EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0275*
HOUSE BILL 275
D4 5lr1461
HB 1045/24 – JUD (PRE–FILED)
By: Delegate Crutchfield
Requested: October 29, 2024
Introduced and read first time: January 8, 2025
Assigned to: Judiciary
Committee Report: Favorable
House action: Adopted
Read second time: February 27, 2025
CHAPTER ______
AN ACT concerning 1
Family Law – Child Support – Multifamily Adjustment 2
FOR the purpose of altering the definition of “adjusted actual income” under the State child 3
support guidelines; providing for the calculation of a certain allowance required to 4
be deducted from adjusted actual income under the child support guidelines; 5
requiring that the amount of a certain allowance be subtracted from a parent’s actual 6
income before the court determines the amount of a child support award; altering 7
the factors that the court may consider in determining whether the application of 8
the child support guidelines would be unjust or inappropriate in a particular case; 9
and generally relating to child support. 10
BY repealing and reenacting, without amendments, 11
Article – Family Law 12
Section 12–201(a) and (b) 13
Annotated Code of Maryland 14
(2019 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Family Law 17
Section 12–201(c), 12–202(a), and 12–204(a) 18
Annotated Code of Maryland 19
(2019 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 2 HOUSE BILL 275
That the Laws of Maryland read as follows: 1
Article – Family Law 2
12–201. 3
(a) In this subtitle the following words have the meanings indicated. 4
(b) (1) “Actual income” means income from any source. 5
(2) For income from self–employment, rent, royalties, proprietorship of a 6
business, or joint ownership of a partnership or closely held corporation, “actual income” 7
means gross receipts minus ordinary and necessary expenses required to produce income. 8
(3) “Actual income” includes: 9
(i) salaries; 10
(ii) wages; 11
(iii) commissions; 12
(iv) bonuses; 13
(v) dividend income; 14
(vi) pension income; 15
(vii) interest income; 16
(viii) trust income; 17
(ix) annuity income; 18
(x) Social Security benefits; 19
(xi) workers’ compensation benefits; 20
(xii) unemployment insurance benefits; 21
(xiii) disability insurance benefits; 22
(xiv) for the obligor, any third party payment paid to or for a minor 23
child as a result of the obligor’s disability, retirement, or other compensable claim; 24
(xv) alimony or maintenance received; and 25
HOUSE BILL 275 3
(xvi) expense reimbursements or in–kind payments received by a 1
parent in the course of employment, self–employment, or operation of a business to the 2
extent the reimbursements or payments reduce the parent’s personal living expenses. 3
(4) Based on the circumstances of the case, the court may consider the 4
following items as actual income: 5
(i) severance pay; 6
(ii) capital gains; 7
(iii) gifts; or 8
(iv) prizes. 9
(5) “Actual income” does not include benefits received from 10
means–tested public assistance programs, including temporary cash assistance, 11
Supplemental Security Income, food stamps, and transitional emergency, medical, and 12
housing assistance. 13
(c) (1) “Adjusted actual income” means actual income minus: 14
[(1)] (I) preexisting reasonable child support obligations actually paid; 15
[and] 16
[(2)] (II) except as provided in § 12–204(a)(2) of this subtitle, alimony or 17
maintenance obligations actually paid; AND 18
(III) AN ALLOWANCE FOR SUP PORT FOR EACH CHILD LIVING IN 19
A PARENT’S HOME TO WHOM THE P ARENT OWES A LEGAL D UTY OF SUPPORT IF TH E 20
CHILD IS CONSIDERED TO BE SPENDING MORE THAN 92 OVERNIGHTS IN THE 21
PARENT’S HOME IN A YEAR AND NOT SUBJECT TO THE S UPPORT ORDER . 22
(2) FOR PURPOSES OF DETER MINING THE AMOUNT OF THE 23
ALLOWANCE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION : 24
(I) THE BASIC CHILD SUPP ORT OBLIGATION FOR E ACH 25
ADDITIONAL CHILD IN THE PARENT ’S HOME SHALL BE DETE RMINED IN 26
ACCORDANCE WITH § 12–204 OF THIS SUBTITLE, USING ONLY THE ACTUA L INCOME 27
OF THE PARENT ENTITL ED TO THE DEDUCTION ; AND 28
(II) THE AMOUNT DETERMINE D UNDER ITEM (I) OF THIS 29
PARAGRAPH SHALL BE M ULTIPLIED BY 75%. 30
(3) THE COURT SHALL DECLI NE TO AWARD AN ALLOW ANCE UNDER 31 4 HOUSE BILL 275
PARAGRAPH (1) OF THIS SUBSECTION IF THE CO URT FINDS, AFTER CONSIDERING 1
THE EVIDENCE AND THE BEST INTEREST OF THE CHILD FOR WHOM SUPPO RT IS 2
BEING DETERMINED , THAT THE APPLICATION OF AN ALLOWANCE WOUL D BE 3
UNJUST OR INAPPROPRI ATE. 4
12–202. 5
(a) (1) Subject to the provisions of paragraph (2) of this subsection and 6
subsection (b) of this section, in any proceeding to establish or modify child support, 7
whether pendente lite or permanent, the court shall use the child support guidelines set 8
forth in this subtitle. 9
(2) (i) There is a rebuttable presumption that the amount of child 10
support which would result from the application of the child support guidelines set forth in 11
this subtitle is the correct amount of child support to be awarded. 12
(ii) The presumption may be rebutted by evidence that the 13
application of the guidelines would be unjust or inappropriate in a particular case. 14
(iii) In determining whether the application of the guidelines would 15
be unjust or inappropriate in a particular case, the court may consider ANY FINANCIAL 16
CONSIDERATIONS : 17
1. [the terms of any] SPECIFIED IN AN existing separation 18
or property settlement agreement or court order, including: 19
A. any provisions for payment of mortgages [or], marital 20
debts, [payment of] OR college education expenses[,]; 21
B. the terms of any use and possession order or right to 22
occupy the family home under an agreement[,]; AND 23
C. any direct payments made for the benefit of the children 24
required by THE agreement or order[, or any other financial considerations set out in an 25
existing separation or property settlement agreement or court order]; 26
2. [the presence in the household of either parent of other 27
children to whom that parent owes a duty of support and the expenses for whom that parent 28
is directly contributing; and] THAT THE COURT DEEMS RELEVANT TO THE BEST 29
INTERESTS OF THE CHI LD WHO IS THE SUBJEC T OF THE CHILD SUPPO RT ORDER; OR 30
3. [whether an obligor’s monthly child support obligation] 31
THAT would leave the obligor with a monthly actual income below 110% of the 2019 federal 32
poverty level for an individual. 33
HOUSE BILL 275 5
(iv) [The presumption may not be rebutted solely on the basis of 1
evidence of the presence in the household of either parent of other children to whom that 2
parent owes a duty of support and the expenses for whom that parent is directly 3
contributing. 4
(v)] 1. If the court determines that the application of the 5
guidelines would be unjust or inappropriate in a particular case, the court shall make a 6
written finding or specific finding on the record stating the reasons for departing from the 7
guidelines. 8
2. The court’s finding shall state: 9
A. the amount of child support that would have been required 10
under the guidelines; 11
B. how the order varies from the guidelines; 12
C. how the finding serves the best interests of the child WHO 13
IS THE SUBJECT OF TH E ORDER; and 14
D. in cases in which items of value are conveyed instead of a 15
portion of the support presumed under the guidelines, the estimated value of the items 16
conveyed. 17
12–204. 18
(a) (1) The basic child support obligation shall be determined in accordance 19
with the schedule of basic child support obligations in subsection (e) of this section. The 20
basic child support obligation shall be divided between the parents in proportion to their 21
adjusted actual incomes. 22
(2) (i) If one or both parents have made a request for alimony or 23
maintenance in the proceeding in which a child support award is sought, the court shall 24
decide the issue and amount of alimony or maintenance before determining the child 25
support obligation under these guidelines. 26
(ii) If the court awards alimony or maintenance, the amount of 27
alimony or maintenance awarded shall be considered actual income for the recipient of the 28
alimony or maintenance and shall be subtracted from the income of the payor of the alimony 29
or maintenance under [§ 12–201(c)(2)] § 12–201(C)(1)(II) of this subtitle before the court 30
determines the amount of a child support award. 31
(3) THE AMOUNT OF THE ALL OWANCE FOR THE SUPPO RT OF 32
ADDITIONAL CHILDREN LIVI NG IN A PARENT ’S HOME DESCRIBED IN § 33
12–201(C)(1)(III) OF THIS SUBTITLE SHA LL BE SUBTRACTED FRO M THE PARENT ’S 34 6 HOUSE BILL 275
ACTUAL INCOME BEFORE THE COURT DETERMINES THE AMOUNT OF A CHIL D 1
SUPPORT AWARD . 2
SECTION 2. AND BE IT FURTHER ENACTED, That t his Act shall take effect 3
October 1, 2025. 4
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.