Alina PORTUONDO, Appellant,
v.
Juan M. PORTUONDO, Appellee.
District Court of Appeal of Florida, Third District.
*1339 Ackerman, Senterfitt & Eidson and Richard C. Milstein, and Paul Hampton Crockett, Miami, for appellant.
Fine, Jacobson, Schwartz, Nash, Block and England and Linda Ann Wells, Miami, for appellee.
Before SCHWARTZ, C.J., and COPE and GODERICH, JJ.
PER CURIAM.
Alina Portuondo [the wife] appeals a final judgment dissolving her marriage to Juan M. Portuondo [the husband]. We affirm in part, reverse in part and remand with directions.
In this appeal, the wife disputes the trial court's distribution of marital assets and the award of rehabilitative alimony. She also challenges the trial court's order finding that the husband had no duty to support his stepdaughter and directing that she pay her own attorney's fees and costs.
The husband and wife were married in 1975. The husband had already secured a masters degree in business administration. The wife had not yet completed college, and had a sixteen month old child, Ali, from a prior marriage. The husband never adopted Ali, but in all ways acted as though she were his daughter. The fourteen year marriage produced one child, Marisa, who is still a minor. In November 1988, the wife petitioned for a divorce.
The trial court entered the final judgment of dissolution of marriage on September 11, 1989. The trial court ordered shared parental responsibility of Marisa and ordered the husband to pay child support for Marisa. However, the court found that the husband had no obligation to pay child support or assume any other type of financial responsibility for Ali. The court equitably distributed the marital assets specifically giving the husband a special equity in the escrow account. The husband was awarded sixty percent of the escrowed funds and the wife was awarded the remaining forty percent. In addition, the husband was ordered to pay all оutstanding credit card debts. The court found that the wife, who was thirty-seven years old and had worked both full time before and during the marriage, could become gainfully employed and, therefore, was not entitled to permanent alimony. But, the court *1340 did award her $60,000.00 as non-modifiable, lump sum, rehabilitative alimony for three years to enable her to effect her transition into the labor market. Finally, the court ordered each party to bear their own costs and fees.
First, we address the distribution of assets. We find that the trial court improperly found that the husbаnd was entitled to a special equity in the parties' escrow account.
At the time of the marriage, the husband owned as his separate property a house known as the "Fernwood house" which was and remained titled solely in his name. The parties lived in this house until 1979. In 1979, as рart of his parents' estate planning, the husband conveyed the Fernwood house to his parents in exchange for their house, which was known as the "Island Drive house". The parties took title to the Island Drive house as tenants by the entireties. At the time the parties acquired the Island Drive house, the parties executed a mortgage and note in the amount of $93,100.00 in favor of the husband's parents. However, the parties never made any payments on that mortgage and in 1983 the mortgage was entirely forgiven. A satisfaction of mortgage was executed on October 20, 1983. The husband's father testified that he intended this as a gift solely to his son. In 1988, the parties sold the Island Drive house, deposited the sale proceeds into a joint bank account, and moved into a rental residence. The husband contends that no other funds were deposited into that account and that, therefore, his separate funds were not intermingled with joint funds. The parties then withdrew money from that account to make the down payment on a vacant lot. The husband admits that after the down payment was made other funds werе deposited into that account. The parties then sold the lot and placed the proceeds therefrom into a jointly titled bank account which is currently held in escrow. This escrow account which contained approximately $575,000.00 at the time of the final hearing is the only substantial marital asset subject to equitable distribution. The husband claimed a special equity in the escrow account.
After considering the testimony and evidence, the trial court found that the husband had proven a special equity in the escrow account based upon the forgiveness of the mortgage by his parents and his ability to trace the funds constituting that gift into the escrow account. The trial court based its decision on the testimony of the husband's father that in forgiving the mortgage, it was his intention to gift the entire amount of the mortgage solely to his son. However, the evidence reveals that the parties held title to the Island Drive home as tenants by the entireties. Both the husband and the wife were legally obligated under the mortgage and note, and any forgiveness thereof flowed equally to both partiеs. In addition, the testimony of the husband's father itself undercuts the finding of a gift to the husband alone. The husband's father testified that he forgave the entire mortgage obligation over the course of four years. He further testified that under the advice of tax counsel, he and his wife gifted an annual amount of $3,000.00 each towards the reduction of the mortgage debt as a gift to their son. This would mean that the husband's parents gave him a gift of $6,000.00 for the years 1979 through 1981. However, in 1981, the Internal Revenue Code was amended and increased the gift tax exemption from $3,000.00 per donee to $10,000.00 per donee. As a result, the husband's parents would then have been able to gift an annual amount of $10,000.00 each towards the reduction of the mortgage debt as a gift to their son during 1982 and 1983. Under the tax code, the maximum amount of money that the son could have received during these years without either the husband's parents or the husband incurring tax liability was $58,000.00. The husband's father testified that he did not file any tax return, indicating that he was gifting any money to his son, "because it was tax-free." The only possible explanation for the satisfaction *1341 of the $93,100.00 in four years was that the husband's parents made gifts to both the husband and the wife.
"The question of donative intent is one of a preponderance of credible evidence". Merrill v. Merrill,
The wife also attacks the trial court's equitable distribution of the marital assets on the grounds that the court abused its discretion by failing to establish a suitable residence for the wife and the children prior to effecting an equitable distribution. We disagree.
In essence the wife is asking this court to find a special equity or other basis to support a special award from the only marital asset, the escrowed funds. Absent a special equity or some other compelling legal or practical reason, one spouse is not entitled to the other spouse's share of the marital assets. Halberg v. Halberg,
Second, we address the issue of the wife's support. The wife contends that the trial court erred in ordering rehabilitative alimony in the form, amount and duration awarded, аnd in failing to order that the wife receive permanent alimony.
We find that the form of the rehabilitative alimony award was improper. *1342 The trial court improperly created the novel remedy of "non-modifiable, lump sum, rehabilitative alimony". In light of the fact that the wife is аttending law school and has no track record in the legal field, no justification exists for forever slamming the door on modification of the award. See Canakaris v. Canakaris,
We agree with the trial court that the wife is entitled to rehabilitative alimony. She has undertaken a rehabilitative program thаt requires financial support. See Villaverde v. Villaverde,
For these reasons, we affirm the amount and duration of the rehabilitative alimony award, but reverse the form of the award and remand with directions to make the award subject to modification.
Further, we find that the trial court did not err in failing to award permanent alimony. Upon consideration of the criteria to be used in establishing the wife's need fоr permanent periodic alimony as set forth in Canakaris,
We next turn to the issue of support of the wife's child from a previous marriage, Ali. The wife contends that the trial court erred in finding that the husband had no duty to provide child support for his stepdaughter, Ali. We disаgree. The husband has no legal or other obligation to support Ali since the husband's marriage to Ali's mother has been dissolved. "It is well settled that a person has no legal duty to provide support for a minor child who is neither his natural nor adopted child and for whose care and support he has not contracted." Hippen v. Hippen,
Assuming arguendo that the husband had contracted to support the child, he stood in loco parentis at that time. See Hippen,
In addition, we find that the wife's reliance on Miller v. Miller,
Finally, we find that the trial court erred in failing to require the husband to pay all of the wife's attorney's fees and costs. Attorney's fees should be paid by the party who has a superior financial ability to pay. Canakaris v. Canakaris,
Affirmed in part, reversed in part and remanded with directions.
ON MOTION FOR REHEARING OR CLARIFICATION
PER CURIAM.
We clarify that the award of attorney's fees to the wife is to be a reasonable amount, to be determined by the trial court. See Conner v. Conner,
