Murphy v. Murphy

• Decision Date: 14 February 2003
• Parties: Michael J. MURPHY v. Stephanie C. MURPHY.
• Court: Maine Supreme Court

816 A.2d 814

2003 ME 17

Michael J. MURPHY v. Stephanie C. MURPHY.

Supreme Judicial Court of Maine.

Submitted on Briefs: November 26, 2002.

Decided: February 14, 2003.

Barbara A. Cardone, Bangor, for plaintiff.

Martha J. Harris, Paine, Lynch & Harris, P.A., Bangor, for defendant.

Panel: SAUFLEY, C.J., and CLIFFORD, DANA, ALEXANDER, CALKINS, and LEVY, JJ.

CLIFFORD, J.

[¶ 1] Michael J. Murphy appeals and Stephanie Murphy cross-appeals from a divorce judgment entered in the District Court (Bangor, Russell, J.). Michael contends that the trial court erred in awarding transitional spousal support to cover Stephanie's dental and medical expenses. Michael also challenges the amount of the spousal support. Stephanie contends that the trial court erred in its determination and valuation of marital property, its division of marital property, and its failure to order Michael to pay her legal fees. We affirm the judgment.

I. FACTUAL AND PROCEDURAL HISTORY

[¶ 2] The parties met and began living together over twenty-six years ago in New York. In 1980, they moved to Massachusetts and purchased a home as joint tenants. Michael worked for New England Electric for about ten years. During this time, the parties held themselves out as married. On July 5, 1985, their son Brendon was born, and the parties agreed that Stephanie would stay at home and take care of him. Stephanie also home schooled Brendon. After approximately ten years in Massachusetts, Michael accepted a job with an engineering firm in Maine. Two years later, the parties bought the current marital home in Hampden using about $25,000 realized from the sale of their Massachusetts home. In 1993, Stephanie decided that they needed to be married because she was concerned that if anything happened to Michael she and Brendon would not be taken care of, so the couple married in October of 1993. In 1995, Michael started his own engineering consultant business. Stephanie helped Michael with the management of this business for about one year. In the fall of 1998, Stephanie began work as a psychiatric technician at Acadia Hospital. She was trained at the hospital and currently works full time.

[¶ 3] The divorce proceeding was commenced in September of 2000. Prior to the trial, the couple sold real estate they owned in Brewer, and the net proceeds of approximately $4600 went to Stephanie.

[¶ 4] After the parties separated, Michael and Brendon continued to live in the marital home in Hampden. The parties agreed that after the divorce, Brendon would continue to live with Michael, but would visit Stephanie whenever Brendon wanted and the parties would share parental rights and responsibilities. Stephanie lives in an apartment and shares expenses with a domestic partner, who earns approximately $28,000 a year. Stephanie previously took a sign language course and would like to go to college to earn a degree so that she could become an American sign language interpreter. She would be able to take some electives near where she lives, but would have to attend the University of Southern Maine for two years to take the core courses in sign language.

[¶ 5] Stephanie testified that she is in need of a substantial amount of dental work. She estimated that the cost of the extractions and bridge work needed would be about $11,250. Stephanie also testified that she would like to continue in therapy to treat her depression, for which she takes prescription medication.

[¶ 6] In Michael's financial statement, the marital home is valued at $119,300. Philip Cormier, a licensed real estate broker who conducted an appraisal on the property, testified that, if the property were placed on the market, he would suggest a listing price of $119,000 to $125,000 in order to sell the property within three or four months, and said that the property would probably yield a price of approximately $117,000. He acknowledged that the real estate market was doing well and that some houses were actually selling at list price or higher.

[¶ 7] Michael has a retirement account from his ten years of employment in Massachusetts, prior to his marriage, which he rolled over into an account with A.G. Edwards when he left his job in Massachusetts. Michael testified that he has not added any money to this account since that time. The account has a value of approximately $115,000 and stands in Michael's name alone.

[¶ 8] Michael's mother died in the late 1990s, and left an estate worth nearly half a million dollars. Prior to her death, Michael and his mother had a joint account with a value of about $43,000. After her death, Michael separated this account into two accounts in local banks. One account worth about $30,000 was placed in the parties' joint names, but was used only to pay costs of his mother's estate. Stephanie had a debit card for this joint account, but she never used it. After the parties had separated and the estate costs had been paid, Michael placed this money in his separate account. Michael was expected to receive $240,000 from his mother's estate and Brendon was expected to receive $120,000.

[¶ 9] The court found the Hampden marital home to be worth $119,300 and awarded the property to Michael, with Michael assuming the balance on the mortgage of approximately $91,000. The court awarded the $4000 car to Michael and the $9000 car to Stephanie. The court set apart various other items of tangible personal property to each party, with items valued at $15,000 to Michael, and items worth $5000 to Stephanie

[¶ 10] The court determined that the $115,000 retirement account was Michael's nonmarital property. The court also determined that the money Michael is to receive from his mother's estate is nonmarital property. Thus, the court concluded that Michael had nonmarital assets of approximately $355,000, and Stephanie had none. Michael received approximately $78,300 and Stephanie $18,600 from the court's initial division of the marital estate,¹ but to ensure a more equitable division, the court ordered Michael to pay Stephanie $50,000.

[¶ 11] The court found Stephanie's earning potential is approximately $18,000, and Michael's earning capacity to be about $90,000 a year. Although Stephanie has less income potential than Michael, given Stephanie and her partner's combined income, the court concluded that she could "maintain a reasonable standard of living without general support." Taking into account Stephanie's medical, dental, and educational needs, as well as her attorney fees obligation, the court awarded her transitional spousal support in the amount of $60,000.

II. MICHAEL MURPHY'S APPEAL

A. Spousal Support — Purposes

[¶ 12] In contending that the trial court erred in awarding Stephanie transitional spousal support to cover her dental and medical expenses, Michael argues that those two categories do not fall within the definition of transitional support. We disagree.

[¶ 13] Issues regarding spousal support are within the sound discretion of the trial court. Noyes v. Noyes, 662 A.2d 921, 922 (Me.1995). Title 19-A M.R.S.A. § 951-A(2) (Supp.2002), lists the five possible types of spousal support that a trial court may award, including general support and transitional support.² There is a rebuttable presumption that general support will not be awarded when the marriage is less than ten years in duration.³ 19-A M.R.S.A. § 951-A(2)(A).

[¶ 14] Transitional support, "may be awarded to provide for a spouse's transitional needs, including, but not limited to: (1) Short-term needs resulting from financial dislocations associated with the dissolution of the marriage; or (2) Reentry or advancement in the work force, including, but not limited to, physical or emotional rehabilitation services, vocational training and education." 19-A M.R.S.A. § 951-A(2)(B) (emphasis added). In determining an award of spousal support, the court must consider a number of factors, which include "health and disabilities of each party," and "any other factors the court considers appropriate."⁴ [¶ 15] The court's transitional support award in this case is based partly on Stephanie's health issues, her desire to receive counseling, her need for dental work, her obligation to pay attorney fees, and her need for more education and training. Michael challenges the court's consideration of Stephanie's counseling and dental work and contends that these items are not "transitional needs." The spousal support statute, however, does not specifically define the limits of "transitional needs," but rather provides that transitional needs "includ[e] but [are] not limited to" two broad categories. 19-A M.R.S.A. § 951-A (2)(B). Moreover, in determining an award of alimony, the court is required to consider the factors listed in § 951-A (5), including the health of the parties. 19-A M.R.S.A. § 951-A (5)(I). Accordingly, the transitional alimony award based in part on Stephanie's need for counseling and dental work is well within the trial court's discretion. See Noyes, 662 A.2d at 922

.

B. Spousal Support — Amount

[¶ 16] Michael also argues that the trial court's award of $60,000 for transitional spousal support was excessive and beyond its discretion, contending that the evidence supports a transitional award of no more than $27,700. We disagree.

[¶ 17] Stephanie has demonstrated a need for dental work, the need for legal representation in connection with this appeal, and that she will have to limit her work hours to accommodate her class schedule, and will be required to move to or commute to USM for two years. Furthermore, the statute provides that in determining an award of spousal support, the court must consider, among other factors, the income potential of the parties, their age, their standard of living, training and education, and their ability to pay spousal support. 19-A M.R.S.A. § 951-A(5). Contrary to Michael's contention, the transitional award of $60,000 was reasonable, was in keeping with the purpose of transitional...