Tillett v. Tillett (In Re Tillett)

22 B.R. 907, 1982 Bankr. LEXIS 3386
CourtUnited States Bankruptcy Court, W.D. Oklahoma
DecidedSeptember 8, 1982
Docket19-10685
StatusPublished
Cited by3 cases

This text of 22 B.R. 907 (Tillett v. Tillett (In Re Tillett)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tillett v. Tillett (In Re Tillett), 22 B.R. 907, 1982 Bankr. LEXIS 3386 (Okla. 1982).

Opinion

MEMORANDUM ORDER

DAVID KLINE, Bankruptcy Judge.

STATEMENT

The debtor-plaintiff Alton T. Tillett filed this adversary proceeding against the defendant Faye O. Tillett, his former wife, to determine whether or not an alimony award contained in their prior divorce decree was dischargeable alimony in lieu of property settlement or nondischargeable support alimony. After a full evidential hearing the matter was taken under advisement.

ISSUE

Where the divorce court awards the former wife alimony in “the sum of $150.00 per week ... and a like sum ... each successive week thereafter until a total of 520 weeks have been so paid” is such or any portion thereof support-alimony or alimony in lieu of a division of property.

FACTS

A decree of divorce was granted the parties herein on January 28, 1982 by the District Court of Oklahoma County. At such time Mr. and Mrs. Tillett had one minor child, Raychel S. Tillett, age 13.

The court approved a general division of personal property. Additionally, Mrs. Til-lett was awarded the home which over and above the first mortgage had an equity of some $8,000.00. The first mortgage payment thereon is some $500.00 per month. Mrs. Tillett was directed to assume the first mortgage and hold the plaintiff Mr. Tillett harmless thereon “with the stipulation that upon sale of subject property by defendant, the sum of FOUR THOUSAND ($4,000.00) DOLLARS be paid to the plaintiff as his share of the equity.”

The decree further provided “that the plaintiff shall pay to the defendant for the support of said (minor) child the sum of $100.00 per week” until said child reaches the age of majority or until the further order of the court.

The court further ordered “that as alimony, the plaintiff shall pay to the defendant the sum of $150.00 per week, said sum payable on the 14th day of January, 1982, and a like sum on the Thursday of each successive week thereafter until a total of 520 weeks have been so paid.”

At the time of the bankruptcy court hearing herein the plaintiff Mr. Tillett was making approximately $350.00 per week take-home pay.

On June 22, 1982 the debtor-plaintiff filed his voluntary petition in bankruptcy seeking to discharge some $618,000.00 in unsecured debt including some $93,600.00 due the defendant herein and former wife under the divorce court award of January 13, 1982. Additionally, the plaintiff-debtor listed substantial medical liabilities incurred by his former wife plus a contingent claim for $480,000.00 arising out of an automobile accident involving his former wife on June 6, 1981.

On July 1, 1982 the Judge of the District Court entered an order nunc pro tunc mak *909 ing a determination that the alimony previously awarded by it was “support alimony” as distinguished from “alimony in lieu of a division of property” and continued the citations for contempt on file herein for non-jury trial on August 17, 1982 or at such later time as the bankruptcy court had ruled on the matters pending before it.

Although the defendant Mrs. Tillett is making some physical improvement she is neither trained nor in a condition physically at this time to obtain and hold substantially gainful employment. Mr. Tillett although gainfully employed, has some health problems in the nature of emphysema.

LAW

Pre-Code

Under the Bankruptcy Act to determine whether or not divorce decree provisions dealt with dischargeable division of property or with nondischargeable support-alimony or maintenance, the state law where the divorce decree was entered controlled. Nitz v. Nitz, 568 F.2d 148 (CA 10 1977); In Re Cox, 543 F.2d 1277 (CA 10 1976); In Re Cornish, 529 F.2d 1363 (CA 7 1976); In Re Nunnally, 506 F.2d 1024 (CA 5 1975); In Re Waller, 494 F.2d 447 (CA 6 1974).

Generally, under Oklahoma law the state court judge in entering a divorce decree, and at such time only, can “designate all or a portion of each such payment as support, and all or a portion of such payment as a payment pertaining to a division of property.” Where no such specific designation is made at the time, alimony payments which do not terminate on remarriage or death are statutorily treated as a division of property. Where property settlement, as distinguished from maintenance or support alimony, is involved the debt has been consistently held dischargeable in bankruptcy. Goggans v. Osborn, 237 F.2d 186 (CA 9 1956); Caldwell v. Armstrong, 342 F.2d 485, 488, fn. 5 (CA 10 1965); In Re Cox, 543 F.2d 1277 (CA 10 1976).

The support-alimony exception to the general rule of debt discharge “... is adopted on account of public policy to enforce the obligations for the maintenance and support of the wife or children upon the husband or parents so as to relieve society of those burdens.” Fernandes v. Pitta, 47 Cal.App.2d 248, 117 P.2d 728, 730 (1941). Read Treece v. Treece, 458 P.2d 633 (1969); Battles v. Battles, 205 Okl. 587, 239 P.2d 794 (1952); and Poolman v. Poolman, 289 F.2d 332, 333 (CA 8 1961).

12 Okl.Stat. (1981) § 1289(b) provides:

“b. In any divorce decree entered after December 31,1967, which provides for periodic alimony payments, the court, at the time of entering the original decree, only, may designate all or a portion of each such payment as support, and all or a portion of such payments as a payment pertaining to a division of property. Upon the death of the recipient, the payments for support, if not already accrued, shall terminate, but the payments pertaining to a division of property shall continue until completed; and the decree shall so specify. The payments pertaining to a division of property shall be irrevocable ...”

In She a v. Shea, 537 P.2d 417, 418-419 (1975) the Oklahoma Supreme Court in considering whether a divorce decree’s provision of monthly installment payments of an awarded lump sum would terminate upon remarriage, stated:

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22 B.R. 907, 1982 Bankr. LEXIS 3386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tillett-v-tillett-in-re-tillett-okwb-1982.