Maryland 2025 Regular Session

Maryland Senate Bill SB1038 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb1038
6	6
7	7	SENATE BILL 1038
8	8	D4 5lr1462
9	9	SB 1011/24 – JPR CF HB 275
10	10	By: Senator Charles
11	11	Introduced and read first time: February 10, 2025
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Family Law – Child Support – Multifamily Adjustment 2
19	19
20	20	FOR the purpose of altering the definition of “adjusted actual income” under the State child 3
21	21	support guidelines; providing for the calculation of a certain allowance required to 4
22	22	be deducted from adjusted actual income under the child support guidelines; 5
23	23	requiring that the amount of a certain allowance be subtracted from a parent’s actual 6
24	24	income before the court determines the amount of a child support award; altering 7
25	25	the factors that the court may consider in determining whether the application of 8
26	26	the child support guidelines would be unjust or inappropriate in a particular case; 9
27	27	and generally relating to child support. 10
28	28
29	29	BY repealing and reenacting, without amendments, 11
30	30	Article – Family Law 12
31	31	Section 12–201(a) and (b) 13
32	32	Annotated Code of Maryland 14
33	33	(2019 Replacement Volume and 2024 Supplement) 15
34	34
35	35	BY repealing and reenacting, with amendments, 16
36	36	Article – Family Law 17
37	37	Section 12–201(c), 12–202(a), and 12–204(a) 18
38	38	Annotated Code of Maryland 19
39	39	(2019 Replacement Volume and 2024 Supplement) 20
40	40
41	41	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
42	42	That the Laws of Maryland read as follows: 22
43	43
44	44	Article – Family Law 23
45	45
46	46	12–201. 24
47	47
48	48	(a) In this subtitle the following words have the meanings indicated. 25 2 SENATE BILL 1038
49	49
50	50
51	51
52	52	(b) (1) “Actual income” means income from any source. 1
53	53
54	54	(2) For income from self–employment, rent, royalties, proprietorship of a 2
55	55	business, or joint ownership of a partnership or closely held corporation, “actual income” 3
56	56	means gross receipts minus ordinary and necessary expenses required to produce income. 4
57	57
58	58	(3) “Actual income” includes: 5
59	59
60	60	(i) salaries; 6
61	61
62	62	(ii) wages; 7
63	63
64	64	(iii) commissions; 8
65	65
66	66	(iv) bonuses; 9
67	67
68	68	(v) dividend income; 10
69	69
70	70	(vi) pension income; 11
71	71
72	72	(vii) interest income; 12
73	73
74	74	(viii) trust income; 13
75	75
76	76	(ix) annuity income; 14
77	77
78	78	(x) Social Security benefits; 15
79	79
80	80	(xi) workers’ compensation benefits; 16
81	81
82	82	(xii) unemployment insurance benefits; 17
83	83
84	84	(xiii) disability insurance benefits; 18
85	85
86	86	(xiv) for the obligor, any third party payment paid to or for a minor 19
87	87	child as a result of the obligor’s disability, retirement, or other compensable claim; 20
88	88
89	89	(xv) alimony or maintenance received; and 21
90	90
91	91	(xvi) expense reimbursements or in–kind payments received by a 22
92	92	parent in the course of employment, self–employment, or operation of a business to the 23
93	93	extent the reimbursements or payments reduce the parent’s personal living expenses. 24
94	94
95	95	(4) Based on the circumstances of the case, the court may consider the 25
96	96	following items as actual income: 26
97	97	SENATE BILL 1038 3
98	98
99	99
100	100	(i) severance pay; 1
101	101
102	102	(ii) capital gains; 2
103	103
104	104	(iii) gifts; or 3
105	105
106	106	(iv) prizes. 4
107	107
108	108	(5) “Actual income” does not include benefits received from 5
109	109	means–tested public assistance programs, including temporary cash assistance, 6
110	110	Supplemental Security Income, food stamps, and transitional emergency, medical, and 7
111	111	housing assistance. 8
112	112
113	113	(c) (1) “Adjusted actual income” means actual income minus: 9
114	114
115	115	[(1)] (I) preexisting reasonable child support obligations actually paid; 10
116	116	[and] 11
117	117
118	118	[(2)] (II) except as provided in § 12–204(a)(2) of this subtitle, alimony or 12
119	119	maintenance obligations actually paid; AND 13
120	120
121	121	(III) AN ALLOWANCE FOR SUP PORT FOR EACH CHILD LIVING IN 14
122	122	A PARENT’S HOME TO WHOM THE P ARENT OWES A LEGAL D UTY OF SUPPORT IF TH E 15
123	123	CHILD IS CONSIDERED TO BE SPENDING MORE THAN 92 OVERNIGHTS IN THE 16
124	124	PARENT’S HOME IN A YEAR AND NOT SUBJECT TO THE S UPPORT ORDER . 17
125	125
126	126	(2) FOR PURPOSES OF DETER MINING THE AMOUNT OF THE 18
127	127	ALLOWANCE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION : 19
128	128
129	129	(I) THE BASIC CHILD SUPP ORT OBLIGATION FOR E ACH 20
130	130	ADDITIONAL CHILD IN THE PARENT ’S HOME SHALL BE DETE RMINED IN 21
131	131	ACCORDANCE WITH § 12–204 OF THIS SUBTITLE , USING ONLY THE ACTUA L INCOME 22
132	132	OF THE PARENT ENTITL ED TO THE DEDUCTION ; AND 23
133	133
134	134	(II) THE AMOUNT DETERMINE D UNDER ITEM (I) OF THIS 24
135	135	PARAGRAPH SHALL BE MULTIPLIED BY 75%. 25
136	136
137	137	(3) THE COURT SHALL DECLI NE TO AWARD AN ALLOW ANCE UNDER 26
138	138	PARAGRAPH (1) OF THIS SUBSECTION I F THE COURT FINDS , AFTER CONSIDERING 27
139	139	THE EVIDENCE AND THE BEST INTEREST OF THE CHILD FOR WHOM SUPPO RT IS 28
140	140	BEING DETERMINED , THAT THE APPLICATION OF AN ALLOWANCE WOUL D BE 29
141	141	UNJUST OR INAPPROPRI ATE. 30
142	142
143	143	12–202. 31
144	144	4 SENATE BILL 1038
145	145
146	146
147	147	(a) (1) Subject to the provisions of paragraph (2) of this subsection and 1
148	148	subsection (b) of this section, in any proceeding to establish or modify child support, 2
149	149	whether pendente lite or permanent, the court shall use the child support guidelines set 3
150	150	forth in this subtitle. 4
151	151
152	152	(2) (i) There is a rebuttable presumption that the amount of child 5
153	153	support which would result from the application of the child support guidelines set forth in 6
154	154	this subtitle is the correct amount of child support to be awarded. 7
155	155
156	156	(ii) The presumption may be rebutted by evidence that the 8
157	157	application of the guidelines would be unjust or inappropriate in a particular case. 9
158	158
159	159	(iii) In determining whether the application of the guidelines would 10
160	160	be unjust or inappropriate in a particular case, the court may consider ANY FINANCIAL 11
161	161	CONSIDERATIONS : 12
162	162
163	163	1. [the terms of any] SPECIFIED IN AN existing separation 13
164	164	or property settlement agreement or court order, including: 14
165	165
166	166	A. any provisions for payment of mortgages [or], marital 15
167	167	debts, [payment of] OR college education expenses[,]; 16
168	168
169	169	B. the terms of any use and possession order or right to 17
170	170	occupy the family home under an agreement[,]; AND 18
171	171
172	172	C. any direct payments made for the benefit of the children 19
173	173	required by THE agreement or order[, or any other financial considerations set out in an 20
174	174	existing separation or property settlement agreement or court order]; 21
175	175
176	176	2. [the presence in the household of either parent of other 22
177	177	children to whom that parent owes a duty of support and the expenses for whom that parent 23
178	178	is directly contributing; and] THAT THE COURT DEEMS RELEVANT TO THE BEST 24
179	179	INTERESTS OF THE CHI LD WHO IS THE SUBJEC T OF THE CHILD SUPPO RT ORDER; OR 25
180	180
181	181	3. [whether an obligor’s monthly child support obligation] 26
182	182	THAT would leave the obligor with a monthly actual income below 110% of the 2019 federal 27
183	183	poverty level for an individual. 28
184	184
185	185	(iv) [The presumption may not be rebutted solely on the basis of 29
186	186	evidence of the presence in the household of either parent of other children to whom that 30
187	187	parent owes a duty of support and the expenses for whom that parent is directly 31
188	188	contributing. 32
189	189
190	190	(v)] 1. If the court determines that the application of the 33
191	191	guidelines would be unjust or inappropriate in a particular case, the court shall make a 34 SENATE BILL 1038 5
192	192
193	193
194	194	written finding or specific finding on the record stating the reasons for departing from the 1
195	195	guidelines. 2
196	196
197	197	2. The court’s finding shall state: 3
198	198
199	199	A. the amount of child support that would have been required 4
200	200	under the guidelines; 5
201	201
202	202	B. how the order varies from the guidelines; 6
203	203
204	204	C. how the finding serves the best interests of the child WHO 7
205	205	IS THE SUBJECT OF TH E ORDER; and 8
206	206
207	207	D. in cases in which items of value are conveyed instead of a 9
208	208	portion of the support presumed under the guidelines, the estimated value of the items 10
209	209	conveyed. 11
210	210
211	211	12–204. 12
212	212
213	213	(a) (1) The basic child support obligation shall be determined in accordance 13
214	214	with the schedule of basic child support obligations in subsection (e) of this section. The 14
215	215	basic child support obligation shall be divided between the parents in proportion to their 15
216	216	adjusted actual incomes. 16
217	217
218	218	(2) (i) If one or both parents have made a request for alimony or 17
219	219	maintenance in the proceeding in which a child support award is sought, the court shall 18
220	220	decide the issue and amount of alimony or maintenance before determining the child 19
221	221	support obligation under these guidelines. 20
222	222
223	223	(ii) If the court awards alimony or maintenance, the amount of 21
224	224	alimony or maintenance awarded shall be considered actual income for the recipient of the 22
225	225	alimony or maintenance and shall be subtracted from the income of the payor of the alimony 23
226	226	or maintenance under [§ 12–201(c)(2)] § 12–201(C)(1)(II) of this subtitle before the court 24
227	227	determines the amount of a child support award. 25
228	228
229	229	(3) THE AMOUNT OF THE ALL OWANCE FOR THE SUPPO RT OF 26
230	230	ADDITIONAL CHILDREN LIVING IN A PARENT ’S HOME DESCRIBED IN § 27
231	231	12–201(C)(1)(III) OF THIS SUBTITLE SHA LL BE SUBTRACTED FRO M THE PARENT ’S 28
232	232	ACTUAL INCOME BEFORE THE COURT DETERMINES THE AMOUNT OF A CHILD 29
233	233	SUPPORT AWARD . 30
234	234
235	235	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
236	236	October 1, 2025. 32
237	237