Can a Spouse with Substantial Assets Still Receive Alimony in North Carolina?

Can someone with millions of dollars in assets still need nearly $15,000 a month in alimony?

That’s exactly what the North Carolina Court of Appeals upheld in Allport v. Allport over the objections of the husband that his former wife had the wealth and education to support herself.

The ruling raises a question that can be relevant at any income level: When a marriage ends, how should courts weigh a spouse’s savings against their need for ongoing support? The answer had to do with the couple’s lifestyle, the years the wife had been out of her career, and a disagreement among the judges about her retirement income.

Background of the Case

Ptolemy married Simon Allport in 1989. During Simon’s medical training, Ptolemy worked as an attorney and was the family’s primary earner. As Simon’s career developed, she moved several times.

After she had children, Ptolemy lightened her duties. In 2009, the couple decided that she would leave her job and become a full-time homemaker. She briefly went back to legal work in 2014, but with Simon’s demanding job it was impossible to have a career and a family.

Simon’s income as a physician supported a high standard of living, with several homes, luxury cars, and vacations.

The couple split in 2015 after Ptolemy found out he was having an affair.

After the property settlement, the trial court found each spouse had an estate worth between $2 million and $3 million. In 2023, it ordered Simon to pay $14,767.52 per month in ongoing alimony. He appealed.

Why Did the Court Uphold Alimony?

Simon argued that because of Ptolemy’s education, assets, and potential earnings, she was better able to contribute to her own support.

However, the majority explained that a spouse’s need for support is evaluated against the standard of living established during the marriage.

Having valuable assets does not mean a person must spend them down to meet those needs.

The trial court determined that Ptolemy’s reasonable monthly expenses were $16,758.80, while her monthly investment income was $1,991.28. The alimony award made up the difference. It also cut about 30 percent of her requested expenses, instead of taking her whole budget.

Ptolemy was 63, had been mostly out of work for years, and was recovering from serious injuries. The trial court found no credible evidence that she reduced her income in bad faith and declined to use income she was not actually earning to base her support.

Simon also admitted that she was a dependent spouse. Those findings were binding on appeal because he did not challenge them as not supported by evidence.

Why Did One Judge Disagree?

Chief Judge Dillon agreed that Ptolemy was entitled to alimony, but questioned whether the trial court had adequately considered her available income.

He wanted to know more about IRA earnings and whether she could get Social Security. He said he was especially concerned that if retirement earnings are left invested and another $2,500 monthly is added to retirement savings, it could double-count that need.

The proposed IRA withdrawals were viewed by most as potential income and they saw no abuse of discretion in allowing her to keep retirement assets and defer Social Security.

Did the Affair Influence the Outcome?

In short: yes.

The majority explained that Simon’s illicit sexual behavior (the affair) required an alimony award under the circumstances. The court also rejected his argument that the indefinite duration improperly punished him, finding that the trial court considered the relevant financial and marital factors.

However, indefinite alimony doesn’t mean the amount is forever fixed, despite what it sounds like. The court stated that either party could ask for modification if circumstances changed. The order ends on the death of either spouse or if Ptolemy remarries or enters into a qualifying cohabitation.

What This Means for Divorcing Spouses In NC

Allport shows why alimony litigation isn’t just about comparing bank accounts. Income, reasonable outgoings, career history and the marital way of life were all relevant to the outcome.

If you’re wondering how you’ll support yourself after divorce, or what support you may owe, Woodruff Family Law Group can discuss your situation and find out your options. Reach out to us today.