The Difficulties in Calculating Alimony For Corporate Income
by
Joseph C. Maya on May. 05, 2017
Divorce & Family Law Divorce & Family Law Child Support Divorce & Family Law Family Law
Summary: Blog post about the difficulty of calculating alimony payments when the main source of income of the payor comes from the assets of his closely held corporation.
If you have questions about divorce, legal separation, alimony pendente lite, or alimony in Connecticut, please feel free to call the experienced divorce attorneys at Maya Murphy, P.C. in Westport today at 203-221-3100 or email Joseph C. Maya, Esq. at JMaya@Mayalaw.com.
The Hartford Superior Court grappled with the difficulties in calculating alimony when the payor’s income is derived from the assets of his close held corporation.
In the matter at hand, the parties’ had an original agreement with an alimony provision, which was designed to share equally the defendant’s income from his numerous business interests. While the issue concerning the plaintiff’s alimony is simple, the means of achieving an accurate calculation has been difficult. In a hearing held in 2013, the court ordered that alimony be calculated by a court-appointed expert. While the court expert prepared a thorough report, the court found that he took certain liberties in interpreting his assignment. The court specifically called for a record of relevant loans, tax liabilities, deductions and rental income. Fortunately, the plaintiff's expert introduced a financial report that coincided with this court order, and was adopted by the court for their determination. In addition, the defendant argued that the 2013 hearing orders were not final, but rather “rules of the case” that were not binding on subsequent hearings. The court found that the 2013 hearing was final, with only the amount of alimony pending. In this respect, the court lacked the authority to reopen 2013 issues.
The court was able to make a determination of alimony for the plaintiff based on the information provided by the plaintiff’s expert. Yet, subsequent financial affidavits will be submitted for further review. Overall, this determination of alimony from the financial assets of a close held corporation was complex, costly and time consuming.
For a free consultation, please do not hesitate to call the experienced family law and divorce attorneys at Maya Murphy, P.C. in Westport, CT at 203-221-3100. We may also be reached for inquiries by email at JMaya@mayalaw.com.
Source: Theresa Hines v. David Hines, 61 Conn. L. Rptr. No. 19, 723 (April 25, 2016)
