Opinion ID: 1114554
Heading Depth: 1
Heading Rank: 2

Heading: did the chancellor err in awarding periodic alimony for a limited duration?

Text: Although the learned chancellor labelled a portion of Teresa's alimony periodic, he limited its duration to twenty-four months and awarded only a fixed sum of money. We are called upon therefore to determine whether the alimony awarded is lump sum or periodic. With or without a label attached, we must look to the substance of what has been provided to determine whether an obligation is lump sum or periodic. Bowe v. Bowe, 557 So.2d 793, 795 (Miss. 1990). Lump sum alimony may be paid in a single lump sum or in fixed periodic installments and is a final settlement between husband and wife. Armstrong v. Armstrong, 618 So.2d 1278, 1281 (Miss. 1993). A specific period of time for which payments are to run or a fixed sum of money are two characteristics of lump sum alimony. Holleman v. Holleman, 527 So.2d 90, 92 (Miss. 1988); Wray v. Wray, 394 So.2d 1341, 1345 (Miss. 1981). Lump sum alimony vests in the obligee upon final judgment making the award and becomes an obligation of the estate of the obligor if death occurs before payment. Armstrong, 618 So.2d at 1281. Lump sum alimony is not affected by remarriage of the payee spouse. Bowe, 557 So.2d at 794. Periodic alimony is associated with support and maintenance of the payee spouse and terminates upon remarriage of the payee. Cunningham v. Lanier, 589 So.2d 133, 136-37 (Miss. 1991). It is, however, the language employed in the decree that is our primary and ultimate referent. Bowe, 557 So.2d at 795. [A] decree awarding alimony should be construed as providing for periodic alimony ... unless the decree by clear and express language imports lump sum alimony, or alimony in gross. Wray, 394 So.2d at 1345. The focus of the inquiry is the substance of the provision rather than the label. Armstrong, 618 So.2d at 1281, citing Maxcy v. Estate of Maxcy, 485 So.2d 1077, 1078 (Miss. 1986). An award of $12,000.00 payable in $1,000.00 increments over a twelve month period, in lieu of alimony, was found for all practical purposes, an award of lump-sum alimony by this Court in Smith v. Smith, 614 So.2d 394, 397-98 (Miss. 1993), and in Holleman, 527 So.2d at 92, this Court said: [a] fixed and certain sum of money which is due and payable over a definite period of time is clearly alimony in gross, or lump sum alimony... and not periodic alimony. The only provision placed on the award of periodic alimony by the chancellor in the instant case which is actually characteristic of periodic alimony is that payments are to cease at Edward's death. All other indicators point to lump sum alimony. Teresa's periodic alimony in the amount of $12,000.00, to be paid in $500.00 monthly increments over a period of twenty-four (24) months, is, for all practical purposes, an award of lump sum alimony, in addition to the $12,000.00 appropriately labelled lump sum alimony, and will become an obligation of Edward's estate should he die before the amount has been paid. Edward is mistaken in his reliance on Holleman; Jordan v. Jordan, 510 So.2d 131 (Miss. 1987), and Gatlin v. Gatlin, 248 Miss. 868, 161 So.2d 782 (1964), for the proposition that this Court has approved time limited periodic alimony. Only Gatlin comes close to supporting Edward's argument. We affirmed the chancellor's award of alimony in the amount of $200.00 a month for eighteen months, but modified the award by requiring the chancellor to retain jurisdiction of the question of alimony. Although we did not say the chancellor should allow alimony after the eighteen month period had run, we stated that reconsideration of the issue may or may not be appropriate, depending upon what circumstances might be developed at a later hearing. In Armstrong, the chancellor awarded the wife rehabilitative alimony of $175.00 a month for two years. Despite its label, we found the time-limited alimony award was lump sum alimony. Armstrong, 618 So.2d at 1281. The award of time-limited alimony was reversed and rendered by this Court, awarding the wife periodic alimony in the same monthly sum until her death, remarriage, or modification of the award, following a proper showing, by the trial court. Id. [The wife], through no fault of her own, is departing a 21 year marriage with primary custodial responsibility for two minor children. She is embarking on a new course in life with little formal education and meager job experience to equip her for her journey. Under the facts of this case, equity requires more than the time-limited award. [She] is entitled to periodic alimony as a flexible means of protecting her needs as they arise during her unmarried status, if [the husband] is financially able to assist her. Armstrong, 618 So.2d at 1281. The same can be said of Teresa, although the Creekmores' marriage lasted only seven years and produced but one child. However, lump sum alimony, rather than periodic, may be the best means of providing for Teresa's financial security due to the particular facts of this case. Edward has a net worth of at least $315,000.00, the accumulation of which is in no way due to his hard work or financial savvy. Edward does not work and is not likely to, given his physical disability and his drug/alcohol induced functional disability. What he is likely to do is continue along the path he has followed so far, doing nothing to conserve or increase his financial resources. While a guardian ad litem of Edward's person and estate was appointed, this appointment was to last only until the conclusion of the divorce. Given Edward's addictions, the prospects of long life seem slim. It would be in Teresa's and Gentry Shannon's best interests that Edward help secure their financial future now, while he is clearly able to do so, via an adequate award of lump sum alimony. Lump sum alimony will provide security for Teresa and Gentry Shannon in the event of Edward's early death, in contrast to periodic alimony, which ceases to exist with Edward. As the time-limited alimony is lump sum alimony, the total award of lump sum alimony awarded is twenty-four thousand dollars ($24,000.00). The amount of lump sum alimony should be reasonable, in line with the wife's accustomed standard of living, and should consider both her own resources and her husband's ability to pay. Gray, 562 So.2d at 83. Along with custody of Gentry Shannon, Teresa is obligated to pay one-half of all medical, dental, pharmacy, hospital, and optometry expenses, including deductibles, not covered by the insurance policy which Edward is to provide. Teresa was awarded a 1985 automobile, which in all likelihood will not be reliable much longer, if indeed it is still reliable at this time. Teresa would like to buy a home for herself and Gentry Shannon in Belzoni, and has looked at homes priced in the $30,000.00 range, which is far from extravagant. Teresa's college tuition will also be a hefty expense, as will daycare for Gentry Shannon. Teresa's estimated minimum monthly expenses total $1,600.00 and consist of $350.00 for rent [or house note]; $150.00 for utilities; $75.00 for telephone; $300.00 for food; $100.00 for gasoline, oil, and maintenance; $50.00 for car tags and insurance; $100.00 for medical, dental, drugs, and vitamins; $150.00 for clothing; $100.00 for miscellaneous household expenses, sundries, entertainment, and charities; $175.00 for daycare; and $100.00 for furniture. These estimates, while only that, appear quite frugal and do not include allowances for Teresa's college tuition or for a car note. The $100.00 monthly estimate for medical, dental, drugs, and vitamins is likely to be far less than the actual cost of providing these necessities. If Teresa receives $500.00 a month child support, $500.00 a month lump sum payments, and works twenty (20) hours a week at her present job, earning gross monthly wages of $340.00, her gross monthly income of $1,340.00 will not suffice to cover even these minimal estimated expenses. As a result, Teresa will have to invade the remaining $12,000.00 amount of lump sum alimony awarded just to make ends meet, not to mention to pay college tuition, to make a down payment on a house, or to purchase a new automobile. The total lump sum alimony award of $24,000.00 is grossly inadequate so as to reveal an abuse of discretion. This award does not allow Teresa to maintain anything near her accustomed standard of living and does not reflect a consideration of her lack of available resources nor of Edward's ability to pay. The awards of lump sum alimony are reversed and remanded in order that an appropriate amount be awarded.