SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
A-5966-93T5
SANDRA A. MILNER,
Plaintiff-Appellant,
v.
EDWARD S. MILNER,
Defendant-Respondent.
____________________________________
Argued January 16, 1996 - Decided March 6, 1996
Before Judges Skillman, P.G. Levy and Eichen.
On appeal from Superior Court of New Jersey,
Chancery Division, Family Part, Cumberland
County.
Michelle Joy Munsat argued the cause for
appellant.
Darrlyn Mann argued the cause for respondent
(Mann & Moore, attorneys; Ms. Mann, on the
brief).
Nadine Taub, attorney for amicus curiae
N.O.W.-N.J. and Rutgers Law School Women's
Rights Litigation Clinic, submitted a brief.
The opinion of the court was delivered by
SKILLMAN, J.A.D.
Plaintiff and defendant were married in 1962. Thereafter,
plaintiff worked as a clerk-typist until the parties' first child
was born in 1965. Plaintiff stayed out of the workforce for the
next twenty years, remaining at home to care for the parties'
three children. Defendant graduated from medical school in 1966
and subsequently developed a successful practice as an
obstetrician-gynecologist.
The parties were divorced in 1985. At that time, defendant
was earning in excess of $100,000 per year from his medical
practice, and plaintiff was unemployed. Plaintiff, who had
obtained a master's degree from an art school during the
marriage, hoped to obtain a position in the field of fine arts.
The settlement agreement incorporated in the judgment of
divorce required defendant to pay plaintiff $2,000 alimony per
month for a period of ninety-four months. The agreement also
provided that "[i]n order for a party to seek a change in the
support, the party seeking the change must first make a prima
facie showing of their entitlement to a change in the amount of
support."
Subsequent to the divorce, plaintiff applied for positions
with art galleries, museums, private schools and community
colleges. However, she was unable to obtain any permanent
position in which she could utilize her education in fine arts.
Consequently, plaintiff decided to become a realtor. She worked
part time in this field as a "hostess" from 1985 to 1987 while
taking the courses required to become licensed. After obtaining
her license, plaintiff accepted a position with a real estate
brokerage firm in Wilmington, Delaware, where she has remained
until the present time. Plaintiff's average net income from this
employment during the period from 1989 to 1993 was slightly more
than $15,000 per year. Plaintiff and her employer attributed
plaintiff's relatively small income to plaintiff's inexperience
in the field and to the weakness in the real estate market during
the period since plaintiff obtained her license. They also
indicated that the market seemed to be stabilizing and that
plaintiff could reasonably anticipate that her income would
increase in the future.
Shortly before the expiration of the ninety-four month
period during which plaintiff was entitled to receive alimony
under the judgment of divorce, plaintiff filed a motion to
increase alimony and to make defendant's obligation permanent.
Based on the evidence presented at a two-day hearing, the Family
Part judge found that "the alimony provided ... in the Final
Judgment of Divorce was rehabilitative," that while "no
rehabilitation plan" had been "presented" at the time of the
divorce, there had been "a vague notion of plaintiff's [becoming]
economically self-sufficient" by the end of the ninety-four month
period, and that "plaintiff's lack of rehabilitation was not a
result of her indolence and not as a result of her lack of energy
because she has been diligently applying herself towards an end."
The judge concluded that there had been "a change of
circumstances sufficient to warrant the disclosure of defendant's
financial data." The judge then ordered plaintiff to submit a
"rehabilitation plan" and ordered both parties to submit current
Case Information Statements. The judge further ordered that the
matter would be set down for a plenary hearing "on all issues
presented by these facts and relevant to alimony." In the
interim, the judge extended the period of defendant's $2,000 per
month alimony obligation for six months.
After entry of this order, the case was transferred to a
different Family Part judge. After a four day hearing, the newly
assigned judge issued an oral decision on April 15, 1994, denying
plaintiff any relief. The judge expressed the view that under
N.J.S.A. 2A:34-23, as amended in 1988, L. 1988, c. 153, §3,
rehabilitative alimony may be modified but cannot be changed into
permanent alimony. The judge also expressed the view that a
court of equity may have an inherent power to convert
rehabilitative alimony into permanent alimony if, for example,
the supported spouse was "struck by some unexpected catastrophic
illness or disease making it impossible for her or him to
continue to work." However, the judge ruled that this power
could not be invoked in the present case because "no credible
evidence has been presented ... that this woman in her early
fifties is incapable of pursuing any career." The judge did not
make any finding regarding plaintiff's earning capacity or
identify any specific field in which plaintiff could obtain
employment that would generate greater income than she was
already earning as a realtor. The judge also reaffirmed the
finding of the prior trial judge that plaintiff's failure to
obtain a position in the field of fine arts was not the result of
"any fault or indolence" on her part.
Plaintiff appeals from the denial of her application for an
award of permanent alimony. We reverse and remand for a
determination of the appropriate amount of permanent alimony.
An award of rehabilitative alimony may be appropriate "where
a short-term or lump-sum award from one party in a divorce will
enable [the] former spouse to complete the preparation necessary
for economic self-sufficiency." Hill v. Hill,
91 N.J. 506, 509
(1982). "The basic premise of an award of rehabilitative rather
than permanent alimony is an expectation that the supported
spouse will be able to obtain employment, or more lucrative
employment, at some future date." Shifman v. Shifman,
211 N.J.
Super. 189, 194-95 (App. Div. 1986). Thus, rehabilitative
alimony is "payable for a terminable period of time when it is
reasonably anticipated that a spouse will no longer need
support." McGee v. McGee,
277 N.J. Super. 1, 14 (App. Div. 1994)
(quoting Dotsko v. Dotsko,
244 N.J. Super. 668, 677 (App. Div.
1990)). Therefore, if the supported spouse is unsuccessful in
obtaining the kind of employment required for the economic self-sufficiency anticipated at the time of divorce, "this properly
may be viewed as a `changed circumstance' which would justify the
continuation of alimony beyond the original termination date."
Shifman v. Shifman, supra, 211 N.J. Super. at 195; see also
Strauss v. Strauss,
628 A.2d 552, 555-56 (Vt. 1993).
The Family Part judge erred in concluding that the 1988
amendment of N.J.S.A. 2A:34-23 changed these basic principles.
The amendment gave explicit legislative recognition to the
concept of rehabilitative alimony previously developed by the
courts but did not change the concept in any significant respect.
In fact, the Legislature expressly recognized that a provision
for rehabilitative rather than permanent alimony is not immutable
if the supported spouse fails to achieve the economic self-sufficiency anticipated at the time of the divorce, by providing
that "[a]n award of rehabilitative alimony may be modified based
either upon changed circumstances, or upon the nonoccurrence of
circumstances that the court found would occur at the time of the
rehabilitative award." N.J.S.A. 2A:34-23 (emphasis added).
Since a supported spouse's attainment of economic self-sufficiency is the essential anticipated "circumstance" that a
court must find to justify an award of rehabilitative alimony,
Shifman v. Shifman, supra, the "nonoccurrence" of that
circumstance provides the requisite foundation for a modification
of such alimony. Moreover, if events subsequent to the divorce
show that it is no longer reasonable to anticipate that the
supported spouse will ever become economically self-sufficient,
the alimony award should be converted from rehabilitative to
permanent.
In this case, the record clearly indicates that plaintiff
has been unable to achieve economic self-sufficiency. Plaintiff
turned to the sale of real estate as her source of livelihood
only after she had vigorously, but unsuccessfully, pursued
efforts to secure employment in the field of fine arts.
Defendant presented no evidence that there are positions
available to a person with a master's degree in fine arts that
plaintiff would be able to obtain. Defendant also did not
present any evidence that there are other employment
opportunities available to a person with plaintiff's education
and work experience that would be likely to generate greater
income than plaintiff is earning as a realtor.See footnote 1 In fact, the
only evidence presented on this point was the report of
plaintiff's vocational expert, Samuel Goodman, which concluded
that plaintiff's age, physical handicaps, and lack of readily
transferable job skills, "make her a disadvantaged applicant for
consideration as a worker."
Despite the absence of any evidence that there are job
opportunities available to plaintiff from which she could derive
greater income than she is earning as a realtor, the trial court
concluded that plaintiff should "embark upon a new career."
However, the court did not indicate what this new career might
be, what education or training would be required, where job
opportunities might be available, or what income plaintiff could
earn. Thus, the court's finding that plaintiff could earn
greater income from some unspecified employment outside the real
estate field was based on speculation, unsupported by any
evidence in the record.
The record also indicates that there is no reasonable
likelihood plaintiff will be able to achieve economic self-sufficiency in the future. A supported spouse is generally
entitled to continued maintenance at the standard of living
enjoyed during the marriage. Innes v. Innes,
117 N.J. 496, 503
(1990); Lepis v. Lepis,
83 N.J. 139, 150 (1980). The record
indicates that the parties enjoyed a very comfortable, even if
not lavish, lifestyle during their marriage. Although it appears
likely that plaintiff's income will increase as the real estate
market improves and as she gains additional experience and
contacts in the field,See footnote 2 there does not appear to be any
reasonable likelihood she will be able to attain self-sufficiency
at the economic level maintained by the parties during the
marriage.
We are satisfied that plaintiff's inability to gain such
self-sufficiency justifies the conversion of her alimony from
rehabilitative to permanent. The parties had a long-term
marriage during which plaintiff stayed out of the workforce for a
period of twenty years to raise their three children. See
N.J.S.A. 2A:34-23(b)(6),(8). Defendant, who now earns in excess
of $200,000 per year from his medical practice, has the economic
resources both to pay permanent alimony to defendant and to
support his new family. See N.J.S.A. 2A:34-23(b)(1),(4),(5). In
contrast, plaintiff, who is now fifty-five years old, apparently
does not have the ability to gain self-sufficiency, and the less
than $75,000 she received as equitable distribution at the time
of the divorce generates only a relatively small part of the
income required for her support. Our courts have frequently
recognized that an award of permanent alimony is appropriate
under such circumstances.See footnote 3 See, e.g., Khalaf v. Khalaf,
58 N.J. 63, 69-70 (1971); Cerminara v. Cerminara, ___ N.J. Super. ___,
___ (App. Div. 1996) (slip op. at 11-17); Weber v. Weber,
211 N.J. Super. 533, 537 (App. Div. 1986).
Plaintiff also argues that the trial court erred with
respect to several discovery and evidentiary rulings. We find no
abuse of discretion in the court's refusal to order the release
to plaintiff of defendant's unredacted personal income tax
returns which include personal financial information of his new
wife. See DeGraaff v. DeGraaff,
163 N.J. Super. 578 (App. Div.
1978). Since the case must be remanded for further trial
proceedings to determine the amount of permanent alimony, there
is no need for us to pass upon plaintiff's other arguments
relating to the prior trial proceedings.
Accordingly, we reverse the trial court order denying
plaintiff's application for permanent alimony and remand for a
determination of the amount of alimony in accordance with the
criteria set forth in N.J.S.A. 2A:34-23(b). The award shall be
made retroactive to February 1, 1994, when the payment of
rehabilitative alimony was terminated.
Footnote: 1 Defendant does not dispute that plaintiff has taken all reasonable steps to maximize her income as a realtor. Footnote: 2 We were advised at oral argument that plaintiff's income has increased somewhat during the past two years. Footnote: 3 If plaintiff's income were to increase sufficiently for her to become economically self-sufficient, defendant could then move on the basis of changed circumstances to be relieved of his alimony obligation. See Lepis v. Lepis, supra.