Case Law Update:Debt to Spouse was not discharged in Bankruptcy
Separation Agreement gave Amway distributorship to Wife for monthly payments to Husband. That payment was considered support because nothing else provided maintenance, the payment was in installments, it was subject to modification based on Amway profits, and it terminated on death of Husband. Trial Court erred in characterizing Wife's debt to Husband as a property settlement, dischargeable in bankruptcy, rather than nondischargeable support.
Author’s caveat: This case was decided under the bankruptcy law as it was before October 17, 2005. Under the new bankruptcy law, all domestic support obligations, which include alimony, child support, and property division, are generally non-dischargeable in bankruptcy.
To read further: Alticor, Inc., and Quixtar, Inc., Plaintiffs, v. Harold W. Grissum, Defendant-Appellant, and Joyce C. Soldi, Defendant-Respondent. Missouri Court of Appeals Southern District
Source for Post: The Missouri Bar
