Ainslie v. Ainslie

• Decision Date: 26 September 1995
• Docket Number: No. A-94-216,A-94-216
• Citation: 4 Neb.App. 70,538 N.W.2d 175
• Parties: Grace B. AINSLIE, Appellee, v. Neilon J. AINSLIE, Appellant.
• Court: Nebraska Court of Appeals

Page 175

538 N.W.2d 175

4 Neb.App. 70

Grace B. AINSLIE, Appellee, v. Neilon J. AINSLIE, Appellant.

No. A-94-216.

Court of Appeals of Nebraska.

Sept. 26, 1995.

Syllabus by the Court

1. Divorce: Appeal and Error. In actions for dissolution of marriage, an appellate court reviews the case de novo on the record to determine whether there has been an abuse of discretion by the trial judge.

2. Judges: Words and Phrases: Appeal and Error. A judicial abuse of discretion exists when a judge, within the effective limits of authorized judicial power, elects to act or refrain from action, but the selected option results in a decision which is untenable and unfairly deprives a litigant of a substantial right or a just result in matters submitted for disposition through a judicial system.

3. Alimony. In awarding alimony, a court should consider, in addition to the specific criteria listed in Neb.Rev.Stat. § 42-365 (Reissue 1993), the income and earning capacity of each party as well as the general equities of each situation.

4. Alimony: Words and Phrases. Earning capacity for the purpose of alimony encompasses more than one's ability to earn a wage and includes income from all sources.

5. Property Division: Alimony. How property inherited by a party during the marriage will be considered in determining division of property or award of alimony must depend upon the facts of the particular case and the equities involved.

6. Property Division: Alimony. The general rule is that property inherited by one spouse is not subject to division unless the other spouse has contributed to improving or caring for that property. This general rule in no way suggests that ownership of inherited property and income derived therefrom may not be considered when determining whether alimony is awarded and in what amount. The fact that property is inherited and therefore excluded from division does not prevent the income it generates from being considered when determining alimony.

7. Alimony. The ultimate test for determining correctness in the amount of alimony is reasonableness.

Donald R. Witt and John W. Ballew, Jr., of Baylor, Evnen, Curtiss, Grimit & Witt, for appellant.

Virginia G. Johnson, for appellee.

SIEVERS, C.J., and IRWIN and MUES, JJ.

MUES, Judge.

Neilon J. Ainslie appeals from a decree entered by the district court for Lancaster County on February 11, 1994. The decree specifically dissolved the marriage between Neilon and his wife, Grace B. Ainslie. The order further divided the parties' property and debts and awarded alimony to Neilon in the sum of $500 for a period of 12 months, $300 for a period of 12 months, and $200 for a period of 12 months. On appeal to this court, Neilon challenges the award of alimony as insufficient in both amount and duration. Although Grace's brief argues that no alimony should have been awarded and, in fact, seeks a reversal of that portion of the decree, she has failed to present a cross-appeal to this court pursuant to Neb.Ct.R. of Prac. 9D(4) (rev. 1992). Therefore, we view her position as that of merely resisting the increase sought by Neilon.

FACTS

Neilon and Grace were married for nearly 40 years. Four children were born of the marriage, all of whom had reached the age of majority at the time of trial. The couple moved to Lincoln in approximately 1985. Prior to this time, the couple had moved frequently throughout the course of the marriage.

The dissolution hearing was held December 14, 1993. At that time, Neilon was 65 years old. Neilon receives Social Security payments in the amount of $745 a month and a pension totaling $51 a month. These represent his sole source of income. Prior to moving to Lincoln, Neilon had worked full time in the restaurant management business during the entire course of the marriage except for a short period of time when he underwent a 30-day treatment program for alcoholism. Upon moving to Lincoln, Neilon worked at McDonald's, but quit because it was too strenuous. He subsequently worked part time delivering meals for a retirement center for an undisclosed amount of time. After the parties separated, Neilon worked for 4 months at a fast-food establishment at a Wyoming resort managed by his son. Neilon testified that he found the work difficult, but he continued until the resort closed due to cold weather. The tax documents submitted by the parties indicate the total wage income of the parties in 1991 totaled $732. It is impossible from the record to ascertain which party this wage income is attributable to. Tax records further indicate that neither party earned wages in 1992. Neilon likewise was not employed at the time of trial. Neilon suffers from high blood pressure, for which he takes medication. He also has a high cholesterol level, for which he does not take medication due to its expense. Neilon has undergone two surgeries for arterial sclerosis.

At the time of trial, Grace was approximately 58 years old. Throughout the marriage, she worked at various jobs ranging from store clerk and babysitter to medical records technician. Since moving to Lincoln, she worked as a store clerk during one Christmas season and participated in one Harris Laboratories study. Grace's health problems include bladder incontinence, high blood pressure, and high cholesterol.

During the marriage, Grace became a beneficiary of two trusts. The first of these, referred to as the Grace B. Ainslie Trust, was created by Grace in 1985 using money inherited from her mother. At its inception, the trust corpus was $200,000. Grace has complete control over this trust with free access to its corpus and the ability to determine the amount of income she will receive. Grace's chosen yearly net income from this trust is approximately $12,588. The remainder of income from this trust has been allowed to accumulate. As of June 30, 1993, the corpus of the Grace B. Ainslie Trust had increased to $280,539.63.

Grace is also the beneficiary of a second trust created by a great-great-uncle, referred to as the Annie W. Dunlap Trust. As of June 30, 1993, this trust had an accumulated value of $4,662,938.07. Grace has an undivided two-fifteenths interest in this trust enabling her to receive a yearly net income of approximately $20,000. Further, Grace will receive an undivided two-fifteenths interest in the principal of this trust upon the death of her aunt. Grace has no control over the distribution regarding this trust. The income from both trusts has been used to purchase miscellaneous items of property and for support of the parties since they moved to Lincoln until the time of separation.

In the decree entered by the trial court, Grace received the marital residence, a vehicle currently in her possession, property in Arkansas, and the personal property in her possession. She was ordered to assume the debt for the real property in the amount of $62,000. Neilon received the vehicle in his possession, a television set, and a money judgment in the amount of $7,000 for his portion of the equity in the marital residence. Neilon was also awarded alimony, which is the subject of this appeal.

ASSIGNMENT OF ERROR

Neilon's sole assignment of error is that the trial court erred in awarding alimony of insufficient amount and duration.

STANDARD OF REVIEW

In actions for dissolution of marriage, an appellate court reviews the case de novo on the record to determine whether there has been an abuse of discretion by the trial judge. Reichert v. Reichert, 246 Neb. 31, 516 N.W.2d 600 (1994); Pendleton v. Pendleton, 242 Neb. 675, 496 N.W.2d 499 (1993). A judicial abuse of discretion exists when a judge, within the effective limits of authorized judicial power, elects to act or refrain from action, but the selected option results in a decision which is untenable and unfairly deprives a litigant of a substantial right or a just result in matters submitted for disposition through a judicial system. Kelly v. Kelly, 246 Neb. 55, 516 N.W.2d 612 (1994); Sabatka v. Sabatka, 245 Neb. 109, 511 N.W.2d 107 (1994); Wulff v. Wulff, 243 Neb. 616, 500 N.W.2d 845 (1993).

ANALYSIS

Neilon claims the district court erred by awarding an insufficient amount of alimony. Grace's counterargument is that any award of alimony in this case is contrary to the criteria set forth in Neb.Rev.Stat. § 42-365 (Reissue 1993). She further asserts that future uncertain income from a nonmarital trust cannot properly be considered for the purpose of awarding alimony.

The court will first consider § 42-365, which sets forth the criteria to consider in awarding alimony and provides, in relevant part:

When dissolution of a marriage is decreed, the court may order payment of such alimony by one party to the other and division of property as may be reasonable, having regard for the circumstances of the parties, duration of the marriage, a history of the contributions to the marriage by each party, including contributions to the care and education of the children, and interruption of personal careers or educational opportunities, and the ability of the supported party to engage in gainful employment without interfering with the interests of any minor children in the custody of such party....

... The purpose of alimony is to provide for the continued maintenance or support of one party by the other when the relative economic circumstances and the other criteria enumerated in this section make it appropriate.

In awarding alimony, a court should consider, in addition to the specific criteria listed in § 42-365, the income and earning capacity of each party as well as the general equities of each situation. Kelly, supra; Taylor v. Taylor, 222 Neb. 721, 386 N.W.2d 851 (1986).

The first factor to consider is "the circumstances of the parties." Both Neilon and Grace are at or close to retirement age. For the past 8 years, neither has been employed other than for a short duration on a part- Next, we consider the fact that the parties were married...