Salten v. Ackerman

836 N.E.2d 323, 64 Mass. App. Ct. 868, 2005 Mass. App. LEXIS 997
CourtMassachusetts Appeals Court
DecidedOctober 26, 2005
DocketNo. 04-P-1458
StatusPublished
Cited by10 cases

This text of 836 N.E.2d 323 (Salten v. Ackerman) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salten v. Ackerman, 836 N.E.2d 323, 64 Mass. App. Ct. 868, 2005 Mass. App. LEXIS 997 (Mass. Ct. App. 2005).

Opinion

Dkeben, J.

This is an appeal by the husband from those portions of a judgment of divorce which awarded the wife eighty-eight percent of the marital assets and ordered him to pay what he claims is excessive child support. He also argues that the judge erred in awarding the. wife counsel fees. We affirm.

1. Facts. We take our facts from the “rationale” of the judge as supplemented by uncontested evidence, noting that the judge found the husband’s testimony “not credible” and the wife’s testimony “highly credible.” At the time of the divorce in 2004, the parties had been married for thirty-six years. Until 1990, when they adopted a child, the couple, both lawyers, contributed economically and otherwise to the marriage. After the child was [869]*869adopted, the couple agreed with the birth mother that the wife would stay at home and be a full-time mother.

The husband worked assiduously as an attorney, earning approximately $400,000 a year, and the parties enjoyed an upper-middle income lifestyle. In 1995, the husband began to have dealings with a man named Walter Grover that led to a series of disastrous investments financing lotteries in Lithuania and Russia. Not only did the husband use his own funds and borrow heavily, but he also took funds from joint accounts with his wife, from their daughter’s college savings in a Uniform Gifts to Minors Account (UGMA), from a trust fund for his wife’s nephew (a minor), and from a trust established by his then-deceased father for his mother (ninety years old at time of trial) in which the husband and his sister had equal vested remainder interests. The amounts, sources of funds, and dates of these investments were recounted in the husband’s answers to interrogatories and are set forth in the margin.1

The wife was only aware of about $190,000 of his investments, which the judge found to total almost $2 million despite the parties’ agreement that under no circumstances would the husband invest more than $200,000. There is no dispute that [870]*870these high risk ventures were a failure, although the husband claims only $1 million was lost and not $1.7 million as found by the judge and as reflected on the husband’s tax returns. At trial he claimed, without producing any evidence other than his own answers to interrogatories, that there were some investment returns and repayments.

In January, 1998, before the disastrous investments came to light, the husband requested a voluntary one-year leave of absence from his law firm. During his unpaid leave of absence, his firm informed him that they would not allow him to return. According to the husband, this was because he had not told them about his investment activities in Russia and Lithuania. He resigned from the firm in the summer of 1998.

In 1998, when the wife learned about the catastrophic losses to the marital estate and took control of the remaining joint bank accounts, she spent significant sums and incurred liabilities to help the husband reclaim his life and his career. She paid some $20,000 to a lawyer to represent the husband in negotiations with his former firm in an attempt to regain his position, $25,000 or $30,000 for his treatment at a facility to overcome what he described as his “over-extending myself [and becoming] totally irrational,”2 $10,000 to a placement firm to help him find an appropriate job, $100,000 to pay back the loan the husband had obtained from her father, and $13,500 for the husband’s taxes; most important, she agreed to refinance the marital home in order to pay off a loan to her husband in the amount of $500,000. The judge found the wife “made this decision [to refinance] to assist the husband in avoiding a bankruptcy filing . . . that might end his career.” She also returned to work, taking a position as a lawyer for the Federal court system.

Her father (ninety years old at time of trial), who had been generous throughout the marriage,3 gave her substantial sums so [871]*871that the couple’s daughter could continue in private school and with other activities. As a result of his generosity, his estate became smaller, and the wife’s expectant share is now about $200,000.

The husband was unemployed for more than a year. Thereafter he began working for another attorney, and in January, 2001, became that attorney’s partner. When pressed, the husband acknowledged that in 1999, before he became the attorney’s full-time employee, the attorney told him that he “had been earning [annually] several hundred thousand dollars and sometimes five hundred thousand dollars.” There was testimony as to the partnership agreement and evidence that the husband was a fifty percent partner, but the husband claimed he earned less than his partner. The husband’s billing rate at the time of trial was $200-$250 per hour and sometimes $300. He disclaimed knowledge of what his partner made in 2001 or thereafter. On his tax return for 2001, the husband reported income of about $158,000. His financial statement of September 3, 2003, listed earned income of approximately $140,000; the wife’s financial statement of September 12, 2003, listed income from employment of about $62,500.

The judge found that after the disclosure of the investments, the husband

“continues to Toan’ money to his Russian colleagues notwithstanding the devastating financial losses the family has suffered and in violation of the Domestic Relations Restraining Order on Assets. In the year 2000 and 2001, the Husband admits that he loaned Sergei Bogomolov at least $27,000 and as much as $50,000 to export beef udders from the United States to Russia. It is unclear as to whether Mr. Bogomolov has repaid any portion of this Toan.’ Although the house occupied by the Wife and daughter is mortgaged solely as a result of the Husband’s unilateral[] investment losses, the Husband has loaned Mr. Bogomolov money to pay the latter’s housing costs.”

The wife filed a complaint for divorce on September 21, 2001.

2. Financial provisions of divorce judgment. Prior to the divorce judgment, exclusive of the marital home which was [872]*872valued at $1.3 million, the wife had assets of $193,882, and the husband $672,500. The judgment ordered the husband to transfer his interest in the marital home (a condominium) to the wife, to pay the principal and interest on the mortgage which had an approximate balance of $275,000, to repay the UGMA, and to transfer certain other assets to the wife. After the division, the wife was left with assets valued at $1,913,882 and the husband with assets valued at $252,500.4 The husband was also ordered, if and when he receives his share of inherited assets, to transfer to the wife ninety percent of his share under his father’s trust as an asset division (the husband’s loan of $100,000 from the trust to be repaid first from his half'"share), and in addition, he was ordered to pay forty percent of his share of his mother’s estate as child support.5 The judge' also ordered the husband to pay $2,000 per week as child support.

3. Discussion, a. Child support. The expenses of the wife for the child were unchallenged. These were paid by the wife’s salary, and by the wife’s father’s significant contributions, which were necessitated by her inability to pay for all the child’s accustomed expenses.

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Cite This Page — Counsel Stack

Bluebook (online)
836 N.E.2d 323, 64 Mass. App. Ct. 868, 2005 Mass. App. LEXIS 997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salten-v-ackerman-massappct-2005.