Facts: Husband and Wife, the parents of three children, divorced after 18 years of marriage. Husband, a military veteran, started a company that transported government supplies to 400 military bases in Iraq. The business was very successful, and the parties amassed considerable assets. Husband also started other companies and acquired significant real estate during the marriage.

After a three-day trial, the trial court divided the marital estate 55% to Wife and 45% to Husband. To achieve this division, Husband was ordered to pay alimony in solido of $7.3 million, payable in 119 monthly installments of $30,000 before a final balloon payment of $3.7 million. He was also ordered to pay interest on the award of alimony in solido.

Husband appealed, arguing the trial court erred by awarding interest on Wife’s alimony in solido award.

On Appeal: The Court of appeals modified the award of interest on Husband’s alimony obligation.

Alimony in solido, or “lump sum alimony,” is a form of long-term spousal support. The total amount of alimony in solido is set on the date of the divorce and is either paid in a lump-sum payment of cash or property or paid in installments for a definite term. A typical purpose of such an award is to adjust the distribution of the parties’ marital property. Alimony in solido is not modifiable, except by agreement of the parties, and does not terminate on the death or remarriage of the recipient or obligor spouse.

The Court agreed it is improper to award interest on alimony in solido:

A recipient of alimony in solido payable in monthly installments is not entitled to postjudgment interest where [the recipient] only became entitled to the use of any part of the money represented by the judgment on the date the first installment was due.

Wife did not present evidence, and the trial court did not find, that Husband had been past-due on alimony payments. Interest is only payable after an installment is past due. We, therefore, modify the trial court’s award of postjudgment interest on Wife’s alimony in solido award to provide for interest only after a payment is past due.

Source: Barton v. Barton (Tennessee Court of Appeals, Eastern Section, January 10, 2024).

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