204 Conn. 224 | Conn. | 1987
The Appellate Court upheld the judgment of the trial court, in an action for dissolution of marriage, ordering the plaintiff husband to pay to the defendant wife a share of the assets he may acquire under his mother’s will and on termination of a revocable inter vivos trust created by her. Rubin v. Rubin, 7 Conn. App. 735, 510 A.2d 1000 (1986). This court granted the plaintiff’s petition for certification and now addresses the issue of the propriety in a marriage dissolution judgment of such a contingent assignment of property that one party expects to acquire. We reverse the judgment of the Appellate Court.
The facts relating to the issues on appeal are not disputed. The parties were married in 1950. Due to the excessive use of alcohol by the plaintiff, the marital relationship broke down and the parties separated in 1978. The plaintiff, in his complaint, and the defendant, in her cross complaint, each sought a dissolution of the marriage and an assignment of the other’s estate pursuant to General Statutes § Jeb-Sl.
The plaintiff, who had received a degree in business administration before taking over his father’s scrap metal business, averred in his financial affidavit that he had no income from wages because his “business is now defunct.” He admitted, however, that he had been receiving an annual gift of $10,000 from his mother, and an additional $6000 per year from a trust fund set up by his sister’s husband. By its terms, that trust will expire in 1988 unless its life is extended by the settlor.
The financial affidavit of the defendant, who had received a high school education, showed a total weekly
The plaintiff is the residuary beneficiary of a revocable inter vivos trust created by his mother, which is funded with approximately $225,000 in securities. At oral argument the plaintiff acknowledged that, for a while, money from his mother’s trust fund had supported the marriage of the parties. Additionally, the plaintiff is one of two equal residuary legatees under the will executed by his mother, whose assets at the time of the dissolution were approximately $725,000. See generally Rubin v. Rubin, supra, 736-38.
In its decree dissolving the marriage, the trial court ordered (1) that the plaintiff pay the defendant as periodic alimony the weekly sum of $150, (2) that the plaintiff name the defendant as the irrevocable beneficiary of his $10,000 life insurance policy, (3) that the family residence, valued at $60,000 in the plaintiff’s affidavit, and almost all of its contents be awarded to the defendant, (4) that the plaintiff pay all current debts of both parties, and (5) that the plaintiff pay to the defendant’s counsel the sum of $1000 in attorney’s fees. Id., 738. In addition the trial court ordered that the plaintiff pay to the defendant one third of the net estate that he may receive “from either the trust created by his mother and from her by way of a testamentary gift or other form of inheritance.” On appeal the plaintiff challenges this contingent order and also claims that the court erred in allowing into evidence the trust agreement and his mother’s deposition, which concerned her will and assets, and seeks a new trial at which such evidence would be excluded. We conclude
I
Our analysis of this case requires an understanding of the distinction between alimony and a property division. “The purpose of alimony is to meet one’s continuing duty to support; Wood v. Wood, 165 Conn. 777, 784, 345 A.2d 5 (1974); while the purpose of property division is to unscramble the ownership of property, giving to each spouse what is equitably his. Beede v. Beede, 186 Conn. 191, 195, 440 A.2d 283 (1982).” Weiman v. Weiman, 188 Conn. 232, 234, 449 A.2d 151 (1982). “The mode of the allowance or the name by which it is called does not determine its character, since the true test is the purpose for which it is made.” Maxwell v. Maxwell, 11 Conn. Sup. 205, 207 (1942). Although alimony is usually payable periodically, whereas a property division usually is effectuated by a single transfer or payment, lump sum alimony awards as well as property divisions carried out by installment payments have often been decreed. “The form of the order therefore does not always reveal its true substance.” H. Clark, Domestic Relations in the United States (1968) § 14.8, p. 450. “It is easy to see how, relying upon a vague statutory power, the courts have come to blur the distinction between alimony orders and divisions of property.” Id., p. 451.
While a divorce court, as a court of equity, has been deemed to possess the inherent power to adjudicate the property rights of the parties before it; see Singer v. Singer, 165 Ala. 144, 148, 51 So. 755 (1910); Cole v.
In Krause v. Krause, 174 Conn. 361, 387 A.2d 548 (1978), this court construed the predecessor of § 46b-81, despite the reference to “the opportunity ... for future acquisition of capital assets,” not to permit the consideration of evidence of a “potential inheritance.” We upheld the ruling of the trial court sustaining an objection to the admission of testimony regarding the net worth of the plaintiff wife’s mother, who had prepared a will naming the wife as a beneficiary. We stated: “The court’s ruling cannot be said to be an abuse of discretion since under the circumstances surrounding the vesting of a ‘potential inheritance of the wife,’ as the defendant describes it, the expectancy according to the testimony elicited and appearing in the finding and transcript is, at best, speculative. ‘ “Expectancy” is the bare hope of succession to the property of another, such as may be entertained by an heir apparent. Such a hope is inchoate. It has no attribute of property, and
Distinguishing Krause from the present case, the Appellate Court stated: “Superficially, and resting on its own language, Krause would appear to bar the evidence and orders involved in this case. A fundamental difference, however, between Krause and this case distinguishes its holding. In Krause, the defendant was seeking a present order based on a totally speculative and uncertain future happening, while, in the present case, the defendant spouse was awarded a future share contingent on the plaintiffs receipt of certain benefits.” (Emphasis in original.) Rubin v. Rubin, supra, 740. Because the Appellate Court viewed Krause, which dealt only with issues of property transfer,
We decline to adopt the position that the challenged order in the present case, involving a contingent award of expected property, can be upheld as a property transfer authorized by § 46b-81. As we have stated, § 46b-81 authorizes the court to assign to either spouse “all or any part of the estate of the other,” and prescribes that, in fixing the value of such “property,” the court shall consider, inter alia, “the opportunity of each for future acquisition of capital assets and income.” The terms “estate” and “property,” as used in the statute, connote presently existing interests. “Property” entails
Where the trial court had ordered the defendant husband, whose property had a net worth of $62,112.99 but who was expecting an inheritance valued at $198,045, to pay to the plaintiff wife, inter alia, the sum of $100,000 within four years of the decree of divorce, the Supreme Court of Wyoming reversed. Storm v. Storm, 470 P.2d 367 (Wyo. 1970). The Storm court stated: “Equitably speaking, it is reasonable to consider the inheritance under consideration the same as future property. With respect to future property, we think the rule must be that, when a court divides property incidental to the granting of a divorce, the court is limited by the amount of property in its hands for division and a mere expectancy is not subject to division.” Id., 370; accord Loeb v. Loeb, 261 Ind. 193, 201-202, 301 N.E.2d 349 (1973); Davidson v. Davidson, 19 Mass. App. 364, 374-75, 474 N.E.2d 1137 (1985). We agree with the view that the relevance of probable future income “in determining the fair and equitable division of existing property . . . does not establish jurisdiction to make allowances from . . . property other than that held at the time.” Beres v. Beres, 52 Del. 133, 137-38, 154 A.2d 384 (1959). Even where a dissolution judgment has become final, it has been held that the provision of the decree awarding the wife one half of any property the husband might receive by will or inheritance from his father, who died ten years after the dissolution, was “utterly void and ineffectual,” because the husband’s expectancy was not part of his estate from which such an allowance could be made. Meeks v. Kirkland, 228 Ga. 607, 608, 187 S.E.2d 296 (1972); see also Trammell v. West, 224 Ga. 365, 162 S.E.2d 353 (1968).
II
We have concluded that the award to the defendant of a share of the plaintiff’s expectancy cannot be sustained as a permissible transfer of property under § 46b-81. We must nevertheless consider whether the challenged order can be supported upon some alternative ground. See Pepe v. New Britain, 203 Conn. 281, 292, 524 A.2d 629 (1987); Henderson v. Department of Motor Vehicles, 202 Conn. 453, 461, 521 A.2d 1040 (1987); W. J. Megin, Inc. v. State, 181 Conn. 47, 54, 434 A.2d 306 (1980). If the Appellate Court has erroneously upheld the award as an assignment under § 46b-81, we would properly affirm the judgment “if the same result is required by law.” A & H Corporation v. Bridgeport, 180 Conn. 435, 443, 430 A.2d 25 (1980); Morris v. Costa, 174 Conn. 592, 597-98, 392 A.2d 468 (1978).
We are not aware of any principle of law that necessarily precludes a trial court, in exercising its discretion to fashion an alimony award, from ordering a payment that is contingent upon some future event. Such contingent awards often appear in judgments that
It must be remembered, however, that an alimony order is predicated upon the obligation of support that spouses assume toward each other by virtue of the marriage. A judgment contingently awarding a share of one spouse’s expectancy to the other may often prove illusory. Because such an order is not supportable as an assignment of property, it ordinarily terminates upon the death of either spouse. H. Clark, supra, § 14.9, pp. 461-63; see McCann v. McCann, 191 Conn. 447, 452, 464 A.2d 825 (1983); McDonnell v. McDonnell, 166 Conn. 146, 150, 348 A.2d 575 (1974); Harrison v. Union & New Haven Trust Co, 147 Conn. 435, 440, 162 A.2d 182 (1960). The circumstances of the parties may have changed substantially by the time the expectancy is fulfilled, warranting a modification of the order. Continuing orders, such as those for periodic alimony, are
The trial court may well have thought it had gone as far as possible in ordering the conventional forms of alimony, such as the order of $150 per week, and that the defendant had been given the maximum share of the total assets of the parties that could be justified. The court properly was concerned that the difficult economic circumstances of the parties at the time of the judgment made it impossible to provide adequate support for the defendant wife and that this deficiency in the award should be redressed whenever the plaintiff should acquire his anticipated wealth. We can perceive no advantage, however, in attempting to make such an adjustment prospectively rather than wait until the contingency has been resolved. Because periodic alimony orders are modifiable when changes in circum
Ill
Our conclusion that the award of a share of the plaintiff’s prospective acquisition of property from his mother cannot be upheld as an assignment of property of as alimony does not fully resolve the issue concerning the admissibility of evidence relating to his expectancy. The plaintiff claims not only that the provision of the judgment containing this award is invalid, but also that he is entitled to a new trial because the evidence relating to his mother’s wealth should have been excluded and its admission over his objection “affected
In Krause v. Krause, supra, 364-65, this court upheld a ruling of the trial court that excluded evidence of the potential inheritance of a wife from her mother, claimed to be relevant to the husband’s demand for an assignment of a share of the property held by his wife. “Unlike future earnings, prospects for increase in the husband’s property through gift or inheritance generally may not enter into the computation of alimony. Such sources of wealth are outside the husband’s control and subject to the will of the donor or relative.” H. Clark, supra, § 14.5, p. 444. As we indicated in Krause, we approve the view of those courts that have held evidence of a possible future inheritance to be inadmissible for the purpose of a property assignment or alimony award. Whitney v. Whitney, 164 Cal. App. 2d 577, 330 P.2d 947 (1958); McCloskey v. McCloskey, 359 So. 2d 494 (Fla. App. 1978); Turi v. Turi, 34 N.J. Super. 313, 112 A.2d 278 (1955); see Hillery v. Hillery, 342 Mass. 371, 173 N.E.2d 269 (1961). Many of the reasons we have advanced for invalidating the award to the defendant of a share of the plaintiff’s expectancy as either an assignment of property or as alimony apply also to the consideration of such evidence in respect to other issues. To base a division of property, which is not ordinarily subject to modification, upon the possibility of a future inheritance might often prove to be unfair in the light of subsequent events. A periodic alimony order, disobedience of which invokes the penalty of contempt, should not exceed the current financial ability to meet it of the party on whom it is imposed and, therefore, should not be premised upon predictions as to future income that depend wholly upon the generosity of others for realization. The authority of a court
The Appellate Court concluded that the prohibition expressed in Krause against the introduction of evidence of a possible inheritance by a spouse had been modified by our decision in Anderson v. Anderson, 191 Conn. 46, 55-57, 463 A.2d 578 (1983), where we upheld a finding that a wife had the possibility of future acquisitions of capital assets based upon evidence of substantial contributions made during the marriage by her mother and brother.
The judgment of the Appellate Court is reversed and the case is remanded to that court with direction to set
In this opinion the other justices concurred.
“[General Statutes] Sec. 46b-81. (Formerly Sec. 46-51). assignment of property and transfer of title, (a) At the time of entering a decree annulling or dissolving a marriage or for legal separation pursuant to a complaint under section 46b-45, the superior court may assign to either the husband or wife all or any part of the estate of the other. The court may pass title to real property to either party or to a third person or may order the sale of such real property, without any act by either the husband or the wife, when in the judgment of the court it is the proper mode to carry the decree into effect.
“(b) A conveyance made pursuant to the decree shall vest title in the purchaser, and shall bind all persons entitled to life estates and remainder interests in the same manner as a sale ordered by the court pursuant to the provisions of section 52-500. When the decree is recorded on the land
“(c) In fixing the nature and value of the property, if any, to be assigned, the court, after hearing the witnesses, if any, of each party, except as provided in subsection (a) of section 46b-51, shall consider the length of the marriage, the causes for the annulment, dissolution of the marriage or legal separation, the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities and needs of each of the parties and the opportunity of each for future acquisition of capital assets and income. The court shall also consider the contribution of each of the parties in the acquisition, preservation or appreciation in value of their respective estates.”
The contingent assignment of property included in the dissolution judgment applies only to the “net estate which [the plaintiff] receives from either the trust created by his mother and from her by way of a testamentary gift or other form of inheritance.” Thus, the order does not involve the trust established by the husband of the plaintiffs sister.
We note that in Krause the trial court’s conclusion that neither party was entitled to alimony support payments was not challenged. See Krause v. Krause, 174 Conn. 361, 362, 387 A.2d 548 (1978).
“[General Statutes] See. 46b-82. (Formerly Sec. 46-52). alimony. At the time of entering the decree, the superior court may order either of the parties to pay alimony to the other, in addition to or in lieu of an award pursuant to section 46b-81. The order may direct that security be given therefor on such terms as the court may deem desirable, including an order to either party to contract with a third party for periodic payments or payments contingent on a life to the other party. In determining whether alimony shall be awarded, and the duration and amount of the award, the court shall hear the witnesses, if any, of each party, except as provided in subsection (a) of section 46b-51, shall consider the length of the marriage, the causes for the annulment, dissolution of the marriage or legal separation, the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate and needs of each of the parties and the award, if any, which the court may make pursuant to section 46b-81, and, in the case of a parent to whom the custody of minor children has been awarded, the desirability of such parent’s securing employment.”
Silver v. Silver, A-606, Rec. & Briefs, Position 1, Rec. p. 20.
The Appellate Court also relied upon Thompson v. Thompson, 183 Conn. 96, 438 A.2d 839 (1981), where we found the admission of evidence of a potential inheritance to be a harmless error. The evidence in Thompson tended to show that the plaintiff wife and her mother jointly owned, inter alia, a savings account in the amount of $9886.93, and several savings certificates in the aggregate amount of $21,786.65. The plaintiff offered evidence indicating that she was to receive one fourth of her mother’s estate upon her death. Addressing the plaintiffs claim that the trial court had erred in relying upon the evidence of the potential inheritance, we stated: “Faced with the bare fact of joint ownership in the savings accounts, the court could well have treated the accounts as the plaintiff’s assets. By taking into consideration the proffered evidence showing that only one quarter of these assets were destined for the plaintiff, the court diminished the size of her estate. This, of course, worked to her advantage. Because the court’s action was favorable to the plaintiff, it is not a ground for reversal. See Maltbie, Conn. App. Proc. § 39.” Id., 99.