SB16 (2021) Detail

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


CHAPTER 113

SB 16 - FINAL VERSION

 

 

2021 SESSION

21-0963

05/10

 

SENATE BILL 16

 

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

 

SPONSORS: Sen. Carson, Dist 14

 

COMMITTEE: Judiciary

 

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ANALYSIS

 

This bill revises the formula for term alimony because of recent changes in federal income tax law.  The bill recognizes that alimony is no longer either deductible by the payor or taxable to the payee.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0963

05/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

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:

 

113:1  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:

113:2  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.

113:3  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.

113:4  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.

113:5  New Paragraphs; Modification of Alimony Orders; Applicable Law Based on Filing Date of Initial Petition For Divorce or Legal Separation.  Amend RSA 458:19-aa by inserting after paragraph IX the following new paragraphs:

X.(a)(1)  The provisions of RSA 458:14, 458:19, 458:19-a, and 458:19-aa, as amended or inserted by 2018, 310, shall not apply to modifications of orders in cases whose initial petition for divorce or legal separation was filed prior to January 1, 2019, unless the court finds that the original order:

(A)  Was based on an agreement of the parties adopting some or all of the provisions of that act; or

(B) Specified that the court was adopting some or all of the provisions of that act.

(2)  Absent such a finding, modifications of these orders shall be controlled by the law in effect on the date the initial petition for divorce or legal separation was filed.

(b)  Parties to any case in which the initial petition was filed prior to January 1, 2019 may agree to adopt some or all of the provisions of 2018, 310:

(1)  In the original agreement or any modification of it; or

(2)  In modifying any court order.

XI.  An alimony order effective on or after January 1, 2019, including one based on an agreement of the parties, may be modified in accordance with RSA 458:19-a, II, without the need to demonstrate the findings in RSA 458:19-a, VI, provided that:

(a)  The alimony order was issued pursuant to RSA 458:14, 458:19, 458:19-a, and 458:19-aa, as amended or inserted by 2018, 310;

(b)  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

(c)  The petition for modification is filed by July 1, 2022.

113:6  Effective Date.  This act shall take effect upon its passage.  

 

Approved: July 09, 2021

Effective Date: July 09, 2021

Links


Date Body Type
Jan. 12, 2021 Senate Hearing
Feb. 4, 2021 Senate Floor Vote
April 21, 2021 House Hearing
House Floor Vote
Jan. 12, 2021 Senate Hearing
Feb. 4, 2021 Senate Floor Vote
April 21, 2021 House Hearing

Bill Text Revisions

SB16 Revision: 32813 Date: July 12, 2021, 3:30 p.m.
SB16 Revision: 32593 Date: June 3, 2021, 12:11 p.m.
SB16 Revision: 31517 Date: Jan. 5, 2021, 12:19 p.m.

Docket


July 13, 2021: Signed by the Governor on 07/09/2021; Chapter 0113; Effective 07/09/2021


July 9, 2021: Signed by the Governor on 07/09/2021; Chapter 0113; Effective 07/09/2021


June 24, 2021: Enrolled Adopted, VV, (In recess 06/24/2021); SJ 20


July 1, 2021: Enrolled Adopted, VV, (In recess 06/24/2021); SJ 20


June 24, 2021: Enrolled (in recess of) 06/24/2021


July 1, 2021: Enrolled (in recess of) 06/24/2021


June 3, 2021: Ought to Pass: MA VV 06/03/2021 HJ 8 P. 3


June 3, 2021: Ought to Pass: MA VV 06/03/2021 HJ 8 P. 3


: Committee Report: Ought to Pass (Vote 14-0; CC) HC 26 P. 4


May 11, 2021: Committee Report: Ought to Pass (Vote 14-0; CC) HC 26 P. 4


April 14, 2021: Public Hearing: 04/21/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/93446087542 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


April 21, 2021: Public Hearing: 04/21/2021 10:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/93446087542 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.


Feb. 25, 2021: Introduced (in recess of) 02/25/2021 and referred to Children and Family Law HJ 4 P. 48


March 10, 2021: Introduced (in recess of) 02/25/2021 and referred to Children and Family Law HJ 4 P. 48


Feb. 4, 2021: Ought to Pass: RC 23Y-1N, MA; OT3rdg; 02/04/2021; SJ 3


Feb. 4, 2021: Ought to Pass: RC 23Y-1N, MA; OT3rdg; 02/04/2021; SJ 3


Jan. 14, 2021: Committee Report: Ought to Pass, 02/04/2021; Vote 5-0; CC; SC 9


Feb. 4, 2021: Committee Report: Ought to Pass, 02/04/2021; Vote 5-0; CC; SC 9


Jan. 12, 2021: Remote Hearing: 01/12/2021, 01:00 pm; Links to join the hearing can be found in the Senate Calendar; SC 6


Jan. 7, 2021: Remote Hearing: 01/12/2021, 01:00 pm; Links to join the hearing can be found in the Senate Calendar; SC 6


Jan. 6, 2021: To Be Introduced 01/06/2021 and Referred to Judiciary; SJ 2


Jan. 5, 2021: To Be Introduced 01/06/2021 and Referred to Judiciary; SJ 2