Tuesday, August 7, 2012

When can lump sum alimony be awarded?

In the case of Buoniconti v. Buoniconti, 36 So.3d 154 (Fla. 2nd DCA 2010):

TRIAL COURT'S AWARD OF PERMANENT ALIMONY BY WAY OF A LUMP SUM AWARD TO THE WIFE WAS NOT "UNFAIR" SIMPLY BECAUSE LUMP SUM ALIMONY IS A VESTED RIGHT THAT WOULD SURVIVE REMARRIAGE.

Prior to the dissolution hearing, husband and wife resolved the majority of issues between them. The trial court was asked to consider only the wife's claim for permanent and retroactive alimony and her claim that the liquid marital assets should be distributed unequally due to the husband's dissipation of certain marital assets during the marriage. At the close of the dissolution proceedings, the trial court awarded the wife permanent alimony payable as lump sum as well as retroactive alimony. It also found that the husband had dissipated marital assets, and it charged those dissipated assets to the Husband in its equitable distribution scheme. The husband first contended that the trial court abused its discretion by awarding the wife $261,240 in permanent alimony payable as a lump sum. The argument has two components: first, whether the wife was entitled to permanent alimony, payable as a lump sum; and second, whether the amount of the award was supported by evidence. With regard to the Husband's argument that the award was "unfair," the District Court held:

1. "At oral argument, counsel for the Husband argued that it was 'unfair' to award permanent alimony as a lump sum because the Wife would get to keep the entire award even if she chooses to remarry or cohabit." 

2. "We reject this 'unfairness' argument for three reasons. First, there was no evidence that the Wife sought permanent alimony payable as a lump sum because she was planning to remarry or cohabit…. Second, there is nothing 'unfair' about a court of equity exercising its discretion to select from the range of available options, provided that the option chosen is supported by the evidence and can withstand the applicable standard of review. Third, the Husband cannot be heard to complain simply because his chosen financial strategy did not produce the desired result. The Husband's course of conduct forced the trial court to choose between awarding the Wife nominal permanent periodic alimony or a reasonable amount of permanent alimony payable as a lump sum. The fact that the Husband's apparent strategy to avoid paying permanent alimony backfired is the risk he took when he chose that course of action. Absent legal error, a party's failed strategy is not rectifiable on appeal."

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