THOMAS NANGLE v. MARY NANGLE ( 2019 )


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  •           DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
    FOURTH DISTRICT
    THOMAS NANGLE,
    Appellant,
    v.
    MARY NANGLE,
    Appellee.
    No. 4D19-31
    [December 18, 2019]
    Appeal from the Circuit Court for the Nineteenth Judicial Circuit,
    Martin County; Michael McNicholas, Judge; L.T. Case No.
    432006DR000169.
    Siobhan Helene Shea of Sheappeals PLLC, Palm Beach, for appellant.
    Nicholas M. Gieseler and Steven Geoffrey Gieseler of Gieseler & Gieseler
    P.A., Stuart, for appellee.
    MAY, J.
    The former husband appeals an order denying his motion to modify or
    terminate alimony. He makes several arguments, including that the trial
    court erred in failing to consider and address the former husband’s ability
    to pay and the former wife’s need. We agree with him on this issue, and
    reverse and remand to the trial court for further proceedings consistent
    with this opinion.
    The parties’ marriage was dissolved in 2008. The former husband was
    67 at the time; the former wife was 48. The former husband owned a 45
    percent interest in a company he created during the marriage. He worked
    there and ultimately received redemption payments for his stock in the
    company.
    The court determined the former husband’s total gross and net monthly
    income. Due to unpaid taxes, the IRS garnished all but $2,917.84 of his
    net monthly income. The trial court found that during the parties’
    marriage, the former wife was primarily a homemaker and caregiver for
    the parties’ children.
    The court found the marriage to be long-term for which permanent
    alimony was appropriate. The former husband did not contest that
    finding. However, due to the IRS’ garnishment, the former husband’s
    monthly income did not provide him with the ability to pay.
    The trial court entered the dissolution judgment, reserving jurisdiction
    to determine alimony after payment of the outstanding IRS debt. The court
    subsequently amended the final judgment to correct a scrivener’s error,
    but again reserved jurisdiction to award alimony.
    In 2009, the former wife moved to determine alimony. The court
    determined that the IRS debt had been satisfied; the former husband had
    the ability to pay, and the former wife was unemployed and in need of
    alimony. The court imputed a gross monthly income to her. The court
    then awarded permanent alimony of $2,000 per month. Neither party
    appealed the alimony award.
    In 2017, the now 78-year-old former husband filed a supplemental
    petition for modification/termination of alimony. He argued there had
    been a substantial and uncontemplated change in circumstances since
    the entry of the alimony order. The substantial change was the cessation
    of monthly redemption payments from his company in April 2015.
    The trial court held a hearing on the petition. The former husband
    retired in 2009 after the final dissolution judgment, but before alimony
    was determined. The day he retired, he entered into a redemption
    agreement in which the company agreed to pay him for his stock. Those
    payments allowed him to make alimony payments in accordance with the
    alimony award, but they had come to an end.
    The former husband testified that now his only sources of income were
    his pension, social security, and a modest amount in monthly interest and
    dividends. After paying his expenses, he has a monthly deficit of $1,195.
    The former wife, however, had increased her income. Her assets had
    increased, and her debt decreased. She testified however that she would
    be unable to meet her monthly expenses without the alimony payments.
    The trial court noted that the prior alimony determination was based
    in part on the former husband’s third amended financial affidavit. The
    court found the cessation of the redemption payments had been
    contemplated, and there was no competent substantial evidence that the
    former wife’s financial position had substantially changed. The court
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    denied the former husband’s petition.
    The former husband now appeals.
    We employ a mixed standard of review of an order modifying alimony.
    Bauchman v. Bauchman, 
    253 So. 3d 1143
    , 1146 (Fla. 4th DCA 2018). “The
    trial court’s legal conclusions are reviewed de novo.” 
    Id. “The trial
    court’s
    factual findings are reviewed for [an] abuse of discretion . . . .” 
    Id. To modify
    alimony, the movant must show: 1) a substantial change of
    circumstances; 2) that the change was not contemplated at the time of the
    final judgment; and 3) that the change is sufficient, material, involuntary,
    and permanent in nature. Mendes v. Mendes, 
    947 So. 2d 450
    , 452 (Fla.
    4th DCA 2006).
    The former husband claims the trial court did not originally
    contemplate the cessation of his redemption payments when it determined
    the permanent alimony award. He suggests the court’s failure to discuss
    the temporary nature of those payments in the alimony award supports
    his argument. The former wife responds the trial court was “fully
    cognizant” of the former husband’s age, retirement status, and redemption
    payments.
    Reviewing the original trial court’s alimony award, the successor court
    determined the original court took into consideration the former husband’s
    third amended family law financial affidavit. On line 15, the former
    husband provided his redemption payments. The court found that
    because the affidavit listed these payments, the original court clearly
    considered the cessation of these payments when determining alimony. It
    reasoned that the original court must have understood installment
    payments were temporary in nature such that the cessation was
    contemplated. However, that is the trial court’s supposition, not an
    articulated fact.
    In modifying alimony, trial courts may make changes “as equity
    requires” and consider “changed circumstances or the financial ability of
    the parties . . . decreasing, increasing, or confirming the amount of . . .
    alimony provided in the agreement.” § 61.14(1)(a), Fla. Stat. (2019).
    A key factor in determining whether a modification is warranted is
    determining whether, after the final judgment is entered, the parties
    “financial abilities have changed.” Dogoda v. Dogoda, 
    233 So. 3d 484
    , 487
    (Fla. 2d DCA 2017). In deciding whether to modify alimony, “a court
    should consider the parties’ income, payees’ need for alimony, and the
    3
    payor’s ability to pay.” Dunn v. Dunn, 
    277 So. 3d 1081
    , 1085 (Fla. 5th
    DCA 2019).
    A trial court cannot require a spouse to incur indebtedness to pay
    alimony. Galligar v. Galligar, 
    77 So. 3d 808
    , 811 (Fla. 1st DCA 2011).
    While a court may consider the spouses’ assets in determining his or her
    ability to pay, it cannot require the spouse to deplete assets to make
    alimony payments. 
    Id. at 812.
    The hearing transcript on the former husband’s petition for
    modification reveals that his monthly income had been significantly
    reduced since entry of the alimony award. His income now consisted only
    of his pension, social security benefits, and monthly interest and
    dividends. These amounts left him with a monthly deficit of $1,195.
    Contrastingly, the former wife’s financial status had improved. Her
    debt had significantly dwindled. She no longer paid a mortgage. Her total
    assets had increased. And, she was earning significantly more income
    than she had at the time alimony was established.
    Given that the former husband’s ability to pay had changed, the court
    needed to consider the former wife’s need in determining if a modification
    of alimony was warranted. Zeballos v. Zeballos, 
    951 So. 2d 972
    , 974 (Fla.
    4th DCA 2007).
    Simply put, the court’s order failed to address either the former
    husband’s ability to pay or the changes in the former wife’s financial
    status. It did not address the former husband’s decreased income, assets,
    or monthly deficit. It did not address the former wife’s increased income,
    increased assets, and decreased debt. In short, the order failed to address
    two requisite factors: need and ability to pay. 1
    We therefore reverse and remand the case to the trial court for further
    1
    The former husband briefly argues that any alimony modification should be
    retroactive. “[I]t is within the trial court’s discretion to determine whether to
    make the modification retroactive.” DeSantis v. Smith, 
    634 So. 2d 796
    , 797 (Fla.
    4th DCA 1994). Because the trial court failed to make the requisite findings of
    the former husband’s ability to pay and the former wife’s financial need, we
    cannot determine whether the court should have made any modification
    retroactive. On remand, the trial court may grant modification retroactively if
    there are reasons to justify such an award. Wiesenfeld v. Wiesenfeld, 
    95 So. 3d 959
    , 961 (Fla. 1st DCA 2012).
    4
    proceedings consistent with this opinion.
    Reversed and Remanded.
    TAYLOR and DAMOORGIAN, JJ., concur.
    *         *          *
    Not final until disposition of timely filed motion for rehearing.
    5
    

Document Info

Docket Number: 19-0031

Filed Date: 12/18/2019

Precedential Status: Precedential

Modified Date: 12/18/2019