Divorce

Wife Must Share Responsibility for Husband’s Eve-of-Divorce $13K Credit Card Tab

Published on: March 5, 2014 | by Sandy T. Fox

A wife’s efforts to escape responsibility for a $13,500 credit card debt her husband ran up mere days before the wife filed for divorce proved unsuccessful. The debt, incurred to pay for the college education of the couple’s daughter, occurred during the marriage and was not the result of intentional waste or depletion of marital assets, meaning that the courts must classify it as a marital debt for purposes of establish an equitable distribution of the couple’s assets.

This couple’s 27-year marriage was nearing its end by June 2011. Although the wife had informed the husband she planned to seek a divorce, she did not file immediately. Around the same time, the couple’s adult daughter was planning to start college in North Carolina that fall. The husband charged $13,500 on the couple’s Discover credit card to pay for the daughter’s college expenses. Four days later, the wife filed her divorce petition.

At trial, the wife stated that she had not planned to pay for the daughter’s college costs, but instead insist that the daughter pay her own way. The wife persuaded the trial court that the husband’s maneuver was an attempt to force her should a financial burden she never intended to undertake and that the husband should bear sole responsibility for the Discover card debt.
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Appeals Court Reverses Lower Court’s Refusal to Award Wife Permanent Alimony

Published on: February 26, 2014 | by Sandy T. Fox

Deciding the appropriate amount of retroactive support a spouse should receive can be somewhat complex in cases where the couple continues to live together during at least part of the divorce process. In one such recent case involving a veterinarian and his wife, the 5th District Court of Appeal decided that the couple’s long-term marriage entitled the wife to permanent alimony and that the husband should not be allowed to claim the mortgage and household bills he paid during the separation as support to his wife.

This couple divorced after more than 17 years of marriage. The couple continued to live together for part of the period when the divorce was pending, and the husband gave the wife $6,000 per month for support and payment of certain household bills, including the mortgage. The trial court ordered the husband, a veterinarian, to pay durational (temporary) alimony of $3,500 per month for eight years. The court also decided that the husband owed the wife no retroactive alimony.

The wife contested these determinations on appeal. The 5th DCA sided with the wife, ruling that the trial court should have awarded permanent, not temporary, alimony. Florida law requires a trial court to consider primarily what the needs of the spouse seeking alimony are, and the other spouse’s ability to pay. Additionally, the law’s default position is that permanent alimony is the appropriate remedy in cases involving long-term marriages, which the statute defines as ones lasting 17 years or more.
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Court Can’t Use Contempt Powers on Wife Who Didn’t Pay the Mortgage

Published on: February 19, 2014 | by Sandy T. Fox

A court’s contempt power can be an extremely important and effective tool in ensuring compliance in family law matters, as spouses may ignore court order to spite their exes. This power does come with some clearly delineated limits, though. The power to force a spouse to meet the terms of an equitable distribution is one such area, leading the 4th District Court of Appeal to throw out a trial court’s contempt finding against an ex-wife who did not pay the mortgages on the marital home.

The case regarded a 2010 divorce. As part of the equitable distribution, the wife received the marital home. The distribution also called for the wife to assume total responsibility for paying the mortgages on the home, even though the husband’s name was the only one on the mortgages. After the divorce, the wife rented the home out, but did not pay the mortgage payments.

The parties soon returned to court, with the husband seeking a contempt order against the wife for failing to keep the mortgages current. The trial court refused the husband’s request, explaining that it could not utilize its contempt powers because paying the mortgages was an aspect of equitable distribution, not spousal support. Had the wife violated a term related to support, she could have faced punishment for contempt.
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Alimony Reform Supporters Use Documentary Film to Bolster Their Case

Published on: February 5, 2014 | by Sandy T. Fox

Still motivated after their near-miss in the last session of the Florida Legislature, advocates for an overhaul to the state’s alimony laws are looking to a newly released documentary film to provide additional fuel to their cause. The film, entitled “Divorce Corp.”, allegedly demonstrates many of the excesses and flaws of Florida’s current system of family law and procedure. Proponents of changes to the laws governing alimony hope that the film will inspire the legislature to make another effort at reform, and that the governor will approve this time.

The Miami Herald reported on “Divorce Corp.”, which some theaters advertised as exposing “how children are torn from their homes, unlicensed custody evaluators extort money, and abusive judges play God with people’s lives while enriching their friends,” and its interrelationship with the movement within the state to amend Florida’s alimony laws. Alan Frisher, head of a pro-reform non-profit organization called Family Law Reform, supports the film. Frisher described “Divorce Corp.” as “another way to engage the public.” In addition to screenings of the documentary, Frisher also published a book entitled “Divorcing the System: Exposing the Injustice of Family Law,” and has held summits touting alimony reform.

In its 2013 session, the Florida legislature passed a controversial measure, Senate Bill 718, reforming alimony laws. The bill would have ended permanent alimony and established limits on the amount of alimony a spouse could receive. The changes would have also altered the definitions of short-, moderate- and long-term marriages. For example, the bill stretched the definition of “short-term” marriages from seven years or less to 11 years or less, and stated that the default outcome for short-term marriages is an award of no alimony.
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Husband’s Use of Trusts to Hold Assets Fails to Prevent Wife From Collecting Alimony

Published on: January 21, 2014 | by Sandy T. Fox

One variety of estate planning technique used to shield assets from creditors is the use of discretionary trusts, such as so-called “spendthrift trusts.” In a recent ruling by the 2d District Court of Appeal, however, the trusts a former husband created failed to block his ex-wife from collecting the alimony he owed her. The court decided that, although Florida has a public policy favoring the recognition of spendthrift provisions in trusts, it has a stronger policy favoring the protection of spouses through the enforcement of spousal support orders.

When a couple divorced in 2007, after 30 years of marriage, they reached a marital settlement agreement resolving, among other items, alimony. The agreement, which the court ratified, required the husband to pay the wife $16,000 per month. Despite receiving a sizable regular income from a series of discretionary trusts, the husband fell behind on his alimony.

The wife filed motions seeking enforcement of the alimony order, including asking the court to order the garnishment of any distributions from the trusts to the husband. The trustee objected, claiming that the law protected trust assets from all creditors, including the wife. The trial court agreed with the wife and issued the order.
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Court Decision Highlights the Correct — and Incorrect — Ways to Establish the Value of Marital Assets

Published on: January 7, 2014 | by Sandy T. Fox

With Christmas having recently come and gone, many people likely received a new addition to an existing collection of possessions. For some, it may have been a new piece of jewelry; for others, perhaps a new power tool. When these collections of become an issue in a divorce, there is a clear right way, and wrong way, to go about seeking to include them in the equitable distribution of assets. The recent decision in a First District case highlights one of the wrong ways to establish value, which resulting in the 1st District Court of Appeal rejecting a wife’s efforts to include her husband’s tools in the couple equitable distribution.

The case went before the court of appeal as a result of a dispute over the value of the husband’s tools. In the trial court dissolution hearing, the husband testified that the tools were worth $500. The wife, in her financial affidavit, stated the tools’ value at $20,000. In crafting its equitable distribution, the trial court awarded the tools to the husband, and accepted the wife’s $20,000 valuation. Because the trial court accepted this larger valuation for the husband’s tools, it lessened the amount the husband received in the remainder of his equitable distribution.

The husband appealed, and the court of appeal sided with him. The problem for the wife was a lack of proof to buttress her $20,000 claim. During the dissolution hearing, the wife admitted that her assessment was a blanket statement without specific evidence to back it up. The court explained that some amount of tangible proof is necessary to back up valuations such as the wife’s. The court noted that its decision mirrored the 2d DCA’s ruling in a 2000 case, Lassett v. Lassett, where the court rejected a husband’s $10,000 valuation of his wife’s jewelry collection because the only proof supporting the claim was the husband’s unsubstantiated testimony.
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Wife’s Work Improving Husband’s Office Building Converts Property to a Marital Asset

Published on: December 5, 2013 | by Sandy T. Fox

When a couple divorces, one of the integral elements of property division is separating marital assets from non-marital ones. A recent 4th District Court of Appeal ruling highlights that an asset’s origin at the time the couple marries is not the only criterion for ascertaining its classification. In the Jordan case, the wife’s work improving an asset, and the couple’s use of the asset’s proceeds for marital benefits, converted the asset from non-marital to marital.

A chiropractor and his wife married in 1992. The husband conducted his practice in an office building he owned separately, as his parents had deeded it to him before he married. However, while the couple was married, the wife coordinated and performed several significant renovations and improvements to the building. Also during the marriage, the husband transferred title of the building to a corporate entity he created. The couple eventually sold the building, purchasing and then selling a salon. Over the years, the couple used funds from the corporation to pay their household and living expenses.

The couple filed for divorce in 2011. The trial court adopted the wife’s proposed judgment, and the husband appealed. On the matter of the office building and corporation assets, the court determined that the trial court correctly found it to be a marital asset. The husband’s professional building clearly was a non-marital asset when the couple had married. However, the wife’s work on the building was sufficient to convert it from a non-marital asset to a marital one. The wife was “instrumental” in the completion of “vast improvements …, which included replacing walls, installing new flooring, adding columns and a flag pole to the front, modifying lighting and other electrical work, adding an additional parking lot, replacing the roof, and putting in new doors and windows,” the court pointed out. The amount of effort the wife expended on the office building went far beyond mere maintenance, but rather, provided substantial enhancement in the asset’s value.
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Ex-Wife’s Cohabitation Arrangement Warrants Reduction in Alimony

Published on: November 13, 2013 | by Sandy T. Fox

A Third District Court of Appeal case from earlier this month marked a reversal of course for that court with regard to the rules regarding cohabitating couples and alimony modification. In the court’s latest ruling, it decided that, even though an ex-wife received virtually no financial support from her cohabitating boyfriend, a trial court was nevertheless justified in using that relationship as the basis for lowering the ex-husband’s monthly alimony obligation.

The case centered upon the aftermath of a divorce following which the ex-husband had paid his ex-wife alimony since the couple’s divorce in 2005. In 2009, the ex-wife boyfriend moved in with her. The ex-husband sought to reduce his alimony based upon the cohabitation relationship, and the trial court dropped his alimony obligation from $4,200 per month to $3,500.

The ex-wife appealed. The Third DCA originally agreed with the wife, but reconsidered its opinion and upheld the trial court ruling. The court ultimately decided that the statutes were clear in allowing the trial court to make the reduction based upon the change in circumstances brought about by the cohabitation.
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Appeals Court Rules Against Dwyane Wade in Latest Round of Divorce and Custody Battle

Published on: October 24, 2013 | by Sandy T. Fox

Just three short months after Miami Heat guard Dwyane Wade’s divorce became final, a Florida appeals court was again called upon to enter a decision in the half-decade long legal contest. The 3d District Court of Appeal overturned a trial court’s order requiring the NBA star’s ex-wife to undergo a mental evaluation and also removed the trial court judge from the case, citing his denial of the “most basic right of due process” to the ex-wife, Siohvaughn Funches.

Many of the facts of Wade’s ill-fated marriage are well-known by now. Wade and Funches married in 2002, had two sons, and filed for divorce in 2007. The divorce proceeding turned into a marathon affair, becoming final only three months ago. In the property settlement, Wade agreed to pay Funches $25,000 in alimony, with another $10,000 in travel and living expenses. The basketball star also agreed to pay Funches’ mortgage and gave her the use of four cars.

This outcome apparently displeased the ex-wife, as Funches took to the streets of her hometown of Chicago. Funches stages a public protest claiming that the divorce had left her “on the streets.” Wade’s legal team fired back, returning to court to argue that Funches’ protest demonstrated her mental instability and dangerousness and requested that the court order a psychological evaluation of the woman and reduce her contact with the boys. Trial court judge Antonio Marin ordered the evaluation.
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401(k) Loan Used During Marriage Must Be Equitably Divided in Property Distribution

Published on: October 11, 2013 | by Sandy T. Fox

One of the central underlying concepts of divorce and marital property settlement is something called equitable distribution. Equitable distribution, which is required by the Florida Statutes, means that each spouse should receive a fair portion of the marital estate, and each should share in both the marital assets and the marital liabilities. In a recent case, the 4th DCA rejected a trial court’s division of a 401(k) because it unfairly shared the account proceeds between both parties without similarly sharing the financial obligation for the outstanding account loan the couple took out during the marriage.

In 2011, a couple underwent mediation to reach an agreement regarding distribution of their property as part of their divorce. In addressing the husband’s 401(k) account with his employer, the couple agreed that the wife would receive one-half of the “the amount accumulated from the date of the marriage through January 1, 2008.” The agreement also stated that “loans and [withdrawals] taken during the marriage and not repaid will be taken into account for distribution purposes.”

The Qualified Domestic Relations Order (QDRO) the trial court entered, however, stated that the wife’s distribution would “not be reduced by the value of outstanding loans.” As a result, the wife received a payment of $47,505, while the husband’s remaining balance, which factored in an outstanding loan in excess of $30,000, stood at less than $13,700.
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