The definition section of KRS 600.020 states that an informal adjustment must occur prior to formal adjudication and disposition. However, KRS 610.105, a new amendment to the Juvenile Code states that informal adjustment may occur after adjudication. Thus it is now clear that informal adjustment can be an alternative disposition any time prior to formal disposition, including after formal adjudication. Therefore, if an adjudication has occurred in a case which the parties have agreed to informally adjust, the formal adjudication must be set aside as per the above rule. Banishment is not an option. See Q.M. v. Commonwealth, 459 S.W.3d 360 (Ky. 2015).

Diversion through the court designated worker is by definition pre-petition diversion. Only when a child is participating in an informal adjustment and did not participate in a pre-petition diversion agreement may the court refer the child to the court designated worker for diversion if no other diversion programs are available. In the event of such a diversion referral as part of an informal adjustment, the court designated worker may refer the case to the FAIR team. The rationale behind this is that the court designated worker diversion program is a limited resource that is designed to divert children from ever entering the formal court process. For that reason, it should be used in a very limited manner, as set forth in these rules, for post-petition matters.

Also, mere failure to complete the terms of an informal adjustment agreement does not automatically rise to the level of contempt. While the court may still detain for violation of a valid court order, the court is required to use graduated sanctions before it may detain a child. Logically this means that contempt orders are reserved for direct contempt for acts of actual defiance or disrespect for the court.