Opinion ID: 1652117
Heading Depth: 1
Heading Rank: 5

Heading: whether the chancellor abused its discretion in awarding alimony based upon insufficient evidence establishing the assets and liability of the parties.

Text: ¶ 11. Joseph asserts that the chancellor erred in awarding lump sum alimony to Juanita because it was not an issue agreed upon by the parties to be decided by the chancellor. Juanita, however, asserts that submitting the issues regarding equity position of each party and the division of marital assets to the chancellor was sufficient for the chancellor to consider the award of alimony. ¶ 12. When reviewing a chancellor's award of lump sum alimony, this Court, in Creekmore v. Creekmore , stated: It is hornbook law that whether to award alimony and the amount to be awarded are largely within the discretion of the chancellor. Cherry v. Cherry, 593 So.2d 13, 19 (Miss.1991). We will not disturb the chancellor's decision on alimony on appeal unless it is found to be against the overwhelming weight of the evidence or manifestly in error. McNally v. McNally, 516 So.2d 499, 501 (Miss.1987). In Cheatham v. Cheatham, 537 So.2d 435, 438 (Miss.1988), the following factors were considered in awarding lump sum alimony: 1) substantial contribution to accumulation of wealth by quitting job to become housewife or assisting in husband's business; 2) long marriage; 3) separate income or separate estate meager in comparison to that of payor spouse; and 4) financial security without lump sum alimony. Most important is a comparison of the estates. Subsequent to the decision in Cheatham, this Court has consistently employed these four factors when reviewing lump sum alimony. Tilley v. Tilley, 610 So.2d 348, 352 (Miss.1992); Smith v. Smith, 607 So.2d 122, 126 (Miss.1992); Cleveland v. Cleveland, 600 So.2d 193, 197 (Miss.1992). Disparity of the separate estates has continued to be the most compelling factor. Tilley, 610 So.2d at 352. Creekmore v. Creekmore, 651 So.2d 513, 517 (Miss.1995). This Court has further stated that the chancellor may divide marital assets, real and personal, as well as award periodic and/or lump sum alimony, as equity demands. Ferguson v. Ferguson, 639 So.2d 921, 929 (Miss.1994). This Court has additionally held that when a chancellor is charged with the division of the marital assets that `if the situation is such that an equitable division of marital property, considered with each party's nonmarital assets, leaves a deficit for one party, then alimony based on the value of nonmarital assets should be considered.' Henderson v. Henderson, 703 So.2d 262, 265 (Miss.1997) (quoting Johnson v. Johnson, 650 So.2d 1281, 1287 (Miss.1994)). Thus, based on the wide latitude of discretion vested in the chancellor in awarding alimony, we find that by submitting the issues of the division of the marital assets and the equity position of each party, the chancellor did not err in determining that an award of lump sum alimony was appropriate. ¶ 13. Joseph additionally contends that the chancellor abused his discretion in awarding alimony based upon insufficient evidence establishing the assets and liabilities of the parties. Joseph specifically asserts that it was error for the chancellor to arbitrarily and capriciously assign a value of between $250,000 and $400,000 to his interest in the Johnston Estate in awarding lump sum alimony to Juanita. Juanita asserts that the chancellor did not abuse his discretion by considering the disparity between the separate estates in awarding her lump sum alimony of $30,000 payable at the rate of $250 per month for 120 months. ¶ 14. In the case sub judice, the chancellor, after a division of the household personal property, instructed an equitable distribution of the marital assets between the parties resulting in an equal division between each party. The chancellor awarded to Juanita the following: the automobile in her possession, valued at $19,363; her IRA, valued at $32,684; her retirement account, valued at $38,947; the stock portfolio, valued at $27,000; and $32,777 for her equity interest in the residence. This award amounted to a total award to Juanita of $150,771. The chancellor awarded to Joseph the following: his separate personal property, valued at $50,500; his two vehicles, valued at $16,625; his IRA, valued at $33,108; his retirement account, valued at $16,058; the emus and ostriches, valued at $5,000; title to the twenty acres and the equity in said real property, valued at $25,766; and title to the residence and the equity in said residence, valued at $36,491. This award, less the payment to Juanita for her equity in the residence, amounted to a total award of $150,771. ¶ 15. After ordering the equitable distribution of the marital property, the chancellor addressed the issue of whether alimony should be awarded to Juanita. The chancellor found that after an equitable distribution of the marital property there existed a disparity between the separate estates of each party. The chancellor found that Juanita did not have any separate estate while Joseph had the benefit of his 5% interest in the Johnston Estate in which he received approximately $18,000 in rental income per year. The Court reasoned that since the estate returned $18,000 in income the value of the interest had to be somewhere between $250,000 and $400,000. The chancellor stated, With this in mind, and finding that the Wife is entitled to a reasonable standard of living as consistent as possible with the standard of living she enjoyed when the parties were together, the Court finds that the totality of the circumstances dictates that the Wife receive alimony. In coming to this conclusion, the Court notes that the Wife will have the primary physical responsibility for the children born of the marriage and that any increase in her standard of living automatically inures to the benefit of the children. Equity will not allow the Wife to suffer a reduced standard of living after receiving child support and 50% of the marital assets while the Husband enjoys not only his 50% share of those assets, but also the benefits of a $250,000-$400,000 non marital asset! The chancellor then awarded Juanita lump sum alimony in the amount of $30,000 payable at $250 per month for 120 months. ¶ 16. This Court has held that `[i]f the situation is such that an equitable division of marital property, considered with each party's nonmarital assets, leaves a deficit for one party, then alimony based on the value of nonmarital assets should be considered.' Henderson, 703 So.2d at 265 (quoting Johnson, 650 So.2d at 1287). Based solely on this estimated figure, Judge Griffin stated in his ruling, The Court finds that in order for 5% of this Estate to generate income (net to Husband) in the amount of $18,000 per year, the value of the Husband's interest in the Estate would have to be between $250,000 and $400,000. The judge then went on to award Juanita $30,000 in lump sum alimony based upon his estimation of the value of Joseph's interest in the Johnston Estate. This unexplained valuation of Joseph's interest in his grandmother's estate was an insufficient basis for the award of alimony here. We reverse and remand this case for a determination of the fair market value of Joseph's interest in the Johnston Estate for a reevaluation of an appropriate award of alimony.