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Divorce

9/28/2009
M. Scott Bucci
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Material Change In Circumstances Does Not Lead To Reduction In Spousal Support

The Court of Appeals recently affirmed the trial court's refusal to reduce a spousal support obligation, despite a finding that there was a material change of circumstances. In Lane v. Lane, husband and wife divorced in 1997. In the separation agreement (which was incorporated into the divorce decree), husband agreed to pay wife $6,000 per month, wife agreed to try to make herself more finanically self sufficient, and the parties agreed to renegotiate if husband's income was reduced substantially. After divorcing, husband bought and sold high end real estate. Wife also entered the real estate market.

Husband suffered significant business losses in the downturn in the real estate market, and sought to have his spousal support obligation reduced. The trial court held, and the Court of Appeals agreed, that the market crash led to a material change in circumstances that was not the husband's fault.

However, the Courts noted that in addition to there being a material change, that change must also warrant a modification of support. In looking at the facts of the case, the trial court observed that the wife had suffered losses in the real estate market as well; she had been diagnosed with cancer which affected her income generating ability; and the husband made "good business decisions" and therefore had a much greater earning capacity than wife.

Accordingly, the Court held that "[n]ot every material change of circumstance justifies a modification of spousal support." The Court rejected the husband's argument that the wife failed to make a good faith effort to improve her earning capacity. This case stands as a reminder that even where there is a material change in circumstances that is not the payor's fault, a reduction of support obligations is not automatic.

Labels: change in circumstances divorce spousal support