Court of Appeals: Third District: Spousal Support Debate 

        On Jan 10, 2011, a lengthy spousal support debate involving conflict over one party's substantial inheritance finally came to a conclusion when the Court of Appeals of Ohio confirmed the trial court's previous order, and ruled in favor of the wife, Lisa Timberlake.

        This battle first began when John and Lisa Timberlake divorced on January 31, 2007, after twenty-six years of marriage. The couple had first filed for divorce on December 8, 2006, and had agreed on a stipulation proclaiming the division of all real and personal property, vehicles, bank accounts, retirement plans, and debts. The stipulation also stated that John would pay spousal support. The spousal support schedule provided that John would pay Lisa $50,000 annually for ten years, and then pay her $30,000 for the eleventh and final year of support. John's income at the time of the couple's divorce was $160,000 per year, while Lisa had been working a part time job and earning $7.50 an hour. This stipulation further declared that the spousal support would terminate if either party were to become deceased or if Lisa remarried or cohabitated with an adult male who was not a member of her family.      

        John felt that the conditions which had sustained his spousal support changed after both Lisa's parents died in 2008. Lisa and her sister Suzanne, each received a sizable inheritance in the amount of $1,269,000. It was John's opinion that Lisa should no longer be entitled to spousal support based on the recent change in her financial state of affairs. On May 20, 2009, he filed a motion to terminate spousal support.   After hearing testimony from both Lisa, Suzanne, and a financial planning specialist, the trial court discussed whether or not to consider a modification of the law by applying R. C. 3105.18: Mandelbaum v. Mandelbaum, which ruled that "a trial court has jurisdiction to modify a prior order of spousal support if the court finds that (1) a substantial change in circumstances has occurred and (2) the change was not contemplated at the time of the original decree. The court ruled that it had maintained jurisdiction to modify the order and that Lisa's inheritance constituted a significant change in circumstances. Nevertheless, the court also found that "Mandelbaum test" was not completely met, as the inheritance was a change in circumstances, which was specifically contemplated during the stipulation.

        After receiving this verdict, John proceeded to appeal the courts decision proclaiming that there was no way to know when Lisa's parents would die and also no way to predict how much she would receive in the inheritance. He stated that this was proof enough to demonstrate that their discussions about the inheritance during the stipulation were not sufficient to "contemplate" and assess the situation beforehand. To refute his claims, both Lisa and Suzanne testified that John had been fully knowledgeable before the divorce was filed about her parent's poor health, as well as the substantial estate, which would be bestowed upon the two children, following the parents passing.

        The court further reviewed the case and ruled in favor of Lisa, citing that "Lisa's inheritance was a contemplated change of circumstances that was taken into account by the parties as they were negotiating their final agreement. Therefore, it is not proper to disrupt the finality of the decree in order to provide John with another opportunity to obtain terms that he was not able to negotiate in the original situation." 

Firm Update

What's new at Fanger & Associates LLC 

 

New Addition to Our Legal Team!

By: Larissa Martin

Tim Smanik

        This month we welcome Tim Smanik, the newest arrival to the Fanger & Associates legal Team. He will be practicing in the areas of litigation, corporate and business law, corporate, nonprofit, and LLC formation and representation, as well as conducting legal research.

        Mr. Smanik received his Juris Doctorate from Capital University Law School in 2009 and is a member of the Ohio State Bar Association and the Cleveland Metropolitan Bar Association.        

        In addition to his law degree, Mr. Smanik earned a Bachelor's degree in History and was a member of the National History Honor Society. He has always been inspired to be in the legal field as he had already decided he wanted to be a lawyer back in the second grade.   

        Mr. Smanik's strong abilities and experience will make him an excellent asset to our legal team.  Clients with legal questions or concerns are encouraged to contact Mr. Smanik to discuss the options available to them.

        We congratulate EDEN, the Emerald Development and Economic Network, Inc., as they celebrate 20 years of generously helping Cleveland, Ohio and the surrounding communities.

        EDEN provides safe and affordable housing to individuals and families who are low-income and either homeless and/or have a qualifying disability.   Their vision is to enable individuals who are disabled to maximize their full potential, exercise a degree of choice, and maintain their membership in the community. EDEN was founded in 1991 and broke ground by purchasing and renovating its first building, a 12-bed adult care facility for the elderly, in Cleveland Heights.  They also assumed ownership of 11 buildings and 22 housing units, all while functioning with a staff of 3 people. Today, EDEN now owns nearly 90 properties throughout Cuyahoga County, administers 22 housing programs, and employs a staff of 102.

        We are very proud of EDEN for their growth and accomplishments. They will undoubtedly continue to serve and improve the community around them well into the future! For more information about EDEN and their services please visit EDEN.    

        Do you have a firm understanding of the accountability standards and requirements of tax-exempt organizations? Would you like to develop a more thorough understanding of establishing and operating tax-exempt organizations or the ability to advise your clients more effectively in this process?

        Jeffrey J. Fanger will be presenting at the National Business Institute's 2011 Fall Seminar - "Tax Exempt Organizations from Start to Finish" in Independence, Ohio. This seminar is designed to help educate you on all of the accountability standards required, walk you through how tax-exempt status is achieved as well as the benefits, discuss the required forms and exemptions available, give you a better understanding of the potential liabilities of directors and officers, inform you of key methods to maintain an ethical practice, and guide you through this comprehensive process of all of the legal and tax aspects of exempt organizations. After attending the seminar, you will possess the knowledge you need to succeed in establishing or operating a tax-exempt organization, and the necessary tools to run you're nonprofit more efficiently.

        The seminar will be held on Thursday, October 27th, 2011 from 8:30 am - 4:40 pm at the Holiday Inn in Independence, Ohio. If you would like to register for the seminar or learn more information about the event, please visit NBI Seminar.   You may also contact us at (216) 382-0025 with any additional questions.