August 24, 2019

Colorado Court of Appeals: Wife’s Nondisclosure of Income Not Material so Termination of Maintenance Denied

The Colorado Court of Appeals issued its opinion in In re Marriage of Dadiotis on Thursday, March 17, 2014.

Post-Dissolution of Marriage—Termination of Maintenance.

In 2004, after husband failed to appear for a permanent orders hearing, the district court ordered him to pay wife maintenance of $1,000 per month until her death or remarriage. In 2008, before a hearing on husband’s motion to modify maintenance, the parties stipulated husband would pay wife $750 per month for ten years and this would not be changed for any reason. The trial court approved the stipulation and adopted it as an order in 2009.

In 2012, husband discovered income reported by wife’s betting business but not revealed during the 2008 proceedings. He filed a motion to terminate maintenance, alleging failure to comply with CRCP 16.2(e)(10). Following a hearing, the district court denied the motion, finding wife’s nondisclosure was not material because husband had participated in the betting business and was aware of its income and expenses.

The Court of Appeals first considered whether husband’s maintenance should be terminated because wife did not fully comply with CRCP 16.2(e)(10). The Court held that Rule 16.2(e)(10) does not apply to husband’s motion to terminate maintenance and therefore affirmed. The rule’s five-year reach-back provision only permits the court “to allocate material assets or liabilities, the omission or nondisclosure of which materially affects the division of assets or liabilities.” It does not apply to re-determining maintenance.

The Court also considered whether husband’s maintenance should be terminated because he materially relied on wife’s fraudulent conduct. The Court found that wife’s conduct was not fraudulent and therefore affirmed.

Summary and full case available here.

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