What Must Courts Explain When Awarding Alimony in North Carolina?

In many divorces, at some point the conversation shifts from what went wrong during the marriage to what each person can afford after it. Then the court may have to go through paychecks, monthly bills, unpaid support, and legal fees and turn all that into a dollar amount.

That number can impact what happens next for both spouses, so the order needs to lay out how the courts got to that dollar amount. This was one of the issues in Haythe v. Haythe.

Background of Haythe v. Haythe

After being married in December 2008, Debbie and James Haythe separated in March 2020. James earned most of the money for the household and Debbie took care of the home. She also spent retirement savings on marital expenses and had only $600 left in the account at separation.

Later, the trial court ordered James to pay $850 per month in post-separation support, and $100 toward arrears (meaning late/overdue payments). By the time of the alimony hearing, he had paid only $1,050.

Each spouse was awarded more than $85,000 after the sale of the home. James’s share remained in his attorney’s trust account while Debbie’s unpaid-support claim was pending.

What Did the Trial Court Decide?

The trial court found Debbie to be a dependent spouse and James to be a supporting spouse. Thus, Debbie needed help to satisfy her reasonable needs and was not capable of doing so herself whereas James was and did.

Specifically, Debbie was short $3,319.02 a month, and James, a nurse, earned between roughly $62,000 and $77,000 a year from 2019 to 2021. His monthly income also slightly exceeded his expenses.

After considering the parties’ income, assets, needs and roles during the marriage, the judge ordered James to pay Debbie $40,000 in lump-sum alimony, $13,580 in past-due support, and $12,625 toward her attorney fees.

The court also found him in civil contempt for intentionally violating the support order.

Why Was Part of the Case Sent Back?

The Court of Appeals found that Debbie was entitled to alimony and that James could pay it as a lump sum. Although he had little money available for monthly alimony, his share of the home-sale proceeds was a substantial asset.

But the order never explained why he had to pay the $40,000 figure specifically. North Carolina law requires an order for alimony to specify the reasons for the amount, duration, and method of payment. Even if the answer could be determined from the record, the appellate court could not give a reason that the trial court failed to give.

The attorney fee award had a similar issue. Debbie was unemployed, her expenses were higher than her income, and she needed to borrow money from relatives to hire a lawyer. She ended up representing herself after she ran out of her retainer. This gave her a right to attorney fees.

However, the order needed findings about the time and labor involved, the skill required, customary fees for similar work, and the attorney’s experience. That information was necessary for the appellate court to determine whether $12,625 was reasonable.

The Court of Appeals sent both issues back for additional findings, allowing the trial court to use the record or hear more evidence.

What Else Did the Court Decide?

The appellate court upheld the decision to place James’s proceeds in trust because it protected Debbie’s interests and preserved funds for future payments.

The court also upheld the contempt finding, which requires proof that James could comply and intentionally did not. Most of the judges cited James’s employment, income, property award, and limited payments as evidence he could have complied or taken reasonable steps toward compliance.

One judge disagreed, saying James could not touch the money in trust and had little wiggle room in his monthly budget. It is this disagreement that illustrates why access to funds may be as important as the amount on paper.

What Does This Mean for North Carolina Families?

The lesson from Haythe is not that $40,000 was too high or too low but rather how the financial evidence impacts the final figure.

While income, monthly expenses, available assets, and access to money were all factors, the trial court still needed to explain how those facts led to its award.

How We Can Help

Are you seeking spousal support or are you being asked to pay it? The financial side of divorce can be difficult to deal with on your own, but you don’t have to deal with it all by yourself.

Woodruff Family Law Group can help you understand how North  Carolina law may apply to your situation. Reach out to us today and see what we can do for you.