DocketNumber: SC 19640
Judges: Auria, Palmer, Robinson, Rogers, Vertefeuille
Filed Date: 1/16/2018
Status: Precedential
Modified Date: 10/18/2024
**488The marriage of the plaintiff, Ruth Cohen, and the defendant, Franklin Cohen, was dissolved in 2002. At that time, the trial court, Hon. Dennis Harrigan , judge trial referee, incorporated their separation agreement, which contained a provision requiring the defendant to pay alimony to the plaintiff, into the divorce decree. In 2010, the defendant filed a motion to modify the alimony provision of the divorce decree on the ground that his income had declined significantly. The trial court, Shay, J., granted that motion by way of a corrected memorandum of decision in 2012. In 2013, the plaintiff filed a motion to modify the 2012 modification order on the ground that the defendant's income had substantially increased. The trial court, Colin, J. , granted that motion. The defendant **489then filed this appeal
The record reveals the following procedural history and facts that were found by Judge Colin or are undisputed. The marriage of the parties was dissolved on January 4, 2002, after twenty-seven years of marriage. At the time of the dissolution judgment, the plaintiff was unemployed and had no income. The defendant was employed in the commercial mortgage business and had a net weekly income of $2961.98. The parties entered into a separation agreement, which the trial court, Hon. Dennis Harrigan , judge trial referee, approved and incorporated into the divorce decree. The separation agreement provided in relevant part that, "[c]ommencing January 1, 2002, the [defendant] shall pay during his lifetime to the [plaintiff], as alimony, 33 1/3 [percent] of the first $180,000 of the [defendant's] gross income from his employment and 33 1/3 [percent] of [one half] ... of the income actually received from his limited partnership interest in [various entities] and 25 [percent] of the next $200,000 in earnings and 38 **490[percent] of the next $370,000 in earnings ...." The agreement further provided that "[t]he [plaintiff] shall not be entitled to share in [the] earnings of the *96[defendant] in excess of $750,000 in any calendar year and in no event shall receive more than $250,000 as her share of commission payments in any calendar year." The alimony payments were to continue until the plaintiff's death, remarriage or cohabitation.
As the result of poor market conditions during the years 2008, 2009 and 2010, the defendant's income was significantly reduced. In 2010, he filed a motion to modify the alimony provision of the divorce decree by reducing the percentage of his income that he was required to pay the plaintiff. After an evidentiary hearing, the trial court, Shay, J., found that there had been a substantial change in circumstances since the time of the divorce decree because the defendant's current net income had decreased to $1373.95 per week, and the plaintiff's net income had increased to $945.15 per week. Judge Shay granted the defendant's motion for modification and ordered that the defendant pay the plaintiff $250 per week until her death or remarriage.
In September, 2011, the plaintiff filed a motion to open and vacate that modification order on the basis of new evidence showing that the defendant's income was actually $8805.63 per week, not $1137.95 as Judge Shay had found. The plaintiff contended that, in light of the cyclical nature of the defendant's business, alimony expressed as a percentage of the defendant's income was more appropriate than a set dollar amount. The defendant agreed that an award based on a percentage of his income was appropriate. After an evidentiary hearing, Judge Shay issued a corrected memorandum of decision, finding that the plaintiff's current net income from employment was $392.09 per week and her investment income was $581 per week, for a total of $973.09 per week, and the defendant's current net income was **491$1310.34 per week. Judge Shay further found, however, that the defendant's net income should be calculated on the basis of his income over a two year period and that, using that method, his earning capacity was $158,420 per year, or a net income of $2163 per week. On that basis, Judge Shay ordered the defendant to pay the plaintiff $2750 per month until her death or remarriage (2012 modification order).
In November, 2013, the plaintiff filed a motion to modify the 2012 modification order on the ground that the defendant's earnings in 2012 were more than $293,000, substantially in excess of his earning capacity of $158,420 as found by Judge Shay. In her motion, the plaintiff pointed out that the original alimony provision of the divorce decree had required the defendant to pay the plaintiff a percentage of his income. The defendant objected to the motion on the ground that it would be improper for the court to consider the divorce decree because, when considering a motion for modification of alimony orders pursuant to General Statutes § 46b-86, the trial court's "inquiry is necessarily confined to a comparison between the current conditions and the last court order." Borkowski v. Borkowski ,
After an evidentiary hearing, the trial court, Colin J. , found that the plaintiff had a current net income from employment of $438.
The court then noted that, under Dan , "[w]hen the initial award was not sufficient to fulfill the underlying purpose of the award ... an increase in the supporting spouse's salary, in and of itself, may justify an increase in the award. For example, if the initial alimony award was not sufficient to maintain the standard of living that the supported spouse had enjoyed during the marriage because the award was based on a reduction in the supporting spouse's income due to unemployment or underemployment as a result of an economic downturn, and, after the divorce, the supporting spouse's income returns to its previous level, a modification might well be justified." Dan v. Dan , supra,
On appeal, the defendant contends that the trial court improperly (1) based its conclusion that there had been a significant change in the parties' financial circumstances, warranting a modification of the 2012 modification order, on a comparison of their current circumstances to their circumstances at the time of the divorce decree, instead of their circumstances at the time of the previous 2012 modification order, (2) considered the plaintiff's motion for modification when it was "legally insufficient" on its face, (3) considered certain evidence in support of its conclusion that the 2012 modification order should be modified, and (4) rendered an illegal "lifetime profit sharing order." We reject all of these claims.
*98I
We first address the defendant's claim that the trial court improperly considered the parties' financial circumstances **494at the time of the divorce decree when it determined that (1) there was a substantial change in circumstances warranting consideration of the plaintiff's motion for modification, and (2) the 2012 modification order should be modified. We begin our analysis with a review of the legal principles governing the modification of alimony awards. "It is ... well established that when a party, pursuant to § 46b-86, seeks a post-judgment modification of a dissolution decree ... he or she must demonstrate that a substantial change in circumstances has arisen subsequent to the entry of the [decree]." Borkowski v. Borkowski, supra,
"The power of the trial court to modify the existing order does not, however, include the power to retry issues already decided ... or to allow the parties to use a motion to modify as an appeal. ... Rather, the trial court's discretion includes only the power to adapt the order to some distinct and definite change in the circumstances or conditions of the parties.
"Therefore, although the trial court may consider the same criteria used to determine the initial award without limitation ... in doing so, its inquiry is necessarily confined to a comparison between the current conditions and the last court order. To permit the trial court to reconsider all evidence dating from before the original divorce proceedings, in determining the adjustment of alimony, would be, in effect, to undermine the policy behind the well established rule of limiting proof of the substantial change of circumstances to events occurring subsequent to the latest alimony order-the avoidance of relitigating matters already settled." (Citations **495omitted; footnote omitted; internal quotation marks omitted.) Id., at 738,
In the present case, the defendant contends that the trial court ignored these principles when it concluded that there had been a substantial change in circumstances, which is "the threshold predicate for the trial court's ability to entertain [the plaintiff's] motion for modification [of alimony] ...." Id., at 737,
*99We agree with the defendant that, when the trial court was considering whether there had been a substantial change in circumstances, it should have compared the parties' current financial circumstances in 2015 to their circumstances as found by Judge Shay in the 2012 modification order and not their circumstances at the time of the divorce decree. Although the trial court's memorandum of decision is not entirely clear on this point, **496we also agree that it is reasonable to conclude that the trial court's statement that the plaintiff's income had substantially increased indicates that the court was comparing her current income to her income at the time of the divorce decree.
The trial court expressly stated that "the defendant's income has increased substantially and the [2012 modification order] is no longer sufficient to fulfill the underlying purpose of the original alimony award ...." (Emphasis added.) It is clear, therefore, that the court believed that the 2012 modification order was sufficient to fulfill the underlying purpose of the original alimony award, to the extent possible under the changed circumstances, at the time that it was rendered. If that was no longer the case, it could only have been because of the change in the parties' financial circumstances since the date of the 2012 modification order , the most significant of which was, by far, the increase in the defendant's income.
**497With respect to the defendant's claim that the trial court improperly based its modification order on a comparison between the parties' financial circumstances at the time of the divorce decree and their current circumstances, we disagree. Judge Shay found in the 2012 modification order that there had been a substantial change in circumstances since the date of the divorce decree in part because "the [plaintiff] is now employed and has additional income from investments ...." Partly on the basis of this change in circumstances, Judge Shay reduced the alimony award from a percentage of the defendant's income, capped at $250,000, to a flat payment of $2750 per month. Thus, when Judge Colin stated in his 2015 decision that any alimony modification should reflect "the substantial change in the [plaintiff's] income," presumably since the date of the divorce decree, he was merely recognizing the continuing validity of Judge Shay's holding that the substantial increase in the plaintiff's income since the date of the divorce decree warranted a reduction in the original alimony award. It does not follow that Judge Colin's order modifying the 2012 modification order by increasing the alimony payment to a percentage *100of the defendant's income, with payments capped at $125,000, was based on a comparison of the defendant's income at the time of the divorce decree with his current income. Rather, as we have indicated, because Judge Colin believed that the 2012 modification order was sufficient when it was rendered to fulfill the purpose of the alimony award in the divorce decree, to the extent possible, his modification of the 2012 modification order could only have been based on changes in the parties' financial circumstances since the date of that order, the most significant of which was the threefold increase in the defendant's income.
Finally, to the extent that the defendant contends that, after Judge Shay issued the 2012 modification **498order, the trial court was barred under Borkowski from considering the purpose of the original alimony provision in the divorce decree when it was crafting an equitable modification, we disagree.
II
We next address the defendant's claim that the plaintiff's motion for modification was "legally insufficient" on its face because it alleged only that the defendant's income had significantly increased and did not allege that the 2012 modification order was insufficient to fulfill the underlying purpose of the original alimony award or that there were other exceptional circumstances justifying a modification, as required by Dan . We disagree.
In support of this claim, the defendant points out that this court held in Dan that an increase in income, standing alone, does not justify a modification of an alimony award unless "the initial award was not sufficient to fulfill the underlying *101purpose of the award"; Dan v. Dan , supra,
III
We next address the defendant's claim that, even if the plaintiff's motion for modification was legally sufficient, the trial court improperly considered certain evidence to support its conclusion that the purpose of the original alimony award was "to address the fluctuating nature of the defendant's income and to have the plaintiff share in that income [from employment] ...." Specifically, the defendant contends that (1) the trial court should not have considered extrinsic evidence of the parties' intent when they entered into the separation agreement without first finding that the agreement was ambiguous; see Parisi v. Parisi ,
As we have indicated, this court held in Dan that the trial court should consider the purpose of the original alimony award when determining whether an increase in the supporting spouse's income, standing alone, justifies a modification. See Dan v. Dan , supra, 315 Conn. at 11-15,
The defendant also claims that the trial court improperly took judicial notice of certain items in the court file, specifically, the plaintiff's 2002 financial affidavit. It is well established, however, that "[t]he trial court has the power to take judicial notice of court files of other actions between the same parties." In re Mark C. ,
IV
Finally, we address the defendant's claim that "[t]he trial court entered an impermissible lifetime profit sharing order based on its finding that the 'underlying purpose of the original alimony award [was] ... to have the plaintiff share in [the defendant's] fluctuating income [from employment],' rather than to meet her needs." We disagree.
As a preliminary matter, we note that, inasmuch as the trial court was bound by the purpose of the original alimony award when determining whether a modification was justified; see Dan v. Dan , supra, 315 Conn. at 15-16,
This court concluded in Dan v. Dan , supra, 315 Conn. at 11,
The defendant points out, however, that this court in Dan presumed that the alimony award in that case, which was based on a voluntary agreement between **505the parties and included a percentage of any bonus income that the defendant received, as *104well as a flat payment of $15,000 per month; see Dan v. Dan , supra, 315 Conn. at 4,
As we have explained, however, the plaintiff in Dan made no claim that the purpose of the alimony award was to allow her to share the defendant's standard of living after the divorce, but claimed only that she was no longer able to enjoy the standard of living that she had enjoyed during the marriage. See footnote 7 of this opinion. Moreover, the plaintiff in Dan was not attempting to reinstate the provision of the original alimony award that required the defendant to pay her a percentage of his bonus income, which was the provision that allowed the plaintiff's income to track the defendant's income after the divorce, at least to some extent. See id., at 4-5,
The judgment is affirmed.
In this opinion the other justices concurred.
The defendant appealed to the Appellate Court and we transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1.
Hereinafter, all references to the trial court are to Judge Colin unless otherwise indicated.
Indeed, in light of the fact that the trial court expressly noted that the plaintiff's net weekly income at the time of the 2012 modification order was $973, we find it improbable that the court mistakenly believed that the plaintiff's income had increased from the date of the 2012 modification order.
As we have indicated, the trial court found that the defendant's weekly net income had increased from $2163 at the time of the 2012 modification order to $6765 in 2015 and that the plaintiff's net weekly income at the time of the 2012 modification order was $973 and was $763.54 in 2015.
We address the defendant's claim that the trial court in the present case improperly considered certain evidence to determine the purpose of the original alimony award in part III of this opinion.
We have concluded in part I of this opinion that the trial court properly considered the purpose of the original alimony award when it modified the 2012 modification order.
This court observed in Dan that, "[h]istorically, alimony was based [on] the continuing duty of a divorced husband to support an abandoned wife and should be sufficient to provide her with the kind of living [that] she might have enjoyed but for the breach of the marriage contract by the [husband]." (Internal quotation marks omitted.) Dan v. Dan , supra, 315 Conn. at 10,
As we have indicated, the trial court also included a cap on alimony payments in the modification order that is the subject of this appeal, a cap that was one half of the amount provided for in the original alimony award.
We emphasize, however, that we continue to believe that the trial courts should not, in the absence of good reasons, depart from the general rule that the purpose of alimony is to allow the supported spouse to continue to enjoy the standard of living that existed during the marriage.