Kansas City Divorce Lawyer & Attorney : Wortman Law Firm

Case Summary:
Past standard of living is not the standard for setting maintenance, but Wife showed that she can not meet her reasonable needs by working presently or in the future because of poor health and limited education. Circuit Court awarded proper amount, but used wrong term, in awarding maintenance, so Court of Appeals amends judgment to use right term. Substantial evidence supports imputation of income to Husband and award of attorney fees against him.
In re the Marriage of Debbie Lynn Taylor and Willie James Taylor, Debbie Lynn Taylor, Petitioner-Respondent, v. Willie James Taylor, Respondent-Appellant. Missouri Court of Appeals Southern District

Missouri Law pertaining to Awards of Maintenance (Alimony)
The trial court can award maintenance only if it finds that the party seeking maintenance "(1) Lacks sufficient property, including marital property apportioned to him, to provide for his reasonable needs; and (2) Is unable to support himself through appropriate employment[.]" Section 452.335.1.This section requires the trial court to follow a two-part threshold test. The court must initially determine if the requesting party has sufficient property to meet his or her reasonable needs, and if they do not, then the court must examine whether or not the party's reasonable needs can be met through appropriate employment.  Childers v. Childers,26 S.W.3d 851, 854 (Mo.App.W.D. 2000). The spouse seeking maintenance has the burden of establishing the threshold requirements. Comninellis v. Comninellis, 147 S.W.3d 102, 106 (Mo.App.W.D. 2004). After the court finds the threshold test has been satisfied, then the court may consider the statutory factors under Section 452.335.2 with respect to amounts and duration. Monsees v. Monsees, 908 S.W.2d 812, 817 (Mo.App.W.D. 1995).

In this case, Wife established that (1) she lacked sufficient property, including marital property apportioned to her during the dissolution, to meet her reasonable needs; and (2) that she is unable to support herself through appropriate employment.

Under Section 452.335.2, the court, in determining the amount and duration of a maintenance award, may consider all relevant factors including:

The financial resources of the party seeking maintenance, including marital property apportioned to him, and his ability to meet his needs independently[;]
The time necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment;
The comparative earning capacity of each spouse;
The standard of living established during the marriage;
The obligations and assets, including the marital property apportioned to him and the separate property of each party;
The duration of the marriage;
The age, and the physical and emotional condition of the spouse seeking maintenance;
The ability of the spouse from whom maintenance is sought to meet his needs while meeting those of the spouse seeking maintenance;
The conduct of the parties during the marriage; and
(10) Any other relevant factors.

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Wife Concedes Ambiguous Term In Agreement; Prevails On Appeal
Separation agreement provided non-modifiable maintenance to Wife, and Circuit Court found no basis for modification, so it had no power to modify maintenance. Husband's points, all related to manner of modification, are therefore moot. Ambiguity remains in terms of agreement, but Wife's concession of the point allows Court of Appeals to issue judgment Circuit Court should have.
Tracy Lynn Boden, Respondent/Cross-Appellant v. Thomas Robert Boden, Appellant/Cross-Respondent. Missouri Court of Appeals Eastern District

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Conduct During Marriage Influences Judgment
Wife's inability to support herself due to health problems and lack of skills supports award of maintenance. Evidence of Wife's resources, from later hearing on attorney fees, is no basis for reversing Circuit Court's award of maintenance. Husband's use of resources, including extramarital affair, supports division of property and allocation of debt to him, and does not bar an award of attorney fees to Wife.
Pamela J. Russum, Respondent, v. Gerald E. Russum, Jr., Appellant. Missouri Court of Appeals Western District

No Prejudice Need Be Shown On Departure From Statutes
Circuit Court accepted into evidence an amended social report from Children's Division to replace that filed originally with the petition. But Circuit Court never met with Juvenile Officer after filing of petition to assign report. Failure to strictly comply with statutes on termination of parental rights is reversible error, and "a parent facing termination bears [no] burden of establishing prejudice."
K.L.W., S.F.W., and L.S.W., In the Interest of. Missouri Court of Appeals Eastern District

Source for Post:  The Missouri Bar

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The following are some infomative and useful tips on the sale of a residence in divorce from divorcehq.com

For many people going through a divorce their biggest asset is their home or in legal speak, the marital residence. Deciding what to do about the marital residence is often a major issue in a divorce. There are a few different options when it comes to splitting the marital residence.

One option is for one spouse to keep the house and buy out the other spouse's share. Another option is for one spouse to be granted exclusive use for a specified period of time, usually when the youngest child turns 18, after which the house will be sold. Finally, the house can be sold outright with the profits being allocated to each spouse.

Should you sell your house? Hard as it may be this is a decision that needs to be made devoid of emotions. As a practical matter take into consideration whether or not it is financially beneficial to keep the home. If not and you do decide to sell here are a few tips to help you through the process.

Time is money: Put your home on the market as far in advance as possible of purchasing a new one. Remember that when people buy and sell a home there usually is a domino effect. Closing and moving dates have to be coordinated, and the more firmly everyone commits to a window of dates and sticks to them, the better for all involved. Put all agreements about dates in writing, and protect yourself by negotiating financial penalties for failure to live up to the agreement.

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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

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Attorney's fees for professional services by a divorce attorney can be deductible, but not in their entirety.  Fees attributed to a dissolution of marriage are not deductible, which includes pleadings, court appearances, and non-tax related negotiations, custody, visitation, and child support fees.  You can only deduct for services performed in connection with actual tax advice and/or advice that gives rise to taxable income. Only fees attributable to alimony, which is taxable to the recipient, qualifies for the production of taxable income.  The alimony must be paid 1) in cash, 2) to or on behalf of the recipient, 3)pursuant to a decree or agreement, 4)as not designated as non-taxable, 5) for parties whose status of marriage changes and they live in separate households, 6) for a term ending with the death of the payee, 7) as not fixed as child support, and8) for parties who file separate returns. 

Fees for collecting delinquent taxable alimony are deductible, as are fees for seeking an upward modification in alimony, but not downward.  Fees for collection of child support are not deductible and neither are fees for obtaining or protecting income producing property.

Fees that are deductible can only be deducted as part of miscellaneous itemized deductions, and they must be aggregated with other miscellaneous itemized deductions, only to the extent that they exceed two percent of the taxpayer's AGI (adjusted Gross Income).  If the itemized deductions do not meet this threshold, then nothing is deductible. 

Furthermore, in addition to the itemized deduction limitation, if AGI exceeds a particular thresh hold, the amount of itemized deduction allowed is reduced by 3% of the excess of AGI over the thresh hold or 80% of the amount of the itemized deductions allowable for the tax year.

If you wish to attempt to deduct fees for your divorce case, consult with a tax expert and ask your attorney for an itemized listing of the deductible and non-deductible fees charged for your case.

Source for Post - Family Advocate Vol 27 No. 3

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