Opinion
20-09458
01-21-2022
S P, Petitioner, v. B P, Respondent.
Susan C. Over, Esquire; Attorney for Respondent
Petition No. 20-09458
Susan C. Over, Esquire; Attorney for Respondent
AMENDED ORDER ON MATTERS ANCILLARY TO DIVORCE [*]
MICHAEL W. ARRINGTON JUDGE
On December 21, 2021, the Court conducted a hearing regarding matters ancillary to divorce. Present in Court were S P ("Husband"), self- represented; and B P ("Wife"), represented by Susan C. Over, Esquire ("Ms. Over"). The Court heard testimony from both parties and one witness. This is the Court's ancillary decision.
Procedural History
The parties were married on August 13, 2010 and separated on April 5, 2020. Wife has primary residential placement of the parties' nine-year-old child ("Child") by stipulation of the parties. On April 28, 2020, Husband filed a Petition for Divorce without ancillary matters. On August 26, 2020, Wife filed an Answer and Counterclaim requesting that the Court retain jurisdiction over ancillary matters incident to the divorce.
Dkt. #1.
Dkt. #14.
On December 11, 2020, Wife filed a Motion for Interim Alimony/Spousal Support. On December 22, 2020, Husband filed a Response to Wife's Motion stating he "did not agree."
Dkt. #20.
Dkt. #25.
On February 4, 2021, the Court conducted a case management conference on the Motion for Interim Alimony/Spousal Support. Neither party requested a hearing on the Motion. On February 5, 2021, the Court found that Wife had an interim monthly deficit of $1,355.00 in alimony, and that Husband had an excess of $941.00 per month. After consideration of the factors, the Court ordered Husband to pay Wife $941.00 per month effective February 1, 2021. On March 25, 2021, Husband filed an untimely Response to Motion for Interim Alimony.
Dkt. #29.
The parties were divorced by a Final Decree of the Court on March 25, 2021, and ancillary matters were retained. A case management conference was held on May 26, 2021. The Court did not have an Ancillary Financial Disclosure Report on file although it was required by the Divorce Order. A partial Ancillary Financial Disclosure Report was filed with the Court on May 28, 2021. The Court scheduled the pretrial conference for July 23, 2021, and the ancillary hearing for August 3, 2021.
Dkts. #33, 34, 35, 36, 37, 38.
On July 20, 2021, Wife filed an Ancillary Pretrial Stipulation. On July 23, 2021, the Court held a Pretrial Conference. Husband failed to file either the Ancillary Financial Disclosure Report or the Ancillary Pretrial Stipulation. The Court continued the final ancillary hearing, permitted Wife's counsel to notice a deposition duces tecum of Husband to obtain required documents and information, and ordered the case to mediation to narrow the issues and disputes. The Court noted that it would schedule the final ancillary hearing following confirmation of the mediation date.
Dkt. #43.
On July 30, 2021, the Ancillary Pretrial Stipulation was filed by the parties. A copy of the Ancillary Pretrial Stipulation and Order is attached hereto as Exhibit A.
Dkt. #45.
On September 22, 2021, Husband filed a "Motion for Decline of Ancillary Matters." On September 27, 2021, Husband filed a "Motion for Proof of Three Months of Income from All Sources." On September 30, 2021, the Court denied Husband's Motion for Proof of Three Months of Income from All Sources noting that the Motion was actually a discovery request requiring no motion or Court action.
Dkt. #53.
Dkt. #54.
Dkt. #63.
On October 9, 2021, the Court issued the Revised Scheduling Order. Mediation was scheduled for October 31, 2021. A final pretrial conference was scheduled for November 24, 2021. The final ancillary hearing was scheduled for an in-person trial on December 21, 2021.
Dkt. #58.
On November 24, 2021, the Court held a final pretrial conference. The Court finalized the parties' matters in agreement and matters in dispute. The Court entered the Pretrial Stipulation and Order on November 24, 2021.
Dkt. #61.
Dkt. #62.
On November 29, 2021, the Court denied Husband's "Motion for Decline of Mediation." On December 2, 2021, Husband filed a "Motion for Ancillary Stipulation." On December 21, 2021, the Court denied Husband's Motion for Ancillary Stipulation. On December 21, 2021, the Court issued a Post-Trial Order noting that the ancillary case would be considered submitted on the date of the parties' Child Support Order.
Dkt. #64.
Dkt. #65.
Dkt. #67.
Dkt. #66.
On January 13, 2022, the Court issued a Second Post-Trial Order requiring Husband to confirm that payment had been made to the mediator as ordered by the Court. Husband was to provide confirmation of payment by January 18, 2022.
Issues in Agreement
Based on the parties' stipulation at the time of the pretrial conference and the day of the ancillary hearing, the parties agree upon the disposition of the following marital property which require no additional proof:
1. Marital Personal Property: The parties agree that all marital personal property has been amicably divided and there is no further action required from the Court.
2. Automobiles. The parties agree as follows:
a. 2010 Chevy Traverse - This vehicle was purchased during the marriage and will be retained by Wife with a marital equity value of $148.
b. 2019 Nissan Versa - This vehicle was purchased during the marriage and will be retained by Husband with a marital equity value of $5,100.
c. 2018 BMW 540 - This vehicle was purchased post-separation and shall not be included in the property division.
d. Antique car - This vehicle was purchased prior to the marriage. Wife has no appraisal of the value differential between marriage and
separation. This vehicle shall not be included in the property division.
3. Monthly Expenses. The parties agree that the following expenses are reasonable and require no additional proof: a. Electric - Each party shall be allowed $150. However, Husband testified at trial that his Mother pays the electric bill in full as Husband pays the mortgage in full.
b. Cable Television - Each party shall be allowed $65.
c. Household Items - Each party shall be allowed $150.
d. Groceries - Each party shall be allowed $450. e. Medical expenses - Each party shall be allowed $30 for self and $30 for Child.
f. Laundry/Dry Cleaning - Each party shall be allowed $100.
g. Cosmetics - Each party shall be allowed $60.
h. Interim Child Support - Husband pays Wife $460 subject to change based upon the final child support order.
4. Division of Federal Pension. Wife is entitled to a marital share of Husband's federal pension. Wife's counsel shall prepare a Qualified Domestic Relations Order ("QDRO") for Husband's federal pension with the United States Postal Service ("USPS") using the Cooper Formula with a 50% multiplier.
5. Mediation Payment. The Court previously ordered Husband to advance the costs of mediation. The mediation cost was $500. Husband was to pay the mediator $500 by December 10, 2021. At trial, Husband testified he had not made the payment. Husband testified he would pay the mediation cost by December 24, 2021. The payment shall be included in the Husband's debts column of the Wright Chart.
Issues in Dispute
The issues in dispute for this hearing are the income of the parties, the value of the parties' bank accounts, the distribution of the stimulus funds, the balance of the Rollover IRA account, the balance of the Thrift Savings Plan, and the value of certain monthly expenses for purposes of both property division and alimony.
A. Income of Parties
1. Wife's Income
At the final pretrial conference, Wife offered to accept an attributed income of $2,543 gross/$2,o93 net per month. Husband disputed the imputed income and was ordered to present expert testimony concerning Wife's ability to earn more than the imputed amount.
The net monthly income is calculated using https://smartasset.eom/taxes/delaware-tax-calculator#06MGommww4 which calculates the federal taxes, social security, Medicare, state, and local taxes.
At the hearing Wife testified that she currently works as a hairstylist and had worked for a brief time as a USPS employee. After the COVID-19 pandemic began, Wife's salon closed. In 2012 and 2013, Wife earned a maximum of $43,000 annually. Since Wife's separation from Husband, she had worked for USPS for at least four months. Wife testified the job took its toll on her health due to Wife's prior hip surgery in 2014. Wife left the USPS position in August 2021 and applied to work as a rural carrier associate for twenty to sixty hours per week.
Wife currently supplements her income by working as a hairstylist on Sundays and working on call as a rural carrier associate for USPS. On cross examination, Wife explained that she never earned above $40,000 per year after 2013 as a hairstylist. Wife explained that she changed studios, lost several clients, and the economy changed. Wife testified to her hourly wage which extrapolates to $30,516 annually if Wife were employed forty hours per week. Husband did not offer any expert testimony on Wife's earning capacity or imputed income amount. At the Child Support Hearing, Wife informed the Court that she was going to earn $19.06 per hour. The Court attributed Wife with earnings at $19.06 for 35 hours per week. The Court will attribute Wife at full time employment consistent with the Child Support Calculation for an annual income of $34,692 gross/$28,66o net for a monthly income of $2,389.
2. Husband's Income
At the pretrial conference, Husband claimed to earn $54,000 annually but his 2021 pay advisories indicate an annual income of $82,000 annually. At the hearing, Wife introduced into evidence a copy of Husband's W-2 Form for 2020. The exhibit confirmed that Husband earned $82,000 in 2020. On cross examination, Husband confirmed that the 2020 and 2021 W-2 forms reflected that Husband had similar income in those two years.
Wife's Ex. #24.
In response to questioning from the Court, Husband testified that he worked as an acting supervisor for two years and anticipated a change in employment status in 2022. Husband's supervisor from USPS, Mr. Frederick A. Sviban ("Mr. Sviban"), testified as to Husband's position at USPS. Mr. Sviban testified that a tractor trailer driver earned between $55,000 to $60,000 per year, and a supervisor earned between $73,000 and $75,000 per year. On cross examination, Mr. Sviban explained that he worked as a Manager of Logistics in Philadelphia and that Husband is his direct employee. Mr. Sviban did not have access to his employees' payrolls, did not have access to Husband's paystubs or W-2S, and did not know what Husband earns. While Husband is being considered for a supervisory position, Mr. Sviban confirmed that Husband works in a "detailed position" as of December 21, 2021. Mr. Sviban explained that Husband had received no notice that his job would change in the near future.
Husband failed to introduce any current pay advisories indicating a reduced income. Husband failed to introduce any evidence to substantiate his belief that Husband's income will be reduced in future years. Consequently, the Court will use Husband's current documented income of $82,000 per year.
B. Bank Accounts
At the pretrial conference, the parties agreed to use the April 5, 2020 date of separation to value the bank accounts. The parties testified and introduced evidence on the value of the Eagle FCU, the American Spirit FCU, and Wells Fargo Checking accounts.
1. Eagle FCU Account
Wife introduced into evidence a statement from the Eagle FCU account dated June 30, 2020. The balance of the account on the date of separation was $649. The Court will use the documented value of $649 for purposes of property division.
Wife's Ex. #2.
2. American Spirit Federal Credit Union
Wife introduced into evidence a statement of the balance of the American Spirit Federal Credit Union Account dated June 30, 2020. The balance account on the date of separation was $387. The Court will use the documented value of $387 for purposes of property division.
Wife's Ex. #3.
3. Wells Fargo Checking Account
Wife introduced into evidence a statement of the balance of the Wells Fargo Checking Account dated March 20, 2020. Wife's exhibit indicates that the separation date balance of the Wells Fargo Checking Account was $0. The Court will assign no value to this account for purposes of property division.
Wife's Ex. #4.
C. Stimulus Payments
At the pretrial conference, the parties agreed that Husband retained $10,000 of federal "stimulus payments" as of June 30, 2020. The parties disagreed on how the remaining stimulus funds were distributed. At trial, Wife introduced into evidence exhibits showing COVID-19 stimulus payments were transferred to a Wells Fargo account, a statement showing $10,000 was transferred to the savings account, the text message conversation between Husband and Wife regarding the stimulus payments, and a copy of a cashier's check showing the amount of the stimulus payments that Wife received from Husband.
Wife's Exs. #8, 9,10,12.
Wife testified that she received $1,800 from Husband. Wife explained that the additional $10,000 was based on a government grant or loan that Husband received even though the benefit was in Wife's name. The Court will use the value of $11,800 to the account for purposes of property division.
D. Rollover IRA
At the pretrial conference, the Court ordered that the parties provide documentation of the balance of the account as of the date of separation. Husband was to provide evidence of the balance of the account as of the date of marriage if he wished to claim that any of the funds are non-marital. At trial, Wife introduced, into evidence a statement documenting the separation date balance of the account. The statement gives the amounts as of March 2020 and April 2020. Using the graph on the statement, the Court determines that the value as of separation was $13,832. In response to questions from the Court, Husband testified that he had withdrawn all the funds from the Rollover IRA. While the Court ordinarily would divide an IRA account as a pretax retirement account, Wife will not have the ability to have any growth on her share of the funds after the property division. The equities of this case argue for full attribution of the value of the account. The Court will assign to Husband the value of $13,832 withdrawn by Husband.
Wife's Ex. #6.
E. Thrift Savings Plan
At the pretrial conference, the Court ordered the parties to provide documentation of the balance of the account as of the date of separation. Wife introduced into evidence a statement on the balance of the Thrift Savings Plan. As of January 1, 2020, the account had a balance of $5,635.25. Husband contributed a total of $5,993.64, or $499.47 per month. The amounts contributed through March 31, 2020 were $1,498.41 for a total of $7,134 as of separation. The Court will use the value of $7,134 as pretax retirement funds for purposes of property division.
Wife's Ex. #7.
F. Monthly Expenses
The parties both introduced into evidence several exhibits on the following claimed expenses based on a monthly basis irrespective of when payment was made:
No documentation was required for the stipulated expenses as noted at *7 above.
1. Mortgage/Lease
Husband resides in the home with his mother. Husband testified that he pays the entire mortgage and his mother pays for the electric. Husband testified that he spends $994 per month on the mortgage. Husband introduced and the Court admitted into evidence a bill reflecting a mortgage payment of $994 per month. Wife did not provide any evidence or testimony to rebut this value.
Husband's Ex. #8.
Wife rents an apartment at Water View Court. Wife introduced a copy of the lease indicating that her monthly rent is $940.
Wife's Ex. #13.
2. Water/Utilities/Trash
The parties testified that they have certain expenses for water, trash removal, and other utilities. The parties agreed to a monthly allocation for electric. Wife's trash removal is part of her lease. Husband did not testify as to how much, if any, he pays for trash removal. While neither party had proof of any expenses, the Court shall attribute $40 per month for these necessary and reasonable expense for water.
3. Telephone
Wife testified that she spent $63 per month on her cellphone bill. Husband introduced into evidence a statement evidencing payments to AT&T amounting to $187 for two cellphones. The Court will use the documented amounts for each party.
Husband's Ex. #6.
4. Clothing
Wife introduced into evidence documents showing her monthly clothing expenses of $150 for herself and Child. The Court will use $150 as Wife's monthly clothing expenses for Wife and Child.
Wife's Ex. #14.
Husband introduced into evidence Husband's receipts showing his clothing expense of $136 per month. On cross examination, Husband confirmed that his clothing receipts only dated back to December 2021. The Court shall use $136 as Husband's monthly clothing expense.
Husband's Ex. #3.
5. School Tuition
Wife introduced and the Court admitted into evidence documentation of Wife's childcare expenses that mentions school tuition. The parties did not offer any further testimony or exhibits on school tuition. The Court shall attribute the value of $0 to school tuition but will use the exhibit in determining child care.
Wife's Ex. #15.
6. Child Care/Before and After Care
Wife testified that she spent about $105 per week on Childcare at Brandywine Child Care. Wife introduced an exhibit supporting Wife's testimony. Wife testified that she spent $125 per week on summer camp at the PAL Center. Wife testified that she and Husband owed the PAL Center $4,000 in childcare expenses but provided no supporting documentation. Based on Wife's exhibits and testimony, Wife argues that she spends about $542 per month in childcare. On cross examination, Wife confirmed that she and Husband split childcare costs. The Court will use $542 per month as Wife's cost of childcare. Husband did not challenge Wife's testimony or exhibits.
Id.
Husband testified that he spends between $20 to $25 on childcare twice per month. Based on Husband's testimony, the Court will use $50 per month as Husband's cost of childcare.
7. Toys and Presents
Wife testified that she spent $100 per month on toys and presents for Child. The Court will use $100 per month as Wife's monthly expenses for toys and presents. Husband testified that he spent an average of $18 per month and around $200 in Christmas presents for Child. Neither party challenged the other party on their expenses for toys and presents. Based on the parties' testimony, the Court will use $40 as Husband's monthly costs for toys and presents.
8. Hobbies
Wife testified that the parties did not have many hobbies. Wife would work or care for the family. Husband would often work during the marriage as well. The Court will not use any value for hobbies for the parties.
9. Barber/Hairdresser
Wife introduced into evidence documentation reflecting Wife's expense of $33 for one haircut. Wife testified that she spent $106 per month on haircuts, shampoo, conditioner, gel, and scalp oil for her and Child. The Court will use $106 as Wife's monthly expense for Barber/Hairdresser expense.
Wife's Ex. #22.
Husband testified he spent $50 per month on haircuts. The Court will use $50 for Husband's monthly Barber/Hairdresser expense.
10. Newspapers/Magazine Subscriptions
Wife and Husband both testified that they had no subscriptions. The Court will not assign any monthly expense for newspaper and magazine subscriptions.
11. Charitable Contributions
Wife testified she spent $20 per month in charitable contributions to her church. Husband testified that he spent $2 per month in charitable contributions. Neither party challenged the other party's monthly contributions. The Court will use $20 per month for Wife's Charitable Contributions. The Court will use $2 per month for Husband's Charitable Contributions.
12.Vacation
Wife testified that she and Husband did not take vacations during the marriage. She and Husband would travel to their friends' weddings but had no other vacations. Wife testified she and Child would like to take a vacation to Florida this year to visit Maternal Grandfather. Wife later testified that she averaged about two vacations per year, which cost about $700 for travel expenses and other related expenses. However, Wife had no documentation of her expenses. Husband testified he spends $100 per month on vacation related expenses. Similarly, Husband had no documentation of his vacation expenses.
While Wife may aspire to two vacations per year, the lifestyle of the parties did not include vacations. Both parties do, however, need to take at least an annual vacation for themselves as well as their Child's mental health. The Court finds that Husband's testimony of $100 per month (or $1,200 per year) is reasonable. The Court will use $100 per month for each party's Vacation expense.
13. Entertainment
Wife introduced into evidence documentation on her entertainment expenses. Wife testified that she goes out to eat and takes Child to other activities and outings such as Chuck-E-Cheese. Wife testified that she spends about $194 per month in entertainment expenses. In light of the lack of an allowance for hobbies, the Court will use $200 per month as Wife's Entertainment expense for herself and Child.
Wife's Ex. #16.
Husband testified that he takes Child roller skating and buys video games for Child. He testified he spent $128 per month on entertainment expenses. In light of the lack of an allowance for hobbies, the Court will use $130 per month for Husband's Entertainment expense for himself and Child.
14. Car Payments
Both parties had documentary evidence of their car payments. Wife has $270 per month in car payments. Husband has $448 per month in car payments. Neither party challenged the other party on their car payment expense. The Court will use $270 per month for Wife and $448 per month for Husband in the category of Car Payments.
15. Repairs/Maintenance
Wife introduced into evidence documentation of Wife's automobile repairs and maintenance expenses. Wife testified that her vehicle received two to three tire changes per year. Her car required air conditioning repairs which she had assessed but not performed. Wife stated she spent $720 for new tires. Wife estimated she spent $43 per month on car repair and maintenance. Wife's tire and air conditioner expenses are not on-going costs. The air conditioner repair is not likely to reoccur. The tire expenses are expected to last for five years. The Court will use $60 per month as Wife's reasonable monthly expense for repairs and maintenance of her vehicle.
Wife's Ex. #20.
Husband testified that he spent $10 per month on car maintenance and repairs. Husband underestimates his expense for two vehicles and a third antique vehicle. Husband is entitled to expenses similar to Wife. The Court will use $60 per month as reasonable expenses for repairs and maintenance of his vehicles.
16. Insurance
Wife introduced into evidence documents reflecting Wife's expenses on car insurance. The Court will use the documented amount of $177 per month as Wife's expense for car insurance.
Wife's Ex. #18.
Husband testified that he spent $148 per month for the BMW and Nissan and spent $49 per month for the Buick Electra. Neither representation was supported by evidence. Documentation indicated that Husband actually spent $399 per month in car insurance for all his vehicles. The Court shall use the documented amount of $399 per month as Husband's expense for car insurance.
Husband's Ex. #5.
17. Gasoline
Wife introduced into evidence receipts of Wife's gas payments for her vehicle. Wife testified that she did not keep all her receipts. Wife estimated she spent $55 per week in gas and testified she spent $280 per month on gas. The Court will use Wife's estimate of $280 per month for gasoline.
Wife's Ex. #21.
Husband introduced into evidence of Husband's gas receipts. Husband testified that he buys gas every three days at $29 per purchase. Husband stated he spent $232 per month on gas. The Court will use Husband's estimate of $232 per month for gasoline. Neither party challenged the other party's estimate of gasoline expense.
Husband's Ex. #2.
18. Life Insurance
Wife introduced into evidence a bank statement from PNC Bank reflecting payments for Husband's life insurance. Life insurance protects Wife in the event of Husband's early demise. The Court will use $39 per month as Wife's monthly expense for life insurance.
Wife's Ex. #17.
Husband testified that he had life insurance through his employer. Husband testified Paternal Grandmother was the named beneficiary. The Court ordered that Husband name Wife as the beneficiary so long has Husband has child support or alimony obligations to Wife. The Court noted that Husband spent $105 per month on life insurance. The Court will use $105 per month as a reasonable expense for Husband's life insurance.
19. Husband's Pension
Husband's pension shall be divided by a Qualified Domestics Relations Order ("QDRO") using the Cooper formula with a 50% multiplier. Wife's attorney shall draft the QDRO.
ANALYSIS
Property Division
The Court retained jurisdiction over property division, alimony, attorneys' fees, and court costs. Delaware law requires that the court "equitably divide, distribute and assign the marital property between the parties without regard to marital misconduct, in such proportions as the Court deems just" after considering eleven statutory factors. The analysis of those factors follows.
13 Del. C. §1313(3).
(1) The length of the marriage
The marriage lasted ten years and eight months.
(2) Any prior marriage of the party
This is the first marriage for each party.
(3) The age, health, station, amount and sources of income, vocational skills, employ ability, estate, liabilities and needs of each of the parties
Husband is forty-three years old. Husband was the primary breadwinner during the marriage while Wife cared for the family and worked as well. Husband worked full time throughout the marriage. Husband works full time for the United States Postal Service ("USPS") with an annual income of $82,000. Husband is employed at full capacity as an acting supervisor. Husband testified that his income was $54,000 annually because he no longer drove for USPS. Husband expected an income reduction in the near future.
Husband's supervisor, Mr. Sviban, testified at trial. Mr. Sviban stated that Husband had put in an application for one of a number of supervisory positions. Mr. Sviban explained that Husband worked in a supervisory capacity as of the date of the hearing.
While Husband speculates that he will no longer have his current position, there was no evidence that he faces such action. The Court finds that Husband's speculations are not reasonable.
Wife is forty-three years old. Wife testified that she underwent hip surgery in 2014 and her physical health suffers as a result. Wife has a bachelor's degree. Wife worked as a hair stylist and worked in a salon. Wife opened her own salon business while pregnant with Child. Wife took care of the household and worked during the marriage. After the parties separated, Wife was offered a full-time position with USPS. Wife currently works as an on-call rural carrier associate for USPS and as a hair stylist on a part-time basis. Wife's current annual income is attributed at $34,692 based on her testified rate of pay extrapolated to a 35-hour work week in the Child Support hearing. Wife has custody of Child. Wife continues to reside with Child and bears the burden of the majority of Child's expenses.
(4) Whether the property award is in lieu of or in addition to alimony
The property award is in addition to alimony. The liquid marital estate is quite small, primarily because Husband has retained and spent most of the assets. Wife has insufficient income to meet her current monthly needs. While she will continue to receive some child support until Child has turned 18, Wife will require alimony to partially meet her reasonable needs.
(5) The opportunity of each for future acquisitions of capital assets and income
Both parties have nineteen working years remaining until they are eligible for full social security retirement benefits. Husband is fully employed as a USPS worker earning $82,000 per year. Wife is fully employed as a USPS worker and hairstylist and has the attributed income of $34,692 at present. There was no testimony in this proceeding as to Wife's earning potential. However, it is clear that Husband will have a significantly increased opportunity to acquire capital assets since he currently earns more income. By way of example, at the current rate of pay, Husband will earn $850,000 more than Wife between divorce and full retirement. While the Court does not have authority to divide future earnings, the earnings differential affects the Court's decision on equitable distribution of the marital estate.
(6) The contribution or dissipation of each party in the acquisition, preservation, depreciation or appreciation of the marital property, including the contribution of a party as homemaker, husband, or wife
The parties' financial situation is stressed. Wife contributes to Child's living expenses and resides with Child in her own residence. Wife's monthly expenses currently exceed her monthly income.
Husband resides separately from Child and Wife. Husband lives with his mother, and pays the mortgage, child support, and interim alimony. Husband earns more than Wife, but Husband's monthly expenses exceed Wife's monthly expenses.
Wife testified that Husband was the primary wage earner during the party's marriage. Wife also worked full time but did not earn as much as Husband. Husband testified that he withdrew all the funds from his IRA Rollover to pay for his living expenses. Both parties worked full time and contributed to the household expenses.
The testimony and exhibits are concerning to the Court. Husband received $10,000 in federal funds for a loan or grant. There was no tracking of where Husband spent those funds. Husband liquidated his Rollover IRA funds and there was no tracking of where the funds went. Husband's checking account had a positive balance of $1,130 less than a month before the parties separated. Husband withdrew the funds and there was no tracking of the withdrawn funds. The Court cannot find that Husband dissipated marital assets but it is clear that there were more funds available at separation than are available for property division.
(y) The value of the property set apart to each party
By agreement of the parties, Wife retained the 2010 Chevy Traverse with $140 of equity, and Husband retained the 2019 Nissan Traverse with $5,100 of equity. Husband also has a 2018 BMW 540 and an Antique Car, which he acquired post-separation. The parties agreed these vehicles would not be included on the Wright Chart. Husband retained $10,000 in stimulus funds and Wife retained $1,800 in stimulus funds. Husband has retained $649 in the Eagle FCU, $387 in the American Spirit FCU, and $13,832 in the IRA Rollover. The parties have amicably divided their marital personal property.
(8) The economic circumstances of each party at the time the division of property is to become effective, including the desirability of awarding the family home or the right to live therein for reasonable periods to the party with whom any children of the marriage will live
Wife is unable to meet her monthly expenses. Wife has jobs that generate a lower wage compared to Husband's job. Wife currently resides in a separate residence with Child. Wife's monthly expenses are less than Husband's monthly expenses. Wife's monthly disposable income after expenses is a deficit compared to Husband's surplus monthly disposable income after expenses and child support payments.
Husband has a job that produces a higher wage for Husband's training and capacity, compared to Wife's job. Husband currently lives separate from Wife and Child. Husband contributes to the expenses of Husband's current residence, Child's expenses, child support, and interim alimony. Husband's monthly expenses exceed Wife's monthly expenses. However, Husband has a minor surplus after expenses and child support payments.
(g) Whether the property was acquired by gift, except those gifts excluded by paragraph (b)(i) of this section
There was no evidence submitted at trial on this issue.
(10) The debts of the parties
To the credit of the parties, there are few marital debts. No evidence was presented in the pretrial stipulation or at trial concerning debts. The parties have agreed to handle their debts outside of this property division order. Husband still needs to pay $500 for the cost of mediation.
(11) Tax consequences
There was no evidence submitted at trial on this issue. Division of marital property itself will not incur any tax consequences. Sale of the marital home may incur some capital gains, but the Parties have already sold and divided the proceeds from the sale of the marital home. There was a tax consequence in connection with Husband's withdrawal of his IRA funds. The early withdrawal prevents Wife from obtaining any pretax benefit from the IRA funds. The Court has considered the tax factors in determining that the IRA balance at separation shall be divided between the parties without reduction for the tax impact. Wife had no role in deciding to liquidate the funds and should not suffer as a result.
CONCLUSION
Property Division
The Court considers each of the factors as a whole in deciding the division of the marital estate. In this case, while all factors are relevant, factors 5 and 6 carry more persuasive weight. The marital estate is small for a marriage that lasted more than twenty ten_years. Complicating the division is the fact that Husband has already claimed the entire marital share before the ancillary hearing leaving only liabilities between the parties.
The Court will divide the assets in different categories. The non-retirement assets shall be divided 55% to Wife and 45% to Husband. Conversely, the single debt for mediation costs will be divided 45% to Wife and 55% to Husband. This division is equitable in light of the disparity of income and the available assets of each party to share in the division. While Wife requested a 60/40 division, and Husband an equal division, the Court finds that a slight disproportionate division is more appropriate as Husband will have an alimony obligation to pay in addition to shifting of his assets for property division.
The Wright Chart, attached as Exhibit B hereto, lists each of the assets and which party will retain them. The total marital assets are $31,916. Husband controls $29,968 and Wife controls $1,984. The marital debts are $500 which are in Husband's column. In order to effect the 55/45 division of non-marital assets and debts, Husband owes Wife $15,381 which is addressed with more specifics in the reconciliation section below.
The marital retirement assets shall be divided equally. The reason for the 50/50 division of retirement assets is that parties will both be retired and, therefore, will have relatively equal reduced income. In order to effect the 50/50 division of the marital retirement assets, Husband will owe Wife from his Thrift Savings Plan $3,567 plus gains and losses from April 5, 2020 to date of distribution. Husband's federal pension shall be divided by the Cooper formula using a 50% multiplier. A survivor's benefit is ordered if the plan allows for such. Wife's Counsel shall prepare the documentation necessary for each account. Reconciliation of Property Division.
A. Non-Retirement Funds: The Court divides the marital assets 55% to Wife and 45% to Husband.
Each party shall retain the vehicle(s) in his or her possession and any loans thereon. Only the 2010 Chevy Traverse and the 2019 Nissan Versa vehicles shall be considered as an asset or debt for this property division. Neither party shall be required to refinance the loan on their car unless two loan payments are missed at which time the offending party shall be required to refinance the loan to remove of the name of the innocent party. Both parties shall sign all necessary documents to transfer ownership of the vehicle into the sole name of the party retaining the vehicle.
Husband shall retain ownership of the bank accounts. To the extent that any account is in joint names, Wife shall sign all documents required to remove her name from account ownership.
The Court divides the marital debts 45% to Wife and 55% to Husband. Husband shall pay the past due mediation debt forthwith and provide proof of payment to the Court and Wife's Counsel. Wife owes Husband $225 to effect the division of the marital debt. Wife's obligation to Husband shall be deducted from the amounts owed to Wife by Husband.
As indicated on the Wright Chart, Husband owes Wife $15,381 to effect the equitable division of both marital assets and marital debts. Husband does not have surplus funds to make an immediate payment and the Court must make provisions for payment over time. Husband shall have five years to make payment to Wife in equal monthly installments of $260 until the obligation is paid. Interest at the legal rate may be applied to any outstanding balance if Husband does not make the monthly payment. Otherwise, interest is deferred on the amount to be paid to Wife in the installments.
B. Retirement Funds: Wife shall be entitled to an equal share of the marital portion of Husband's Federal Pension. Wife shall make arrangements to draft the Qualified Domestic Relations Order ("QDRO") using the Cooper Formula with a 50% multiplier. The QDRO shall require a survivor's benefit if the plan so allows. Husband shall cooperate and provide Wife's preparer with all information needed for the form, including social security number and start date of employment.
Husband has a Thrift Savings Plan account with a separation date marital balance of $7,134. Wife is entitled $3,567 representing one-half of the separation date balance, plus and minus gains and losses from April 5, 2020. Wife's counsel shall prepare the paperwork, including a QDRO if required, to transfer Wife's share of $3,567 plus and minus gains and losses from Husband's Thrift Savings account.
ANALYSIS
Alimony
In determining whether alimony shall be awarded, the Court must consider whether the party receiving alimony: (1) is dependent upon the other spouse for support and the other spouse is not contractually obligated to provide such support after divorce; (2) lacks sufficient property to provide for his or her reasonable needs; and (3) is unable to support himself or herself through appropriate employment or is the custodial parent of a child whose conditions or circumstances make it appropriate not to seek employment. In reaching its conclusion, the Court must consider ten statutory factors.
13 Del.C.% 1512(b).
Wife's Income and Claimed Expenses
Wife is attributed with earning $34,692 per year. Wife works at full capacity as a hair stylist and a USPS employee. Wife's after-tax monthly take home pay is a calculated at $2,38c). Additionally, Wife receives non-taxable child support in the amount of $622 per month. Wife available net income is $3,011.
After-tax take home pay for Wife and Husband were calculated using the commonly available https://smartasset.com/taxes/paycheck-calculator. This website uses current tax rates for federal, FICA, Medicare, and state of residence taxes.
Wife claims $5,308 in monthly expenses. The Court cannot accept mere estimates and the exhibits at trial did not support Wife's claims. The Court adjusts Wife's amounts as noted in the following chart below.
Wife's Monthly Expenses for Alimony Calculation
Rent | Wife's Claim $1,025 | Court Adjusted $940 | |
Mortgage (taxes, insurance and escrow) | |||
Water | $40 | Court allowance | |
Electric | $150 | $150 | Pretrial stipulation |
Cable Television | $65 | $65 | Pretrial stipulation |
Telephone | $75 | $63 | Trial testimony/exhibits |
Household items | $150 | $150 | Pretrial stipulation |
Groceries | $450 | $450 | Pretrial stipulation |
Clothing | $300 | $150 | Trial testimony/exhibits |
Out of pocket medical and dental - self | $30 | $30 | Pretrial stipulation |
Out of pocket medical and dental - child | $30 | $30 | Pretrial stipulation |
Work-related child care | $100 | $542 | Trial testimony/exhibits |
School tuition for children of the parties | $500 | $0 | |
Laundry and dry cleaning | $100 | $100 | Pretrial stipulation |
Toys and presents | $200 | $100 | Trial testimony/exhibits |
Cosmetics and toiletries | $60 | $60 | Pretrial stipulation |
Hobbies | $0 | $0 | |
Barber and Hair Stylist | $180 | $106 | Trial testimony/exhibits |
Newspaper and magazine subscriptions | $12 | $0 | |
Charitable and religious contributions | $40 | $20 | |
Vacation | $100 | Court allowance | |
Entertainment and miscellaneous | $300 | $200 | Trial testimony/exhibits |
Automobile: | |||
Monthly Payment | $273 | $270 | Trial testimony/exhibits |
Repairs and Maintenance | $60 | $60 | Trial testimony/exhibits |
Insurance | $177 | $177 | |
Gasoline | $320 | $280 | Trial testimony/exhibits |
Life Insurance | $61 | $39 | Trial testimony/exhibits |
Other: | |||
Summer Camp and Trips | $650 | $0 | Included in child care |
$5,308 | $4,122 |
Wife has reasonable monthly expenses of $4,122. Wife has after-tax income of $2,389 and $622 of monthly non-taxable child support for a total available income of $3,011. Wife has a monthly deficit of ($1,111).
Husband's Income and Claimed Expenses
Husband works at full capacity for USPS in Philadelphia, Pennsylvania. Husband has documented income of $82,000 per year. Husband's after-tax monthly take home pay is a calculated at $5,292.
Husband claims $5,400 in monthly expenses. As with Wife's claimed expenses, Husband estimated his monthly costs and did not have documentation to support most of the categories. The Court adjusts Husband's amounts as noted in the following chart below. The Court adjusted Child Support to comport with the Court's full determination of Child Support at the January 12, 2022 hearing.
Husband's Monthly Expenses for Alimony Calculation
Husband's Claim | Court Adjusted | ||
Rent | |||
Mortgage (taxes, insurance and escrow) | $950 | $994 | Trial exhibit |
Water | $40 | Court allowance | |
Electric | $150 | $0 | Trial testimony |
Cable Television | $75 | $65 | Pretrial stipulation |
Telephone | $190 | $187 | Trial exhibit |
Household items | $180 | $150 | Pretrial stipulation |
Groceries | $450 | $450 | Pretrial stipulation |
Clothing | $150 | $136 | Trial testimony |
Out of pocket medical and dental - self | $30 | $30 | Pretrial stipulation |
Out of pocket medical and dental - child | $30 | $30 | Pretrial stipulation |
Work-related child care | $100 | $50 | Trial testimony |
School tuition for children of the parties | |||
Laundry and dry cleaning | $100 | $100 | Pretrial stipulation |
Toys and presents | $200 | $40 | Trial testimony |
Cosmetics and toiletries | $100 | $60 | Pretrial stipulation |
Hobbies | $0 | $0 | |
Barber and Hair Stylist | $80 | $50 | Trial testimony |
Newspaper and magazine subscriptions | $10 | $0 | |
Charitable and religious contributions | $40 | $2 | Trial testimony |
Vacation | $100 | Court allowance | |
Entertainment and miscellaneous | $300 | $128 | Trial testimony |
Automobile: | |||
Monthly Payment | $915 | $448 | Trial exhibit |
Repairs and Maintenance | $150 | $60 | Trial testimony |
Insurance | $320 | $399 | Trial exhibit |
Gasoline | $300 | $232 | Trial testimony |
Life Insurance | $120 | $105 | Trial exhibit |
Other: | |||
Summer Camp and Trips | |||
Child Support | $460 | $622 | Court Ordered |
$5,400 | $4,478 |
Husband has reasonable monthly expenses of $4,478. Husband has available after-tax income of $5,292. Husband has a monthly surplus of $814.
Analysis of §1512(0) Factors:
(1) The financial resources of the party seeking alimony, including the marital or separate property apportioned to him or her, and his or her ability to meet all or part of his or her reasonable needs independently;
Wife received 55% of the available marital estate, 50% of the retirement assets, and 45% of the mediation debt. Wife currently resides in a separate residence with Child. The marital residence was already sold and cannot be used to effectuate the property division order. In fact, Husband owes Wife approximately $15,000 and lacks the ability to make immediate payment to Wife. The Court has allowed Husband to make monthly installments over sixty months.
Wife has a monthly deficit of ($1,111). Wife currently works as an on-call USPS worker and part-time as a hair stylist. Wife does not have the capacity to meet her entire monthly deficit at present.
Husband received 45% of the available marital assets, 50% of the retirement assets, and 55% of the mediation debt. Husband currently resides separately from Wife and Child. Husband has a monthly surplus of $814 after paying $622 in child support. Husband is able to meet his needs at present.
(2)The time necessary and expense required to acquire sufficient education or training to enable the party seeking alimony to find appropriate employment;
Wife seeks permanent alimony. Wife has a bachelor's degree and works full time as a USPS employee and part-time as a hair stylist. Husband testified that Wife was not working at her full earning capacity but lacked any evidence or expert opinion to support his supposition. The Court does not accept Husband's position as Wife credibly testified to her current position and was attributed income for full time work.
Husband works full time as an acting supervisor for USPS. Husband testified that he expects a decrease in income because of his role at USPS that he believes is changing. Husband's supervisor Mr. Sviban testified that Father has not been notified of a change in his employment title or status. More importantly, Mr. Sviban did not support Husband's supposition that he would lose his current position. Husband has applied for one of multiple positions at his current level.
(3)The standard of living established during the marriage;
Wife testified that the standard of living during the marriage was moderate and within the parties' means. Husband was employed full time and split most of the household expenses with Wife. Wife also worked and provided the majority of childcare. The parties maintained three vehicles and never went on vacations together. Wife testified that both parties mostly worked and Wife dedicated herself to taking care of the family. Wife testified that the parties did go out to eat as a family. Husband offered no testimony on the parties' lifestyle during marriage.
The parties have sufficient income to support a sufficient lifestyle. This order was designed to allow them to start afresh within their means.
(4)The duration of the marriage;
The marriage lasted tenyears and eight months.
(5)The age, physical and emotional condition of both parties;
Husband is forty-three years old and did not offer testimony on his physical and mental health. Wife is forty-three years old and is in good mental health. Wife testified that she underwent hip surgery in 2014. Wife's hip causes her physical pain that prevents her from engaging in heavy physical labor.
(6)Any financial or other contribution made by either party to the education, training, vocational skills, career or earning capacity of the other party;
Wife has a bachelor's degree she obtained before marriage. No further evidence was submitted on this issue.
(7) The ability of the other party to meet his or her needs while paying alimony;
Alimony is sought from Husband. As documented above, Husband has the ability to meet his needs and those of Child while paying alimony toward some of Wife's monthly deficiency. Additionally, Husband will be paying Wife $260 per month for the next five years, plus attorney's fees discussed below. These payments in the aggregate equalize the parties monthly deficits.
(8) Tax consequences;
There are no tax consequences in connection with alimony as a result of the changes to the tax code.
(9)Whether either party has foregone or postponed economic, education or other employment opportunities during the course of the marriage; and
Wife was the primary caretaker of Child during the marriage. Wife worked as a hair stylist during the marriage to supplement the parties' income. There was no testimony suggesting that either party had to postpone any opportunities during the marriage.
(10)Any other factor which the Court expressly finds is just and appropriate to consider.
Husband was under an interim alimony order since February 5, 2021. The initial alimony order required Husband to pay Wife $941 representing 100% of Husband's calculated surplus. When Wife filed for alimony, the Court entered an interim order of $460 per month. Wife filed a Petition Rule to Show Cause alleging that Husband was not paying the entire amount of interim alimony ordered. The Court denied the petition as Husband's interim alimony did not include the child support obligation. The Court clarified that all of Husband's surplus was to be paid to Wife who would continue to have a deficit after receiving both child support and interim alimony.
The Court scheduled a final hearing on the child support petition for January 12, 2022. The child support order requires Husband to pay Wife $622 per month reducing Husband's surplus to $814 per month.
Adjustment for interim alimony is not necessary in this case as adjustment would be negligible.
CONCLUSION
Alimony
As with property division, the Court considers all ten factors as a whole in reaching a decision on whether alimony is to be awarded and how long the order will last. Based upon the evidence presented at trial and in consideration of the statutory factors for alimony, the Court finds that Wife is dependent upon Husband for support. Husband is not obligated by contract or separation agreement to provide support to Wife. Wife lacks sufficient property to provide for her needs as the Court adjusted and determined as reasonable.
Wife has a monthly deficit of ($1,111) while Husband has a monthly surplus of $814. The parties were married for ten years and eight months. Wife is eligible to receive alimony for an additional four years and four months. However, both parties need to understand that their financial and personal circumstances may change and the Court has the ability to modify this award upon petition. The Court finds it equitable that Husband pay Wife $814 per month as permanent alimony commencing February 1, 2022 through May 1, 2026. This order is subject to modification in the event of a substantial change in circumstances, or termination in certain instances. Under Delaware law, alimony obligations terminate upon the death of either party, the recipient's remarriage, or the recipient's cohabitation as defined in 13 Del.C. § 1512(g).
Attorney's Fees and Court Costs
The Court provided notice to the parties of the dates for submission of the Ancillary Financial Disclosure Report (AFDR) and the Pretrial Stipulation. Husband failed to provide his portion of the AFDR to the opposing party by the deadline. Husband also failed to provide his portion of the pretrial stipulation to the opposing party as required. When the pretrial conference was held, Husband had not completed his stipulation in a good faith manner and there were no issues in agreement. Further complicating the matter was the lack of identification or valuation of the items in dispute. As a result, the Court ordered the parties to mediation to narrow the scope of issues to be tried or settled. Husband was ordered to advance payment of the mediator's fee. Husband filed multiple motions to avoid the mediation conference that had been ordered. Husband additionally filed motions for issues that are not appropriate for motion practice such as requiring paystubs and a motion for a stipulation on disputed matters. Husband never provided copies of his motions to Wife's counsel, choosing instead to serve them on Wife. Wife's counsel was required to review and respond to these needless motions. Husband's conduct with respect to the mediation conference and motion practice was overly litigious.
The parties were given notice in writing of the in-person hearing on ancillary matters scheduled for December 21, 2021. The hearing commenced at 9:00 a.m. Husband did not appear. When called by the Court, Husband indicated that he thought the trial was virtual despite the written notice of an in-person hearing. The Court reconvened at 10:00 a.m. for an in-person hearing regarding matters ancillary to divorce.
The Court ordered that Ms. Over file an affidavit of her fees and costs to date to be filed directly with Chambers by January 5, 2022. Mr. P had the opportunity to file a response to the affidavit but did not respond.
Ms. Over's application was for $9,294. The time billed on the entire case was 22.76 hours which is less than three full work days and did not include any time for the mediation conference. The case lasted more than 500 days from service of the petition and the billed time is reasonable. Ms. Over has been a member of the Delaware Bar since 1988 and her billing rate for this case was $400 per hour which falls in the range for attorneys of Ms. Over's experience.
The Court is authorized to award a party attorney's fees in divorce cases. In this case, Husband earns more than twice Wife's attributed income and controls virtually all of the parties' assets. While Husband may not like that Wife requested retention of ancillary matters, it is the right of either party in a divorce proceeding to make such requests. Husband's conduct during this litigation required multiple rescheduling of deadlines and incurred unnecessary costs for Wife. The Court divided the entire marital estate, both retirement and non-retirement, 53/47 in Wife's favor. In light of the parties' relative income and Husband's overly litigious conduct in this action, the Court orders that Husband pay $5,000 (approximately 53% of Wife's costs) directly to Wife's counsel within six months of the date of this Order.
13 Del.C. §1515.
THIS IS A FINAL ORDER.
IT IS SO ORDERED.
[*] This Amended Order corrects clerical errors as identified in Wife's Motion for Correction of Clerical Error