History
  • No items yet
midpage
670 S.W.3d 280
Tenn. Ct. App.
2022
Read the full case

Background

  • Parties married 1996–divorced after 24 years; two adult children; trial reserved property and alimony issues for bench trial.
  • Wife: 52, doctorate in pharmacy, out of workforce ~20 years as primary homemaker, has multiple medical conditions, seeks art-school rehabilitation rather than returning to pharmacy.
  • Husband: 56, sole plastic surgeon at a successful practice, historically very high income (pre-pandemic > $900k–$1M+), substantial rental income.
  • Trial court valued disputed assets (including husband’s practice APRS at $255,000), divided marital property roughly equally, and imputed Wife income $30,000 now / $50,000 after education.
  • Trial court awarded rehabilitative alimony $1,600/month for 3 years and alimony in futuro $7,000/month, finding Wife’s need and Husband’s ability to pay.
  • Husband appealed (challenges: Wife’s need given asset award and earning capacity; appropriateness of rehabilitative + in futuro v. transitional alimony; valuation of APRS). Wife sought appellate attorney’s fees.

Issues

Issue Wife's Argument (Plaintiff) Husband's Argument (Defendant) Held
1) Whether Wife demonstrated need for alimony given asset award and earning capacity Assets insufficient to generate needed income; physical limits and long absence from workforce diminish pharmacy prospects; need exists Wife received substantial marital property and has pharmacy credentials so no need for ongoing support Affirmed. Court found Wife has need, Husband ability to pay; assets/retirement accounts won’t replace income; imputed income and monthly need accepted
2) Whether rehabilitative alimony + alimony in futuro appropriate instead of transitional alimony Partial rehabilitation is feasible (Wife needs ~3 years education to improve earnings), so rehabilitative + in futuro warranted Transitional (short bridge) alimony would suffice; rehabilitation unnecessary Affirmed. Evidence supports partial rehabilitation plus long-term disparity, so both rehabilitative and in futuro alimony proper
3) Whether trial court erred valuing husband’s medical practice (APRS) Practice value higher (capitalized cash flow method) because corporation, revenue-generating staff, enterprise goodwill exist Value should be lower (adjusted net asset method); exclude personal goodwill Affirmed. $255,000 valuation is within range of expert evidence; court permissibly considered enterprise goodwill and other facts and excluded personal goodwill
4) Whether Wife is entitled to attorney’s fees on appeal Wife seeks fees Husband opposes Denied. Award discretionary; Husband not acting in bad faith and Wife can pay; appellate fees not awarded

Key Cases Cited

  • Gonsewski v. Gonsewski, 350 S.W.3d 99 (Tenn. 2011) (trial courts have broad discretion on spousal support; need and ability to pay are most important)
  • Kinard v. Kinard, 986 S.W.2d 220 (Tenn. Ct. App. 1998) (alimony decisions are fact-driven and appellate review is deferential)
  • Robertson v. Robertson, 76 S.W.3d 337 (Tenn. 2002) (appellate abuse-of-discretion standard for family-law rulings)
  • Wallace v. Wallace, 733 S.W.2d 102 (Tenn. Ct. App. 1987) (valuation of marital assets is a factual determination; trial court may adopt a value within the evidentiary range)
  • Ray v. Ray, 916 S.W.2d 469 (Tenn. Ct. App. 1995) (when values conflict, trial judge may select a value supported by the evidence)
  • Stratienko v. Stratienko, 529 S.W.3d 389 (Tenn. Ct. App. 2017) (affirming alimony in futuro where asset division left continued economic disparity)
Read the full case

Case Details

Case Name: Deborah R. Chase v. Christopher W. Chase
Court Name: Court of Appeals of Tennessee
Date Published: Dec 9, 2022
Citations: 670 S.W.3d 280; E2021-01300-COA-R3-CV
Docket Number: E2021-01300-COA-R3-CV
Court Abbreviation: Tenn. Ct. App.
Log In