Opinion ID: 1884741
Heading Depth: 1
Heading Rank: 3

Heading: amount of the claim

Text: [¶ 17] Terry requested a reduction in the amount of spousal support for two reasons: (1) the amount had been tax deductible to Ricci during his life, but it was not tax deductible to his estate; and (2) the relative financial circumstances of the parties had changed since the divorce. Terry argued that, because the spousal support was deductible to Ricci, he only had to earn $40,000 to pay $40,000 to Benton, but because the amount is not tax deductible to the estate it must earn $72,727.27 annually to pay Benton $40,000. Terry also attempted to demonstrate a change in circumstances in that Benton's financial circumstances were significantly better at present than at the time the spousal support amount was set and were now sufficient to meet her needs, while the estate had substantial obligations to creditors. [¶ 18] The Probate Court applied divorce law to the question of modification of the amount of spousal support. In so doing, the Probate Court stated that the parties assert ... that factors otherwise typically reviewed pursuant to an alimony modification proceeding involving living litigants in a state divorce court under 19-A M.R.S.A. § 951-A are pertinent. Terry argued that the spousal support statutes in title 19-A of the Maine Revised Statutes Annotated and the corresponding case law governed Benton's claim for future spousal support, and, specifically, that the amount of the support should be modified because there had been a significant change in circumstances. Benton did not argue that title 19-A was inapplicable; she primarily argued that a modification was not warranted because there had not been a change in circumstances unanticipated by the parties. See Largay v. Largay, 2000 ME 108, ¶ 15, 752 A.2d 194, 198. Furthermore, Benton contended that the title 19-A statutes and case law governed her request for attorney fees. Because the court and the parties, without objection, proceeded as though title 19-A governed the issue of modification of the spousal support, we will apply title 19-A and relevant case law to this matter. [4] [¶ 19] Furthermore, it is appropriate to apply title 19-A and the corresponding case law because the substantive law of a claim or defense should inform the Probate Court in its determination of the merits of that claim or defense. Terry's defense to Benton's claim of annual support in the amount of $40,000 was that the amount should be reduced because of changed circumstances. The Probate Court correctly applied the substantive law to Terry's dispute over the claim. [¶ 20] The court concluded that a modification was not warranted because there had been no change in circumstances that had not been anticipated by the parties. Ricci's death was not a change in circumstances because it was accounted for in the agreement that provided that spousal support continue after his death. The tax consequences were foreseeable, as it is a long-established rule that the deductibility of alimony is personal to the payor spouse, and deductions may not be claimed by an estate, trust, or anyone else who pays the spousal support obligation. In Estate of Jarboe v. Commissioner, 39 T.C. 690, 1963 WL 1452 (1963), the Tax Court held that the alimony obligation paid by a deceased spouse's estate was not deductible. The Tax Court quoted from the federal regulation, 26 C.F.R. § 1.215.1(b), then in effect: The deduction [for alimony] is allowed only to the obligor spouse. It is not allowed to an estate, trust, corporation, or any other person who may pay the alimony obligation of such obligor spouse. Estate of Jarboe, 39 T.C. at 696. The regulation quoted in the 1963 Tax Court case remains the same today and obviously predates the 1979 Ricci-Benton divorce. Therefore, the tax consequences of the payment of spousal support by the Ricci Estate are not a change in circumstances. [¶ 21] The court further concluded that the relative financial circumstances of the parties had not changed. It found that Ricci's lifestyle, income, and assets had greatly improved from the time of the 1990 modification of the divorce judgment until his death. The court also made detailed findings about Benton's current financial situation, including her inability to be gainfully employed. It did not make specific findings of the value of the estate, but it was not asked to make such findings, and we must assume that it found facts consistent with its conclusion that the relative financial circumstances of the parties had not changed. See Associated Builders, Inc. v. Oczkowski, 2002 ME 115, ¶ 11, 801 A.2d 1008, 1011 (stating that in the absence of a request for findings, we assume that the court made all findings it could from the evidence necessary for its decision). Furthermore, the court had the testimony of Terry that the estate had set aside the arrearage amount of $76,666.59 in a separate account and could afford to pay the ongoing sum of $3333.33 per month. [¶ 22] We agree that the Probate Court did not abuse its discretion in declining to modify the amount of spousal support. It was correct in its analysis that there was no change in circumstances unanticipated by Ricci and Benton. Furthermore, we cannot find that the court clearly erred in its assessment of the relative financial circumstances of the parties and its finding that their relative circumstances had not changed sufficiently to warrant a modification. Therefore, we affirm the order of the Probate Court requiring Terry, in her capacity as personal representative of the estate, to pay the spousal support arrearages and interest to Benton.