How Child Support And Medical Support Are Distributed
All collections except for money from federal tax refund intercepts received by the FSD or local child support agency are paid to current monthly support.
If there is money remaining after paying current support, it is used to pay arrearages. The money for each arrearage type is first applied to interest and then to principal. (There are several different arrearage types, and they are paid in a specific order. After one type is paid off, the remainder is paid to the next arrearage type.)
If there is money remaining after all arrearages have been paid, it is credited to the noncustodial parent for the future month. If the family is aided, this amount is held by the FSD or local child support agency and applied to the case in the future month if a current support payment is not made. Otherwise it is paid to the family.