Assembly Bill No. 421–Assemblymen Humke, Collins, Manendo, McClain, Buckley, Koivisto and Ohrenschall
March 8, 1999
____________
Referred to Committee on Judiciary
SUMMARY—Revises provisions governing alimony. (BDR 11-1333)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
~
EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 125 of NRS is hereby amended by adding thereto1-2
the provisions set forth as sections 2 to 8, inclusive, of this act.1-3
Sec. 2. Unless the action is contrary to a premarital agreement1-4
between the parties that is enforceable pursuant to chapter 123A of NRS:1-5
1. In granting a divorce, the court may:1-6
(a) Award such alimony to either spouse, as appears just and1-7
equitable, in the manner provided pursuant to sections 3 to 8, inclusive,1-8
of this act; and1-9
(b) Set apart a portion of the separate property of the husband for the1-10
support of the wife, the separate property of the wife for the support of1-11
the husband or the separate property of either spouse for the support of1-12
their children as the court deems just and equitable.1-13
2. In the event of the death of either party to a divorce or the1-14
subsequent remarriage of the party to whom specified periodic payments1-15
were to be made, all the payments required by the decree must cease,1-16
unless otherwise ordered by the court.1-17
3. If a decree of divorce, or an agreement between the parties that1-18
was ratified, adopted or approved in a decree of divorce, provides for2-1
specified periodic payments of alimony, the decree or agreement is not2-2
subject to modification by the court as to accrued payments. Payments2-3
pursuant to a decree entered on or after July 1, 1975, that have not2-4
accrued at the time a motion for modification is filed may be modified2-5
upon a showing of changed circumstances, whether or not the court has2-6
expressly retained jurisdiction for the modification. In addition to any2-7
other factors the court considers relevant in determining whether to2-8
modify the order, the court shall consider whether the income of the2-9
spouse who is ordered to pay alimony, as indicated on the federal income2-10
tax return of the spouse for the preceding calendar year, has been2-11
reduced to such a level that the spouse is financially unable to pay the2-12
amount of alimony he has been ordered to pay.2-13
Sec. 3. Except as otherwise provided in section 7 of this act, in2-14
determining the amount of alimony, if any, to award pursuant to2-15
paragraph (a) of subsection 1 of section 2 of this act, if the length of the2-16
marriage is at least 7 years, the court shall determine the amount and2-17
duration of alimony according to the formulas set forth in sections 4, 52-18
and 6 of this act.2-19
Sec. 4. 1. In determining alimony, the court shall:2-20
(a) Compute the gross monthly income of each spouse by:2-21
(1) Determining the total amount of expected and reasonably2-22
foreseeable potential annual income which will be obtained from any2-23
source after the divorce;2-24
(2) Deducting from that amount all ordinary and necessary2-25
business expenses, except for personal income tax, contributions made2-26
for retirement benefits and contributions to a pension; and2-27
(3) Dividing that amount by 12.2-28
(b) Compute the monthly tax burden of each spouse that is based on2-29
income by:2-30
(1) Determining the total annual amount of any expected and2-31
reasonably foreseeable federal and state taxes which will be owed by2-32
each spouse after the divorce that are calculated based on the income of2-33
the spouse; and2-34
(2) Dividing that amount by 12.2-35
(c) Compute the net monthly income after taxes for each spouse by2-36
subtracting from the gross monthly income of each spouse determined2-37
pursuant to paragraph (a):2-38
(1) The monthly tax burden of the spouse determined pursuant to2-39
paragraph (b); and2-40
(2) The monthly obligation for child support, if any, which the2-41
spouse has been ordered to pay.3-1
2. After performing the calculations set forth in subsection 1, the3-2
spouse with the lesser monthly income after taxes shall be deemed the3-3
obligee. The other spouse shall be deemed the obligor.3-4
3. The court shall determine the difference in the incomes of the3-5
spouses by subtracting the net monthly income after taxes of the obligee3-6
as determined pursuant to paragraph (c) of subsection 1 from the net3-7
monthly income after taxes of the obligor as determined pursuant to3-8
paragraph (c) of subsection 1.3-9
Sec. 5. 1. After determining the difference in the incomes of the3-10
spouses pursuant to section 4 of this act, the court shall:3-11
(a) Multiply the number of years of the marriage beyond 5 years by3-12
1.25 percent.3-13
(b) Multiply the number of years of age of the obligee beyond 30 years3-14
by 0.5 percent.3-15
(c) Assign the appropriate percentage for the education of the obligee3-16
as follows:3-17
(1) Seven and one-half percent if the obligee has not attended a3-18
postsecondary educational institution;3-19
(2) Five percent if the obligee has attended a postsecondary3-20
educational institution but does not have a baccalaureate degree from an3-21
accredited college or university;3-22
(3) Two and one-half percent if the obligee has a baccalaureate3-23
degree from an accredited college or university; or3-24
(4) Zero if the obligee has a professional or post-baccalaureate3-25
degree.3-26
(d) Assign the appropriate percentage for any disability of the obligee3-27
as follows:3-28
(1) Eight percent if the court finds that the obligee suffers from a3-29
permanent total disability;3-30
(2) Six percent if the court finds that the obligee suffers from a3-31
permanent partial disability;3-32
(3) Four percent if the court finds that the obligee suffers from a3-33
temporary total disability;3-34
(4) Two percent if the court finds that the obligee suffers from a3-35
temporary partial disability; or3-36
(5) Zero if the court finds that the obligee does not suffer from a3-37
disability.3-38
2. The court shall add the percentages determined pursuant to3-39
paragraphs (a) to (d), inclusive, of subsection 1. If the sum of the3-40
percentages is 50 percent or less, that sum is the factor to be applied for3-41
determining the amount of alimony. If the sum of the percentages3-42
exceeds 50 percent, the factor to be applied for determining the amount4-1
of alimony is 50 percent. If the sum of the percentages is less than 154-2
percent, the court may decline to award alimony.4-3
3. To determine the monthly amount of alimony that the obligee may4-4
receive, the court shall multiply the difference in the incomes of the4-5
spouses determined pursuant to subsection 3 of section 4 of this act by4-6
the factor determined pursuant to subsection 2. The product is the4-7
monthly amount of alimony that the obligee is entitled to receive.4-8
Sec. 6. To determine the number of years that monthly payments of4-9
alimony must be made, the court shall:4-10
1. Multiply the number of years of the marriage beyond 5 years by4-11
0.375.4-12
2. Multiply the number of years of age of the obligee beyond 30 years4-13
by 0.1.4-14
3. Assign the appropriate number of years to grant for the education4-15
of the obligee as follows:4-16
(a) One and one-half years if the obligee has not attended a4-17
postsecondary educational institution;4-18
(b) One year if the obligee has attended a postsecondary educational4-19
institution but does not have a baccalaureate degree from an accredited4-20
college or university;4-21
(c) One-half of one year if the obligee has a baccalaureate degree4-22
from an accredited college or university; or4-23
(d) Zero if the obligee has a professional or post-baccalaureate4-24
degree.4-25
4. Assign the appropriate number of years for any disability of the4-26
obligee as follows:4-27
(a) Six years if the court finds that the obligee suffers from a4-28
permanent total disability;4-29
(b) Four and one-half years if the court finds that the obligee suffers4-30
from a permanent partial disability;4-31
(c) Three years if the court finds that the obligee suffers from a4-32
temporary total disability;4-33
(d) One and one-half years if the court finds that the obligee suffers4-34
from a temporary partial disability; or4-35
(e) Zero if the court finds that the obligee does not suffer from a4-36
disability.4-37
5. Add the number of years determined pursuant to subsections 1 to4-38
4, inclusive. The sum is the number of years that the monthly payments4-39
of alimony determined pursuant to section 5 of this act must be made.4-40
Sec. 7. In granting a divorce, if the court makes a finding that there4-41
is good cause, or if the length of the marriage is less than 7 years, the4-42
court may deviate from the amount or duration of alimony determined4-43
pursuant to the formulas set forth in sections 4, 5 and 6 of this act. In5-1
determining whether good cause exists, the court may consider any5-2
relevant factor, including, without limitation:5-3
1. The length of the marriage;5-4
2. The age and the life expectancy of each spouse;5-5
3. The physical and mental health of each spouse;5-6
4. The contribution during the marriage by one spouse to the5-7
education, training or earning capacity of the other spouse and any5-8
increase in the level of education of a spouse obtained during the5-9
marriage;5-10
5. The extent to which the present and future earning capacity of one5-11
spouse is impaired because that spouse has not worked for an extended5-12
period;5-13
6. The extent to which acceptable opportunities for employment are5-14
unavailable to a spouse because of his age;5-15
7. The length of time reasonably necessary for a spouse to obtain5-16
training or to update his skills;5-17
8. The extent to which a party has achieved a substantially5-18
advantageous economic position during the marriage through the5-19
combined effort of the spouses;5-20
9. The standard of living established during the marriage;5-21
10. The number of dependents of each spouse and the age, health5-22
and any other condition of such dependents;5-23
11. The provisions of an order relating to the custody of any5-24
dependents, including, without limitation, the length of time that any5-25
obligations for the support of a child will be effective and the impact of5-26
the custody provisions of the order on the ability of a spouse to work;5-27
12. The tax liabilities and benefits to each spouse as a result of the5-28
divorce, including, without limitation, the tax effect of alimony pursuant5-29
to sections 71 and 215 of the Internal Revenue Code, 26 U.S.C. §§ 715-30
and 215, and future amendments to those sections and corresponding5-31
provisions of future internal revenue laws;5-32
13. The amount of monthly income after taxes of each spouse after5-33
considering the overall financial situation of that spouse, including,5-34
without limitation, any outstanding mortgages or legal fees and costs;5-35
14. The anticipated cost of health care for each spouse;5-36
15. The amount and characterization of property that each spouse5-37
will receive pursuant to NRS 125.150, including, without limitation,5-38
separate property;5-39
16. The amount of any future retirement income that each spouse5-40
will receive;5-41
17. The length of time of physical separation of the spouses before5-42
the divorce;6-1
18. Whether it would be more just and equitable to grant a spouse a6-2
lump-sum award of alimony; and6-3
19. The amount and duration of any alimony awarded pursuant to6-4
section 8 of this act.6-5
Sec. 8. 1. In granting a divorce the court shall consider the need to6-6
grant alimony to a spouse to obtain training or education relating to a6-7
job, career or profession. In addition to any other factors the court6-8
considers relevant in determining whether such alimony should be6-9
granted, the court shall consider:6-10
(a) Whether the spouse who would pay such alimony has obtained6-11
greater job skills or education during the marriage; and6-12
(b) Whether the spouse who would receive such alimony provided6-13
financial support while the other spouse obtained job skills or education.6-14
2. If the court determines that alimony should be awarded to obtain6-15
training or education pursuant to the provisions of subsection 1:6-16
(a) The court, in its order, shall provide for the time within which the6-17
spouse who is the recipient of the alimony must commence the training6-18
or education relating to a job, career or profession.6-19
(b) The spouse who is ordered to pay the alimony may, upon changed6-20
circumstances, file a motion to modify the order.6-21
(c) In addition to any other alimony granted by the court, the spouse6-22
who is the recipient of the alimony may be granted money to provide for:6-23
(1) Testing of the skills of the recipient relating to a job, career or6-24
profession;6-25
(2) Evaluation of the abilities and goals of the recipient relating to6-26
a job, career or profession;6-27
(3) Guidance for the recipient in establishing a specific plan for6-28
training or education relating to a job, career or profession;6-29
(4) Subsidization of the costs of an employer incurred in training6-30
the recipient;6-31
(5) Assisting the recipient to search for a job; or6-32
(6) Payment of the costs of tuition, books and fees for:6-33
(I) The equivalent of a high school diploma;6-34
(II) College courses that are directly applicable to the goals of the6-35
recipient for his career; or6-36
(III) Courses of training in skills desirable for employment.6-37
Sec. 9. NRS 125.150 is hereby amended to read as follows: 125.150 Except as otherwise provided in NRS 125.155 and unless the6-39
action is contrary to a premarital agreement between the parties which is6-40
enforceable pursuant to chapter 123A of NRS:7-1
1. In granting a divorce, the court7-2
7-3
7-4
7-5
7-6
the community property of the parties, except that the court may make an7-7
unequal disposition of the community property in such proportions as it7-8
deems just if the court finds a compelling reason to do so and sets forth in7-9
writing the reasons for making the unequal disposition.7-10
2. Except as otherwise provided in this subsection, in granting a7-11
divorce, the court shall dispose of any property held in joint tenancy in the7-12
manner set forth in subsection 1 for the disposition of community property.7-13
If a party has made a contribution of separate property to the acquisition or7-14
improvement of property held in joint tenancy, the court may provide for7-15
the reimbursement of that party for his contribution. The amount of7-16
reimbursement must not exceed the amount of the contribution of separate7-17
property that can be traced to the acquisition or improvement of property7-18
held in joint tenancy, without interest or any adjustment because of an7-19
increase in the value of the property held in joint tenancy. The amount of7-20
reimbursement must not exceed the value, at the time of the disposition, of7-21
the property held in joint tenancy for which the contribution of separate7-22
property was made. In determining whether to provide for the7-23
reimbursement, in whole or in part, of a party who has contributed separate7-24
property, the court shall consider:7-25
(a) The intention of the parties in placing the property in joint tenancy;7-26
(b) The length of the marriage; and7-27
(c) Any other factor which the court deems relevant in making a just7-28
and equitable disposition of that property.7-29
As used in this subsection, "contribution" includes , without limitation, a7-30
down payment, a payment for the acquisition or improvement of property,7-31
and a payment reducing the principal of a loan used to finance the7-32
purchase or improvement of property. The term does not include a7-33
payment of interest on a loan used to finance the purchase or improvement7-34
of property, or a payment made for maintenance, insurance or taxes on7-35
property.7-36
3. Whether or not application for suit money has been made under the7-37
provisions of NRS 125.040, the court may award a reasonable attorney’s7-38
fee to either party to an action for divorce if those fees are in issue under7-39
the pleadings.7-40
4.7-41
7-42
7-43
8-1
8-2
8-3
8-4
8-5
8-6
agreement by the parties settling their property rights has been approved8-7
by the court, whether or not the court has retained jurisdiction to modify8-8
them, the adjudication of property rights, and the agreements settling8-9
property rights, may nevertheless at any time thereafter be modified by the8-10
court upon written stipulation signed and acknowledged by the parties to8-11
the action, and in accordance with the terms thereof.8-12
8-13
8-14
8-15
8-16
8-17
8-18
8-19
8-20
8-21
8-22
8-23
8-24
8-25
8-26
8-27
8-28
8-29
8-30
8-31
8-32
8-33
8-34
8-35
8-36
8-37
8-38
8-39
8-40
8-41
8-42
8-43
9-1
9-2
9-3
9-4
9-5
9-6
9-7
9-8
9-9
9-10
9-11
9-12
9-13
9-14
~