SB 526 Summary

• Allows courts in dissolution of marriage proceedings to relieve a spouse of tax liability on income earned by or under their exclusive management and control, with exceptions for fraudulent transfers or uncollectible liabilities followed by bankruptcy or nonresidency within 3 years.

• Increases the income and liability thresholds for court orders revising tax liability from $150,000 gross income and $7,500 relieved liability to $200,000 and $10,000 respectively, unless a tax revision clearance certificate is obtained from the Franchise Tax Board.

• Requires the income and liability threshold amounts to be recomputed annually beginning January 1, 2018, using the same adjustment methodology as specified in Revenue and Taxation Code Section 19442.

• Applies to court orders served or acknowledged on or after the bill's effective date, without retroactive application to previously resolved cases.