EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
*sb1038*
SENATE BILL 1038
D4 5lr1462
SB 1011/24 – JPR CF HB 275
By: Senator Charles
Introduced and read first time: February 10, 2025
Assigned to: Rules
A BILL ENTITLED
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
That the Laws of Maryland read as follows: 22
Article – Family Law 23
12–201. 24
(a) In this subtitle the following words have the meanings indicated. 25 2 SENATE BILL 1038
(b) (1) “Actual income” means income from any source. 1
(2) For income from self–employment, rent, royalties, proprietorship of a 2
business, or joint ownership of a partnership or closely held corporation, “actual income” 3
means gross receipts minus ordinary and necessary expenses required to produce income. 4
(3) “Actual income” includes: 5
(i) salaries; 6
(ii) wages; 7
(iii) commissions; 8
(iv) bonuses; 9
(v) dividend income; 10
(vi) pension income; 11
(vii) interest income; 12
(viii) trust income; 13
(ix) annuity income; 14
(x) Social Security benefits; 15
(xi) workers’ compensation benefits; 16
(xii) unemployment insurance benefits; 17
(xiii) disability insurance benefits; 18
(xiv) for the obligor, any third party payment paid to or for a minor 19
child as a result of the obligor’s disability, retirement, or other compensable claim; 20
(xv) alimony or maintenance received; and 21
(xvi) expense reimbursements or in–kind payments received by a 22
parent in the course of employment, self–employment, or operation of a business to the 23
extent the reimbursements or payments reduce the parent’s personal living expenses. 24
(4) Based on the circumstances of the case, the court may consider the 25
following items as actual income: 26
SENATE BILL 1038 3
(i) severance pay; 1
(ii) capital gains; 2
(iii) gifts; or 3
(iv) prizes. 4
(5) “Actual income” does not include benefits received from 5
means–tested public assistance programs, including temporary cash assistance, 6
Supplemental Security Income, food stamps, and transitional emergency, medical, and 7
housing assistance. 8
(c) (1) “Adjusted actual income” means actual income minus: 9
[(1)] (I) preexisting reasonable child support obligations actually paid; 10
[and] 11
[(2)] (II) except as provided in § 12–204(a)(2) of this subtitle, alimony or 12
maintenance obligations actually paid; AND 13
(III) AN ALLOWANCE FOR SUP PORT FOR EACH CHILD LIVING IN 14
A PARENT’S HOME TO WHOM THE P ARENT OWES A LEGAL D UTY OF SUPPORT IF TH E 15
CHILD IS CONSIDERED TO BE SPENDING MORE THAN 92 OVERNIGHTS IN THE 16
PARENT’S HOME IN A YEAR AND NOT SUBJECT TO THE S UPPORT ORDER . 17
(2) FOR PURPOSES OF DETER MINING THE AMOUNT OF THE 18
ALLOWANCE UNDER PARA GRAPH (1)(III) OF THIS SUBSECTION : 19
(I) THE BASIC CHILD SUPP ORT OBLIGATION FOR E ACH 20
ADDITIONAL CHILD IN THE PARENT ’S HOME SHALL BE DETE RMINED IN 21
ACCORDANCE WITH § 12–204 OF THIS SUBTITLE , USING ONLY THE ACTUA L INCOME 22
OF THE PARENT ENTITL ED TO THE DEDUCTION ; AND 23
(II) THE AMOUNT DETERMINE D UNDER ITEM (I) OF THIS 24
PARAGRAPH SHALL BE MULTIPLIED BY 75%. 25
(3) THE COURT SHALL DECLI NE TO AWARD AN ALLOW ANCE UNDER 26
PARAGRAPH (1) OF THIS SUBSECTION I F THE COURT FINDS , AFTER CONSIDERING 27
THE EVIDENCE AND THE BEST INTEREST OF THE CHILD FOR WHOM SUPPO RT IS 28
BEING DETERMINED , THAT THE APPLICATION OF AN ALLOWANCE WOUL D BE 29
UNJUST OR INAPPROPRI ATE. 30
12–202. 31
4 SENATE BILL 1038
(a) (1) Subject to the provisions of paragraph (2) of this subsection and 1
subsection (b) of this section, in any proceeding to establish or modify child support, 2
whether pendente lite or permanent, the court shall use the child support guidelines set 3
forth in this subtitle. 4
(2) (i) There is a rebuttable presumption that the amount of child 5
support which would result from the application of the child support guidelines set forth in 6
this subtitle is the correct amount of child support to be awarded. 7
(ii) The presumption may be rebutted by evidence that the 8
application of the guidelines would be unjust or inappropriate in a particular case. 9
(iii) In determining whether the application of the guidelines would 10
be unjust or inappropriate in a particular case, the court may consider ANY FINANCIAL 11
CONSIDERATIONS : 12
1. [the terms of any] SPECIFIED IN AN existing separation 13
or property settlement agreement or court order, including: 14
A. any provisions for payment of mortgages [or], marital 15
debts, [payment of] OR college education expenses[,]; 16
B. the terms of any use and possession order or right to 17
occupy the family home under an agreement[,]; AND 18
C. any direct payments made for the benefit of the children 19
required by THE agreement or order[, or any other financial considerations set out in an 20
existing separation or property settlement agreement or court order]; 21
2. [the presence in the household of either parent of other 22
children to whom that parent owes a duty of support and the expenses for whom that parent 23
is directly contributing; and] THAT THE COURT DEEMS RELEVANT TO THE BEST 24
INTERESTS OF THE CHI LD WHO IS THE SUBJEC T OF THE CHILD SUPPO RT ORDER; OR 25
3. [whether an obligor’s monthly child support obligation] 26
THAT would leave the obligor with a monthly actual income below 110% of the 2019 federal 27
poverty level for an individual. 28
(iv) [The presumption may not be rebutted solely on the basis of 29
evidence of the presence in the household of either parent of other children to whom that 30
parent owes a duty of support and the expenses for whom that parent is directly 31
contributing. 32
(v)] 1. If the court determines that the application of the 33
guidelines would be unjust or inappropriate in a particular case, the court shall make a 34 SENATE BILL 1038 5
written finding or specific finding on the record stating the reasons for departing from the 1
guidelines. 2
2. The court’s finding shall state: 3
A. the amount of child support that would have been required 4
under the guidelines; 5
B. how the order varies from the guidelines; 6
C. how the finding serves the best interests of the child WHO 7
IS THE SUBJECT OF TH E ORDER; and 8
D. in cases in which items of value are conveyed instead of a 9
portion of the support presumed under the guidelines, the estimated value of the items 10
conveyed. 11
12–204. 12
(a) (1) The basic child support obligation shall be determined in accordance 13
with the schedule of basic child support obligations in subsection (e) of this section. The 14
basic child support obligation shall be divided between the parents in proportion to their 15
adjusted actual incomes. 16
(2) (i) If one or both parents have made a request for alimony or 17
maintenance in the proceeding in which a child support award is sought, the court shall 18
decide the issue and amount of alimony or maintenance before determining the child 19
support obligation under these guidelines. 20
(ii) If the court awards alimony or maintenance, the amount of 21
alimony or maintenance awarded shall be considered actual income for the recipient of the 22
alimony or maintenance and shall be subtracted from the income of the payor of the alimony 23
or maintenance under [§ 12–201(c)(2)] § 12–201(C)(1)(II) of this subtitle before the court 24
determines the amount of a child support award. 25
(3) THE AMOUNT OF THE ALL OWANCE FOR THE SUPPO RT OF 26
ADDITIONAL CHILDREN LIVING IN A PARENT ’S HOME DESCRIBED IN § 27
12–201(C)(1)(III) OF THIS SUBTITLE SHA LL BE SUBTRACTED FRO M THE PARENT ’S 28
ACTUAL INCOME BEFORE THE COURT DETERMINES THE AMOUNT OF A CHILD 29
SUPPORT AWARD . 30
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2025. 32