Thursday, August 23, 2007

Southern District Affirms Reduction in Support and Maintenance for Loss of Employment

In In re the Marriage of Clinton, the Southern District reviewed a modification of maintenance and child support. At the time of dissolution, husband worked as a manager in a family closely held corporation. He earned $50,000 with bonuses of $130,000 annually. The trial court ordered husband to pay $1,000 per month for maintenance and $1,500 per month in child support for two children. Two years after the dissolution, husband's father sold the family businesses. Husband received a net $1,000,000 from the sale. Husband used this money to buy a house and to start a music business. Four years later, Husband closed the music business. Now earning only $1,000 per month, Husband sought to reduce his child support and maintenance obligations. Husband had a college degree and no physical disabilities. Husband worked as a part-time radio programmer/announcer and gave private guitar lessons. The trial court decided to reduce child support to $600 per month and maintenance to $200 per month, imputing to husband income of $2,000 per month -- well below the $15,000 per month at the time of the dissolution. Wife appealed, arguing the income reductions were voluntary decisions made by husband. "Wife argues that Husband could have maintained his previous level of income if he had looked for employment as a manager of a construction company rather than trying to run his own music business and only seeking employment within the music field. However, Wife presents no evidence of Husband's ability to obtain such employment or of the availability of such employment in Husband's community. Nor does Wife present any evidence that Husband has the necessary management skills for such a position; instead Wife points out that Husband was unable to successfully operate the music business he opened." The court found critical the fact that husband could not foresee the sale of the family business and the fact that wife offered no evidence of how husband could presently earn income comparable to his salary with the family business.

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