Domestic Relations Changes Due To Federal Tax Law

Spousal maintenance - adjustments to advisory guidelines - maintenance and child support definitions. As a result of the enactment of federal tax legislation in December 2017, commencing in 2019, spousal maintenance is not deductible by the payor spouse and is not taxable income to the recipient spouse. However, the guideline advisory amount of maintenance in statute, and the definitions used for calculating gross income and adjusted gross income for maintenance and child support awards, reflects the anticipated tax consequences to the payor and recipient under prior law. The act adjusts downward the advisory guideline calculation of the amount of maintenance in circumstances where the maintenance awarded is not deductible by the payor spouse and is not taxable income to the recipient spouse. The act also amends the definitions of "gross income" and "adjusted gross income" to properly reflect the tax implications of maintenance obligations.

In addition, the act adjusts the definitions of "gross income" and "adjusted gross income" in calculating child support obligations to reflect the tax implications of maintenance obligations.

(Note: This summary applies to this bill as enacted.)