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.) (more) AB 414 (Fox) Page 2 of ? 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 AB 414 (Fox) Page 3 of ? 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. AB 414 (Fox) Page 4 of ? 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 AB 414 (Fox) Page 5 of ? 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 AB 414 (Fox) Page 6 of ? 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) **************