 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Clary v. Clary8/31/2001
REVERSING AND REMANDING
Lisa Ann Clary has appealed from an order of the Henderson Circuit Court entered on November 15, 1999, which denied her objections and adopted the Domestic Relations Commissioner's recommendation involving the calculation of her former husband's income for purposes of determining child support . Having concluded that the trial court erred by prorating the capital gain on the sale of James' real estate over his remaining work-life expectancy for inclusion in his "gross income" for determining child support , we reverse and remand.
The parties were married in 1982 and divorced in 1987. During the marriage, the parties had one son, who was born in August 1983. During the marriage, James was a self-employed farmer, working with his father and brother. Under the April 1987 decree of dissolution, Lisa was awarded sole custody of their child and James was ordered to pay $45.00 per week in child support . In March 1992, James' child support obligation was increased to $75.00 per week. In November 1995, James' child support payment was reduced to $50.00 per week. In January 1998, the trial court modified the custody arrangement to joint custody with Lisa having primary physical possession of the child and James paying $50.00 per week child support.
In August 1999, Lisa filed a motion seeking an increase in child support under KRS Chapter 403 based on a change of circumstances. She alleged that James had increased income from a capital gain on the sale of realty. James and his second wife, Mary, had purchased a tract of land in 1990, on which they conducted farming operations. In early 1998, James and Mary were approached about selling their farm property as part of an industrial economic development project. They received $80,000.00 for granting a purchase option to the West Kentucky Regional Development Authority. The Development Authority decided to exercise the option; and on October 14, 1998, it purchased the 392.26-acre farm from James and Mary for $792,800.00, which included the $80,000.00 option fee. As reported in their 1998 tax return, James and Mary realized a capital gain of $620,181.00 on the real estate sale.
On August 19, 1999, Lisa filed a motion to modify child support seeking an increase in James' support obligation. She asserted that his income had increased by virtue of the sale of his farm. James' response acknowledged that he and his wife had realized a $620,000.00 capital gain on the sale of their farm property and he indicated that after paying some debts, they retained $400,00.00 for purposes of investment through the services of the Old National Bank. He stated that the first year he had received a return of approximately $7,300.00 on the investment. James also said that he was employed by Crop Production Services earning $10.00 per hour, with monthly earnings of $2,388.00, and that he received $360.00 per year rental income on a six-acre tract of land he still owned. James opposed any increase in his child support payments on the grounds that the capital gain received on the sale of his property was a one-time event.
On September 7, 1999, the Commissioner held a hearing on the motion to increase child support. Lisa's attorney argued for inclusion of one-half of the capital gain from the sale of the realty as income for the year it was received by James in applying the child support guidelines in KRS 403.212. James argued that these circumstances did not qualify for modification of child support under KRS 403.213(1), which requires a showing of "a substantial and continuing change in circumstances." He asserted that his child support obligation should be based on his regular recurring sources of income, e.g.
Page 1 2 3 4 5 6 Kentucky Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|