GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 534

Short Title:  Support Orders Enforcement.	(Public)

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Sponsors: Representatives Hackney; Russell, Baddour, and Alexander.

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Referred to:  Judiciary II.

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March 18, 1997

A BILL TO BE ENTITLED
AN ACT REGARDING THE CONTRACTUAL OBLIGATIONS OF SPOUSES, THE TRANSFER OF PROPERTY AND INCOME WITHHOLDING TO ENFORCE SUPPORT ORDERS, AND THE AWARDING OF ALIMONY, AS RECOMMENDED BY THE FAMILY LAW SECTION OF THE NORTH CAROLINA BAR ASSOCIATION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 52-2 reads as rewritten:
"§ 52-2. Capacity to contract. 
(a)	Subject to the provisions of G.S. 52-10 or 52-10.1, G.S. 39-7 and other regulations and limitations now or hereafter prescribed by the General Assembly, every married person is authorized to contract and deal so as to affect his or her real and personal property in the  same manner and with the same effect as if he or she were unmarried.
(b)	Except as otherwise provided by this section or by other State law, a spouse shall not be responsible for the other spouse's contract liability to a third party, whether the liability arose before or after the marriage.  The doctrine of necessaries as it existed at common law, however, shall apply and shall apply equally to both spouses, except as provided in subsection (c) of this section, but shall in no event create any liability between the spouses as to each other.
(c)	The doctrine of necessaries shall not apply to either spouse when the spouses are living separate and apart with the intent on behalf of one of them to cease marital cohabitation, unless one of the following applies:
(1)	The nondebtor spouse has willfully created the appearance of not being separated and has requested that the creditor extend credit to the estranged debtor spouse; or
(2)	The debt is for medical expenses and the nondebtor spouse carries medical insurance on the debtor spouse, provided that the nondebtor spouse shall be liable only for the debt that is or will be discharged under the terms of the medical insurance."
Section 2.  G.S. 50-13.4(e) reads as rewritten:
"(e)	Payment for the support of a minor child shall be paid by lump sum payment, periodic payments, or by transfer of title or possession of personal property of any interest therein, or a security interest in or possession of real property, as the court may order. The court may order the transfer of title to real property in payment of arrearages of child support. In every case in which payment for the support of a minor child is ordered and alimony or postseparation support is also ordered, the order shall separately state and identify each allowance."
Section 3.  G.S. 50-16.7(a) reads as rewritten:
"(a)	Alimony or postseparation support shall be paid by lump sum payment, periodic payments, income withholding, or by transfer of title or possession of personal property or any interest therein, or a security interest in or possession of real property, as the court may order.  The court may order the transfer of title to real property in payment of lump-sum payments of alimony or postseparation support or in payment of arrearages of alimony or postseparation support.  In every case in which either alimony or postseparation support is allowed and provision is also made for support of minor children, the order shall separately state and identify each allowance."
Section 4.  G.S. 50-16.7 is amended by adding the following new subsection to read:
"( l1)	The dependent spouse may apply to the court for an order of income withholding for current or delinquent payments of alimony or postseparation support or for any portion of the payments.  If the court orders income withholding, a notice of obligation to withhold shall be served on the payor as required by G.S. 1A-1, Rule 4, Rules of Civil Procedure.  Copies of the notice shall be filed with the clerk of court and served upon the supporting spouse by first-class mail."
Section 5.  G.S. 110-136.6 is amended by adding the following new subsection to read:
"(b1)	When there is an order of income withholding for current or delinquent payments of alimony or postseparation support or for any portion of the payments, the total amount withheld under this Article and under G.S. 50-16.7 shall not exceed the amounts allowed under section 303(b) of the Consumer Credit Protection Act, 15 U.S.C. § 1637(b)."
Section 6.  G.S. 110-136.8(b) reads as rewritten:
"(b)	Payor's responsibilities.  A payor who has been properly served with a notice to withhold is required to:
(1)	Withhold from the obligor's disposable income and, within 10 days of the date the obligor is paid, send to the clerk of superior court specified in the notice, the amount specified in the notice and the date the amount was withheld, but in no event more than the amount allowed by G.S. 110-136.6; however, if a lesser amount of disposable income is available for any pay period, the payor shall either: (a) compute and send the appropriate amount to the clerk of court, using the percentages as provided in G.S. 110-136.6, or (b) request the initiating party to inform the payor of the proper amount to be withheld for that period;
(2)	Continue withholding until further notice from the IV-D agency or the clerk of superior court;
(3)	Withhold for child support before withholding pursuant to any other legal process under State law against the same disposable income;
(4)	Begin withholding from the first payment due the obligor in the first pay period that occurs 14 days following the date the notice of the obligation to withhold was served on the payor;
(5)	Promptly notify the obligee in a IV-D case, or the clerk of superior court in a non-IV-D case, in writing:
a.	If there are one or more orders of child support withholding for the obligor;
a1.	If there are one or more orders of alimony or postseparation support withholding for the obligor;
b.	When the obligor terminates employment or otherwise ceases to be entitled to disposable income from the payor, and provide the obligor's last known address, and the name and address of his new employer, if known;
c.	Of the payor's inability to comply with the withholding for any reason; and
(6)	Cooperate fully with the initiating party in the verification of the amount of the obligor's disposable income."
Section 7.  G.S. 50-16.1A is amended by adding the following new subdivision to read:
"(4a)	‘Payor' means any payor, including any federal, State, or local governmental unit, of disposable income to an obligor.  When the payor is an employer, payor means employer as defined under 20 U.S.C. § 203(d) of the Fair Labor Standards Act."
Section 8.  G.S. 110-129(11) reads as rewritten:
"(11)	‘Obligee', in a IV-D case, means the child support enforcement agency, and in a non-IV-D case means the individual to whom a duty of support, whether child support, alimony, or postseparation support, is owed or the individual's legal representative."
Section 9.  G.S. 110-129(12) reads as rewritten:
"(12)	‘Obligor' means the individual who owes a duty to make child support payments or payments of alimony or postseparation support under a court order."
Section 10.  G.S. 50-16.3A(b) is amended by adding the following new subdivision to read:
"(16)	Income being received by either party that was previously considered by the court in determining the value of a marital asset in an equitable distribution of the parties' marital property."
Section 11.  This act becomes effective October 1, 1997.  Section 1 of this act applies to contracts entered into and transactions occurring on and after that date.