S.B. 126
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SENATE BILL NO. 126–SENATOR NEAL
PREFILED JANUARY 29, 2025
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Referred to Committee on Judiciary
SUMMARY—Revises provisions relating to domestic relations.
(BDR 11-582)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to domestic relations; revising provisions relating
to the granting of a divorce and the disposition of certain
pension or retirement benefits upon dissolution of
marriage; revising provisions requiring certain documents
to be provided before disbursement of certain pension or
retirement benefits upon dissolution of marriage; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, a court granting a divorce has the duty to provide to the 1
parties an explanation, or ensure that an explanation has been provided, of any 2
provision relating to the disposition of pension or retirement benefits that will be 3
included in the decree of divorce or any related order. (NRS 125.150) Section 1 of 4
this bill requires that such explanation be a full explanation of any provisions 5
relating to the disposition of pension or retirement benefits or any related order. 6
Existing law provides for the disposition of pension or retirement benefits 7
provided by the Public Employees’ Retirement System or the Judicial Retirement 8
Plan upon the dissolution of marriage. Existing law codifies the “time rules” 9
whereby the community interest in such retirement benefits is calculated by 10
dividing an employee’s length of service during marriage by his or her total length 11
of service. (NRS 125.155) With an exception for homemakers, section 2 of this bill 12
replaces the “time rule” with the “frozen benefit rule,” whereby the community 13
interest in such retirement benefits is “frozen” at the salary base and years of 14
service of the party participating in the retirement system on the date on which the 15
decree of legal separation or divorce is entered. The “frozen benefit rule” currently 16
applies to military pensions under the Uniformed Services Former Spouses’ 17
Protection Act. (10 U.S.C. § 1408(a)(4)(B)) 18
Under existing law, a person seeking disbursement of pension or retirement 19
benefits provided by the Public Employees’ Retirement System or the Judicial 20
Retirement Plan pursuant to a domestic relations order must submit to the 21
Executive Officer of the Public Employees’ Retirement Board, or his or her 22
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designee, certain judgments, decrees or orders. (NRS 286.6703) Section 3 of this 23
bill requires that any order submitted to the Executive Officer relating to the 24
disposition of community property that is issued pursuant to a decree of divorce 25
must be expressly referenced in the authorizing decree of divorce. 26
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 125.150 is hereby amended to read as follows: 1
125.150 Except as otherwise provided in NRS 125.155 and 2
125.165, and unless the action is contrary to a premarital agreement 3
between the parties which is enforceable pursuant to chapter 123A 4
of NRS: 5
1. In granting a divorce, the court: 6
(a) May award such alimony to either spouse, in a specified 7
principal sum or as specified periodic payments, as appears just and 8
equitable; 9
(b) Shall, to the extent practicable, make an equal disposition of 10
the community property of the parties, including, without limitation, 11
any community property transferred into an irrevocable trust 12
pursuant to NRS 123.125 over which the court acquires jurisdiction 13
pursuant to NRS 164.010, except that the court may make an 14
unequal disposition of the community property in such proportions 15
as it deems just if the court finds a compelling reason to do so and 16
sets forth in writing the reasons for making the unequal disposition; 17
and 18
(c) Shall provide [an] a full explanation, or ensure that [an] a 19
full explanation has been provided, to the parties of any provision 20
relating to the disposition of pension or retirement benefits that will 21
be included in the decree of divorce or any related order. 22
2. Except as otherwise provided in this subsection, in granting 23
a divorce, the court shall dispose of any property held in joint 24
tenancy in the manner set forth in subsection 1 for the disposition of 25
community property. If a party has made a contribution of separate 26
property to the acquisition or improvement of property held in joint 27
tenancy, the court may provide for the reimbursement of that party 28
for his or her contribution. The amount of reimbursement must not 29
exceed the amount of the contribution of separate property that can 30
be traced to the acquisition or improvement of property held in joint 31
tenancy, without interest or any adjustment because of an increase in 32
the value of the property held in joint tenancy. The amount of 33
reimbursement must not exceed the value, at the time of the 34
disposition, of the property held in joint tenancy for which the 35
contribution of separate property was made. In determining whether 36
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to provide for the reimbursement, in whole or in part, of a party who 1
has contributed separate property, the court shall consider: 2
(a) The intention of the parties in placing the property in joint 3
tenancy; 4
(b) The length of the marriage; and 5
(c) Any other factor which the court deems relevant in making a 6
just and equitable disposition of that property. 7
As used in this subsection, “contribution” includes, without 8
limitation, a down payment, a payment for the acquisition or 9
improvement of property, and a payment reducing the principal of a 10
loan used to finance the purchase or improvement of property. The 11
term does not include a payment of interest on a loan used to finance 12
the purchase or improvement of property, or a payment made for 13
maintenance, insurance or taxes on property. 14
3. A party may file a postjudgment motion in any action for 15
divorce, annulment or separate maintenance to obtain adjudication 16
of any community property or liability omitted from the decree or 17
judgment as the result of fraud or mistake. A motion pursuant to this 18
subsection must be filed within 3 years after the discovery by the 19
aggrieved party of the facts constituting the fraud or mistake. The 20
court has continuing jurisdiction to hear such a motion and shall 21
equally divide the omitted community property or liability between 22
the parties unless the court finds that: 23
(a) The community property or liability was included in a prior 24
equal disposition of the community property of the parties or in an 25
unequal disposition of the community property of the parties which 26
was made pursuant to written findings of a compelling reason for 27
making that unequal disposition; or 28
(b) The court determines a compelling reason in the interests of 29
justice to make an unequal disposition of the community property or 30
liability and sets forth in writing the reasons for making the unequal 31
disposition. 32
If a motion pursuant to this subsection results in a judgment 33
dividing a defined benefit pension plan, the judgment may not be 34
enforced against an installment payment made by the plan more 35
than 6 years after the installment payment. 36
4. Except as otherwise provided in NRS 125.141, whether or 37
not application for suit money has been made under the provisions 38
of NRS 125.040, the court may award a reasonable attorney’s fee to 39
either party to an action for divorce. 40
5. In granting a divorce, the court may also set apart such 41
portion of the separate property of either spouse for the other 42
spouse’s support or the separate property of either spouse for the 43
support of their children as is deemed just and equitable. 44
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6. In the event of the death of either party or the subsequent 1
remarriage of the spouse to whom specified periodic payments were 2
to be made, all the payments required by the decree must cease, 3
unless it was otherwise ordered by the court. 4
7. If the court adjudicates the property rights of the parties, or 5
an agreement by the parties settling their property rights has been 6
approved by the court, whether or not the court has retained 7
jurisdiction to modify them, the adjudication of property rights, and 8
the agreements settling property rights, may nevertheless at any time 9
thereafter be modified by the court upon written stipulation signed 10
and acknowledged by the parties to the action, and in accordance 11
with the terms thereof. 12
8. If a decree of divorce, or an agreement between the parties 13
which was ratified, adopted or approved in a decree of divorce, 14
provides for specified periodic payments of alimony, the decree or 15
agreement is not subject to modification by the court as to accrued 16
payments. Payments pursuant to a decree entered on or after July 1, 17
1975, which have not accrued at the time a motion for modification 18
is filed may be modified upon a showing of changed circumstances, 19
whether or not the court has expressly retained jurisdiction for the 20
modification. In addition to any other factors the court considers 21
relevant in determining whether to modify the order, the court shall 22
consider whether the income of the spouse who is ordered to pay 23
alimony, as indicated on the spouse’s federal income tax return for 24
the preceding calendar year, has been reduced to such a level that 25
the spouse is financially unable to pay the amount of alimony the 26
spouse has been ordered to pay. 27
9. In addition to any other factors the court considers relevant 28
in determining whether to award alimony and the amount of such an 29
award, the court shall consider: 30
(a) The financial condition of each spouse; 31
(b) The nature and value of the respective property of each 32
spouse; 33
(c) The contribution of each spouse to any property held by the 34
spouses pursuant to NRS 123.030; 35
(d) The duration of the marriage; 36
(e) The income, earning capacity, age and health of each spouse; 37
(f) The standard of living during the marriage; 38
(g) The career before the marriage of the spouse who would 39
receive the alimony; 40
(h) The existence of specialized education or training or the 41
level of marketable skills attained by each spouse during the 42
marriage; 43
(i) The contribution of either spouse as homemaker; 44
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(j) The award of property granted by the court in the divorce, 1
other than child support and alimony, to the spouse who would 2
receive the alimony; and 3
(k) The physical and mental condition of each party as it relates 4
to the financial condition, health and ability to work of that spouse. 5
10. In granting a divorce, the court shall consider the need to 6
grant alimony to a spouse for the purpose of obtaining training or 7
education relating to a job, career or profession. In addition to any 8
other factors the court considers relevant in determining whether 9
such alimony should be granted, the court shall consider: 10
(a) Whether the spouse who would pay such alimony has 11
obtained greater job skills or education during the marriage; and 12
(b) Whether the spouse who would receive such alimony 13
provided financial support while the other spouse obtained job skills 14
or education. 15
11. If the court determines that alimony should be awarded 16
pursuant to the provisions of subsection 10: 17
(a) The court, in its order, shall provide for the time within 18
which the spouse who is the recipient of the alimony must 19
commence the training or education relating to a job, career or 20
profession. 21
(b) The spouse who is ordered to pay the alimony may, upon 22
changed circumstances, file a motion to modify the order. 23
(c) The spouse who is the recipient of the alimony may be 24
granted, in addition to any other alimony granted by the court, 25
money to provide for: 26
(1) Testing of the recipient’s skills relating to a job, career or 27
profession; 28
(2) Evaluation of the recipient’s abilities and goals relating to 29
a job, career or profession; 30
(3) Guidance for the recipient in establishing a specific plan 31
for training or education relating to a job, career or profession; 32
(4) Subsidization of an employer’s costs incurred in training 33
the recipient; 34
(5) Assisting the recipient to search for a job; or 35
(6) Payment of the costs of tuition, books and fees for: 36
(I) The equivalent of a high school diploma; 37
(II) College courses which are directly applicable to the 38
recipient’s goals for his or her career; or 39
(III) Courses of training in skills desirable for 40
employment. 41
12. For the purposes of this section, a change of 20 percent or 42
more in the gross monthly income of a spouse who is ordered to pay 43
alimony shall be deemed to constitute changed circumstances 44
requiring a review for modification of the payments of alimony. As 45
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used in this subsection, “gross monthly income” means the total 1
amount of income received each month from any source of a person 2
who is not self-employed or the gross income from any source of a 3
self-employed person, after deduction of all legitimate business 4
expenses, but without deduction for personal income taxes, 5
contributions for retirement benefits, contributions to a pension or 6
for any other personal expenses. 7
Sec. 2. NRS 125.155 is hereby amended to read as follows: 8
125.155 Unless the action is contrary to a premarital agreement 9
between the parties which is enforceable pursuant to chapter 123A 10
of NRS or is prohibited by specific statute: 11
1. In determining the value of an interest in or entitlement to a 12
pension or retirement benefit provided by the Public Employees’ 13
Retirement System pursuant to chapter 286 of NRS or the Judicial 14
Retirement Plan established pursuant to NRS 1A.300, the court: 15
(a) Except as otherwise provided in paragraph (b), shall base 16
its determination upon the amount of the pension or retirement 17
benefits to which the participating party would have been entitled 18
using the salary base and years of service of the participating 19
party on the date on which a decree of legal separation or divorce 20
is entered. 21
(b) If the nonparticipating party is a homemaker: 22
(1) Shall base its determination upon the number of years or 23
portion thereof that the [contributing] participating party was 24
employed and received the interest or entitlement, beginning on the 25
date of the marriage and ending on the date on which a decree of 26
legal separation or divorce is entered; and 27
[(b)] (2) Shall not base its determination upon any estimated 28
increase in the value of the interest or entitlement resulting from a 29
promotion, raise or any other efforts made by the party who 30
contributed to the interest or entitlement as a result of his or her 31
continued employment after the date of a decree of legal separation 32
or divorce. 33
2. The court may, in making a disposition of a pension or 34
retirement benefit provided by the Public Employees’ Retirement 35
System or the Judicial Retirement Plan, order that the benefit not be 36
paid before the date on which the participating party retires. To 37
ensure that the party who is not a participant will receive payment 38
for the benefits, the court may: 39
(a) On its own motion or pursuant to an agreement of the 40
parties, require the participating party to furnish a performance or 41
surety bond, executed by the participating party as principal and by 42
a corporation qualified under the laws of this state as surety, made 43
payable to the party who is not a participant under the plan, and 44
conditioned upon the payment of the pension or retirement benefits. 45
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The bond must be in a principal sum equal to the amount of the 1
determined interest of the nonparticipating party in the pension or 2
retirement benefits and must be in a form prescribed by the court. 3
(b) On its own motion or pursuant to an agreement of the 4
parties, require the participating party to purchase a policy of life 5
insurance. The amount payable under the policy must be equal to 6
the determined interest of the nonparticipating party in the pension 7
or retirement benefits. The nonparticipating party must be named as 8
a beneficiary under the policy and must remain a named beneficiary 9
until the participating party retires. 10
(c) Pursuant to an agreement of the parties, increase the value of 11
the determined interest of the nonparticipating party in the pension 12
or retirement benefit as compensation for the delay in payment of 13
the benefit to that party. 14
(d) On its own motion or pursuant to an agreement of the 15
parties, allow the participating party to provide any other form of 16
security which ensures the payment of the determined interest of the 17
nonparticipating party in the pension or retirement benefit. 18
3. If a party receives an interest in or an entitlement to a 19
pension or retirement benefit which the party would not otherwise 20
have an interest in or be entitled to if not for a disposition made 21
pursuant to this section, the interest or entitlement and any related 22
obligation to pay that interest or entitlement terminates upon the 23
death of either party unless pursuant to: 24
(a) An agreement of the parties; or 25
(b) An order of the court, 26
a party who is a participant in the Public Employees’ Retirement 27
System or the Judicial Retirement Plan provides an alternative to an 28
unmodified service retirement allowance pursuant to NRS 1A.450 29
or 286.590. 30
Sec. 3. NRS 286.6703 is hereby amended to read as follows: 31
286.6703 1. A person may submit a judgment, decree or 32
order of a district court, the Court of Appeals or the Supreme Court 33
of the State of Nevada relating to child support, alimony or the 34
disposition of community property to the Executive Officer or the 35
designee of the Executive Officer for a determination of whether 36
the judgment, decree or order entitles an alternate payee to receive 37
from the System all or a portion of the allowance or benefit of a 38
member or a retired employee. 39
2. The judgment, decree or order submitted to the Executive 40
Officer must be signed by a district judge, the judges of the Court of 41
Appeals or by the justices of the Supreme Court and entered and 42
certified by the clerk of the district court or the Clerk of the 43
Supreme Court. Any order relating to the disposition of community 44
property that is issued by a district judge, the judges of the Court 45
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of Appeals or the justices of the Supreme Court pursuant to a 1
decree of divorce must be expressly referenced in the authorizing 2
decree of divorce. 3
3. The Executive Officer or the designee of the Executive 4
Officer shall, in accordance with rules prescribed by the Board, 5
determine whether the judgment, decree or order entitles the 6
alternate payee to receive an allowance or benefit from the System. 7
An alternate payee is entitled to receive an allowance or benefit 8
from the System if the judgment, decree or order: 9
(a) Specifies clearly the names and last known mailing 10
addresses, if any, of the member or retired employee and the 11
alternate payee; 12
(b) Specifies clearly the amount, percentage or manner of 13
determining the amount of the allowance or benefit of the member 14
or retired employee that must be paid by the System to each 15
alternate payee; 16
(c) Specifically directs the System to pay an allowance or 17
benefit to the alternate payee; 18
(d) Does not require the System to provide an allowance or 19
benefit or any option not otherwise provided under this chapter; and 20
(e) Does not require the payment of an allowance or benefit to 21
an alternate payee before the retirement of a member or the 22
distribution to or withdrawal of contributions by a member. 23
4. For purposes of this section, “alternate payee” means a 24
spouse, former spouse, child or other dependent of a member or 25
retired employee who, pursuant to a judgment, decree or order 26
relating to child support, alimony or the disposition of community 27
property, is entitled to receive all or a portion of the allowance or 28
benefit of a member or retired member from the System. 29
H