Alimony has been one of the most frequently discussed topics here on our blog. This is by design. Alimony remains one of the more controversial aspects of family law, in part because of various celebrity cases which involve high monthly payments. Alimony may also be controversial for other reasons, such as its association with gender issues. When it comes to awarding alimony, judges have substantial latitude in making determinations. This wide latitude is written into Maryland law, as most trial court rulings will be upheld unless there is clear evidence that the determination was unreasonable. However, although judges have latitude in making determinations, developing an award which accurately reflects all the subtleties of a given situation isn’t easy.
In cases involving spouses paid on commission, for example, coming up with a reasonable alimony award can be quite difficult. Let’s explore this issue a bit more by examining the case of Payne v. Payne (2023).
Overview of the Case
In the Payne v. Payne case, the primary issue which caused complexity was the fact that the husband earned his living on a commission only basis. The wife worked as a radiation therapist and earned approximately $100,000. The husband, by contrast, earned between $350,000 to $520,000 working as a sales engineer for a commercial HVAC company. His income fluctuated between these amounts during the years 2017 to 2021.
Calculating alimony in cases involving salaries and other stable streams of income is relatively simple. Things can become trickier when the alimony derives from commission only income. The alimony award was determined by the trial court judge, who considered the average earnings over the period from 2017 to 2021. In the two most recent years, 2020 and 2021, the husband made considerably less than he did in the years 2017 through 2019. Hence, when the judge made the award, the alimony amount was higher than what would’ve been awarded by looking only at the years 2020 and 2021. The average for 2020-2021 was around $30,000 per month (income for the husband), but for alimony purposes his average monthly income was set at about $37,500.
Judges Have Wide Discretion
Ultimately, the judge awarded an alimony amount based on this average from incomes earned between 2017 through 2021. The husband was dissatisfied with this amount because it included earnings from his higher earning years. But, per Maryland law, judges have discretion to award alimony amounts based on the all relevant facts and circumstances; although there are familiar factors which hold weight, the final determination depends on a careful assessment of the particular facts in a given instance. So, although the husband was unhappy with the relatively high award, there was nothing in the law which could be used to successfully overturn this determination. The award remained in place even after the husband attempted to reverse it.
Reach Out to the Murphy Law Firm for Additional Resources
This case highlights the importance of giving each individual situation its own careful analysis. Every case is fact driven, and so even one small fact can alter the final outcome. If you would like to know more, get in touch with the Murphy Law Firm today by calling 240-222-1187.