Schorsch v. Schorsch
In Schorsch v. Schorsch, 53 Conn. App. 378, 382-83, 731 A.2d 330 (1999), the defendant filed a motion for modification of alimony claiming a substantial change in circumstances. Schorsch v. Schorsch, supra, 53 Conn. App. 380.
The defendant, however, was receiving payments toward a purchase money mortgage that he held after the sale of real property awarded to him in the dissolution decree.
The trial court considered both the principal and interest payments received by the defendant when it denied his motion for modification.
The Court reversed the trial court on this ground because the principal balance paid on the purchase money mortgage represented the proceeds from the sale of an asset awarded to the defendant at the time of the dissolution.
The Court held that "the principal payments that the defendant is receiving on the purchase money mortgage he holds is merely an exchange of assets and may not be included in the calculation of his income." Id. at 386.
In that case, the defendant was seeking a postdissolution modification of his alimony payments. The issue before the court in that case was whether cash, which was realized as a result of the sale of real property awarded to the defendant in the dissolution decree, later should be treated as income for purposes of determining whether there were changed circumstances sufficient to justify a modification decreasing alimony to the other spouse.
The Court held that the trial court improperly included as income the cash generated from the sale because "the mere exchange of an asset awarded as property in a dissolution decree, for cash, the liquid form of the asset, does not transform the property into income." Id. at 385.