Maryland 2025 Regular Session

Maryland House Bill HB275 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb0275
9	6
10	7		HOUSE BILL 275
11	8		D4 5lr1461
12	9		HB 1045/24 – JUD (PRE–FILED)
13	10		By: Delegate Crutchfield
14	11		Requested: October 29, 2024
15	12		Introduced and read first time: January 8, 2025
16	13		Assigned to: Judiciary
17		-	Committee Report: Favorable
18		-	House action: Adopted
19		-	Read second time: February 27, 2025
20	14
21		-	~~CHAPTER ______~~
	15	+	A BILL ENTITLED
22	16
23	17		AN ACT concerning 1
24	18
25	19		Family Law – Child Support – Multifamily Adjustment 2
26	20
27	21		FOR the purpose of altering the definition of “adjusted actual income” under the State child 3
28	22		support guidelines; providing for the calculation of a certain allowance required to 4
29	23		be deducted from adjusted actual income under the child support guidelines; 5
30	24		requiring that the amount of a certain allowance be subtracted from a parent’s actual 6
31	25		income before the court determines the amount of a child support award; altering 7
32	26		the factors that the court may consider in determining whether the application of 8
33	27		the child support guidelines would be unjust or inappropriate in a particular case; 9
34	28		and generally relating to child support. 10
35	29
36	30		BY repealing and reenacting, without amendments, 11
37	31		Article – Family Law 12
38	32		Section 12–201(a) and (b) 13
39	33		Annotated Code of Maryland 14
40	34		(2019 Replacement Volume and 2024 Supplement) 15
41	35
42	36		BY repealing and reenacting, with amendments, 16
43	37		Article – Family Law 17
44	38		Section 12–201(c), 12–202(a), and 12–204(a) 18
45	39		Annotated Code of Maryland 19
46	40		(2019 Replacement Volume and 2024 Supplement) 20
47	41
48		-	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 2 HOUSE BILL 275
	42	+	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
	43	+	That the Laws of Maryland read as follows: 22
	44	+
	45	+	Article – Family Law 23
	46	+
	47	+	12–201. 24
	48	+	2 HOUSE BILL 275
49	49
50	50
51		-	~~That~~ the ~~Laws of Maryland read as follows:~~ 1
	51	+	(a) In this subtitle the following words have the meanings indicated. 1
52	52
53		-	~~Article – Family Law~~ 2
	53	+	(b) (1) “Actual income” means income from any source. 2
54	54
55		-	12–201. 3
	55	+	(2) For income from self–employment, rent, royalties, proprietorship of a 3
	56	+	business, or joint ownership of a partnership or closely held corporation, “actual income” 4
	57	+	means gross receipts minus ordinary and necessary expenses required to produce income. 5
56	58
57		-	(a) ~~In this subtitle the following words have the meanings indicated. 4~~
	59	+	(3) “Actual income” includes: 6
58	60
59		-	(b) ~~(1) “Actual~~ ~~income” means income from any source. 5~~
	61	+	(i) salaries; 7
60	62
61		-	(2) For income from self–employment, rent, royalties, proprietorship of a 6
62		-	business, or joint ownership of a partnership or closely held corporation, “actual income” 7
63		-	means gross receipts minus ordinary and necessary expenses required to produce income. 8
	63	+	(ii) wages; 8
64	64
65		-	(3) ~~“Actual income” includes:~~ 9
	65	+	(iii) commissions; 9
66	66
67		-	(i) ~~salaries~~; 10
	67	+	(iv) bonuses; 10
68	68
69		-	(ii) ~~wages~~; 11
	69	+	(v) dividend income; 11
70	70
71		-	(~~iii~~) ~~commissions~~; 12
	71	+	(vi) pension income; 12
72	72
73		-	(iv) ~~bonuses~~; 13
	73	+	(vii) interest income; 13
74	74
75		-	(v) ~~dividend~~ income; 14
	75	+	(viii) trust income; 14
76	76
77		-	(vi) ~~pension~~ income; 15
	77	+	(ix) annuity income; 15
78	78
79		-	(~~vii~~) ~~interest income~~; 16
	79	+	(x) Social Security benefits; 16
80	80
81		-	(~~viii~~) ~~trust income~~; 17
	81	+	(xi) workers’ compensation benefits; 17
82	82
83		-	(ix) ~~annuity income~~; 18
	83	+	(xii) unemployment insurance benefits; 18
84	84
85		-	(x) ~~Social Security~~ benefits; 19
	85	+	(xiii) disability insurance benefits; 19
86	86
87		-	(xi) workers’ compensation benefits; 20
	87	+	(xiv) for the obligor, any third party payment paid to or for a minor 20
	88	+	child as a result of the obligor’s disability, retirement, or other compensable claim; 21
88	89
89		-	(~~xii~~) ~~unemployment insurance benefits~~; 21
	90	+	(xv) alimony or maintenance received; and 22
90	91
91		-	(xiii) disability insurance benefits; 22
	92	+	(xvi) expense reimbursements or in–kind payments received by a 23
	93	+	parent in the course of employment, self–employment, or operation of a business to the 24
	94	+	extent the reimbursements or payments reduce the parent’s personal living expenses. 25
92	95
93		-	(xiv) for the obligor, any third party payment paid to or for a minor 23
94		-	child as a result of the obligor’s disability, retirement, or other compensable claim; 24
95		-
96		-	(xv) alimony or maintenance received; and 25
97		-	HOUSE BILL 275 3
98		-
99		-
100		-	(xvi) expense reimbursements or in–kind payments received by a 1
101		-	parent in the course of employment, self–employment, or operation of a business to the 2
102		-	extent the reimbursements or payments reduce the parent’s personal living expenses. 3
103		-
104		-	(4) Based on the circumstances of the case, the court may consider the 4
105		-	following items as actual income: 5
106		-
107		-	(i) severance pay; 6
108		-
109		-	(ii) capital gains; 7
110		-
111		-	(iii) gifts; or 8
112		-
113		-	(iv) prizes. 9
114		-
115		-	(5) “Actual income” does not include benefits received from 10
116		-	means–tested public assistance programs, including temporary cash assistance, 11
117		-	Supplemental Security Income, food stamps, and transitional emergency, medical, and 12
118		-	housing assistance. 13
119		-
120		-	(c) (1) “Adjusted actual income” means actual income minus: 14
121		-
122		-	[(1)] (I) preexisting reasonable child support obligations actually paid; 15
123		-	[and] 16
124		-
125		-	[(2)] (II) except as provided in § 12–204(a)(2) of this subtitle, alimony or 17
126		-	maintenance obligations actually paid; AND 18
127		-
128		-	(III) AN ALLOWANCE FOR SUP PORT FOR EACH CHILD LIVING IN 19
129		-	A PARENT’S HOME TO WHOM THE P ARENT OWES A LEGAL D UTY OF SUPPORT IF TH E 20
130		-	CHILD IS CONSIDERED TO BE SPENDING MORE THAN 92 OVERNIGHTS IN THE 21
131		-	PARENT’S HOME IN A YEAR AND NOT SUBJECT TO THE S UPPORT ORDER . 22
132		-
133		-	(2) FOR PURPOSES OF DETER MINING THE AMOUNT OF THE 23
134		-	ALLOWANCE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION : 24
135		-
136		-	(I) THE BASIC CHILD SUPP ORT OBLIGATION FOR E ACH 25
137		-	ADDITIONAL CHILD IN THE PARENT ’S HOME SHALL BE DETE RMINED IN 26
138		-	ACCORDANCE WITH § 12–204 OF THIS SUBTITLE, USING ONLY THE ACTUA L INCOME 27
139		-	OF THE PARENT ENTITL ED TO THE DEDUCTION ; AND 28
140		-
141		-	(II) THE AMOUNT DETERMINE D UNDER ITEM (I) OF THIS 29
142		-	PARAGRAPH SHALL BE M ULTIPLIED BY 75%. 30
143		-
144		-	(3) THE COURT SHALL DECLI NE TO AWARD AN ALLOW ANCE UNDER 31 4 HOUSE BILL 275
145		-
146		-
147		-	PARAGRAPH (1) OF THIS SUBSECTION IF THE CO URT FINDS, AFTER CONSIDERING 1
148		-	THE EVIDENCE AND THE BEST INTEREST OF THE CHILD FOR WHOM SUPPO RT IS 2
149		-	BEING DETERMINED , THAT THE APPLICATION OF AN ALLOWANCE WOUL D BE 3
150		-	UNJUST OR INAPPROPRI ATE. 4
151		-
152		-	12–202. 5
153		-
154		-	(a) (1) Subject to the provisions of paragraph (2) of this subsection and 6
155		-	subsection (b) of this section, in any proceeding to establish or modify child support, 7
156		-	whether pendente lite or permanent, the court shall use the child support guidelines set 8
157		-	forth in this subtitle. 9
158		-
159		-	(2) (i) There is a rebuttable presumption that the amount of child 10
160		-	support which would result from the application of the child support guidelines set forth in 11
161		-	this subtitle is the correct amount of child support to be awarded. 12
162		-
163		-	(ii) The presumption may be rebutted by evidence that the 13
164		-	application of the guidelines would be unjust or inappropriate in a particular case. 14
165		-
166		-	(iii) In determining whether the application of the guidelines would 15
167		-	be unjust or inappropriate in a particular case, the court may consider ANY FINANCIAL 16
168		-	CONSIDERATIONS : 17
169		-
170		-	1. [the terms of any] SPECIFIED IN AN existing separation 18
171		-	or property settlement agreement or court order, including: 19
172		-
173		-	A. any provisions for payment of mortgages [or], marital 20
174		-	debts, [payment of] OR college education expenses[,]; 21
175		-
176		-	B. the terms of any use and possession order or right to 22
177		-	occupy the family home under an agreement[,]; AND 23
178		-
179		-	C. any direct payments made for the benefit of the children 24
180		-	required by THE agreement or order[, or any other financial considerations set out in an 25
181		-	existing separation or property settlement agreement or court order]; 26
182		-
183		-	2. [the presence in the household of either parent of other 27
184		-	children to whom that parent owes a duty of support and the expenses for whom that parent 28
185		-	is directly contributing; and] THAT THE COURT DEEMS RELEVANT TO THE BEST 29
186		-	INTERESTS OF THE CHI LD WHO IS THE SUBJEC T OF THE CHILD SUPPO RT ORDER; OR 30
187		-
188		-	3. [whether an obligor’s monthly child support obligation] 31
189		-	THAT would leave the obligor with a monthly actual income below 110% of the 2019 federal 32
190		-	poverty level for an individual. 33
191		-	HOUSE BILL 275 5
192		-
193		-
194		-	(iv) [The presumption may not be rebutted solely on the basis of 1
195		-	evidence of the presence in the household of either parent of other children to whom that 2
196		-	parent owes a duty of support and the expenses for whom that parent is directly 3
197		-	contributing. 4
198		-
199		-	(v)] 1. If the court determines that the application of the 5
200		-	guidelines would be unjust or inappropriate in a particular case, the court shall make a 6
201		-	written finding or specific finding on the record stating the reasons for departing from the 7
202		-	guidelines. 8
203		-
204		-	2. The court’s finding shall state: 9
205		-
206		-	A. the amount of child support that would have been required 10
207		-	under the guidelines; 11
208		-
209		-	B. how the order varies from the guidelines; 12
210		-
211		-	C. how the finding serves the best interests of the child WHO 13
212		-	IS THE SUBJECT OF TH E ORDER; and 14
213		-
214		-	D. in cases in which items of value are conveyed instead of a 15
215		-	portion of the support presumed under the guidelines, the estimated value of the items 16
216		-	conveyed. 17
217		-
218		-	12–204. 18
219		-
220		-	(a) (1) The basic child support obligation shall be determined in accordance 19
221		-	with the schedule of basic child support obligations in subsection (e) of this section. The 20
222		-	basic child support obligation shall be divided between the parents in proportion to their 21
223		-	adjusted actual incomes. 22
224		-
225		-	(2) (i) If one or both parents have made a request for alimony or 23
226		-	maintenance in the proceeding in which a child support award is sought, the court shall 24
227		-	decide the issue and amount of alimony or maintenance before determining the child 25
228		-	support obligation under these guidelines. 26
229		-
230		-	(ii) If the court awards alimony or maintenance, the amount of 27
231		-	alimony or maintenance awarded shall be considered actual income for the recipient of the 28
232		-	alimony or maintenance and shall be subtracted from the income of the payor of the alimony 29
233		-	or maintenance under [§ 12–201(c)(2)] § 12–201(C)(1)(II) of this subtitle before the court 30
234		-	determines the amount of a child support award. 31
235		-
236		-	(3) THE AMOUNT OF THE ALL OWANCE FOR THE SUPPO RT OF 32
237		-	ADDITIONAL CHILDREN LIVI NG IN A PARENT ’S HOME DESCRIBED IN § 33
238		-	12–201(C)(1)(III) OF THIS SUBTITLE SHA LL BE SUBTRACTED FRO M THE PARENT ’S 34 6 HOUSE BILL 275
239		-
240		-
241		-	ACTUAL INCOME BEFORE THE COURT DETERMINES THE AMOUNT OF A CHIL D 1
242		-	SUPPORT AWARD . 2
243		-
244		-	SECTION 2. AND BE IT FURTHER ENACTED, That t his Act shall take effect 3
245		-	October 1, 2025. 4
	96	+	(4) Based on the circumstances of the case, the court may consider the 26
	97	+	following items as actual income: 27 HOUSE BILL 275 3
246	98
247	99
248	100
	101	+	(i) severance pay; 1
249	102
250		-	Approved:
251		-	________________________________________________________________________________
252		-	Governor.
253		-	________________________________________________________________________________
254		-	Speaker of the House of Delegates.
255		-	________________________________________________________________________________
256		-	President of the Senate.
	103	+	(ii) capital gains; 2
	104	+
	105	+	(iii) gifts; or 3
	106	+
	107	+	(iv) prizes. 4
	108	+
	109	+	(5) “Actual income” does not include benefits received from 5
	110	+	means–tested public assistance programs, including temporary cash assi stance, 6
	111	+	Supplemental Security Income, food stamps, and transitional emergency, medical, and 7
	112	+	housing assistance. 8
	113	+
	114	+	(c) (1) “Adjusted actual income” means actual income minus: 9
	115	+
	116	+	[(1)] (I) preexisting reasonable child support obligations actually paid; 10
	117	+	[and] 11
	118	+
	119	+	[(2)] (II) except as provided in § 12–204(a)(2) of this subtitle, alimony or 12
	120	+	maintenance obligations actually paid; AND 13
	121	+
	122	+	(III) AN ALLOWANCE FOR SUP PORT FOR EACH CHILD LIVING IN 14
	123	+	A PARENT’S HOME TO WHOM THE P ARENT OWES A LEGAL D UTY OF SUPPORT IF TH E 15
	124	+	CHILD IS CONSIDERED T O BE SPENDING MORE T HAN 92 OVERNIGHTS IN THE 16
	125	+	PARENT’S HOME IN A YEAR AND NOT SUBJECT TO THE S UPPORT ORDER . 17
	126	+
	127	+	(2) FOR PURPOSES OF DETER MINING THE AMOUNT OF THE 18
	128	+	ALLOWANCE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION : 19
	129	+
	130	+	(I) THE BASIC CHILD SUPPORT OBLIGA TION FOR EACH 20
	131	+	ADDITIONAL CHILD IN THE PARENT ’S HOME SHALL BE DETE RMINED IN 21
	132	+	ACCORDANCE WITH § 12–204 OF THIS SUBTITLE , USING ONLY THE ACTUA L INCOME 22
	133	+	OF THE PARENT ENTITL ED TO THE DEDUCTION ; AND 23
	134	+
	135	+	(II) THE AMOUNT DETERMINE D UNDER ITEM (I) OF THIS 24
	136	+	PARAGRAPH SHALL BE M ULTIPLIED BY 75%. 25
	137	+
	138	+	(3) THE COURT SHALL DECLI NE TO AWARD AN ALLOW ANCE UNDER 26
	139	+	PARAGRAPH (1) OF THIS SUBSECTION I F THE COURT FINDS , AFTER CONSIDERING 27
	140	+	THE EVIDENCE AND THE BEST INTEREST OF THE CHILD FOR WHOM SUPPO RT IS 28
	141	+	BEING DETE RMINED, THAT THE APPLICATION OF AN ALLOWANCE WOUL D BE 29
	142	+	UNJUST OR INAPPROPRI ATE. 30
	143	+
	144	+	12–202. 31 4 HOUSE BILL 275
	145	+
	146	+
	147	+
	148	+	(a) (1) Subject to the provisions of paragraph (2) of this subsection and 1
	149	+	subsection (b) of this section, in any proceeding to establish or modify child support, 2
	150	+	whether pendente lite or permanent, the court shall use the child support guidelines set 3
	151	+	forth in this subtitle. 4
	152	+
	153	+	(2) (i) There is a rebuttable presumption that the amount of child 5
	154	+	support which would result from the application of the child support guidelines set forth in 6
	155	+	this subtitle is the correct amount of child support to be awarded. 7
	156	+
	157	+	(ii) The presumption may be rebutted by evidence that the 8
	158	+	application of the guidelines would be unjust or inappropriate in a particular case. 9
	159	+
	160	+	(iii) In determining whether the application of the guidelines would 10
	161	+	be unjust or inappropriate in a particular case, the court may consider ANY FINANCIAL 11
	162	+	CONSIDERATIONS : 12
	163	+
	164	+	1. [the terms of any] SPECIFIED IN AN existing separation 13
	165	+	or property settlement agreement or court order, including: 14
	166	+
	167	+	A. any provisions for payment of mortgages [or], marital 15
	168	+	debts, [payment of] OR college education expenses[,]; 16
	169	+
	170	+	B. the terms of any use and possession order or right to 17
	171	+	occupy the family home under an agreement[,]; AND 18
	172	+
	173	+	C. any direct payments made for the benefit of the children 19
	174	+	required by THE agreement or order[, or any other financial considerations set out in an 20
	175	+	existing separation or property settlement agreement or court order]; 21
	176	+
	177	+	2. [the presence in the household of either parent of other 22
	178	+	children to whom that parent owes a duty of support and the expenses for whom that parent 23
	179	+	is directly contributing; and] THAT THE COURT DEEMS RELEVANT TO THE BEST 24
	180	+	INTERESTS OF THE CHI LD WHO IS THE SUBJEC T OF THE CHILD SUPPO RT ORDER; OR 25
	181	+
	182	+	3. [whether an obligor’s monthly child support obligation] 26
	183	+	THAT would leave the obligor with a monthly actual income below 110% of the 2019 federal 27
	184	+	poverty level for an individual. 28
	185	+
	186	+	(iv) [The presumption may not be rebutted solely on the basis of 29
	187	+	evidence of the presence in the household of either parent of other children to whom that 30
	188	+	parent owes a duty of support and the expenses for whom that parent is directly 31
	189	+	contributing. 32
	190	+
	191	+	(v)] 1. If the court determines that the application of the 33 HOUSE BILL 275 5
	192	+
	193	+
	194	+	guidelines would be unjust or inappropriate in a particular case, the court shall make a 1
	195	+	written finding or specific finding on the record stating the reasons for departing from the 2
	196	+	guidelines. 3
	197	+
	198	+	2. The court’s finding shall state: 4
	199	+
	200	+	A. the amount of child support that would have been required 5
	201	+	under the guidelines; 6
	202	+
	203	+	B. how the order varies from the guidelines; 7
	204	+
	205	+	C. how the finding serves the best interests of the child WHO 8
	206	+	IS THE SUBJECT OF TH E ORDER; and 9
	207	+
	208	+	D. in cases in which items of value are conveyed instead of a 10
	209	+	portion of the support presumed under the guidelines, the estimated value of the items 11
	210	+	conveyed. 12
	211	+
	212	+	12–204. 13
	213	+
	214	+	(a) (1) The basic child support obligation shall be determined in accordance 14
	215	+	with the schedule of basic child support obligations in subsection (e) of this section. The 15
	216	+	basic child support obligation shall be divided between the parents in proportion to their 16
	217	+	adjusted actual incomes. 17
	218	+
	219	+	(2) (i) If one or both parents have made a request for alimony or 18
	220	+	maintenance in the proceeding in which a child support award is sought, the court shall 19
	221	+	decide the issue and amount of alimony or maintenance before determining the child 20
	222	+	support obligation under these guidelines. 21
	223	+
	224	+	(ii) If the court awards alimony or maintenance, the amount of 22
	225	+	alimony or maintenance awarded shall be considered actual income for the recipient of the 23
	226	+	alimony or maintenance and shall be subtracted from the income of the payor of the alimony 24
	227	+	or maintenance under [§ 12–201(c)(2)] § 12–201(C)(1)(II) of this subtitle before the court 25
	228	+	determines the amount of a child support award. 26
	229	+
	230	+	(3) THE AMOUNT OF THE ALL OWANCE FOR THE SUPPO RT OF 27
	231	+	ADDITIONAL CHILDREN LIVING IN A PARENT ’S HOME DESCRIBED IN § 28
	232	+	12–201(C)(1)(III) OF THIS SUBTITLE SHA LL BE SUBTRACTED FRO M THE PARENT ’S 29
	233	+	ACTUAL INCOME BEFORE THE COURT DETERMINES THE AMOUNT OF A CHIL D 30
	234	+	SUPPORT AW ARD. 31
	235	+
	236	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 32
	237	+	October 1, 2025. 33
	238	+