BILL ANALYSIS Ó AB 414 Page 1 Date of Hearing: January 14, 2014 ASSEMBLY COMMITTEE ON JUDICIARY Bob Wieckowski, Chair AB 414 (Fox) - As Amended: January 6, 2014 PROPOSED CONSENT (As Proposed to be Amended) SUBJECT : SPOUSAL SUPPORT: MODIFICATION KEY ISSUE : SHOULD A NON-CONTROVERSIAL LAW, WHICH ALLOWS A PARTY TO SEEK NEW OR MODIFIED SPOUSAL SUPPORT WHEN A CHILD SUPPORT ORDER TERMINATES (TYPICALLY BY THE CHILD REACHING THE AGE OF MAJORITY), BUT WHICH SUNSETTED ON JANUARY 1ST OF THIS YEAR, BE REVIVED? SYNOPSIS This non-controversial family law bill addresses those family law cases where a child support order terminates by what is called "operation of law," which typically results when the child or children reach the age of majority and are no longer entitled to support. Prior to 2008, where some or no spousal support was in effect when a child support order ended, the termination of the child support order by operation of law did not automatically allow the party who had received the child support to go back to court to seek either new spousal support (if they had not been receiving it already) or an increase in an existing order of spousal support. Under the pre-2008 approach, other supporting facts -- constituting a so-called "change of circumstances" -- were required before a party seeking to change a spousal support order was permitted to return to court to change the order. However in the 2007 legislative session Senator Harman carried SB 415 (Chap. 247, Stats. 2007) on behalf of the Family Law Section of the State Bar which allowed a party to automatically be permitted to seek new or modified spousal support when a child support order terminates. That bill originally sunsetted after three years, but legislation by Senator Wright (SB 1482, Chap. 297, Stats. 2010) extended the statute until January 1, 2014. This bill, sponsored by the Family Law Section of the State Bar, re-enacts the statute, without the sunset. It is supported by the Association of Certified Family Law Specialists and has no known opposition. AB 414 Page 2 SUMMARY : Reinstates a provision allowing termination of child support to be a change of circumstances that may be the basis for a request for modification of spousal support. Specifically, this bill : 1)Eliminates the sunset date for the provision which states that in a proceeding in which a spousal support order exists or in which the court has retained jurisdiction over a spousal support order, if a companion child support order is in effect, the termination of child support shall constitute a change of circumstances that may be the basis for a request for modification of spousal support. 2)Requires that a motion to modify spousal support on the basis of the change in circumstances caused by the termination of a child support order be filed within six months of the termination of the child support order. 3)Authorizes either party to request the appointment of a vocational training counselor if a motion to modify spousal support on that basis is filed. 4)Bars the availability of this "automatic" change of circumstances doctrine in cases that resolve pursuant to a stipulated marital settlement agreement, in order not to discourage settlements of family law disputes at the time of dissolution. EXISTING LAW : 1)Authorizes the court, in a judgment of dissolution of marriage or legal separation, to order one party to pay spousal support to the other party in an amount and for a duration that the court deems just and reasonable based on the standard of living established during the marriage. (Family Code section 4330. All further statutory references are to this code unless otherwise noted.) 2)Imposes on parents a duty to support an unmarried child who has not attained the age of 18 years. For a child who has AB 414 Page 3 attained the age of 18 years, but is still a full-time high school student and is not self-supporting, the duty of support is extended until the time the child completes the 12th grade or attains the age of 19 years, whichever occurs first. (Section 3901.) 3)Provided, until January 1, 2014, that in a proceeding in which a spousal support order exists or in which the court has retained jurisdiction over a spousal support order, if a companion child support order is in effect, the termination of child support shall constitute a change of circumstances that may be the basis for a request for modification of spousal support. (Section 4326.) 4)Provides that in a proceeding for dissolution of marriage or for legal separation, the court may order a party to submit to an examination by a vocational training counselor upon a noticed motion, for good cause, by one of the parties. (Section 4331(a).) FISCAL EFFECT : As currently in print this bill is keyed non-fiscal. COMMENTS : This non-controversial family law bill addresses those family law cases where a child support order terminates by what is called "operation of law," which typically results when the child or children reach the age of majority and are no longer entitled to support. Because child support is calculated before spousal support, a child support order necessarily reduces the money available to pay spousal support. Typically, when a child support order exists, the spousal support order, if one exists, is lower than it would be without the child support order. When the child support order terminates, the spousal support order may no longer be appropriate. Prior to 2008, where some or no spousal support was in effect when a child support order ended, the termination of the child support order by operation of law did not automatically allow the party who had received the child support to go back to court to seek either new spousal support (if they had not been receiving it already) or an increase in an existing order of AB 414 Page 4 spousal support. Under the pre-2008 approach, other supporting facts -- constituting a so-called "change of circumstances" -- were required before the spouse seeking new or additional spousal support was permitted to return to court to seek new or additional spousal support. However in the 2007 legislative session Senator Harman carried SB 415 (Chap. 247, Stats. of 2007) on behalf of the Family Law Section of the State Bar which altered the traditional rule on an experimental basis to allow a party to automatically be permitted to seek new or modified spousal support when a child support order terminates. That bill was sunsetted after three years by this Committee to allow time to see whether the process led to increased family law litigation or other impacts. Legislation by Senator Wright (SB 1482, Chap. 297, Stats. 2010) extended the sunset until January 1, 2014. The Committee is not aware of any negative impacts of the statute during its six years of operation. This bill, sponsored by the Family Law Section of the State Bar, re-enacts the statute, without the sunset. In support of the bill, the Family Law Section of the State Bar writes that "Family Code Section 4326 addresses significant issues and has worked well. This bill would continue the operation of this important statute indefinitely." This bill, in addition to eliminating the sunset date, reasonably limits the availability of such automatic spousal support request cases to those cases that are filed within six months from the date the child support order terminated, in the interest of fairness and certainty. In addition, the bill adds a new provision permitting in such automatic spousal support request cases either party to request the appointment of a vocational training counselor. This is consistent with the approach taken with spousal support requests at the initial dissolution proceedings. Finally, the extended law will not be available in cases that resolve pursuant to a stipulated marital settlement agreement, in order not to discourage settlements of family law disputes at the time of dissolution. Technical Amendment : Since the previous statute sunsetted as of January 1, 2014, this bill must reinstate the old section and not simply amend a statute that no longer exists, as the current version of the bill attempts to do. Thus, the bill must be amended to appropriately accomplish this technical correction. AB 414 Page 5 REGISTERED SUPPORT / OPPOSITION : Support Family Law Section of the State Bar (sponsor) Association of Certified Family Law Specialists Opposition None on file Analysis Prepared by : Leora Gershenzon / JUD. / (916) 319-2334