A Florida court has reversed a previous ruling regarding alimony in the divorce case of Edward J. Hampson and Joan M. Hampson. The court ordered a recalculation of the alimony based on net income rather than gross income. This decision affects both parties, particularly the Former Wife, who was awarded $3,500 in permanent, periodic alimony.
The case, filed under docket number 2D19-1105, reached the District Court of Appeal of Florida on January 22, 2021. The court's ruling is significant as it highlights the importance of accurately assessing income when determining alimony payments. The decision is expected to impact how similar cases are handled in the future.
Background
Edward J. Hampson and Joan M. Hampson were married for nearly thirty years before their divorce proceedings began in March 2017. Joan Hampson, the Former Wife, was primarily responsible for raising their four children and had recently started working part-time. Edward Hampson, the Former Husband, held a high-level executive position but lost his job in October 2017. He remained unemployed until the dissolution hearing in October 2018.
During the divorce proceedings, both parties were evaluated by a vocational expert, and their income levels were determined for the purpose of calculating alimony. The trial court imputed an annual income of $17,850 to Joan Hampson and $104,131 to Edward Hampson. Following these assessments, the trial court granted Joan Hampson $3,500 in permanent, periodic alimony.
The Ruling
The District Court of Appeal ruled that the trial court's decision to base the alimony award on gross income rather than net income was a reversible error. The court stated, "An award of alimony must be based on the income that is available to the party, i.e., the party's net monthly income." This ruling emphasized that net income provides a more accurate reflection of a party's financial situation.
Additionally, the court noted that after the dissolution hearing, Edward Hampson found new employment at a salary lower than the previously imputed income. However, he did not disclose this information to the trial court until he filed a motion for rehearing in January 2019. The court denied this motion but indicated that the trial court should consider Edward Hampson's current income when recalculating the alimony payments.
Impact
This ruling is significant for both Edward and Joan Hampson as it requires the trial court to reassess the alimony award based on net income. This change could potentially alter the amount of alimony Joan Hampson receives, depending on the recalculated figures. The court's decision also sets a precedent for future divorce cases, reinforcing the necessity of using net income for alimony calculations.
The ruling may also impact the consideration of attorneys' fees and costs. Although the trial court previously denied Joan Hampson's request for these fees, the court indicated that this issue could be revisited on remand, depending on the outcome of the alimony recalculation.
What's Next
The case has been sent back to the trial court for further proceedings. The trial court will need to recalculate the alimony based on the parties' net incomes and consider any new evidence regarding Edward Hampson's current salary. There is also the possibility of revisiting the issue of attorneys' fees and costs. The court's ruling can be appealed, but details regarding any potential appeal were not available in the court filing.