September 7, 2009

Periodic alimony award reversed by Mississippi Court of Appeals

Alimony award reversed in Mississippi divorce

The Mississippi Court of Appeals recently reversed an award of alimony in a divorce case from Neshoba County, Mississippi. In Sellers v. Sellers, the couple had a marital estate valued at $304,230. The wife had a non-marital estate valued at $13,620 while the husband had a non-marital estate of $137,500.

In dividing the marital estate, the chancellor awarded the wife $142,990. The husband was given possession of the marital home, but the chancellor ordered the husband to pay $50,000 in lump-sum alimony to the wife for her one-half equity in the marital home. After this award, the wife's award was valued at $192,990 while the husband got $111,240. Following that award, the chancellor then ordered the husband to pay the wife $12,600 in periodic alimony. The husband appealed.

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April 10, 2009

Husband says ex-wife owes mortgage balloon payment; Court rules otherwise

Understand a divorce property settlement agreement before you sign it

This week the Mississippi Court of Appeals sided with a Madison County Chancellor who ruled a husband was responsible for paying a balloon payment on the divorced couple's mortgage. The case highlights the importance of being represented by an attorney when divorcing and also making sure you understand the documents you sign.

When the couple divorced, the husband agreed to pay alimony in the amount of the monthly mortgage payments "until such time as the mortgage on the property ... is fully satisfied." To ensure payments, he also agreed to provide a life insurance policy in the amount of $150,000. The tricky part was the mortgage contained a balloon clause. At the end of the mortgage term, a final payment of $142,268.41 payment was due. When it came due, the husband claimed he did not owe it.

A hearing was held and the Chancellor ruled in favor of the wife. The husband appealed. The Mississippi Court of Appeals sided with the chancellor. The question came down to whether the dissolution agreement was ambiguous or not. In Mississippi, as in many other states, a divorce property settlement agreement is a contract between the parties. The Court will look to the document for its intent unless the contract is ambiguous. In this case, the Court found that although one provision was ambiguous, the agreement provided the husband would pay the mortgage until it was "fully satisfied." The mortgage could not be "fully satisfied" unless the final balloon payment was made. Further, by the husband agreeing to provide a life insurance policy for the value of the house, it showed his intent to be obligated for the full amount of the mortgage. As the Court of Appeals stated, "it would be nonsensical for [the husband] to voluntarily obligate himself to obtain life insurance for the full amount due under the mortgage if he were not intending to obligate himself for this amount."

Let me repeat an important lesson. The wife was represented by an attorney who drafted the dissolution agreement, but the husband represented himself in the divorce. Too many times I receive calls from folks who did not have representation at the time of their divorce and are now calling to say there did not realize they were obligated to do certain things. At the Kisselburgh Law Firm, we represent those going through divorces. If you are contemplating a divorce, call us at 601-936-4040 or contact us online to set up a consultation to discuss your rights.

February 19, 2009

Alimony--Using Craigslist to get out of paying?

Man offers to pay for someone to marry ex-wife

Imagine sitting at your computer and you are browsing the classified ads on Craiglist and suddenly you come across the following ad:

Nice well taken care of ex-wife. Mid 40's. Pretty and loyal. Never smoked and very little drinking. Will make someone a good companion (I know).... Will pay 10K to the man or woman who marries her in a way that stops me from having to pay her alimony.

There's the hitch. The man, trying to end his alimony payments to his ex-wife, is offering to pay a potential suitor to marry his ex-wife. Not being totally callous, the guy actually had some "terms and conditions" for this transaction.

  • 1. This transaction offer only valid if she is not aware of it.

  • 2. Must treat her good, no abuse tolerated by me.

  • 3. This offer is null and void if it is determined to be illegal in any way -- I am not a lawyer.

  • 4. The end result must be that I am no longer liable to her for alimony and you make best effort to be good to her.

  • 5. This ad is not in any way intended to demean my ex-wife. She is a nice person and is a fine catch for anyone.

OOPS. I think the cat's out of the bag on condition #1. With news of the post hitting newspapers, she or some friends might find out. He might also have a problem with condition #3. At least he did not want to "demean" his ex-wife in any way--what a guy.

In Mississippi, if you are paying alimony to your ex, don't use this tactic to end the alimony. Not only will it fall flat in front of the judge, but you can be assured your ex will not find the humor in being marketed on Craigslist.

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February 13, 2009

Mississippi Court of Appeals says no decrease in alimony for Meridian, Mississippi man

Mississippi man seeks reduction in alimony, Court says no.

In a Lauderdale County, Mississippi case decided this week by the Mississippi Court of Appeals, the wife was originally awarded $3,250 a month in alimony. Seven years later the trial court reduced the alimony to $2,900 a month. Seven years later, the husband filed a complaint seeking to reduce or terminate the alimony. After a trial on the matter, the chancellor denied his request to modify the alimony. The husband appealed.

The issue on appeal was whether the parties' financial situations had changed such that a modification of the alimony was warranted. The Court first noted the general rule regarding modification of alimony.

"Alimony awards by the court or by an agreement incorporated into the decree of the court, if not lump sum, have long been subject to modification upon proof of material change in circumstances subsequent to the entry of the decree because of public policy."
However, the material change "must not be one that is anticipated by the parties at the time of the original decree." If there has been a material change in circumstances, then the Court must apply the Armstrong factors. In applying those factors, the Court stated, "the chancellor must compare the relative positions of the parties at the time of the request for modification in relation to their positions at the time of the divorce decree."

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September 23, 2008

Husband pays alimony in pennies

Judge to Husband--check or jail!

An man upset with the judge's ruling awarding his ex-wife $5,000 in lump sum alimony decided to seek some revenge. He delivered the $5,000 in a barrel containing 500,000 pennies. The ex-wife was not amused nor was the judge. Judge's order--"Pay by cashier's check or go to jail."

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July 3, 2008

Mississippi Court tells wife no alimony after multi-million dollar property award

No alimony for wife after mulit-million dollar property settlement

In a case this week out of Jackson County, Mississippi, the parties, who were married for 33 years, agreed to a divorce and a property settlement which divided the martial estate of just over 5.1 million dollars almost equally. But the parties submitted the matter of alimony to the chancellor for decision. The chancellor awarded the wife $7,000 per month in periodic alimony. On the first appeal, the Mississippi Court of Appeals reversed the chancellor's decision because she failed to justify the alimony award and asked her to make specific findings as to why the wife needed the alimony after getting more than one-half of a multi-million dollar estate.

Well, it seems the Mississippi Court of Appeals was again displeased with the chancellor's ruling when she again awarded permanent periodic alimony in the amount of $7,000 a month to the wife. The Court of Appeals, in a 6-4 decision, reversed and rendered saying that the wife was not entitled to alimony as the chancellor failed to justify the award.

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April 2, 2008

GMA wants to interview men receiving alimony

Good Morning America doing story on men receiving alimony

In a follow-up to my post yesterday about the Wall Street Journal article on men receiving alimony, Good Morning America is now seeking men who are receiving alimony. Here's your chance for 15 minutes of fame. So if you are a man and receiving alimony from your ex-wife, click here for details on contacting GMA.

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April 1, 2008

Alimony--Not Just For Women

More women paying their ex-husbands alimony

The Wall Street Journal ran an interesting article this morning about the rise in men receiving alimony. According to the article, the number of men receiving alimony from their former wives rose from 2.4% to 3.6% in a five year period ending 2006. Today, females make more money than their spouses in 33% of all families.

And it also appears the distaste some have for paying alimony crosses gender lines. As one woman said, "I feel financially raped" while another woman said she would spit on the alimony checks she wrote each month to her ex-husband.

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March 26, 2008

Tis the Tax Season

Some tips for the tax season

As CPAs, accountants, and others are burning the midnight oil preparing tax returns, a recent article provides some helpful tips for those undergoing a divorce or recently divorced.

In my next post, I will discuss some common tax problems in a divorce.

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February 13, 2008

Ex-husband cuts off alimony payments to terminally ill ex-wife

In a story out of Florida, a Florida man stopped paying his alimony payments to his ex-wife who is terminally ill with ovarian cancer. According to the story, when she asked him why he stopped paying, he stated, "Aren't you dead yet." To add to the situation, he is over $11,000 behind in his payments. Hopefully, the woman will get her ex-husband in front of a judge quickly and the man can be made to answer for his cold-hearted actions.

November 1, 2007

Do increased costs following a divorce justify modifying alimony payments in Mississippi?

Unforeseen and unanticipated increased expenses could justify modifying periodic alimony payments in Mississippi

Continuing on with my discussion about modification of periodic alimony, a change in health condition and increased medical costs of the recipient spouse due to a kidney transplant justified an increase in alimony payments. In Makamson v. Makamson, the Mississippi Court of Appeals approved a chancellor’s decision to increase the alimony payments 12 years after the divorce due to the medical costs associated with a kidney transplant of the recipient spouse. The costs associated with her transplant were not something anticipated at the time of the divorce although she was diagnosed with the kidney problem 5 years before the divorce. As the court noted, the test for modification is a substantial change in circumstances which:

“must have been some change which resulted from ‘after-arising circumstances of the parties not reasonably anticipated at the time of the agreement’ and furthermore the change must ‘be one that could not have been anticipated by the parties at the time of the original decree.”

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October 28, 2007

Mississippi Court of Appeals affirms reduction in alimony and child support

Can an alimony award be modified in a Mississippi divorce?

In order to determine whether alimony can be modified following a divorce, you must first determine what type of alimony was awarded. Generally speaking, periodic alimony, just like rehabilitative, can be modified. Lump sum alimony, along with reimbursement, can not be modified. The reasoning for the latter is that lump sum and reimbursement alimony are akin to a property settlement. But what if you were awarded periodic alimony in your divorce. Can it be modified years following the divorce and if so, how long after the award? These issues were addressed in a case this week out of Wayne County, Mississippi.

In Austin v. Austin, the parties agreed to an irreconcilable divorce in 2001 after 18 years of marriage. Under the terms of the child custody and property settlement agreement, the wife was given custody of the three children and the husband agreed to pay $1,000 a month in child support, $30,400 on March 15th each year, and $15,200 on August 15 each year (essentially $4,800 a month in child support). He also agreed to pay alimony of $1,000 a month and 35% gross of all bonuses and other compensation with the exception of his monthly draw.

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October 26, 2007

When a college diploma leads to a divorce complaint

In a Mississippi divorce, can a spouse be compensated for putting the other spouse through college?

We have all heard the story of the wife who puts her husband through medical school only to have him divorce her just as he graduates. I had a similar experience in law school with a law school classmate. The question is can the spouse who supported the student spouse be adequately compensated? The problem is the benefits of that professional education have not paid off. So how can the chancellor equitably divided the marital assets?

Some states have held that a professional degree is a marital asset which can be valued and divided. However, like the majority of states, Mississippi rejected that approach in Guy v. Guy (Miss. 1999). The Court's rationale was:
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October 22, 2007

An alimony payment which hurts!

$725,000 a month in alimony

$725,000 a month, or $24,000 a day, in temporary alimony is what you pay when you're a 72-year-old billionaire getting a divorce from your 60-year-old second wife and failed to get a premarital agreement before your marriage. In divorce proceedings which read more like the latest best seller from Jackie Collins, Billionaire Richard Scaife is involved in nasty divorce proceedings with allegations of dog-snatching, assault, and adultery involving a prostitute. Scaife, who is the great nephew of Andrew Mellon (for you history buffs, he is the Mellon who created a financial empire during the Gilded Age), is the beneficiary of various trusts which earn him approximately $45 million a year.

If there ever was a case needing a premarital agreement, this was one. For more details on the divorce proceedings, you can read the article from the Washington Post.

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October 22, 2007

Rehabilitative alimony in Mississippi

Returning stay at home parents to work following divorce

Rehabilitative alimony is the third type of alimony which can be awarded in a Mississippi divorce. The Mississippi Supreme Court described it a financial award "to parties who have put their career on hold while taking care of the marital home.” It is intended to allow “the lesser party to start anew without being destitute in the interim.” Lauro v. Lauro. Like periodic alimony, it is modifiable.

The classic example for rehabilitative alimony is a couple that marries and decide the wife should stay at home to care for the children while the husband works. This works great until the couple divorces. The husband has a career and is earning money, but the wife would be destitute without financial support from the husband. The wife, although she may have the ability to earn a living, needs time to return to the workforce or return to school in order to enter the workforce. During this interim period, the wife needs financial support. This is where rehabilitative alimony fits. It will provide the wife an income until such time as she is able to get back on her feet.

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October 18, 2007

Lump Sum Alimony in Mississippi

Is it alimony or a property settlement?

The second type of alimony in Mississippi is lump sum alimony. However, it is really not alimony in the traditional sense. Rather, it is better to describe lump sum alimony as a cash equalizer. According to the Mississippi Supreme Court, it is a tool to be used in dividing property.

To differentiate it from periodic alimony, lump sum alimony is more akin to a property settlement. It may not be modified absent fraud. If the payor dies before the amount is paid, it becomes the obligation of the payor’s estate. It is not taxable to the recipient. Finally, it can be paid all at once or the court can order it be paid over time in installments. So how is it used?

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October 16, 2007

Alimony Escalation Clauses Enforceable in Mississippi?

Buyer Beware—Know what you are signing in a divorce property settlement agreement

In many divorces in Mississippi, five years following the divorce, the same amount of money is being paid in alimony despite the cost of living having increased during the same period. That same money will not buy what it once did. The solution is an alimony escalation clause. The problem is anticipating the impact of that escalation clause.

In 2000, the Mississippi Supreme Court first approved the use of alimony escalation clauses in property settlement agreements. Up until then, Mississippi courts had only addressed the use of escalation clauses in child support cases where they were, and still are, disapproved more than approved. In Speed v. Speed, the Hinds County couple entered into a property settlement agreement. Under the agreement, the husband agreed to pay $1,500 per month in alimony. The parties further agreed that the payments would “increase or decrease directly in relation to the increases and the cost of living as determined by the U.S. Department of Commerce Consumers Cost of Living Index, to be adjusted annually….” Speed at 222. For ten years, the husband paid in accordance with the agreement, but then quit paying the escalated amounts. At a contempt hearing for his failure to pay, the husband complained the escalation clause was unfair and unenforceable. The chancery court agreed. In reversing the chancery court, the Mississippi Supreme Court stated:

“Absent fraud, overreaching or mistake, escalation clauses in property agreements are enforceable even though the agreement may prove to be improvident for one party in the future.” Speed at 226.

The Court said alimony escalation clauses in property settlement agreements protect both spouses from increases or decreases in income and encouraged their use in future cases.

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October 14, 2007

Financial Tips for those divorcing in Mississippi

Cover your financial bases

Here is an interesting article in the USA Today entitled "Breaking up is hard to do financially." It offers advice for the top 5 financial mistakes couples make when divorcing. For those divorcing in Mississippi, you should discuss this advice with your attorney to ensure you are protected financially.

October 12, 2007

Periodic alimony in Mississippi

What do you mean I have to support my ex-spouse!

In a previous post, I said I would talk about alimony in Mississippi more in-depth. Here is the first in a series of articles on alimony. In this post, we will focus on periodic alimony in Mississippi divorces.

First, what is periodic alimony? It is a fixed sum of money paid monthly until such time as the spouse receiving the alimony dies or remarries or the spouse paying the alimony dies. It can be modified with a showing of material change in circumstances. Its purpose is to support one spouse in cases of financial disparity. While some courts have said periodic alimony is intended to allow the spouse to maintain the lifestyle they became accustomed to while married, it is not intended to leave the paying spouse destitute. As one court stated, “the chancellor should consider the wife’s reasonable needs and the husband’s right to lead as normal a life as possible with a decent standard of living.” LaRue v. LaRue The fact is that most divorced couples can not maintain the same lifestyle they had while married given many expenses are duplicated after divorce.

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September 29, 2007

Property Division (Part III)—Alimony in Mississippi

Is this all I get?

Being a Mississippi divorce lawyer, I get questions about whether a spouse is entitled to alimony. The answer is it depends. After the equitable distribution of the marital estate (see previous post), the chancellor will look at the whole spectrum of property available to both spouses—the marital property divided as well as the non-marital property under each spouse’s control. If one party is left with a deficit, then the chancellor is to consider awarding alimony. In Mississippi, there are four different types of alimony—periodic, lump sum, rehabilitative, and reimbursement.

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