Opinion ID: 1731508
Heading Depth: 1
Heading Rank: 1

Heading: Award of $25,000 in Gross

Text: A decree for alimony in gross, if without reservation, becomes a vested right from its rendition and survives the death of the husband. Differing from a mere periodic allowance for current and continuous support, it is intended to effect a final termination of the property rights and relations of the parties. Epps v. Epps, 218 Ala. 667, 120 So. 150. However, in consideration for the husband, the decree should not be to cripple him by compelling a sacrifice of his property. His ability to pay and hers to collect should alike be taken into the account and duly adjusted. Ortman v. Ortman, 203 Ala. 167, 82 So. 417. As before stated, the bulk of Mr. Leo's assets consists of accounts receivable in connection with sales of houses and lots in the aforementioned real estate developments. The houses that were built were inexpensive and usually required no money down in the purchase thereof. The turn over of these houses is apparently high. The mortgages to the corporations are from twelve to fifteen years. Upon default of the mortgages, the houses are resold. Mr. Leo testified that if all of the original purchasers had paid the mortgages as due, the corporation would now be out of business, it having been originally intended that the operations would be on a twelve year basis. Reselling and refinancing have, however, continued the life of the corporations. Mr. Leo further testified that in two years the original purchasers will have paid their mortgages and the corporations would drop 32 payments out of 66. The closing of Brookley Field has seriously affected the type of houses owned by the corporations and Mr. Leo testified that he would be happy to discount the accounts receivable by 30 per cent. Even if it could be worked out, it is difficult to see how Mr. Leo could liquidate his interests in the corporations without considerable financial sacrifice. Since his net assets, other than his interests in the corporations, as shown by his testimony amount to only $16,700, in order to pay the lump sum award of $25,000 and the debts in the amount of $7,329.77, a total of $32,329.77, it is self evident that Mr. Leo would have to sacrifice his capital assets or go to jail if such sums were not paid. Equity should not require this to be done. It would appear that a more equitable award of gross alimony would be an amount not to exceed fifty per cent of Mr. Leo's assets other than his assets represented by his interest in the real estate development. Since the only evidence before the court indicates that these assets are $16,700, the decree in the phase of awarding gross alimony of $25,000 is reversed and one is here rendered fixing this amount at $8,350.