Maintenance

Recently, the Iowa Court of Appeals decided a case involving spousal support.  (The court also discussed the award of attorney fees and the husband’s child support obligation.)  The case, In Re the Marriage of Jeffrey A. Richter and Lisa M. Richter, involved a marriage that had produced four children.  The parties had appealed the decree entered in their dissolution, with both parties arguing that the spousal support awarded was incorrect.

Spousal Support in Iowa

The court explains the issue of spousal support in its decision:

Spousal support “is an allowance to the spouse in lieu of the legal obligation for support.” In re Marriage of Sjulin, 431 N.W.2d 773, 775 (Iowa 1988). Spousal support is a discretionary award dependent upon each party’s earning capacity and present standards of living, as well as the ability to pay and the relative need for support. See In re Marriage of Kurtt, 561 N.W.2d 385, 387 (Iowa Ct. App. 1997). Spousal support “is not an absolute right; an award depends on the circumstances of each particular case.” In re Marriage of Dieger, 584 N.W.2d 567, 570 (Iowa Ct. App. 1998).

Factors Considered by the Court in Awarding Spousal Support

The Iowa Code addresses spousal support in Section 598.21(A).  Here, the criteria for determining support are listed.  They are:

  1. The length of the marriage
  2. The age and physical and emotional health of the parties
  3. The distribution of property made in the dissolution
  4. The education level of each party at the time of the marriage and at the time the action is commenced
  5. The earning capacity of the party seeking maintenance
  6. The feasibility of the party seeking maintenance becoming self-supporting at a standard of living reasonably comparable to that enjoyed during the marriage
  7. The tax consequences
  8. Any mutual financial agreements between the parties
  9. Any antenuptial agreement
  10. Other factors the court determines relevant

As the court notes, they give “considerable discretion” to the district court in awarding alimony and will only decide differently than the district court when there has been a failure to do equity.

Spousal Support Decision

In this case, the husband has monthly income of approximately $10,000 and the wife has a monthly income of approximately $3000.  After monthly living expenses are considered, there was a $6000 difference between incomes.  The four children lived with the wife.  The district court decided that since the wife was awarded over $20,000 more in the distribution of property, that it was appropriate to award her less spousal support and for a shorter amount of time.  The court awarded her $2200 per month in traditional alimony for twelve years.

Both parties appealed this decision.  The court of appeals agreed with the district court’s award.

Factors in Determining Spousal Support

As in other cases determining spousal support, or alimony, the court took several of the factors listed in Iowa Code Section into consideration.  In affirming the ruling, the court noted that the marriage lasted twelve years.  The husband had a higher earning capacity than the wife.  There were four children produced during the marriage and the wife was working part-time, which was agreed upon at the time of the birth of their youngest child by both parties.  The wife’s employer provided a letter stating that there would be no full time work opportunities for the wife in the near future.

The court states that the amount of alimony is enough for the wife to continue caring for the children as they were cared for during the marriage and gives her time to become fully employed.

 

 

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Actress Katie Holmes filed for divorce from her husband of 5 years, Tom Cruise, last Thursday.   The pair met and married quickly and have been the subject of Hollywood speculation for the duration of their relationship.  Holmes, 33, has one 6 year old daughter, Suri, with Cruise.  Cruise has two adopted children from a previous marriage with actress Nicole Kidman.  It has been reported that Cruise was surprised to learn of Holmes’ filing.  This is the end of Cruise’s 3rd marriage, while Holmes’ first.

Fault vs. No Fault Divorce

Holmes filed for divorce in the state of New York.  There has been much speculation as to her motivation for filing in a “fault” divorce state.  In New York and other states that allow a petitioner to file for divorce on fault-based grounds.  In New York, you may file for a fault-based divorce based on several  grounds:

  • Cruel and Inhuman Treatment
    • Physical, verbal or emotional abuse that endangers your physical or mental well being.
    • The judge will look for occurrences in the last 5 years.
  • Abandonment
    • Your spouse must have abandoned you for a period of one or more years.
    • “Constructive Abandonment” is applicable if your spouse has refused to engage in sexual relations with you for a period of at least one year.
  • Three Consecutive Year Imprisonment
    • The imprisonment must begin after the marriage and last for a period of 3 consecutive years.
  • Adultery
    • Must be able to show that your spouse committed adultery during the marriage, which can prove to be difficult.

In Holmes’ and Cruise’s case, there is, of course, much speculation as to why Holmes would have filed in New York.  Many believe that Cruise’s intense commitment to Scientology may have played a role in their split.  In the petition, Holmes has claimed that the couple is unable to continue the marriage because of irreconcilable differences.  Cruise is expected to file a response in New York requesting the proceedings be moved to California.

Cruise and Holmes have a pre-nuptial agreement, so financial considerations will most likely not be a major issue in their divorce.  Holmes could challenge the agreement, however, the main issue will almost certainly be custody of their daughter.  Holmes has filed for sole custody of Suri along with an “appropriate” child support amount.

Iowa:  a No Fault Divorce State

Iowa is considered a no-fault divorce state.  The Iowa Code addresses dissolution of marriage in Chapter 598.

Officially called “dissolution of marriage” in Iowa, a divorce will be granted when there is evidence of a breakdown of the relationship with no likelihood it can be preserved.  There is no requirement for a spouse to place blame on the other spouse.  After filing for dissolution, a judge may require the couple to participate in conciliation efforts for a period of up to 60 days.  For example, Polk county requires the couple to participate in mediation.  Iowa Code section 598.7 addresses this requirement.  Also, there is a 90 day waiting period in Iowa from the time of filing until a judge can issue a final decree, although this requirement may be waived under certain circumstances.

It remains to be seen just how nasty Tom Cruise and Katie Holme’s divorce will be, however, we can be assured that whatever happens, there will be intense media coverage of every detail!

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Orders for Spousal Support

Recently, the Iowa Court of Appeals entered a ruling in a case centered on Iowa Code Section 598.21A, Orders for Spousal Support. The statute lists the criteria courts shall consider when determining spousal support.

Criteria the Court Considers when Determining Spousal Support

The criteria include the length of the marriage, the age and physical/emotional health of both parties, and the distribution of property made in the divorce. The court will also consider the educational level of both parties, the earning capacity of the party seeking maintenance, and responsibilities for the children. The party seeking maintenance will also be examined as to the length of time it will take for them to become self-sufficient at a standard of living similar to what they enjoyed during their marriage.  There are other minor factors the court takes into consideration as well.

In Re the Marriage of Wattonville

In the case of In Re the Marriage of Wattonville, decided on April 25, 2012, the Iowa Court of Appeals affirmed and modified the ruling of the district court.  The district court’s determination of the amount of spousal support was upheld, however, the Court of Appeals extended the time the husband was required to pay the support.

The couple married in their twenties, had three children and enjoyed a very comfortable lifestyle due to the husband’s gainful employment at John Deere.  The wife allowed her cosmetologist license to expire and stayed home with their children.  Unfortunately, the wife was diagnosed with brain cancer which has affected her current ability to work.

Spousal Support Extended but not Increased

Originally, the district court awarded the wife with alimony to last 10 years after their divorce.  She appealed on this issue, arguing she should be awarded alimony for the rest of her life, or until she is eligible for the husband’s retirement accounts and his Social Security. She also argued the amount should be increased.  The Court notes the previously mentioned criteria in determining amount and length of support and determined that the wife will receive support until she remarries or cohabitates, either party dies, or the husband reaches retirement age.  They do not see it necessary to modify the amount of support she will receive.

Property Distribution

The Court also addresses the parties’ appeals on the issue of property distribution in their divorce.  As the Court notes, Iowa law does not require an equal division, but a fair and equitable division.  The Court determines that the wife must list the marital home for sale since the deadline for her remaining in the house has passed, that she is not entitled to more than 43% of the husband’s 401K that he began earning before the marriage, and that the district court’s ruling regarding the livestock in the couple’s lambing operation should not be disturbed.

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