HB18-1385

HB18-1385 - Domestic Relations Changes Due To Federal Tax Law

Passed/Signed into Law
Concerning changes to family support obligations in domestic relation actions due to changes in the federal tax laws.

Prior to the enactment of federal tax legislation in December 2017, spousal maintenance was capable of being classified as deductible by the payor spouse for federal income tax purposes and taxable income to the recipient spouse. As a result of the 2017 federal tax legislation, commencing in 2019, spousal maintenance is not deductible by the payor spouse and is not taxable income to the recipient spouse. The guideline advisory amount of maintenance in statute, and the definitions used for calculating gross income and adjusted gross income for maintenance and child support awards, reflects the anticipated tax consequences to the payor and recipient under prior law.

The bill adjusts downward the advisory guideline calculation of the amount of maintenance in circumstances where the maintenance awarded is not deductible by the payor spouse and is not taxable income to the recipient spouse. The bill also amends the definitions of 'gross income' and 'adjusted gross income' to properly reflect the tax implications of maintenance obligations.

In addition, the bill adjusts the definitions of 'gross income' and 'adjusted gross income' in calculating child support obligations to reflect the tax implications of maintenance obligations.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

 

House Committees

Senate Committees

Latest update: May 24, 2018
05/24/2018 - Governor Signed
05/16/2018 - Sent to the Governor
05/16/2018 - Signed by the President of the Senate
05/16/2018 - Signed by the Speaker of the House
05/04/2018 - Senate Third Reading Passed - No Amendments
05/03/2018 - Senate Second Reading Special Order - Passed - No Amendments
05/03/2018 - Senate Committee on Finance Refer Unamended - Consent Calendar to Senate Committee of the Whole
04/27/2018 - Introduced In Senate - Assigned to Finance
04/27/2018 - House Third Reading Passed - No Amendments
04/26/2018 - House Second Reading Special Order - Passed - No Amendments
04/24/2018 - House Committee on Judiciary Refer Unamended to House Committee of the Whole
04/12/2018 - Introduced In House - Assigned to Judiciary