Enforcing Separation Agreements in North Carolina

A separation agreement can make life after a marriage feel a little more predictable. Knowing how much support is there – and when it will end – gives each spouse something to plan around. But what if they later disagree about what they signed?

In Levinsky v. Levinsky, the North Carolina Court of Appeals addressed whether the ambiguous contract terms excused unpaid support and whether the reimbursement claim was brought too late.

Background of the Case

Joanne and Matthew Levinsky married in 1996 and had three children before separating in 2013. Joanne was a stay-at-home mother and Matthew was a cardiologist.

In 2016, they signed a separation agreement that covered child support, alimony, and some educational expenses. They negotiated the terms themselves and paid an attorney to prepare the document.

In 2018 (at Matthew’s request) they signed an amendment requiring him to pay 30% of his income as child support and 20% as alimony through March 3, 2023.

Matthew said he planned to stop child support payments early in July 2022. Later, Joanne asked to restart payments and reimbursement of expenses for education and athletic training. Matthew said the agreements were invalid because of alleged defects in execution and refused further support payments.

Joanne sued for breach of contract. The trial court awarded her $241,842.79 in unpaid support and expenses, as well as $50,000 in attorney fees and interest. Matthew appealed.

Why the Unclear Language Did Not Invalidate the Agreements

Matthew appealed, contending that the child-support provisions were unenforceable because of their ambiguous terms. The original agreement failed to complete the base of its percentages and the amendment failed to define “income.”

That left room for disagreement. What counts as income? Did income mean earnings before deductions or take-home pay?

But the court could look outside the wording at evidence to see what the parties intended. Both had followed Matthew’s definition for years: the net pay on his pay stubs. He testified that they had agreed to use that amount and Joanne accepted payments in that manner.

Their behavior helped to solve the ambiguity. Unclear wording did not, by itself, make the agreements unenforceable.

On appeal, Matthew did not challenge the validity of the agreements as to alimony, extracurricular expenses, or attorneys’ fees. The original agreement required the loser of a breach-of-contract suit to pay the legal fees and costs of the prevailing party.

Why Child Support Was Not Reduced

Matthew also sought credit for prior payments he called advances and contended support should have been reduced by one-third when their middle child turned 18 in 2017.

The Court of Appeals observed that parents may agree to pay more than required by law or to pay for a longer period than required by law. Matthew said he planned to continue paying 30 percent even after that child turned 18. That ratio was maintained in the 2018 amendment.

But it was for the trial judge to resolve conflicting testimony as to payments. The appellate court upheld the $70,513.08 because the findings were supported by competent evidence.

When Did the Reimbursement Deadline Start?

Matthew argued that the three-year deadline for claims on a contract barred recovery of extracurricular expenses.

The court said the clock for this claim started ticking when Matthew refused reimbursement, not when Joanne incurred the expenses. She asked for payment in September 2022. He declined in October. She sued in November. Her claim was timely filed.

That’s not to say that all reimbursement claims can wait forever. Depending on the terms of the agreement and the circumstances of the breach, the timing of the filing will vary.

What This Can Mean for Separating Spouses

Levinsky is an unpublished opinion and is not binding authority. That said, it shows why having clear payment terms and records is important. Additionally, it shows that a support agreement can impose duties beyond the normal statutory obligations.

Do you have a separation agreement and you’re not sure what it calls for? Run it by the Woodruff Family Law Group team and we’ll help answer all your questions. Contact us today to discuss your separation agreement or problems with unpaid support.