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In re Marriage of Gibbs —

COLOCTAPPJuly 3, 2019No. 18CA0250Cited 1222 times

Case Details

Status
Published
Procedural Posture
appeal

Related Laws

No specific laws identified for this ruling.

Outcome

The appellate court affirmed the district court's denial of husband's motion to modify maintenance obligations, upholding the trial court's income calculations including imputed rental income and treatment of in-kind payments as offset business expenses.

Excerpt

Husband moved to modify or terminate his maintenance obligation to wife. He alleged a loss of income resulting from a shoulder injury that rendered him no longer able to perform labor-oriented work. He also alleged he had been diagnosed with stenosis, which would require surgery and affect his ability to work for the rest of his life. Following a hearing, the court denied husband's motion based on its calculation of his monthly income, including imputed rental income from husband's primary residence. On appeal, husband argued that the district court abused its discretion in determining his income for purposes of calculating maintenance. He contended the court miscalculated his self-employment income because it did not accurately calculate the ordinary and necessary business expenses that needed to be deducted from his gross receipts. Here, the district court found that husband's business expenses were offset by in-kind payments he received from his girlfriend's construction company. The court essentially added those payments to his salary and then deducted his business expenses from his salary. Because his monthly business expenses were nearly the same as the monthly in-kind payments for a vehicle, fuel, and cell phone, the district court did not err in calculating husband's self-employment income. Husband also argued that the district court erred in imputing $1,500 per month in rental income to him. Following the parties' dissolution, husband continued living in the marital residence with his girlfriend and her three children as a family. Husband paid the mortgage and his girlfriend paid for utilities and groceries. The district court found that this arrangement was not a fair market exchange and imputed to husband $1,500 per month rental income that he could have generated by renting the house, which was much larger than he needed for himself. No statutory provision addresses whether (1) potential rental income can be imputed to a party for purposes of calculating

What This Ruling Means

**What This Case Was About** A man asked the court to reduce or eliminate the alimony payments he owed his ex-wife. He claimed he could no longer afford the payments because a shoulder injury prevented him from doing physical work, and he had a spinal condition that would require surgery and limit his ability to work permanently. **What the Court Decided** Both the trial court and appeals court rejected his request. The courts calculated his actual monthly income, including rental income from his home that he could potentially earn, and determined he still had enough money to continue paying alimony. The courts didn't believe his financial situation had changed enough to justify reducing his payments. **Why This Matters for Workers** This case shows that work-related injuries don't automatically excuse financial obligations like alimony. Courts will look at your total financial picture, including potential income sources you're not currently using. If you're paying or receiving alimony and experience a job-related injury, courts require strong proof that your income has truly decreased substantially. Simply being unable to do your previous type of work may not be enough if you can still earn income in other ways.

This summary was generated to explain the ruling in plain English and is not legal advice.

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