BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          AB 414 (Fox)
          As Amended May 15, 2014
          Hearing Date: June 10, 2014
          Fiscal: No
          Urgency: Yes
          NR


                                        SUBJECT
                                           
                           Spousal support: modifications.

                                      DESCRIPTION  

          This bill would provide that in a proceeding in which a spousal  
          support order exists or the court has retained jurisdiction over  
          a support order, and a companion child support order is in  
          effect, the termination of child support by operation of law  
          shall constitute a change of circumstances that may be the basis  
          for a request for modification of spousal support.

          This bill would require a party to file a motion to modify  
          spousal support within six months from the day the spousal  
          support terminates, would allow either party to require the  
          appointment of a vocational training counselor, and would exempt  
          marital settlement agreements. 

                                      BACKGROUND  

          Under current law, child support obligations are calculated  
          using mandatory statewide guidelines.  (Fam. Code Sec. 4055.)    
          Spousal support, on the other hand, is calculated using the  
          factors enumerated in Family Code Section 4320.  Among the  
          factors considered are the ability of the supporting party to  
          pay spousal support and the obligations and assets of each  
          party.  (Fam. Code Sec. 4320(c) & (f).)  Assuming continuing  
          spousal support jurisdiction, a spousal support modification may  
          be granted only if the party seeking the modification shows a  
          material change of circumstances since the most recent order.   
          (In re Marriage of Tydlaska (2003) 114 Cal.App.4th 572, 575; In  
          re Marriage of Bower (2002) 96 Cal.App.4th 893, 899.)  
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          Prior to 2008, 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 or a modification of existing spousal  
          support. (In re Marriage of Lautsbaugh (1999) 72 Cal.App.4th  
          1131.)  However, in 2007 the Legislature enacted SB 415 (Harman,  
          Ch. 247, Stats. 2007), which provided that in a proceeding in  
          which a spousal support order exists and a companion child  
          support order is in effect, the termination of child support by  
          operation of law shall constitute a change of circumstances that  
          may be the basis for a request for modification of spousal  
          support.  SB 415 contained a sunset of three years to allow the  
          Legislature sufficient time to evaluate the impact of the  
          legislation. SB 1482 (Wright, Ch. 297, Stats. 2010) extended the  
          sunset for an additional three years and required that motions  
          for modification of spousal support based on termination of  
          child support be filed within six months, and allowed parties to  
          request the appointment of a vocational counselor.  

          Those provisions sunsetted on January 1, 2014.  This bill seeks  
          to re-enact the statute and its provisions without any sunset. 

                                CHANGES TO EXISTING LAW
           
           Existing law  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.  (Fam. Code  
          Sec. 4330.)

           Existing law  imposes on parents a duty to support an unmarried  
          child who has not attained the age of 18 years.  For a child who  
          has 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.  (Fam. Code  
          Sec. 3901.)

           Existing law  provides, 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  
                                                                      



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          modification of spousal support.  (Fam. Code Sec. 4326(a).)

           Existing law  provides, until January 1, 2014, that a motion to  
          modify spousal support based on the change of circumstances  
          described above be filed within six months of the termination of  
          the child support order. (Fam. Code Sec. 4326(b).)

           Existing law  authorizes, until January 1, 2014, either party to  
          request the appointment of a vocational training counselor if a  
          motion to modify spousal support on that basis is filed. (Fam.  
          Code Sec. 4326(c).)

           Existing law  provides, until January 1, 2014, that the  
          termination of a child support order would not constitute a  
          change of circumstances in cases that have resolved pursuant to  
          a stipulated marital settlement agreement where one of the  
          following is true: (1) the agreement or judgment contains a  
          provision regarding what is to occur when the child support  
          order terminates; or (2) the agreement or judgment provides that  
          the spousal support order is non-modifiable, spousal support has  
          been waived, and the court's jurisdiction over spousal support  
          has been terminated. (Fam. Code Sec. 4326(d).)

           This bill  would re-enact the above provisions that sunsetted on  
          January 1, 2014.  

                                        COMMENT
           
           1.Stated need for the bill
           
          According to the author: 

            AB 414 seeks to reinstate Family Code Section 4326, which  
            expired on January 1, 2014, due to a three year sunset  
            provision.  This bill would maintain family law rules on  
            spousal support modification that have been in effect from  
            2008 to 2013.  Specifically Section 4326 considers a child  
            graduating from high school as a change of circumstance so a  
            party may seek a modification of spousal support when the  
            child support order is no longer in effect.  If Section 4326  
            is not reenacted, a termination of child support will no  
            longer constitute a change of circumstances and a modification  
            of spousal support on these grounds may not be permitted.  AB  
            414 contains an urgency clause in order to protect parties in  
            family law cases who may be injured by the January 1, 2014  
            sunset in the former Section 4326.
                                                                      



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           2.Would re-enact provisions without sunset

           This bill would authorize parties to request a modification of  
          spousal support after a child support order terminates by  
          "operation of law," typically when the child reaches the age of  
          majority and is no longer entitled to support.  Child support,  
          which is calculated before spousal support, may reduce the money  
          available to pay spousal support.  Thus, when the child support  
          order terminates, the spousal support order may no longer be in  
          an appropriate amount.  Prior to 2008, 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 or an increase in an  
          existing order of spousal support.  Under this traditional  
          approach, the party seeking a support modification was required  
          to show other supporting facts, also known as a "change of  
          circumstances," before the court would consider altering a  
          support order.  

          However, in 2007, SB 415 (Harman, Ch. 247, Stats. 2007) 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 terminated.  That bill  
          included a three-year sunset to allow the Legislature to see  
          whether the process created unintended consequences or led to  
          increased family law litigation.  SB 1482 (Wright, Ch. 297,  
          Stats. 2010) subsequently extended the sunset until January 1,  
          2014, and limited the availability of such automatic spousal  
          support requests to cases filed within six months from the date  
          the child support order terminated.   In addition, SB 1482  
          permitted either party to request the appointment of a  
          vocational training counselor.  This bill, sponsored by the  
          Family Law Section of the State Bar, would re-enact 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."

           3.Lapse in coverage of statute
           
          The ability to modify spousal support based on child support  
          terminating by operation of law has been unavailable since  
          January 1 of this year.  Because modifications under former  
          Family Code Section 4326 must be made within six months of the  
                                                                      



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          termination of the child support order, this bill would need to  
          be enacted as soon as possible to ensure that otherwise eligible  
          persons do not miss the opportunity to modify support orders  
          because of an unintentional lapse in coverage of the statute.   
          Accordingly, this bill would include an urgency statute to allow  
          for the speedy enactment of its provisions.  

          However, even with early enactment pursuant to the urgency  
          clause, there may still be a lapse in the coverage of the  
          relevant statute.  Accordingly, the author offers the following  
          amendment to allow additional time for individuals who would  
          otherwise be time barred due to the lapse. 

             Author's amendment
             
            Page 2, strike lines 31 - 32 and insert "(e) With regards to  
            those situations where the six month statute of limitations  
            expired from January 1, 2014 through June 30, 2014, the time  
            to file a motion under this Section is extended until August  
            30, 2014."

           4.Opposition's concerns
           
          The National Parents Organization of California writes in  
          opposition that this bill "serves to confuse these two separate  
          support mechanisms, suggesting that the financial needs of the  
          child are directly related to the financial needs of one parent.  
           Already, support of either type can be revisited if a  
          life-event occurs.  Because of this, at best this bill is not  
          necessary.  What it does, however, is entangle the issues of  
          spousal support and child support, which can further inflame the  
          conflict between parties and cause financial turmoil.  Neither  
          of these situations improves the life of the child - and we  
          argue that they cause further harm."

          Spousal support and child support are, indeed, two separate  
          support mechanisms.  However, the termination of child support  
          potentially affects two factors in determining an appropriate  
          spousal support award: 1) the supported party's ability to be  
          self-supporting; and 2) the other party's ability to provide  
          support. (See Fam. Code Sec. 4320.) Both of these factors are  
          arguably impacted by a child reaching adulthood, when a  
          custodial parent may return to work on a full-time basis and a  
          supporting parent may have a greater ability to pay. Further,  
          this bill would not create a mechanism by which spousal support  
          is automatically recalculated, but instead allows for either  
                                                                      



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          party to petition the court for a re-evaluation of whether an  
          existing support order remains appropriate.


           Support  :  Association of Certified Family Law Specialists

           Opposition  :  National Parents Organization of California

                                        HISTORY
           
           Source :  Family Law Section of the State Bar (FLEXCOM)

           Related Pending Legislation  : None Known 

           Prior Legislation  : See Background.

           Prior Vote  :

          Assembly Floor (Ayes 75, Noes 0)
          Assembly Judiciary Committee (Ayes 9, Noes 0)

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