Case Name: Lou Jean MILLER, Appellant, v. James Homer MILLER, Appellee
Court: Florida District Court of Appeal
Jurisdiction: Florida
Decision Date: 1993-11-05
Citations: 625 So. 2d 1320
Docket Number: No. 93-240
Parties: Lou Jean MILLER, Appellant, v. James Homer MILLER, Appellee.
Judges: HARRIS, C.J., concurs.
Reporter: Southern Reporter, Second Series
Volume: 625
Pages: 1320–1323

Head Matter:
Lou Jean MILLER, Appellant, v. James Homer MILLER, Appellee.
No. 93-240.
District Court of Appeal of Florida, Fifth District.
Nov. 5, 1993.
Michael Sigman of Law Offices of Michael Sigman, Orlando, for appellant.
Robert W. Kieffer, Orlando, for appellee.

Opinion:
PETERSON, Judge.
Lou Jean Miller appeals the portions of a final judgment of dissolution of marriage which award lump sum alimony and distribute marital assets. At the time of dissolution of this 27 year marriage, the husband was 70 years old and the wife was 61 years old and in ill health.
We vacate the portions of the final judgment awarding alimony and distributing assets because the judgment fails to contain sufficient findings with respect to the values of the significant marital assets. The absence of those findings frustrates meaningful appellate review and we must remand this case to the trial court for findings consistent with the requirements of sections 61.075(3) and 61.08(1), Florida Statutes (1991).
We are concerned that, for purposes of evaluating marital assets, trial counsel failed to take into consideration the effect of income taxes. Consideration of the consequences of income tax laws on the distribution of marital assets and alimony is required and failure to do so is ordinarily reversible error. Rey v. Rey, 598 So.2d 141, 146 (Fla. 5th DCA 1992); Kirchman v. Kirchman, 389 So.2d 327 (Fla. 5th DCA 1980); Nicewonder v. Nicewonder, 602 So.2d 1354 (Fla. 1st DCA 1992); Blythe v. Blythe, 592 So.2d 353 (Fla. 4th DCA 1992); Werner v. Werner, 587 So.2d 473 (Fla. 3d DCA 1991), rev. denied, 599 So.2d 661 (Fla.1992); Sweeney v. Sweeney, 583 So.2d 398 (Fla. 1st DCA 1991); Cameron v. Cameron, 570 So.2d 1087 (Fla. 1st DCA 1990); Gentile v. Gentile, 565 So.2d 820 (Fla. 4th DCA 1990); Ellis v. Ellis, 461 So.2d 190 (Fla. 4th DCA 1984).
In the instant case, the wife was awarded the marital home and the husband was awarded all of the stock of the corporation producing the income upon which they depended for living expenses. We suspect from our review of the record that the corporate stock has a low federal income tax basis. The basis of the marital residence is probably insignificant since, if wife sold it, she would most likely escape taxation on any profit up to $125,000. 26 U.S.C. § 121. If both of the assets are sold relatively soon after the dissolution, a likely prospect in view of the ages of the parties, the tax consequences would create an inequitable disparity favoring the spouse receiving the marital residence. It cannot be said that valuation of assets without taking into account the tax consequences is fairly reflective of the market value of the assets to the parties. Nice-wonder v. Nicewonder, 602 So.2d 1354, 1358 (Fla. 1st DCA 1992) (Zehmer, J., concurring). Tax consequences are often ignored. On remand, we encourage the parties to present competent evidence regarding the income tax consequences of the distribution of the marital property and of any award of alimony.
Upon remand the trial court is free to fashion another method of distribution if the findings of the court warrant it. The court and the parties should consider the advantages and disadvantages of lump sum alimony and permanent periodic alimony or some combination thereof. Petticrew v. Petticrew, 586 So.2d 508 (Fla. 5th DCA 1991) (lump sum alimony is not modifiable); Pimm v. Pimm, 601 So.2d 534 (Fla.1992) (permanent alimony can be subject to modification where obligor spouse over age 65 voluntarily retires); Hamlet v. Hamlet, 552 So.2d 210, 211 (Fla. 5th DCA 1989) (Sharp, W., J., dissenting) ("[Ejquitable distribution encompasses more than a distribution of assets. It involves a combination of such remedies as lump sum alimony, permanent periodic alimony, and exclusive use of property."), reversed, 583 So.2d 654 (Fla.1991). We also note that a court may secure payment of alimony by appropriate means. § 61.08(3), Fla.Stat. (1991).
The portion of the final judgment dissolving the marriage is affirmed.
AFFIRMED IN PART; REVERSED IN PART, and REMANDED.
HARRIS, C.J., concurs.
W. SHARP, J., concurs specially, with opinion.
. The significant assets were the marital residence and stock of a corporation owned entirely by the parties and operated solely by the husband. The corporation provided all of the income of the parties except social security income. While the value of the home was included in the findings by the trial court, the amount of the liens thereon and the value of the stock were not.
. Of course, a trial court cannot be faulted for not considering the tax consequences if counsel for the parties neglect to present evidence on the subject.