In equitable payor enjoys the use of the property, including any income it may produce. A provision for interest insures that the recipient receives the full value of the settlement notwithstanding the deferred payments.

Structured settlements, which are a series of payments over time, are used in the distribution of marital property when one award. In this routine, a series of payments over a period of time comes to more than the agreed upon settlement sum because the recipient normally receives interest to compensate for the delayed payment. The difference reflects the time value of money, which is the concept that a dollar today is worth more than a dollar tomorrow because today’s dollar earns interest until tomorrow’s dollar is received.

The calculation of interest may become problematic. When interest is not imposed, as can be the case, the installment payments must be discounted to their present value. Otherwise, the distribution may be based on an erroneously high award value.

Moreover, the decision to award interest is a matter of discretion in many jurisdictions. When interest is ordered, courts frequently select the statutory interest on money judgment for deferred equitable distribution payments.

Some jurisdictions permit courts to award interest when one spouse unnecessarily delays the distribution of property.