Assembly Bill No. 421–Assemblymen Humke, Collins, Manendo, McClain, Buckley, Koivisto and Ohrenschall

March 8, 1999

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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.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to domestic relations; providing a formula for determining the amount and duration of alimony under certain circumstances; making various other changes to provisions governing alimony; and providing other matters properly relating thereto.

 

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 thereto

1-2 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 agreement

1-4 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 and

1-7 equitable, in the manner provided pursuant to sections 3 to 8, inclusive,

1-8 of this act; and

1-9 (b) Set apart a portion of the separate property of the husband for the

1-10 support of the wife, the separate property of the wife for the support of

1-11 the husband or the separate property of either spouse for the support of

1-12 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 the

1-14 subsequent remarriage of the party to whom specified periodic payments

1-15 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 that

1-18 was ratified, adopted or approved in a decree of divorce, provides for

2-1 specified periodic payments of alimony, the decree or agreement is not

2-2 subject to modification by the court as to accrued payments. Payments

2-3 pursuant to a decree entered on or after July 1, 1975, that have not

2-4 accrued at the time a motion for modification is filed may be modified

2-5 upon a showing of changed circumstances, whether or not the court has

2-6 expressly retained jurisdiction for the modification. In addition to any

2-7 other factors the court considers relevant in determining whether to

2-8 modify the order, the court shall consider whether the income of the

2-9 spouse who is ordered to pay alimony, as indicated on the federal income

2-10 tax return of the spouse for the preceding calendar year, has been

2-11 reduced to such a level that the spouse is financially unable to pay the

2-12 amount of alimony he has been ordered to pay.

2-13 Sec. 3. Except as otherwise provided in section 7 of this act, in

2-14 determining the amount of alimony, if any, to award pursuant to

2-15 paragraph (a) of subsection 1 of section 2 of this act, if the length of the

2-16 marriage is at least 7 years, the court shall determine the amount and

2-17 duration of alimony according to the formulas set forth in sections 4, 5

2-18 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 reasonably

2-22 foreseeable potential annual income which will be obtained from any

2-23 source after the divorce;

2-24 (2) Deducting from that amount all ordinary and necessary

2-25 business expenses, except for personal income tax, contributions made

2-26 for retirement benefits and contributions to a pension; and

2-27 (3) Dividing that amount by 12.

2-28 (b) Compute the monthly tax burden of each spouse that is based on

2-29 income by:

2-30 (1) Determining the total annual amount of any expected and

2-31 reasonably foreseeable federal and state taxes which will be owed by

2-32 each spouse after the divorce that are calculated based on the income of

2-33 the spouse; and

2-34 (2) Dividing that amount by 12.

2-35 (c) Compute the net monthly income after taxes for each spouse by

2-36 subtracting from the gross monthly income of each spouse determined

2-37 pursuant to paragraph (a):

2-38 (1) The monthly tax burden of the spouse determined pursuant to

2-39 paragraph (b); and

2-40 (2) The monthly obligation for child support, if any, which the

2-41 spouse has been ordered to pay.

3-1 2. After performing the calculations set forth in subsection 1, the

3-2 spouse with the lesser monthly income after taxes shall be deemed the

3-3 obligee. The other spouse shall be deemed the obligor.

3-4 3. The court shall determine the difference in the incomes of the

3-5 spouses by subtracting the net monthly income after taxes of the obligee

3-6 as determined pursuant to paragraph (c) of subsection 1 from the net

3-7 monthly income after taxes of the obligor as determined pursuant to

3-8 paragraph (c) of subsection 1.

3-9 Sec. 5. 1. After determining the difference in the incomes of the

3-10 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 by

3-12 1.25 percent.

3-13 (b) Multiply the number of years of age of the obligee beyond 30 years

3-14 by 0.5 percent.

3-15 (c) Assign the appropriate percentage for the education of the obligee

3-16 as follows:

3-17 (1) Seven and one-half percent if the obligee has not attended a

3-18 postsecondary educational institution;

3-19 (2) Five percent if the obligee has attended a postsecondary

3-20 educational institution but does not have a baccalaureate degree from an

3-21 accredited college or university;

3-22 (3) Two and one-half percent if the obligee has a baccalaureate

3-23 degree from an accredited college or university; or

3-24 (4) Zero if the obligee has a professional or post-baccalaureate

3-25 degree.

3-26 (d) Assign the appropriate percentage for any disability of the obligee

3-27 as follows:

3-28 (1) Eight percent if the court finds that the obligee suffers from a

3-29 permanent total disability;

3-30 (2) Six percent if the court finds that the obligee suffers from a

3-31 permanent partial disability;

3-32 (3) Four percent if the court finds that the obligee suffers from a

3-33 temporary total disability;

3-34 (4) Two percent if the court finds that the obligee suffers from a

3-35 temporary partial disability; or

3-36 (5) Zero if the court finds that the obligee does not suffer from a

3-37 disability.

3-38 2. The court shall add the percentages determined pursuant to

3-39 paragraphs (a) to (d), inclusive, of subsection 1. If the sum of the

3-40 percentages is 50 percent or less, that sum is the factor to be applied for

3-41 determining the amount of alimony. If the sum of the percentages

3-42 exceeds 50 percent, the factor to be applied for determining the amount

4-1 of alimony is 50 percent. If the sum of the percentages is less than 15

4-2 percent, the court may decline to award alimony.

4-3 3. To determine the monthly amount of alimony that the obligee may

4-4 receive, the court shall multiply the difference in the incomes of the

4-5 spouses determined pursuant to subsection 3 of section 4 of this act by

4-6 the factor determined pursuant to subsection 2. The product is the

4-7 monthly amount of alimony that the obligee is entitled to receive.

4-8 Sec. 6. To determine the number of years that monthly payments of

4-9 alimony must be made, the court shall:

4-10 1. Multiply the number of years of the marriage beyond 5 years by

4-11 0.375.

4-12 2. Multiply the number of years of age of the obligee beyond 30 years

4-13 by 0.1.

4-14 3. Assign the appropriate number of years to grant for the education

4-15 of the obligee as follows:

4-16 (a) One and one-half years if the obligee has not attended a

4-17 postsecondary educational institution;

4-18 (b) One year if the obligee has attended a postsecondary educational

4-19 institution but does not have a baccalaureate degree from an accredited

4-20 college or university;

4-21 (c) One-half of one year if the obligee has a baccalaureate degree

4-22 from an accredited college or university; or

4-23 (d) Zero if the obligee has a professional or post-baccalaureate

4-24 degree.

4-25 4. Assign the appropriate number of years for any disability of the

4-26 obligee as follows:

4-27 (a) Six years if the court finds that the obligee suffers from a

4-28 permanent total disability;

4-29 (b) Four and one-half years if the court finds that the obligee suffers

4-30 from a permanent partial disability;

4-31 (c) Three years if the court finds that the obligee suffers from a

4-32 temporary total disability;

4-33 (d) One and one-half years if the court finds that the obligee suffers

4-34 from a temporary partial disability; or

4-35 (e) Zero if the court finds that the obligee does not suffer from a

4-36 disability.

4-37 5. Add the number of years determined pursuant to subsections 1 to

4-38 4, inclusive. The sum is the number of years that the monthly payments

4-39 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 there

4-41 is good cause, or if the length of the marriage is less than 7 years, the

4-42 court may deviate from the amount or duration of alimony determined

4-43 pursuant to the formulas set forth in sections 4, 5 and 6 of this act. In

5-1 determining whether good cause exists, the court may consider any

5-2 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 the

5-7 education, training or earning capacity of the other spouse and any

5-8 increase in the level of education of a spouse obtained during the

5-9 marriage;

5-10 5. The extent to which the present and future earning capacity of one

5-11 spouse is impaired because that spouse has not worked for an extended

5-12 period;

5-13 6. The extent to which acceptable opportunities for employment are

5-14 unavailable to a spouse because of his age;

5-15 7. The length of time reasonably necessary for a spouse to obtain

5-16 training or to update his skills;

5-17 8. The extent to which a party has achieved a substantially

5-18 advantageous economic position during the marriage through the

5-19 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, health

5-22 and any other condition of such dependents;

5-23 11. The provisions of an order relating to the custody of any

5-24 dependents, including, without limitation, the length of time that any

5-25 obligations for the support of a child will be effective and the impact of

5-26 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 the

5-28 divorce, including, without limitation, the tax effect of alimony pursuant

5-29 to sections 71 and 215 of the Internal Revenue Code, 26 U.S.C. §§ 71

5-30 and 215, and future amendments to those sections and corresponding

5-31 provisions of future internal revenue laws;

5-32 13. The amount of monthly income after taxes of each spouse after

5-33 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 spouse

5-37 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 spouse

5-40 will receive;

5-41 17. The length of time of physical separation of the spouses before

5-42 the divorce;

6-1 18. Whether it would be more just and equitable to grant a spouse a

6-2 lump-sum award of alimony; and

6-3 19. The amount and duration of any alimony awarded pursuant to

6-4 section 8 of this act.

6-5 Sec. 8. 1. In granting a divorce the court shall consider the need to

6-6 grant alimony to a spouse to obtain training or education relating to a

6-7 job, career or profession. In addition to any other factors the court

6-8 considers relevant in determining whether such alimony should be

6-9 granted, the court shall consider:

6-10 (a) Whether the spouse who would pay such alimony has obtained

6-11 greater job skills or education during the marriage; and

6-12 (b) Whether the spouse who would receive such alimony provided

6-13 financial support while the other spouse obtained job skills or education.

6-14 2. If the court determines that alimony should be awarded to obtain

6-15 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 the

6-17 spouse who is the recipient of the alimony must commence the training

6-18 or education relating to a job, career or profession.

6-19 (b) The spouse who is ordered to pay the alimony may, upon changed

6-20 circumstances, file a motion to modify the order.

6-21 (c) In addition to any other alimony granted by the court, the spouse

6-22 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 or

6-24 profession;

6-25 (2) Evaluation of the abilities and goals of the recipient relating to

6-26 a job, career or profession;

6-27 (3) Guidance for the recipient in establishing a specific plan for

6-28 training or education relating to a job, career or profession;

6-29 (4) Subsidization of the costs of an employer incurred in training

6-30 the recipient;

6-31 (5) Assisting the recipient to search for a job; or

6-32 (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 the

6-35 recipient for his career; or

6-36 (III) Courses of training in skills desirable for employment.

6-37 Sec. 9. NRS 125.150 is hereby amended to read as follows:

6-38 125.150 Except as otherwise provided in NRS 125.155 and unless the

6-39 action is contrary to a premarital agreement between the parties which is

6-40 enforceable pursuant to chapter 123A of NRS:

7-1 1. In granting a divorce, the court [:

7-2 (a) May award such alimony to the wife or to the husband, in a

7-3 specified principal sum or as specified periodic payments, as appears just

7-4 and equitable; and

7-5 (b) Shall,] shall, to the extent practicable, make an equal disposition of

7-6 the community property of the parties, except that the court may make an

7-7 unequal disposition of the community property in such proportions as it

7-8 deems just if the court finds a compelling reason to do so and sets forth in

7-9 writing the reasons for making the unequal disposition.

7-10 2. Except as otherwise provided in this subsection, in granting a

7-11 divorce, the court shall dispose of any property held in joint tenancy in the

7-12 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 or

7-14 improvement of property held in joint tenancy, the court may provide for

7-15 the reimbursement of that party for his contribution. The amount of

7-16 reimbursement must not exceed the amount of the contribution of separate

7-17 property that can be traced to the acquisition or improvement of property

7-18 held in joint tenancy, without interest or any adjustment because of an

7-19 increase in the value of the property held in joint tenancy. The amount of

7-20 reimbursement must not exceed the value, at the time of the disposition, of

7-21 the property held in joint tenancy for which the contribution of separate

7-22 property was made. In determining whether to provide for the

7-23 reimbursement, in whole or in part, of a party who has contributed separate

7-24 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; and

7-27 (c) Any other factor which the court deems relevant in making a just

7-28 and equitable disposition of that property.

7-29 As used in this subsection, "contribution" includes , without limitation, a

7-30 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 the

7-32 purchase or improvement of property. The term does not include a

7-33 payment of interest on a loan used to finance the purchase or improvement

7-34 of property, or a payment made for maintenance, insurance or taxes on

7-35 property.

7-36 3. Whether or not application for suit money has been made under the

7-37 provisions of NRS 125.040, the court may award a reasonable attorney’s

7-38 fee to either party to an action for divorce if those fees are in issue under

7-39 the pleadings.

7-40 4. [In granting a divorce, the court may also set apart such portion of

7-41 the husband’s separate property for the wife’s support, the wife’s separate

7-42 property for the husband’s support or the separate property of either spouse

7-43 for the support of their children as is deemed just and equitable.

8-1 5. In the event of the death of either party or the subsequent

8-2 remarriage of the spouse to whom specified periodic payments were to be

8-3 made, all the payments required by the decree must cease, unless it was

8-4 otherwise ordered by the court.

8-5 6.] If the court adjudicates the property rights of the parties, or an

8-6 agreement by the parties settling their property rights has been approved

8-7 by the court, whether or not the court has retained jurisdiction to modify

8-8 them, the adjudication of property rights, and the agreements settling

8-9 property rights, may nevertheless at any time thereafter be modified by the

8-10 court upon written stipulation signed and acknowledged by the parties to

8-11 the action, and in accordance with the terms thereof.

8-12 [7. If a decree of divorce, or an agreement between the parties which

8-13 was ratified, adopted or approved in a decree of divorce, provides for

8-14 specified periodic payments of alimony, the decree or agreement is not

8-15 subject to modification by the court as to accrued payments. Payments

8-16 pursuant to a decree entered on or after July 1, 1975, which have not

8-17 accrued at the time a motion for modification is filed may be modified

8-18 upon a showing of changed circumstances, whether or not the court has

8-19 expressly retained jurisdiction for the modification. In addition to any

8-20 other factors the court considers relevant in determining whether to modify

8-21 the order, the court shall consider whether the income of the spouse who is

8-22 ordered to pay alimony, as indicated on the spouse’s federal income tax

8-23 return for the preceding calendar year, has been reduced to such a level

8-24 that the spouse is financially unable to pay the amount of alimony he has

8-25 been ordered to pay.

8-26 8. In granting a divorce the court shall consider the need to grant

8-27 alimony to a spouse for the purpose of obtaining training or education

8-28 relating to a job, career or profession. In addition to any other factors the

8-29 court considers relevant in determining whether such alimony should be

8-30 granted, the court shall consider:

8-31 (a) Whether the spouse who would pay such alimony has obtained

8-32 greater job skills or education during the marriage; and

8-33 (b) Whether the spouse who would receive such alimony provided

8-34 financial support while the other spouse obtained job skills or education.

8-35 9. If the court determines that alimony should be awarded pursuant to

8-36 the provisions of subsection 8:

8-37 (a) The court, in its order, shall provide for the time within which the

8-38 spouse who is the recipient of the alimony must commence the training or

8-39 education relating to a job, career or profession.

8-40 (b) The spouse who is ordered to pay the alimony may, upon changed

8-41 circumstances, file a motion to modify the order.

8-42 (c) The spouse who is the recipient of the alimony may be granted, in

8-43 addition to any other alimony granted by the court, money to provide for:

9-1 (1) Testing of the recipient’s skills relating to a job, career or

9-2 profession;

9-3 (2) Evaluation of the recipient’s abilities and goals relating to a job,

9-4 career or profession;

9-5 (3) Guidance for the recipient in establishing a specific plan for

9-6 training or education relating to a job, career or profession;

9-7 (4) Subsidization of an employer’s costs incurred in training the

9-8 recipient;

9-9 (5) Assisting the recipient to search for a job; or

9-10 (6) Payment of the costs of tuition, books and fees for:

9-11 (I) The equivalent of a high school diploma;

9-12 (II) College courses which are directly applicable to the recipient’s

9-13 goals for his career; or

9-14 (III) Courses of training in skills desirable for employment.]

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