Bill Text - SB444 (2020)

Amending the alimony statute due to changes in federal tax law.


Revision: Dec. 19, 2019, 9:52 a.m.

SB 444  - AS INTRODUCED

 

 

2020 SESSION

20-2948

05/10

 

SENATE BILL 444

 

AN ACT amending the alimony statute due to changes in federal tax law.

 

SPONSORS: Sen. Carson, Dist 14; Sen. French, Dist 7; Rep. Rice, Hills. 37; Rep. M. Smith, Straf. 6; Rep. Wall, Straf. 6

 

COMMITTEE: Judiciary

 

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ANALYSIS

 

This bill revises the formula for term alimony based on the fact that under current federal income tax laws, alimony is not deductible to the payor and taxable to the payee.  The bill adjusts the formula in the event that such a deduction is permitted in the future.  The bill also explicitly provides that consideration of federal income tax consequences may warrant adjustment to the amount of term alimony.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2948

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT amending the alimony statute due to changes in federal tax law.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Annulment, Divorce and Separation; Term Alimony.  Amend the introductory paragraph of RSA 458:19-a, II(a) to read as follows:

II.(a)  The amount of a term alimony order shall be the lesser of the payee's reasonable need, or a formula based on [30] 23 percent of the difference between the parties' gross incomes at the time the order is created, unless the court finds that justice requires an adjustment.  In making this calculation, gross income as defined in RSA 458:19, V shall be:

2  New Subparagraph; Annulment, Divorce and Separation; Term Alimony; Formula Percentage.  Amend RSA 458:19-a, II to insert after subparagraph (b) the following new subparagraph:

(c)  The formula percentage in subparagraph (a) of 23 percent is based on alimony not being deductible to the payor and taxable to the payee under federal income tax law.  If alimony becomes deductible to the payor and taxable to the payee under federal income tax law, the formula shall be based on 30 percent of the difference between the parties' gross incomes.

3  Annulment, Divorce and Separation; Term Alimony; Consideration of Special Circumstances; Impact of Federal Tax Law.  Amend RSA 458:19-a, IV(j) to read as follows:

(j)  The impact of federal tax law on the parties including the allocation of applicable tax-related benefits.

(k)  Any other reason the court deems material and relevant.

4  New Paragraph; Alimony Modification; Effective Date.  Amend RSA 458:19-aa by inserting after paragraph I the following new paragraph:

I-a.  Any modification may be retroactive as the parties may agree.  If contested, an alimony modification shall not be effective prior to the date that the notice of the petition for modification was given to the other party.

5  Applicability; Grounds for Modification of Alimony Order.

I.  The amount of term alimony in any order effective on or after January 1, 2019, including those based on an agreement of the parties, shall be subject to modification based solely on the passage of this act; provided that:

(a)  The alimony amount is greater than 23 percent of the difference in the parties gross incomes as defined in RSA 458:19-a, II(a); and

(b)  The petition for modification is filed by July 1, 2021.

II.  The findings required for modification under RSA 458:19-aa, I(a) shall not apply.

6  Effective Date.  This act shall take effect upon its passage.

SB 444  - AS INTRODUCED

 

 

2020 SESSION

20-2948

05/10

 

SENATE BILL 444

 

AN ACT amending the alimony statute due to changes in federal tax law.

 

SPONSORS: Sen. Carson, Dist 14; Sen. French, Dist 7; Rep. Rice, Hills. 37; Rep. M. Smith, Straf. 6; Rep. Wall, Straf. 6

 

COMMITTEE: Judiciary

 

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ANALYSIS

 

This bill revises the formula for term alimony based on the fact that under current federal income tax laws, alimony is not deductible to the payor and taxable to the payee.  The bill adjusts the formula in the event that such a deduction is permitted in the future.  The bill also explicitly provides that consideration of federal income tax consequences may warrant adjustment to the amount of term alimony.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2948

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT amending the alimony statute due to changes in federal tax law.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Annulment, Divorce and Separation; Term Alimony.  Amend the introductory paragraph of RSA 458:19-a, II(a) to read as follows:

II.(a)  The amount of a term alimony order shall be the lesser of the payee's reasonable need, or a formula based on [30] 23 percent of the difference between the parties' gross incomes at the time the order is created, unless the court finds that justice requires an adjustment.  In making this calculation, gross income as defined in RSA 458:19, V shall be:

2  New Subparagraph; Annulment, Divorce and Separation; Term Alimony; Formula Percentage.  Amend RSA 458:19-a, II to insert after subparagraph (b) the following new subparagraph:

(c)  The formula percentage in subparagraph (a) of 23 percent is based on alimony not being deductible to the payor and taxable to the payee under federal income tax law.  If alimony becomes deductible to the payor and taxable to the payee under federal income tax law, the formula shall be based on 30 percent of the difference between the parties' gross incomes.

3  Annulment, Divorce and Separation; Term Alimony; Consideration of Special Circumstances; Impact of Federal Tax Law.  Amend RSA 458:19-a, IV(j) to read as follows:

(j)  The impact of federal tax law on the parties including the allocation of applicable tax-related benefits.

(k)  Any other reason the court deems material and relevant.

4  New Paragraph; Alimony Modification; Effective Date.  Amend RSA 458:19-aa by inserting after paragraph I the following new paragraph:

I-a.  Any modification may be retroactive as the parties may agree.  If contested, an alimony modification shall not be effective prior to the date that the notice of the petition for modification was given to the other party.

5  Applicability; Grounds for Modification of Alimony Order.

I.  The amount of term alimony in any order effective on or after January 1, 2019, including those based on an agreement of the parties, shall be subject to modification based solely on the passage of this act; provided that:

(a)  The alimony amount is greater than 23 percent of the difference in the parties gross incomes as defined in RSA 458:19-a, II(a); and

(b)  The petition for modification is filed by July 1, 2021.

II.  The findings required for modification under RSA 458:19-aa, I(a) shall not apply.

6  Effective Date.  This act shall take effect upon its passage.