| Divorce
Court “Reserves” Ruling on Alimony, “Imputes” Income to Husband
In Durkee v.
Durkee, the Court of Special Appeals reviewed the circumstances
under which a court granting a divorce may reserve ruling on the issue
of alimony, and the factors that permit the court to “impute” income
to a spouse.
Michael and Katherine Durkee were married in 1982. During their
marriage, two children were born. Mr. Durkee obtained a masters degree
in computer science from Johns Hopkins University and developed skills
in the field of computer technology. Mrs. Durkee became a stay-at-home
mom. In 1998, Mrs. Durkee filed a complaint for divorce.
Shortly before the
couple separated in 1998, Mr. Durkee lost his job, and decided to
become self-employed. As a consequence, his average annual income fell
from $93,000 to near zero. In the meantime, Mrs. Durkee took a job
that earned her $13,159 in 2000.
Although Mrs.
Durkee’s complaint included a request for permanent alimony, in
recognition of her husband’s lack of income during the period leading
up to the divorce trial, Mrs. Durkee’s counsel asked the trial judge
to reserve ruling on the request for alimony. The trial judge
expressed concern about the possibility that Mr. Durkee would resume
earning substantial income, such that there could be “unconscionably
disparate” financial circumstances between these two former spouses,
and as a result, the judge reserved ruling on the request for alimony.
Mr. Durkee
appealed to the Court of Special Appeals, contending that the court
erred in leaving this issue open, and also in “imputing” income to him
for the purposes of computing child support.
The Court of
Special Appeals quoted the following statement about the purpose of
alimony from Tracey v. Tracey, 328 Md. 380, 391 (1992):
“[A]limony's
purpose is to provide an opportunity for the recipient spouse to
become self-supporting. The concept of alimony as life-long support
enabling the dependent spouse to maintain an accustomed standard of
living has largely been superseded by the view that the dependent
spouse should be required to become self-supporting, even though that
might result in a reduced standard of living.”
Nevertheless, the
courts are still empowered under Title 11 of the Family Law Article of
the Maryland Code to award indefinite alimony and to reserve on the
issue of alimony. However, there are circumstances under which a
reservation “would not be appropriate.” Quoting from Turrisi v.
Sanzaro, 308 Md. 515, 528-30 (1987), the Court of Special Appeals
noted:
“[I]n view of
the Act’s emphasis on promotion of economic self-sufficiency, its
favorable approach to alimony for a definite period, and its
opposition to the notion of alimony as a lifetime pension, it
would not be appropriate to reserve simply because there may be
some vague future expectation of circumstances that might show a
basis for alimony. By the same token, the possibility that a
claimant might become aged, infirm, or disabled, or that standards
of living could conceivably be unconscionably disparate at some
unknown future date, thus potentially invoking § 11-106(c), would
not provide a basis for reservation. ...
On the other
hand, ... [if] the record contains evidence from which the
chancellor could find that the claimant, in the reasonably
foreseeable future, will be in circumstances that would justify an
award of rehabilitative or indefinite alimony, it would not be an
abuse of discretion to reserve.”
In the Durkees’
case, there was not a probability, but a mere possibility, that Mr.
Durkee’s income would increase within a reasonable time. Consequently,
the Court of Special Appeals ruled the trial court should not have
reserved on alimony, stating, “we conclude that the question of when,
if at all, appellant’s business would prove economically successful
fell within the category of ‘vague future expectation of
circumstances,’ which Turrisi rejected as a ground for
reservation.”
An appropriate
course for the trial court to have taken would have been to “consider
a relatively small award of immediate alimony, which would be subject
to modification in the event of a change in circumstances.” Because
the trial court would have very likely awarded some alimony had it not
reserved the issue, the Court of Special remanded the case to the
trial court for further consideration of the alimony issue.
The second issue
raised by Mr. Durkee related to the trial judge’s implicit finding
that he had voluntarily impoverished himself. The Court of Special
Appeals noted:
"A parent is
voluntarily impoverished ‘"whenever the parent has made the free
and conscious choice, not compelled by factors beyond his or her
control, to render himself or herself without adequate
resources."’”
The Court quoted
from prior rulings that list the factors to be considered:
“To determine if
a parent is ‘voluntarily impoverished,’ the chancellor should
consider several factors, including:
1. his or her
current physical condition.
2. his or her respective level of education;
3. the timing of any change in employment or financial
circumstances relative to the divorce proceedings.
4. the relationship of the parties prior to the divorce
proceedings;
5. his or her efforts to find and retain employment;
6. his or her efforts to secure retraining if that is needed;
7. whether he or she has ever withheld support;
8. his or her past work history;
9. the area in which the parties live and the status of the job
market there; and
10. any other considerations presented by either party.’”
The Court of
Special Appeals rejected Mr. Durkee’s contention that the trial court
was required make an express finding of voluntary impoverishment. The
evidence supported the trial court’s implicit finding of voluntary
impoverishment.
The Court also
rejected the argument that there could be no finding of voluntary
impoverishment because the decline in income occurred during rather
than after the marriage, stating:
“[P]arents who
impoverish themselves for reasons unrelated to avoidance of their
existing child support obligations nonetheless fall within the
class of persons for whom income can be imputed in accordance with
the factors outlined above. Moreover, we have not been provided
with any authority for the proposition that a court may not find
voluntary impoverishment unless the decline in income occurs after
the separation.”
Durkee
v. Durkee,
No. 158, September Term 2001, in the Court of Special Appeals of
Maryland, filed May 1, 2002.
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