SB126 - Revises provisions relating to domestic relations. (BDR 11-582)

S.B. 126 - *SB126* SENATE BILL NO. 126–SENATOR NEAL PREFILED JANUARY 29, 2025 ____________ 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. ~ 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 – 2 – - *SB126* 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 – 3 – - *SB126* 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 – 4 – - *SB126* 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 – 5 – - *SB126* (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 – 6 – - *SB126* 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 particip [Text truncated for display. Full text available on LegiScan.]