Opinion ID: 901900
Heading Depth: 3
Heading Rank: 2

Heading: Luanna's Income

Text: [¶ 41.] Absent evidence of John's present earning capacity as a measure of his income, Denice instead attempted to establish that John is able to and should pay increased alimony due to Luanna's income. The imputation of a new spouse's income to the alimony obligor's is without precedent. [¶ 42.] While the trial court's findings of fact and conclusions of law do not directly impute this income, because Denice failed to establish John's earning capacity, the repeated references to Luanna's income and assets and the suggestion of John's right to this income cause us to conclude that Luanna's financial position is the only basis used by the trial court to determine John's ability to pay. [¶ 43.] Conclusion of Law § 20(c) holds that John is well able to assist and consult with [Luanna] on her employment activities which creates her bonuses. We believe that conclusion is erroneous. It was based upon Denice's speculation and was not supported by any testimony or other evidence. The mere existence of his education and experience does not mean that he has assisted Luanna in her work, directly or indirectly resulting in income, or that he has the capacity to assist in her field, educational sales. Furthermore, simply because Luanna has a job that pays her well does not mean that John can receive similar compensation from her, or any other, employer. [¶ 44.] Conclusions of Law §§ 20(d) and (e) confirm our belief that Luanna's income was imputed to John. d. During the last four years, [John's] current wife has earned an average of approximately $270,000 per year and in the year 2005, earned over $500,000. e. [John] has access to earnings sufficient to pay increased alimony to Ms. Moore. [¶ 45.] Whether an alimony obligor's subsequent spouse's financial contributions may be included in determining the obligor's income is an issue of first impression. Neither party has cited any authority that suggests such an imputation is proper. [16] [¶ 46.] This Court has held that cohabitation may be considered in assessing the financial circumstances of the alimony recipient. See Paradeis, 461 N.W.2d 135. However, it should be recognized that a cohabitant of the receiving spouse may not be considered to increase the expenses of the recipient spouse. [17] While a new spouse's income might be considered to offset an obligor spouse's living expenses, thus freeing more of his or her income for alimony payments, we can find no authority in any jurisdiction in which the new spouse's income is used to supplement the obligor's income for alimony modification purposes. We conclude that an alimony obligor's subsequent-spouse's income may not be included as part of the obligor spouse's income. Without evidence of John's income or earning capacity as the source of John's ability to pay, the trial court has, in reality, required Luanna to pay Denice alimony. [18] This was an error of law.