SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-4828-96T5
ALICE MURPHY,
Plaintiff/Respondent,
v.
JOHN JAMES MURPHY,
Defendant/Appellant.
___________________________________________________________________
Submitted: June 2, 1998 - Decided: July 6, 1998
Before Judges Pressler, Wallace and Carchman.
On appeal from the Superior Court of New
Jersey, Chancery Division, Family Part,
Monmouth County.
D.F. Moore Craig, attorney for appellant.
Alice Murphy, respondent pro se filed a brief.
James P. Yudes, P.C., respondent pro se;
(Elizabeth E. Bedell, on the brief).
The opinion of the court was delivered by
WALLACE, JR., J.A.D.
This is an appeal from a post-divorce judgment order granting
plaintiff's motion to increase her alimony. The order also
directed defendant to establish a trust fund for plaintiff's
benefit in the event of his death and required defendant to pay a
portion of the counsel and accounting fees. On appeal, defendant
contends that the trial judge abused his discretion in: (1)
increasing the alimony award from $60 per week to $650 per week;
(2) making the alimony increase retroactive; (3) not requiring a
hearing regarding the award of fees; (4) granting the fee awards;
and (5) ordering a trust fund of $335,000 to provide for alimony in
the event of his death. We reverse.
The parties were married on February 23, 1953, and nine
children were born of the marriage. In 1977, defendant was earning
approximately $14,000 gross annual income from his bus company.
Plaintiff was not employed outside the home during most of the
marriage. On July 15, 1977, a judgment of divorce was entered. A
subsequent order for equitable distribution provided that plaintiff
receive the marital home valued at $37,500; a one-half interest in
the bus company valued at $63,178.89; alimony of $60 per week; and
child support of $80 a week for the four then unemancipated
children. No appeal was taken from this judgment.
During the ensuing sixteen years, defendant's income increased
substantially as the bus business prospered. Plaintiff's income
during these years remained low. Plaintiff testified that after
the divorce, she took on various jobs to support herself
financially. She stated she delivered newspapers and worked as a
housekeeper and babysitter. In 1988, plaintiff sold the marital
home for $175,000 and moved to Georgia where she purchased a home
for $129,000. As part of the purchase, plaintiff assumed a
$53,800 mortgage. Upon moving to Georgia, plaintiff worked
alternately as a clerk at J.C. Penny, a factory worker, a
babysitter, and a warehouse employee earning minimum wage.
By motion returnable June 24, 1994, plaintiff for the first
time sought an increase in alimony, health and life insurance
benefits, and payment of counsel fees. Defendant cross-moved for
direct alimony payments and an order of annulment. The motion
judge was satisfied that the plaintiff demonstrated changed
circumstances and on June 24, 1994, directed discovery and ordered
defendant to pay $2,000 of plaintiff's counsel fees. The judge
reserved on all other issues in plaintiff's motion until an August
hearing and denied defendant's cross motion. Following the August
hearing, the motion judge granted a temporary increase of alimony
to $200 a week retroactive to June 24, 1994. He denied, without
prejudice, plaintiff's application for health insurance and ordered
defendant to name plaintiff as a beneficiary under a life insurance
policy.
Following discovery, hearings were held over a period of eight
days. As noted above, the judge awarded a total of $650 per week
in alimony to plaintiff, retroactive to the date of the filing of
the motion, directed the establishment of a trust fund, and awarded
plaintiff counsel fees. This appeal followed.
The applicable legal principles are well-settled. The purpose
of alimony is to provide the defendant spouse with a level of
support and standard of living generally commensurate with the
quality of economic life that existed during the marriage. Innes
v. Innes,
117 N.J. 496, 503 (1990); Mahoney v. Mahoney,
91 N.J. 488, 501-02 (1982); Lepis v. Lepis,
83 N.J. 139, 150 (1980);
N.J.S.A. 2A:34-23; Khalaf v. Khalaf,
58 N.J. 63, 69 (1971). The
supporting spouse's obligation is established at a level that will
maintain that standard. Innes, supra, 117 N.J. at 503. In
accordance with this principle, our courts have recognized "changed
circumstances" that warrant modification. Lepis, supra, 83 N.J. at
151. The party seeking modification has the burden of showing such
"changed circumstances." Id. at 157. In that respect, "[a] prima
facie showing of changed circumstances must be made before a court
will order discovery of an ex-spouse's financial status." Ibid.
Once a prima facie showing is made, the court may order further
discovery. Ibid. After completion of discovery, the court must
decide whether to hold a hearing. Id. at 159. A hearing is not
required or warranted in every contested proceeding for the
modification of a judgment or order relating to alimony. "It is
only where the affidavits show that there is a genuine issue as to
a material fact, and that the trial judge determines that a plenary
hearing would be helpful" that such a course must be taken. Shaw
v. Shaw,
138 N.J. Super. 436, 440 (App. Div. 1976).
Against this backdrop, we conclude that the trial judge's
application of those principles in this case was flawed. The trial
judge found that:
although the plaintiff's figures on her Case
Information Statement are, . . . at times
inflated, and her testimony at times somewhat
less than credible, her standard of living,
nevertheless, . . . has diminished to the
point where she can no longer support herself
on her current alimony.
The judge also found that defendant had ample resources available
to pay an increase in alimony based on the success of the bus
company since the divorce in 1977. We have no quarrel with these
findings. However, while the trial judge made a brief reference
that the quality of life during the marriage must be considered,
what gives us concern is that the judge essentially made no finding
concerning the standard of living during the marriage. Rather, the
judge focused on our comment in Guglielmo v. Guglielmo,
253 N.J.
Super. 531, 543-44 (App. Div. 1992), where we noted the dependent
spouse should not be confined to the precise lifestyle enjoyed
during the parties' last year together. However, in Guglielmo, the
supporting spouse sought an increase within six years after the
divorce. Here, plaintiff waited seventeen years before seeking an
increase. Under these circumstances, the standard of living which
existed at the time of the divorce should have been the main focus.
Plaintiff should have been awarded an increase in alimony required
to maintain her previous standard of living so long as defendant
was financially able to pay any increase.
Moreover, we note that the bus business was valued at the time
of the divorce judgment, and plaintiff was awarded a fifty percent
equitable share. Thus, it was error for the judge to focus on
whether plaintiff had contributed during the marriage to the
financial success of defendant's business. Defendant's success in
the business was only relevant to consider his ability to pay any
increase in alimony.
Unfortunately, the trial judge did not determine the standard
of living at the time of the divorce despite testimony on the issue
at the hearings. To be sure, there was ample evidence of changed
circumstances based on inflation and defendant's increase in income
since 1977. However, as noted above plaintiff had not sought an
increase in seventeen years. It was incumbent upon her to show
proof of her standard of living over the years, including the jobs
that she had held to help justify her need for an increase now.
Moreover, the judge did not explain why he concluded that plaintiff
was "capable only of menial jobs." See Lepis, supra, 83 N.J. at
155 ("[a] closer look should have been taken at the supported
spouse's ability to contribute to his or her own maintenance . .
."); Aronson v. Aronson,
245 N.J. Super. 354, 364 (App. Div.
1991)("[a]limony is neither a punishment for the payor nor a reward
for the payee. Nor should it be a windfall for any party.")
Consequently, the matter must be remanded for a finding concerning
plaintiff's standard of living at the time of divorce, her ability
to contribute to that standard and the amount of any increase in
alimony reasonably required to maintain that standard.
We add a few additional comments. Plaintiff's need, in part,
resulted from her improvements to her home in Georgia. Plaintiff
sold the mortgage free marital home in 1988, netting approximately
$171,000. She purchased a larger home in Walkinsville, Georgia for
$129,000. She was able to assume an existing mortgage and needed
only $70,785 of the proceeds from the sale of the New Jersey house
to conclude the Georgia purchase. In the three years after the
purchase, plaintiff spent approximately $34,000 to renovate and
landscape her Georgia home.
In her Case Information Statement (CIS) dated April 28, 1994,
the only liability plaintiff listed was a $50,000 mortgage to her
daughter and her son in-law on the Georgia home. However,
plaintiff's CIS dated October 7, 1996, showed a mortgage balance of
$58,425, a family debt of $10,000 and other liabilities, including
professional fees. The trial judge initially excluded counsel and
accounting fees of approximately $49,000 from this part of his
analysis. The judge also found that the $10,000 family debt was
not a true liability. After finding that plaintiff's current
predicament was partially self-imposed in terms of the liabilities,
in addition to an increased alimony award of $545, the judge
ordered defendant to pay 70" of plaintiff's liabilities or an
additional $105 per week. We find no support in the record for
this additional award.
More importantly, the judge ultimately made the award of the
increase in alimony retroactive to the date of plaintiff's motion
in 1994. We find no abuse of discretion in this regard. However,
the additional assessment of $105 per week was based on credit card
bills and similar liabilities incurred since the filing of the
motion. In our view, the requirement to pay these bills was a
duplication of the retroactive alimony award. Once the judge
decided to make the award of increased alimony retroactive, it was
an abuse of discretion to include the additional assessment of $105
a week as part of the alimony award.
In light of our remand for a redetermination of the level of
the increase in alimony, we comment briefly on the remaining
issues. With regard to defendant's contention that a hearing was
required prior to the award of fees and that the fees awarded were
excessive, we find no merit. R. 2:11-3e(1)(E). At the April 3,
1997 hearing to address the order resulting from the judge's
decision to increase alimony and to award fees, defense counsel
made no argument addressed to the fees awarded. More importantly,
we find no abuse of discretion in the amount of the fees awarded.
The trial court carefully considered plaintiff's needs, defendant's
ability to pay, and the parties good faith in instituting and
defending the action. Williams v. Williams,
59 N.J. 229, 233
(1991). We find no reason to interfere with the fees awarded.
Finally, defendant argues that the trial court abused its
discretion in ordering the establishment of a $335,000 Jacobitti
trust. In Jacobitti v. Jacobitti,
135 N.J. 571, 574-75 (1994), our
Supreme Court permitted the establishment of a trust as an
"appropriate equitable remedy to fulfill the Legislature's intent
in authorizing life insurance for the protection of a defendant
spouse 'in the event of the payor spouse's death.'" See N.J.S.A.
2A:34-25.
Here, defendant claimed that he was unable to obtain life
insurance. Plaintiff claimed her only source of income was
alimony. The court determined that a Jacobitti trust was
necessary, explaining:
The parties before this Court are in a
predicament that calls in the Court's view for
the creation of a trust similar to that in
JACOBITTI. The defendant, although
financially secure, is unable, according to
testimony and evidence presented to the Court
to possibly pass a physical and obtain life
insurance due to his age and a number of
health problems.
Plaintiff is also a person at her age not in
the best of health either. And more
importantly, is reliant on the alimony she
receives in large part even with imputed
income, and will be severally financially
distressed if nothing is provided for her if
defendant predeceases her.
Therefore, the Court will order that the
defendant set up a $335,000 trust that
provides "unless defendant agrees otherwise on
plaintiff's death, the trust proceeds will
revert to him, his heirs or other legal
designees, but not to charity . . ."
The judge also noted that such a trust would be moot, however,
if "[defendant] miraculously is able to obtain a life insurance
policy naming [plaintiff] as beneficiary for an acceptable amount,
i.e. at least $250,000." Defendant was given several options in
fulfilling his obligation to pay alimony to plaintiff. We find no
abuse of discretion in the ordering of the trust, but we are
compelled to remand for a determination of the amount of the trust
in light of our remand to redetermine the amount of the increase in
alimony.
In sum, we remand for a redetermination of the amount of the
increase in alimony which shall be retroactive to June 24, 1994,
the initial return date of plaintiff's motion for an increase. We
affirm the award of fees and the institution of a trust to protect
plaintiff in the event of defendant's death. However, we remand
for reconsideration of the amount of the trust in relation to the
amount of alimony ultimately awarded.
Reversed.