State high court rules for Fidelity executive in alimony case
On behalf of Johnson, Sclafani & Moriarty, Attorneys at Law posted in High Asset Divorce on Tuesday, October 10, 2017.
The ex-wife of a Massachusetts executive will not be getting the amount of alimony she was awarded during the couple’s divorce in 2013. The state’s Supreme Judicial Court ruled that the man, who runs Fidelity Investments’ global asset allocation division, does not have to pay a third of his future income to his ex-wife, as the Norfolk County probate and family court had awarded her.
It remains to be seen whether this decision impacts other Massachusetts divorce cases where variable alimony awards are sought. In their decision, the high court said, “Although there might be circumstances where it is reasonable and fair to award a percentage of the supporting spouse’s income…those circumstances are not present in this case.”
The case has been sent back to the Norfolk County Court with an order to change the alimony award. According to the woman’s attorney, under Massachusetts law, the lower court can award her approximately one-third of the difference between the ex-spouses’ gross incomes.
The amount of the ex-wife’s income was not reported. However, the Fidelity executive has reportedly been earning at least $7 million a year. His income grew substantially in the years prior to the divorce. With this ruling, his ex-wife’s alimony will not automatically increase if his earnings continue to rise in the future.
The Fidelity executive’s attorney says that the lower court will now be required to consider what kind of lifestyle she had when the couple broke up rather than how she would be living if the two were still married when determining her alimony.
That wasn’t a bad lifestyle by just about any measure. According to the high court, the two were “living in a lavish, eight-bedroom home” and had a vacation home in Nantucket. They were also “driving luxury vehicles and regularly dining out three to four times a week at expensive restaurants.”
If you believe that an alimony award issued by a court is unfair, whether you’re the payer or the recipient, you may want to consider appealing it to a higher court. Your Massachusetts family law attorney can discuss your options with you and provide guidance.
Source: Reuters, “Fidelity executive gets favorable ruling in high-stakes alimony fight,” Tim McLaughlin, Sep. 25, 2017
