Opinion ID: 2332987
Heading Depth: 3
Heading Rank: 1

Heading: Parties' Incomes

Text: [¶ 37] The record supports the court's conclusion that because of the parties' relative economic circumstances, their thirty-five years of marriage, their ages, and Barbara's questionable health and its impact upon her capacity to continue her massage business, an indefinite award of general spousal support to Barbara was justified. This finding is not clear error. Similarly, the court's findings regarding the parties' respective living expenses were based upon competent evidence and are not clear error. [¶ 38] The statute directs that one of the factors the court must consider when determining spousal support is the income history and income potential of each party. 19-A M.R.S.A. § 951-A(5)(E) (Supp.2001); Sorey v. Sorey, 1998 ME 217, ¶ 10, 718 A.2d 568, 570. The court found, based upon Barbara's income history and potential, that her expected income was approximately $32,000, consisting of $15,000 from her part-time work as a massage therapist, $15,149 per year in income from J.B.B., Inc., and $1873 per year rental income from her Florida condominium. The court determined that Barry will have a post-divorce annual income of approximately $65,500 comprised of annual distributions totalling $25,000 from the Robert Lyon Warner Trust, investment income of $34,500 based upon an estimated 6% return on his stock portfolio valued at $575,000, and $6000 in wages from part-time employment. [¶ 39] Barry asserts that the court committed clear error in its determination of the parties' incomes because (1) the court valued the stock portfolio as worth $545,977, not $575,000, in the property distribution section of the divorce judgment; (2) it attributed his potential IRA income to him but failed to attribute Barbara's potential IRA income to her; and (3) it failed to account for the fact that his holdings will be reduced by $35,000 in order to pay $35,000 in attorney fees as ordered by the judgment, and by an additional $22,043 from a corporate investment account that was included in the valuation of Barry's stock portfolio but awarded to Barbara as part of the assets of J.B.B., Inc. [17] [¶ 40] In its judgment the court stated that Barry agreed at trial that six percent would be a reasonable return from his stocks, bonds, and IRA's [sic]; that return totals $34,500 annually. In its order on the motions to reconsider the court explained that it based this finding on the defendant's testimony that his holdings were worth $575,000. It also found that The IRA's [sic] are increasing in value. That increase should not be ignored because its receipt may be deferred. The trial transcript reflects that when Barry was asked to estimate the total value of all holdings, including his IRA's, he estimated the total value at $575,000. This testimony is, however, inconsistent with the court's separate findings that the stock portfolio has a value of $545,977, and the IRA accounts awarded to Barry have a value of $66,387, for a combined value of $612,364. [¶ 41] Because the judgment reflects that the court intended to include the potential income from the IRAs awarded to Barry in determining his ability to pay spousal support, it should have also attributed the potential income from the IRAs awarded to Barbara in determining her need for spousal support. The IRA accounts awarded to Barbara had a total value of $71,654 that, at an assumed 6% rate of return, would produce income of $4299 per year. [¶ 42] The judgment should also account for the fact that Barry's overall holdings, whether valued at $575,000 or $612,364, will be reduced by (1) $35,000 in attorney fees he was ordered to pay Barbara within sixty days of the judgment; and (2) $22,043 from the Vanguard Index 500 account that was awarded to Barbara as an asset of J.B.B., Inc., but which was included in the stock portfolio in arriving at its overall value. At a 6% rate of return, these adjustments in the value of the investment assets available to Barry would reduce Barry's income by $3422 per year. [¶ 43] Considered together, the foregoing adjustments are substantial and should be taken into account in determining the income potential of the parties, see 19-A M.R.S.A. § 951-A(5)(E) (Supp.2001), and Barry's ability to pay spousal support, see id. § 951-A(5)(B) (Supp.2001). [18]