379 S.W.3d 590
Ark. Ct. App.2010Background
- Larie Craig appeals a divorce decree and alimony award to Sharon Craig.
- Trial court combined Craig’s income with his roommate/girlfriend Cheryl Edgington for alimony calculations.
- Craig and Edgington jointly deposit checks and share a checking account; they claim equal incomes.
- Appellee alleges Craig began seeking work in Arkansas after leaving Michigan; Craig asserts substantial joint living expenses.
- The court awarded $700/month alimony for five years, concluding appellee was a dependent spouse.
- Appellant challenges the income imputation and asks for reversal; the court reverses and remands.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused discretion imputing Edgington’s income to Craig | Craig: double-counts income by mixing funds. | Craig: income includes two salaries due to joint funds. | Abuse found; no imputation of Edgington’s income to Craig. |
| Whether alimony should be awarded given correct income | Craig: wrong income used to deny/alter alimony. | Appellee: income properly considered under alimony standards. | Remanded to determine alimony consistent with correct income. |
Key Cases Cited
- Brown v. Brown, 76 Ark.App. 494 (Ark. App. 2002) (imputation of third-party payments as income for support purposes)
- Weir v. Phillips, 55 S.W.3d 804 (Ark. App. 2001) (personal use of company resources as income)
- Ford v. Ford, 347 Ark. 485 (Ark. 2002) (gifts can be income imputable to obligor)
- Davis v. Davis, 84 S.W.3d 447 (Ark. App. 2002) (income of both parties considered in alimony)
- Cochran v. Cochran, 644 S.W.2d 635 (Ark. App. 1983) (factors for alimony include financial circumstances)
- Holaway v. Holaway, 16 S.W.3d 302 (Ark. App. 2000) (primary alimony factors include need and ability to pay)