Sack v. Sack

105 N.E.2d 371, 328 Mass. 600, 1952 Mass. LEXIS 721
CourtMassachusetts Supreme Judicial Court
DecidedApril 8, 1952
StatusPublished
Cited by18 cases

This text of 105 N.E.2d 371 (Sack v. Sack) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sack v. Sack, 105 N.E.2d 371, 328 Mass. 600, 1952 Mass. LEXIS 721 (Mass. 1952).

Opinion

Ronan, J.

These are appeals by a husband from a separate support decree of the Middlesex Probate Court ordering him to pay $2,000 a month for the support of his wife and two minor children, and from orders for the payment of $4,000 for his wife’s counsel fees.

The parties were married in 1936 and have two children, a girl twelve years of age and a boy nine years of age. The girl attends a public school and the boy a private school at the cost of $500 a year. Both children attend a camp during the summer at a total cost of $1,100. The parties purchased a house in Newton about 1945 for $28,000, using the proceeds from the sale of the property in which they had lived and giving a mortgage for $18,000 which has been reduced by monthly payments of $157.60 by the husband to $11,304.89. He expended in repairs $4,000 before they occupied it. Title to the house was taken in the name of the wife. It has been well furnished. She had employed two maids who were paid $35 a week up to the time he left; since then she has employed but one maid. She has always had the use of an automobile which was owned by one of the companies with which her husband was associated. The judge found that the expenses incurred in maintaining the home during the last year the parties lived together amounted to $12,114. These expenses included payments of mortgage interest and principal, taxes, heat, automobile, maids, care of grounds, food, camps, and the boy’s tuition. The judge did not find the amounts required for clothing of the wife and children, children’s allowance, home entertainment, house repairs, water, insurance, vacations, doctors, dentists, and charitable and church contributions.

*602 The judge in ordering the husband to pay $2,000 a month must have come to the conclusion that this last group of expenses amounted to about $12,000 a year. He found that the parties lived at the rate of $30,000 a year. The parties on March 22, 1950, through trustees had entered into an agreement by which the husband was to keep away from the home, and to pay $300 a week to the wife, $100 of which was for treatments by a psychoanalyst by whom she had been treated for years and whose services were to end about the time this agreement expired. When this agreement terminated he paid her only $25 a week for ten weeks and paid many of the household bills. There was no evidence that, outside of the house, she possessed any wealth. There is pending a bill in equity in which she claims a one-half or one-third interest in the assets which her husband has in the various enterprises hereinafter mentioned. He has filed a counterclaim alleging that the house is his.

The husband after his marriage entered the employ of his father-in-law who with the latter’s son conducted the business of smelting nonferrous scrap metal. The husband later acquired the business which he incorporated under the name of the Bay State Smelting Company, Incorporated, hereinafter called Bay State. He owns all the capital stock of this company. In January, 1950, the husband and one Zarum formed the Brass Mills Materials Corporation, hereinafter called Brass. Each contributed $500 in return for one half of its capital stock. The principal source of supply of Brass is the products processed by Bay State, and the customers for its goods are those with whom Zarum was acquainted. The husband owns all the capital stock of the Gerald Richard Corporation which owns the land and building occupied by Bay State which it leases to the latter at an annual rental of $20,000. Besides, the husband has an interest in various theatres, of which some have been closed, one is operated at a loss and another at a small profit. Bay State has advanced $80,000, taking the notes of the theatre companies in order to enable the husband to acquire these interests. The husband has conducted the Bay State *603 Discount Company which has ceased to function. At the time of the incorporation of Bay State the husband did not turn over to the corporation certain trucks and equipment but has leased them to the corporation at a rental equal to the amount charged off for depreciation. The net profits, after taxes, of Bay State for the fiscal years ending on March 31 were as follows: for 1947 $43,445, for 1948 $50,623, and for 1949 $65,748. For 1950 up to March 31 there was a net loss of $3,383. From April 1, 1950, to December 31, 1950, the company earned a net profit of $41,410. Brass from its incorporation in January, 1950, to November 30, 1950, earned a net profit of. $84,781 of which one half belonged to the husband. During 1950 he received a salary of $30,000, $17,000 of which was received from Bay State, $12,500 from Brass, and $500 from the discount company. The judge considered the net profits which accrued to these various companies in addition to the $30,000 as a part of the husband’s income and found that his total income during 1950 amounted to approximately $118,000. The judge determined that his financial worth was at least $412,000. The husband contends that both findings are plainly wrong and that they should be reversed.

So far as the profits were concerned, they were not the husband’s income in any technical sense until they had been withdrawn from the treasuries of the corporations and paid to the husband or at least had been earmarked or set aside in the treasury to be paid to the husband. No dividends were ever declared. The profits were used as working capital of the corporations. It is true that Bay State required large capital and had a line of credit of $500,000 with a Boston bank. It owed this bank nearly $100,000 as of March 30, 1950. The husband contends that the bank probably would not permit the net profits to be withdrawn by him and that their withdrawal as salary would probably not be allowed under the wage stabilization provisions of the defense production act of 1950, U. S. C. (1946 ed.) Sup. IV, Title 50, Appendix, §§ 2061, 2102. These considerations appear to be more or less collateral to the issue then before the court, *604 which was what would be a fair and reasonable amount suitable to maintain the wife and the children consistent with their station in life and with due regard to the financial resources of the husband. In other words, the issue involves an inquiry into "the comparative means, responsibilities and needs of both husband and wife, and all the circumstances that a fair minded person would consider in apportioning the income of the disrupted family.” Commonwealth v. Whiston, 306 Mass. 65, 66. Coe v. Coe, 313 Mass. 232, 235-236.

For present purposes, the judge could consider Bay State and the Gerald Richard Corporation as the husband doing business in a corporate form. No one other than he had an interest in their net profits. He had withdrawn $80,000 from Bay State to acquire his personal investments in the theatrical properties, and he is contemplating securing funds to pay a Federal tax deficiency by placing a mortgage on the ■unencumbered real estate of the Gerald Richard Corporation. The judge was not wrong in finding that the husband borrows from Bay State at will. Brass differs from the companies just mentioned in that the husband has only a one-half interest. Its funds may not be so easily available to convert into the personal funds of the husband as is the case in the other two wholly owned corporations.

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Cite This Page — Counsel Stack

Bluebook (online)
105 N.E.2d 371, 328 Mass. 600, 1952 Mass. LEXIS 721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sack-v-sack-mass-1952.