Randall G. Himes v. Elizabeth Bates Himes

CourtCourt of Appeals of Tennessee
DecidedApril 20, 2021
DocketM2019-01344-COA-R3-CV
StatusPublished

This text of Randall G. Himes v. Elizabeth Bates Himes (Randall G. Himes v. Elizabeth Bates Himes) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Randall G. Himes v. Elizabeth Bates Himes, (Tenn. Ct. App. 2021).

Opinion

04/20/2021 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE July 9, 2020 Session

RANDALL G. HIMES v. ELIZABETH BATES HIMES

Appeal from the General Sessions Court for Wilson County No. 2010-DV-116 A. Ensley Hagan, Jr., Judge ___________________________________

No. M2019-01344-COA-R3-CV ___________________________________

In this post-divorce dispute, ex-spouses filed competing petitions to modify alimony. The wife also sought to hold her former husband in civil contempt for failure to maintain the term life insurance policy specified in the parties’ marital dissolution agreement. The trial court declined to hold the husband in contempt. Both parties obtained partial relief on their modification petitions. The court granted the wife a judgment for a retroactive increase in alimony. The court also reduced the husband’s alimony obligation prospectively based on his inability to pay the current amount during his retirement. We conclude that the evidence preponderates against a finding that the husband had the ability to pay additional alimony in the first two months of 2019. We further conclude that the wife is entitled to an award of post-judgment interest. So we modify the court’s retroactive judgment accordingly. Otherwise, we affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the General Sessions Court Affirmed as Modified and Case Remanded

W. NEAL MCBRAYER, J., delivered the opinion of the court, in which FRANK G. CLEMENT, JR., P.J., M.S., and ANDY D. BENNETT, J., joined.

Amanda G. Crowell and Lindsey W. Johnson, Lebanon, Tennessee, for the appellant, Randall G. Himes.

Donald Capparella, Tyler Chance Yarbro, and Tarsila Crawford, Nashville, Tennessee, for the appellee, Elizabeth Bates Himes. OPINION

I.

A.

In 2011, Randall G. Himes (“Husband”) and Elizabeth Bates Himes (“Wife”) divorced after a twenty-nine-year marriage. In the final divorce decree, the Wilson County General Sessions Court adopted and incorporated the parties’ Marital Dissolution Agreement (“MDA”). Among other things, the parties agreed that Husband would pay Wife $5,000 each month in periodic alimony until her death or remarriage or Husband’s death. And, as security for the alimony obligation, Husband agreed to maintain a $500,000 term life insurance policy with Wife as the beneficiary.

Three-and-a-half years later, Husband petitioned the court to reduce or terminate his alimony obligation, as well as the life insurance requirement. Husband alleged that he had been terminated from his job and was unable to secure comparable employment. The trial court found that a substantial and material change in circumstances had occurred warranting a reduction in alimony. On April 22, 2016, the court reduced the alimony award to $2,500 per month, retroactive to January 1. The court left the life insurance requirement intact.

On November 29, 2017, Wife filed both a petition for civil contempt and a petition to modify alimony. She asked the court to hold Husband in contempt for his failure to maintain the life insurance policy required by the MDA. Her modification petition was premised on Husband’s increased income since the last modification order. Wife sought a return to the original alimony amount specified in the MDA, retroactive to the date of her petition. Husband filed a counter-petition. He alleged that a dramatic increase in the required life insurance premium and his retirement plans warranted a decrease or termination of his alimony obligation.

B.

At the time of trial on the competing petitions, Husband was two months shy of his sixty-fifth birthday. Wife was 62. They had been divorced for eight years.

During the marriage, Husband had been the family’s sole income earner. He earned a substantial salary as an executive with the Screen Actors Guild (“SAG”). Wife took care of the home and the couple’s four children. The parties agreed in the MDA to divide the marital estate fairly equally. Husband retained the marital residence after compensating Wife for her share of the home’s equity. Wife received primarily liquid assets.

2 Wife never returned to the workforce after the divorce. She lived on Husband’s alimony payment and assets she received in the property division. She never purchased a new home, choosing instead to rent an apartment. Over time, she accumulated sizeable revolving balances on several credit cards. She also owed the IRS for unpaid taxes. At some point, she elected to begin drawing her share of Husband’s pension.

After 37 years with SAG, Husband’s position was eliminated in April 2015. And in 2016, the court found that, despite Wife’s demonstrated need, Husband lacked the ability to pay the full alimony amount. The court reduced Husband’s alimony obligation to $2,500 per month based on an imputed annual income of $60,000.1

Husband then accepted a position with Team Payments, a California company owned by a friend. His initial salary was $72,000 plus commissions. In February 2017, his base salary increased to $100,000. As evidenced by his tax returns, Husband’s gross income from employment was approximately $105,700 in both 2017 and 2018.

In 2017, Husband learned that the annual premium on the required life insurance policy was rising from $2,702 to $27,740. Husband began searching for a replacement policy. Unwilling to pay the exorbitant new premium, he let the policy lapse in October 2017. He replaced the lapsed policy with a $250,000 term policy with a more affordable monthly premium. While searching for the new policy, he discovered that his long-time heart condition had worsened. And the ownership of Team Payments changed, raising concerns about his job status.

Sometime in 2018, Husband began preparing for retirement. He explained that upkeep on his Mt. Juliet residence became more difficult as he aged. He also desired to live closer to his children in Nashville. Because the Nashville housing market was more expensive than Mt. Juliet, Husband needed his uncle’s assistance to accomplish this move. In November 2018, he sold his Mt. Juliet home and used a portion of the proceeds to pay off his credit card debt and other expenses. He used the remaining cash as a down payment on a $635,000 Nashville home he purchased with his uncle. His uncle also helped him qualify for a $450,000 mortgage loan. Husband and his uncle owned the Nashville property as tenants in common. And the uncle paid a portion of the mortgage debt each month.

Husband’s uncle lived in Chicago, Illinois. The uncle explained to the court that he welcomed the opportunity to help his favorite nephew. The current arrangement served his needs as an investment vehicle. And he had his own room in the Nashville home whenever he visited. The uncle also revealed that, when the uncle dies, Husband will divide an inheritance worth approximately $400,000 with two other relatives.

1 The court found Husband willfully unemployed based on evidence that he had rejected a $60,000 job offer. 3 Husband was diagnosed with cancer that November. He also lost his job at Team Payments. As he was nearly 65, Husband decided it was time to retire.

By the time of trial, Husband had been retired for about three months. He maintained that he no longer had the ability to pay Wife alimony. His social security payments would begin in a couple of months. He expected to receive $2,650 per month. While he could also access his pension benefits at the same time, he hoped to wait until he turned 66. At 65, he would receive $3,742 per month. If he waited just one year, the payment would increase to $4,147. Other than his home, his only other asset was his IRA. He had been forced to use some of those funds since he retired. His remaining IRA balance was $240,000.

As Wife related, she struggled to make ends meet with the reduced alimony payment.

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Randall G. Himes v. Elizabeth Bates Himes, Counsel Stack Legal Research, https://law.counselstack.com/opinion/randall-g-himes-v-elizabeth-bates-himes-tennctapp-2021.