| (1) |
As used in this section:
Terms Used In Utah Code 30-3-3.5- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
| (a) |
“Debtor” means a person obligated or allegedly obligated to pay a domestic relations debt. |
| (b) |
“Domestic relations debt” means an obligation or alleged obligation to pay past due child support or alimony. |
|
| (2) |
| (a) |
A court shall order the amounts described in Subsection (2)(b) be paid, if:
| (i) |
the court issues a judgment requiring the payment of a domestic relations debt by the debtor; |
| (ii) |
imposing a collection fee on the debtor or in relation to the domestic relations debt is not prohibited or otherwise restricted by another federal or state law; and |
| (iii) |
the person owed the domestic relations debt has a contingency arrangement with an attorney to collect the domestic relations debt. |
|
| (b) |
If the conditions of Subsection (2)(a) are met, a court shall order payment of:
| (i) |
the principal amount due; |
| (ii) |
applicable interest; |
| (iii) |
a collection fee equal to the amount provided in the contingency agreement, except that the collection fee may not exceed the lesser of:
| (A) |
the actual amount the person owed the domestic relations debt is required to pay for collection costs, regardless of whether that amount is a specific dollar amount or a percentage of the principal amount owed for the domestic relations debt; or |
| (B) |
40% of the principal amount owed to the person for the domestic relations debt; |
|
| (iv) |
reasonable attorney fees; and |
| (v) |
costs, if any, related to obtaining the judgment described in Subsection (2)(a)(i). |
|
|
| (3) |
The obligation to pay a collection fee described in Subsection (2)(b)(iii) is incurred at the time the person owed a domestic relations debt enters into an agreement with an attorney to collect the domestic relations debt. |
| (4) |
An obligation to pay a collection fee imposed under this section is in addition to any obligation to pay reasonable attorney fees that may exist. |
| (5) |
The Office of Recovery Services may not collect an order issued pursuant to Subsection (2). |
Enacted by Chapter 182, 2020 General Session
