period in which the spouse was entitled to use them. At the same time, courts retain discretion to evaluate whether an award is equitable under the particular circumstances. As explained in Mathers v. Brown, 21 So. 3d 834, 839 (Fla. 4th DCA 2009), a party is not automatically entitled to prejudgment interest in every equitable-distribution case.
Potential applications include delayed transfers of:
Cash and bank accounts;
Brokerage and investment accounts;
Proceeds from the sale of the marital home;
Equalizing payments;
Business-sale proceeds;
Retirement assets;
Real estate interests; and
Other marital property that one spouse controls while the other spouse is deprived of access.
For a broader discussion of property classification and valuation, see our resources on equitable distribution in Florida and marital versus nonmarital assets in a Florida divorce.
When a Marital Home Should Have Been Sold Earlier
A recurring enforcement problem occurs when a marital settlement agreement or final judgment requires the family home to be listed and sold by a deadline, but the spouse occupying the property refuses to cooperate. The nonoccupying spouse may be deprived of equity for years while the occupying spouse continues using the home.
One possible measure of the loss is the amount the nonoccupying spouse would have received if the sale had occurred when required. Establishing that amount may require a retrospective appraisal valuing the property as of the contractual sale date, together with evidence of:
The mortgage payoff balance on that date;
Other liens or encumbrances;
The property’s physical condition;
Reasonable brokerage commissions and closing expenses;
Property taxes, insurance, and maintenance costs;
Repairs that would have been necessary to complete a sale;
Payments made by either spouse after the required sale date; and
Any credits or offsets required by the agreement or judgment.
Once the court determines the net proceeds that would have resulted and the share the deprived spouse should have received, the court may consider prejudgment interest from the date the distribution should have occurred. The fact that an appraisal was needed to determine the historical value does not necessarily make the claim too uncertain. Under Argonaut and Schuenzel, the amount may be treated as liquidated after the factfinder determines it.
A historical appraisal must be credible. The appraiser should understand the precise valuation date, have access to appropriate comparable sales, account for the property’s condition at that time, and be prepared to explain the methodology under cross-examination. Information about the role of appraisers, forensic accountants, and other financial experts is available on our page addressing experts and professionals in Florida family law cases.
What If the Property Appreciated or Depreciated During the Delay?
Appreciation and depreciation can substantially affect litigation strategy. The party seeking relief should usually evaluate more than one damages model.
If the house appreciated, the nonoccupying spouse may prefer a current sale and division of the actual net proceeds. The occupying spouse may argue that a historical valuation should be used or that post-judgment mortgage payments increased the equity. The court must avoid awarding both the full benefit of later appreciation and a duplicative recovery based on the historical value.
If the property depreciated, the deprived spouse may argue that the breach caused the loss of a more valuable sale opportunity. A historical valuation, combined with prejudgment interest, may better approximate the economic position that spouse would have occupied if the judgment had been followed.
Mortgage paydown creates additional issues. The court may need to determine who made the payments, what funds were used, how much reduced principal rather than paying interest or escrow expenses, who occupied the property, and whether the occupying spouse received the benefit of exclusive possession. Credits should not be analyzed in isolation from occupancy, use, appreciation, repairs, taxes, insurance, and the language of the final judgment.
The right strategy may be to present alternative calculations:
Current net proceeds with appropriate credits and compensation for delay;
Historical net proceeds as of the required sale date, plus prejudgment interest; or
A calculation identifying the portion of the current equity attributable to market appreciation, mortgage reduction, improvements, and each party’s payments.
The court’s remedy should enforce the existing equitable-distribution judgment, not rewrite it or provide a double recovery.
Child Support and Alimony Arrearages
Prejudgment interest frequently arises when child support or alimony payments are not made when due. Florida appellate courts have held that interest should be awarded on support arrearages established by the court.
In Gremel v. Gremel, 45 So. 3d 978, 980 (Fla. 2d DCA 2010), the Second District held that the former wife was entitled to prejudgment interest on an alimony arrearage. In Burkley v. Burkley, 911 So. 2d 262, 271 (Fla. 5th DCA 2005), the Fifth District explained that courts must award prejudgment interest on child-support arrearages found to be due.
Interest ordinarily must be calculated from the date each payment was due. If a parent missed twelve monthly payments, each installment has its own accrual date. The first missed payment will generate more interest than the twelfth.
This has serious implications for both parties. A recipient seeking enforcement should obtain an accurate payment history and calculate each missed installment. A payor who experiences a genuine loss of income should not simply stop paying and wait. Unless and until the court modifies the obligation, arrearages and interest may continue to accumulate. A later modification generally cannot erase support that vested before the modification petition was filed.
For more information, visit our pages addressing Florida child support cases, Florida alimony litigation, and contempt and enforcement of family law orders.
Inability to Pay May Affect Contempt Without Eliminating the Debt
Interest and contempt involve different questions.
Civil contempt is a coercive remedy. In support cases, incarceration or another coercive sanction requires findings concerning willful noncompliance and the present ability to comply with the purge requirement. A genuine inability to pay may therefore defeat or limit a contempt remedy.
That does not necessarily eliminate the underlying arrearage or the interest accruing on it. A court may decline to hold someone in contempt yet still enter a money judgment for the unpaid obligation and applicable interest. The debt question focuses on what was owed. The contempt question focuses on whether the failure to comply was willful and whether coercive relief is legally available.
Prejudgment interest should not be presented as punishment for contempt. It is compensation for the time during which the recipient was deprived of money that should have been paid.
Reimbursements, Carrying Costs, and Other Required Payments
Marital settlement agreements often assign responsibility for mortgage payments, insurance, taxes, medical bills, school expenses, credit cards, repairs, or other family obligations. If one party pays an expense that the other party was required to pay, the performing party may seek reimbursement and interest.
Schuenzel illustrates the correct approach. The court should determine which payments were required, who made them, the amount of each payment, and the date each payment should have been made. Interest can then be calculated separately rather than applying a single date to the entire reimbursement award.
Evidence may include bank statements, canceled checks, loan histories, insurance records, tax bills, invoices, receipts, credit-card statements, electronic payment confirmations, and the operative agreement or order.
Interest on Attorney’s Fee Awards
Prejudgment interest may also apply to an attorney’s fee award after entitlement has been established but the amount remains unresolved. In Quality Engineered Installation, Inc. v. Higley South, Inc., 670 So. 2d 929, 930–31 (Fla. 1996), the Florida Supreme Court held that interest on attorney’s fees may accrue from the date entitlement is fixed, even if the amount is determined later.
Family law fee litigation presents additional questions concerning section 61.16, contractual fee provisions, reasonableness, need and ability to pay, litigation conduct, and the date on which entitlement became fixed. The underlying order should be reviewed carefully before calculating interest.
Learn more about attorney’s fees in Florida family law cases.
Does Prejudgment Interest Apply to Custody or Domestic Violence Issues?
Prejudgment interest is primarily a financial remedy. It does not compensate a parent for lost time-sharing, emotional distress, litigation stress, or violations of a parenting plan. Courts address parenting violations through remedies directed to the child’s best interests, enforcement, contempt, make-up time-sharing, fees, sanctions where legally authorized, or modification when the statutory requirements are satisfied.
A custody, relocation, paternity, or domestic-violence case may nevertheless contain financial components. Unpaid child support, temporary support, medical expenses, attorney’s fees, or other monetary obligations may generate interest even though the central dispute involves parenting or personal safety.
The financial claim must be separated from the nonmonetary relief. Interest cannot substitute for proof required to obtain an injunction, change a parenting plan, restrict time-sharing, or hold someone in contempt.
Evidence Needed to Prove a Prejudgment-Interest Claim
A strong claim begins with the underlying obligation. The motion, petition, or trial presentation should identify what the agreement or order required, when performance was due, what was not paid or transferred, and how the requested principal amount was calculated.
Depending on the case, important evidence may include:
The final judgment and incorporated marital settlement agreement;
Prior enforcement and contempt orders;
A payment history from the clerk or State Disbursement Unit;
Bank and brokerage statements;
Retirement-account statements;
Mortgage histories and historical payoff information;
Appraisals and valuation reports;
Closing statements and evidence of customary sale expenses;
Tax, insurance, maintenance, and repair records;
Invoices and proof of payment;
Evidence showing who controlled or used the asset;
Records of partial payments, credits, or tenders;
A period-by-period interest calculation; and
Testimony explaining the date of loss and the methodology used.
The interest calculation should be transparent enough for the court to verify it. A spreadsheet should identify the principal, each accrual date, the applicable rate, the number of days, partial payments, credits, and the resulting interest. Florida statutory interest generally uses simple rather than compound interest unless a valid agreement provides otherwise.
How Florida’s Statutory Interest Rate Works
Section 55.03, Florida Statutes, governs Florida judgment interest rates. The Chief Financial Officer sets the statutory rate quarterly. Historical calculations may therefore require different rates for different periods.
A written contract or marital settlement agreement may establish a different rate or expressly require interest from the date of default. The exact language matters. Some agreements state that all unpaid amounts bear interest at Florida’s statutory rate; others address only specific obligations.
Once a money judgment is entered, the judgment should state the applicable interest rate or refer to the statutory rate. Postjudgment interest then continues until the judgment is satisfied, subject to the adjustments required by section 55.03.
Litigation Strategy, Defenses, and Common Risks
The party requesting prejudgment interest should plead the request expressly and present a calculation. Assuming the court will add interest automatically can create unnecessary risk.
Common defenses include arguments that:
No definite date of loss was established;
The principal amount is speculative;
The requesting party had access to or use of the asset;
The agreement did not require payment by the claimed date;
The requested calculation ignores partial payments or credits;
A historical appraisal uses unreliable assumptions;
The claim duplicates appreciation or another component of the award;
The wrong statutory or contractual rate was used;
The requesting party waived interest in a settlement or release; or
Equitable circumstances weigh against a discretionary interest award.
The cause of delay is not always controlling because prejudgment interest is compensatory rather than punitive. Nevertheless, equitable considerations can remain important in property-distribution cases.
Cost also matters. A theoretically valid interest claim may not justify extensive expert litigation if the likely recovery is modest or collection is doubtful. The analysis should include the amount at stake, expert expenses, potential attorney’s fees, available assets, collectability, and whether the dispute can be resolved through a stipulated calculation.
Deadlines and Preservation of the Interest Claim
Interest should be addressed before the court enters the operative money judgment whenever possible. The proposed judgment should identify the principal, the date from which interest runs, the amount of prejudgment interest through judgment, and the postjudgment rate.
If a judgment omits requested interest, Florida Family Law Rule of Procedure 12.530 generally requires a motion for rehearing or a motion to alter or amend the judgment to be served within 15 days. Waiting can create waiver, finality, and appellate problems.
Expert-disclosure deadlines also matter. A party relying on a retrospective real-estate appraisal, forensic accounting, business valuation, or complex interest calculation must comply with the court’s case-management and pretrial orders. An expert identified too late may be excluded.
If the issue is unpaid support and the payor needs modification, early filing is critical because a court generally cannot retroactively modify obligations that became due before the modification petition was filed. If the issue is enforcement, delay can make records harder to obtain and assets harder to collect.
Enforcing the Resulting Money Judgment
Florida Family Law Rule of Procedure 12.570(a) provides that money judgments—including judgments for alimony, child support, equitable-distribution payments, attorney’s fees, suit money, and costs—may be enforced through execution, garnishment, or other appropriate proceedings.
Rule 12.560 permits discovery in aid of execution, including financial discovery directed to locating assets. Depending on the judgment and the nature of the obligation, additional remedies may include income withholding, liens, levies, garnishment, turnover relief, or other enforcement proceedings.
A money judgment and a contempt order are not interchangeable. The availability of contempt depends on the nature of the obligation and the required findings. Interest added to a debt does not, by itself, authorize incarceration.
When support collection involves trusts or protected assets, additional legal analysis may be necessary. Our article on collecting Florida child support from trusts and spendthrift trusts discusses some of those issues.
How Mockler Leiner Law Approaches Financial Enforcement Cases
Prejudgment-interest disputes require lawyers who understand both the governing family law and the underlying financial evidence. The legal argument is only as strong as the valuation, payment history, and damages calculation supporting it.
Richard J. Mockler brings a finance background and advanced tax-law training to complex divorce, equitable-distribution, support, and enforcement disputes. Angela L. Leiner brings substantial trial and appellate experience to family law and post-judgment litigation. Together, Mockler Leiner Law, P.A. approaches these cases by identifying the correct remedy, developing the supporting record, and preparing the calculation for negotiation, mediation, trial, or appellate review.
Frequently Asked Questions About Prejudgment Interest in Florida Family Law
Is prejudgment interest automatic in a Florida divorce?
Not in every context. Interest on established child-support and alimony arrearages is generally required. In equitable-distribution cases, prejudgment interest is an available but discretionary equitable remedy. The court must consider the circumstances and whether interest is necessary to compensate a spouse for lost use of property or money.
Can interest still be called prejudgment interest after the divorce is final?
Yes. If the original divorce judgment established an obligation but did not determine the resulting dollar amount, a later enforcement judgment may liquidate the loss. Interest accruing before that later money judgment may be prejudgment interest. Interest accruing after the money judgment is generally postjudgment interest.
When does prejudgment interest begin?
It ordinarily begins on the date of the financial loss—the date the money should have been paid, transferred, or distributed. For monthly support or reimbursement obligations, interest may need to be calculated separately from the due date of each installment.
Can a historical appraisal establish the amount that should have been paid?
Potentially. If property should have been sold on an earlier date, a qualified appraiser may provide a retrospective valuation. The court will also need evidence of the historical mortgage balance, liens, sale expenses, property condition, and any relevant credits or offsets before determining the net amount that should have been distributed.
What happens if the property increased in value during the delay?
The answer depends on the judgment, the requested remedy, who paid the carrying costs, and whether a current sale will occur. The court should avoid double recovery. Counsel may need to present alternative calculations comparing current net proceeds with historical net proceeds plus interest.
Does inability to pay eliminate prejudgment interest?
Generally, no. Inability to pay may affect contempt and the availability of coercive sanctions, but it does not necessarily erase the underlying debt or the interest attributable to delayed payment.
Can a party receive both prejudgment and postjudgment interest?
Yes, but for different periods. Prejudgment interest runs through entry of the money judgment. Postjudgment interest begins after entry and continues until payment. The two should not overlap.
Does the amount have to be known when the payment was originally due?
Not always. Once the factfinder determines the amount of the loss, Florida law may treat that amount as liquidated as of the earlier loss date. The claimant must still prove the principal amount and date of loss with competent evidence.
What interest rate applies?
The statutory rate under section 55.03 usually applies unless a valid written agreement establishes a different rate. Because statutory rates change, a multi-year calculation may require several historical rates.
What should I do if the final judgment omitted interest?
Act immediately. A motion for rehearing or to alter or amend a Florida family law judgment generally must be served within 15 days. The judgment should be reviewed promptly by counsel to determine whether rehearing or an appeal is necessary.
Speak With a Florida Family Law Attorney About Prejudgment Interest
Prejudgment interest can materially change the value of a Florida family law claim. It can also be lost through weak proof, an incorrect valuation date, an incomplete payment history, a faulty calculation, or failure to request the relief at the proper time.
Mockler Leiner Law, P.A. represents clients in Tampa and throughout Hillsborough, Pinellas, Pasco, Manatee, Sarasota, Polk, Hernando, and surrounding counties in serious divorce, equitable-distribution, child-support, alimony, contempt, enforcement, and post-judgment matters.
If you need to pursue or defend a claim for prejudgment interest, delayed property distribution, support arrearages, or enforcement of a marital settlement agreement or final judgment, call Mockler Leiner Law, P.A. at (813) 331-5699 or contact us online.
