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Question of the Day - 08 July 2021

Q:

After the pandemic is over, we're seriously considering moving from New York to Nevada. We'd like to move for the retirement benefits, especially the lack of state income tax, but my husband jokes that another benefit is the six-week residency requirement to get divorced. Here in New York, it's a full year. How long has it been a mere 42 days in Nevada and do any other states have a similarly short residency for getting divorced (so I can joke back that we should move there)? By the way, we've been happily married for 38 years, so there's no danger of us actually going through with it.

A:

Congratulations on your upcoming 39th anniversary. That's quite an achievement. 

In 26 states, it takes 180 days to establish residency. Most other states require 60 to 90 days. Nevada is 42. And yes, a number of other states have a similar or even shorter residency requirement to qualify for divorce. Three states -- Alaska, South Dakota, and Washington -- have no residency requirement; you can show up in those states, have lunch, get divorced, have dinner, and fly home (not quite -- in Alaska, for example, you have to "intend to become a resident" -- but almost). 

From the outset, something was needed to counter the inhospitable climate around these parts to encourage settlers, and so from its earliest days Nevada started establishing itself as a renegade state that would permit things other states would not. Prostitution became legal in the mid-19th century and was actively practiced in the Block 16 area of the embryonic downtown Las Vegas area, for example, where it flourished until hit by the gambling ban of 1910.

Meanwhile, in the late 1890s and early 1900s, bigger cities including Reno, Carson, and Goldfield gained national attention when they hosted a handful of heavyweight championship boxing matches, at a time when prizefights were banned in most other states.

It was divorce, however, rather than either of the above, or the inception of legalized wide-open gambling a few decades later, that put the Silver State on the map as a scandalous place, with Reno, rather than Las Vegas, being the original "sin" city.

Prior to the twentieth century, divorce statutes in most states were extremely strict (in South Carolina, it was not permitted at all), with residency requirements measured in years; not even severe physical abuse was always considered adequate grounds for dissolving a union, for example. Hence, couples either chose to endure the misery of an unhappy marriage or were forced to make pilgrimages to one of the few states with more lenient laws. By the early 20th century, these included Arkansas, Wyoming, Idaho, and Nevada, which vied for the migratory divorce trade by lowering their residency requirements. (Indiana had previously been included and was dubbed the Midwestern Sodom for its relatively lax statutes, and couples flooded in to obtain divorces on any grounds that a judge ruled "proper." In 1859, however, the legislature voted to require a year’s residency before allowing a divorce suit to be heard, effectively removing this state from the list.)

Nevada's marriage and divorce laws were established with the first territorial legislature in 1861 and carried over with little change when Nevada became a state in 1864. The residency period necessary to be a bona fide citizen was set at six months and seven grounds for divorce were allowed.

Relatively minor changes were made to Nevada's divorce law through the end of the 19th century, but then, in 1906, a society lawyer in New York, where divorce was permitted only on the grounds of adultery — and that had to be proven in open court — hit on remote Nevada as the perfect place for his high-profile clients to dissolve their marriages — or get "Reno-vated," as the saying went — away from the public spotlight. Overnight, Reno went full on into the marriage-dissolution business, with hoteliers, brothels or the so-called "dude ranches," and private homeowners cashing in by providing temporary lodging to those waiting out the residency requirement.

In 1927, the state legislature lowered the residency requirement to an unheard-of three months.

Then, only four years later, in the same year that gambling was legalized again in response to the economic impact of the Great Depression, the requirement was lowered once more to what elsewhere was considered an outrageous and scandalous six weeks — making it the most lenient divorce law in the Union. The radical move helped Reno survive the nation's economic collapse and in the decade of the 1930s, more than 30,000 divorces were granted at the Washoe County Courthouse, while by 1940, Nevada accounted for a sizable percentage of the divorces in the United States.

Today, the residency requirement (for at lease one spouse) remains at six weeks, with the divorce becoming final after another six.  Nevada is also a no-fault divorce state, making the law that much more non-intrusive. Just as in other ways, Las Vegas has long eclipsed Reno as the state's divorce mecca, although the number of divorces granted per annum was in decline the last time we saw any statistics.

As an aside, while we're still considered the "quickie-divorce" capital, bear in mind that Nevada is also considered a "community property" state, which means that spouses are expected to share equally in joint assets (those obtained after the marriage). In other words, half of that lottery you won last week, half of the ancestral mansion you inherited while married, and half of that Maserati you splurged on with your recent gambling winnings automatically belong to your other half, while half of his/her debts belong to you.

 

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Comments

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  • Donzack Jul-08-2021
    Residency 
    How about for state tax purposes? Can one rent in Nevada,claim residency for 42 days in winter, move back to the midwest and not pay state income tax in that state?

  • Kevin Lewis Jul-08-2021
    Superior option
    The community property law is one of many reasons that the quicker, easier, and all-around superior alternative to divorce is murder. Bonus: there's no residency requirement for it!

  • David Jul-08-2021
    Not the inheritance
    An inheritance is not considered community property as long as it is not commingled with community assets. Taking the mansion as an example ... it would only become community property if community assets were used to maintain it, pay property taxes, etc. But if that inherited mansion also came with money to support the mansion then community assets are not needed and the mansion is not community property. 

  • Bob Nelson Jul-08-2021
    Donzack
    Typically the state from which you are trying to avoid taxes has a say in the matter.  In Minnesota you must reside in another state for 6 months and a day if you want to disavow your residency, for example.

  • jay Jul-08-2021
    Estate Plan
    Longevity is no insulation from divorce. I got divorced after 29 years. Kids moved away, and we had separate interests. Defiantly  cheaper to keep her.... but that aside.... the greatest risk to any accumulated wealth is the lawyers. In addition to exorbitant fees They will create conflict where none exists before. Each of ours requested a 30k retainer to start. We downloaded a separation kit and filed ourselves. Friends of ours who are not wealthy are into their divorce for two years now with about 140k in legal fees with no end in sight. A smart person once said a bad settlement is better than a good divorce. 
    
    Per the mansion (or any home) - this is why your parents need to be encouraged to have an estate plan. Life insurance, and other assets get paid/transferred into the estate and then hold the estate in trust with a granted right to use and exclusive power of attorney granted to the beneficiary. 

  • [email protected] Jul-08-2021
    State Income Taxes
    Plus many states require you to pay taxes on money earned in the state whether you lived there or not.  So, for example, if you are a consultant who takes jobs in three different states during the course of the year you may owe state income taxes on the portions earned in each state, even if you never were a resident of any of them.

  • Jerry Patey Jul-08-2021
    42 days
    Could it have something to do with homeless migrating to Vegas. The longer you have to be there to be citizen of Nevada is shortened therefore doesn’t it mean they get benefits pd by us in just 42 days? The homeless get Medicaid benefits like monthly check food stamps med-dental card. I think answer much more simple than you try to make it 

  • Roy Furukawa Jul-08-2021
    @lschulz is correct
    I have a friend that used to do taxes for baseball players and you wouldn't believe how messed up their taxes get when you play away games in a bunch of other states and Canada.