Staple v. Staple

616 N.W.2d 219, 241 Mich. App. 562
CourtMichigan Court of Appeals
DecidedSeptember 6, 2000
DocketDocket 204026
StatusPublished
Cited by65 cases

This text of 616 N.W.2d 219 (Staple v. Staple) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Staple v. Staple, 616 N.W.2d 219, 241 Mich. App. 562 (Mich. Ct. App. 2000).

Opinion

Saad, J.

This special conflicts panel 1 was convened to resolve a dispute between two panels of our court *564 in Bonfiglio v Pring, 202 Mich App 61; 507 NW2d 759 (1993), and Staple v Staple, 237 Mich App 805 (1999) (Staple I). MCL 552.28; MSA 25.106 gives either party to a divorce judgment the right to petition the court to amend the alimony 2 provisions of the judgment. This conflicts panel is asked to decide if parties who negotiate a divorce settlement may forgo this statutory right to petition the court to modify the alimony provisions and instead agree that the agreed-upon alimony provisions are final, binding, and nonmodifiable. We conclude the answer to this question is yes.

I. NATURE OF THE CASE

In Michigan, as in other states, 3 litigants and their lawyers have struggled for years with the question of when an agreed-upon alimony provision in a divorce judgment entered pursuant to a settlement is subject to future modification, and when it is final and nonmodifiable. In general, judgments, including consent judgments, entered by our courts are final and binding. 4 Zelenka v Wayne Co Corp Counsel, 143 Mich App 567, 571-572; 372 NW2d 356 (1985). Indeed, *565 “[p]ublic policy demands finality of litigation in the area of family law to preserve surviving family structure.” McGinn v McGinn, 126 Mich App 689, 693; 337 NW2d 632 (1983); Mixon v Mixon, 237 Mich App 159, 167; 602 NW2d 406 (1999).

However, our courts and our Legislature have long recognized that the general rule of finality is not always suitable in the realm of matrimonial law. In many situations, judgments of divorce must anticipate that circumstances will change for both the spouses who require support and the spouses who must provide that support. 5 Accordingly, flexibility in the form of modifiable arrangements may be more important than finality of judgments in certain cases. Consequently, our Legislature long ago provided that courts may modify judgments for alimony upon the petition of either party. MCL 552.28; MSA 25.106.

Although MCL 552.28; MSA 25.106 unambiguously provides that parties to a divorce may petition the trial court for modification of alimony, our decisions also recognize that divorcing spouses can, in some circumstances, structure an alimony agreement that will not be subject to future modification. See Staple I, supra, 808. On many occasions, this Court has addressed the question whether a particular alimony provision in a divorce judgment entered pursuant to settlement is modifiable or nonmodifiable. Two dis *566 tinct approaches to this issue have emerged out of this body of case law, the “bright-line” approach and the “intent” approach. Courts adhering to the bright-line approach have held that the modifiability of alimony depends strictly on whether the alimony is classified as “alimony in gross” or “periodic alimony”— terms we regard as confusing misnomers. The alimony in gross and periodic alimony differentiation can be summarized as follows: If the alimony is either a lump sum or a definite sum to be paid in installments, the alimony provision is classified as alimony in gross. This term is somewhat misleading, because alimony in gross is not really alimony intended for the maintenance of a spouse, but rather is in the nature of a division of property. Accordingly, alimony in gross is considered nonmodifiable and exempt from modification under MCL 552.28; MSA 25.106, though the recipient spouse dies or remarries before all the payments are made. Edgar v Edgar, 366 Mich 580; 115 NW2d 286 (1962); Kutchai v Kutchai 233 Mich 569; 207 NW 818 (1926). However, if the installment payments are subject to any contingency, such as death or remarriage of a spouse, courts adhering to the bright-line approach hold that the payments are more in the nature of maintenance payments, and therefore periodic alimony subject to modification. Staple I, supra, 809. Courts that decide the modifiability issue according to the periodic alimony or alimony in gross distinction have regarded the presence of a contingency as a bright-line indicator that the arrangement is for modifiable periodic alimony — though the parties have agreed or intended that the alimony not be subject to modification under MCL 552.28; MSA 25.106. Staple I, 809-811. The panel *567 in Staple I preferred this approach. Id., 814. See also Hall v Hall, 157 Mich App 239; 403 NW2d 530 (1987), Van Houten v Van Houten, 159 Mich App 713; 407 NW2d 69 (1987); Couzens v Couzens, 140 Mich App 423; 364 NW2d 340 (1985); Welch v Welch, 112 Mich App 524; 316 NW2d 258 (1982).

Courts following the “intent” approach have eschewed the bright-line test and opted instead to resolve the “finality” versus “modifiability” dilemma in accordance with the parties’ intent. Under this approach, the parties’ intent takes precedence over the presence of contingencies. Bonfiglio, supra, 65. Courts following this approach recognize that MCL 552.28; MSA 25.106 allows for the modification of alimony, but unlike courts that adhere to the bright-line rule, allow the parties greater freedom in deciding if the alimony they agree to is periodic alimony or alimony in gross. Bonfiglio, supra, 63, 65. See also Turner v Turner, 180 Mich App 170; 446 NW2d 608 (1989); Blake v Blake, 178 Mich App 315; 443 NW2d 408 (1989); Pierce v Pierce, 166 Mich App 579; 420 NW2d 855 (1988); Macoit v Macoit, 165 Mich App 390; 418 NW2d 476 (1988).

Prior to our Court’s ruling in Bonfiglio, supra, the panels of this Court were split on the bright-line and intent approaches. Bonfiglio resolved this conflict by embracing the intent rule. Because Bonfiglio was decided after November 1, 1990, it is binding precedent establishing the intent rule as the law in Michigan. MCR 7.215(H). Because the Staple I panel was obligated to comply with Bonfiglio contrary to its preference for the bright-line approach, it called for this special conflicts panel to resolve the matter. MCR 7.215(H)(3).

*568 Accordingly, we must decide today if this Court should continue to adhere to the intent approach of Bonfiglio or return to the bright-line approach as recommended by the Staple I Court.

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Bluebook (online)
616 N.W.2d 219, 241 Mich. App. 562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/staple-v-staple-michctapp-2000.