Pet v. Pet

Hornby, J., delivered the opinion of the Court. On this appeal by the wife (Feme H. Pet) from a portion of the decree granting her a divorce a mensa et thoro from the husband (Paul M. Pet) on the ground of abandonment or desertion, it is contended that the chancellor neglected to give due consideration to the overall financial well being of the husband in determining the award of alimony and support for the minor children and the allowance of counsel fees. The principal source of income of the husband was the salary he received from a corporation, known as the Paul Pet Construction Company, which had been organized soon after the marriage of the parties for the purpose of engaging in the development and construction of home sites. Aside from his salary, which had steadily increased over the years until it reached $250 per week, the husband also received from the corporation incidental weekly benefits having a worth of about $50.

Although the husband was the only stockholder, the control of the construction company was vested in his grandfather (Jacob Petrushansky) who was its president. And the grandfather, to whom the corporation was indebted in the amount of approximately $800,000, held all of the stock- as collateral for the loans made to the corporation by him and by companies he controlled. The grandfather, who also determined the amount of the weekly compensation payable to his grandson and who had the sole authority to sign company checks, reduced the salary of his grandson to $150 per week several months before the trial of this case. For several years prior to the separation of the parties, the husband had another source of income from the earnings of a sole proprietorship known as the Mercury Building Company.

The wife, who was not employed other than as a housewife, was well provided for by the husband and lived comfortably in a home they owned as tenants by the entireties. The home ⁴⁹⁵ had a value of over $30,000, but there was an outstanding mortgage against it of $9,000 to $10,000. The wife continued to occupy the home with the children after the separation and made use of an automobile purchased by the husband. Through her attorney, the wife itemized the weekly amounts she considered necessary to maintain her standard of living and to support the children, the total of which was $131.

Alimony pendente lite in the amount of $135 had been allowed by the chancellor. The grandfather testified that he reduced the salary his grandson received from the construction company from $250 to $150 per week because the company had ceased constructing homes, apparently due to the unavailability of building lots. He further testified that he had stopped building because he was “too old”—he was then eighty-six — and that his grandson, if he wanted to, could continue building “on his own.” While considerable testimony was offered to prove the net worth of the construction company, the real value of the company was in dispute. Although the corporation had assets of over one and three-quarter million dollars, most of which were in the form of land installment contracts, there is some question as to the actual amount of its liabilities.

There was also a difference of opinion between the accountants of the respective parties as to the future profits to be realized from collections on the land installment contracts and as to the proper characterization and treatment of the debts and interest thereon due the grandfather. Other evidence revealed the amoitnt of the earnings received by the husband before taxes from the Mercury Building Company for several years prior to the time of trial. While the earnings of this solely owned business varied from year to year with the high point of $7600 having been reached in 1962, the husband testified that the operation of this company had almost ceased. There was no testimony as to the prospect of future earnings.

The chancellor, in finding that the wife was entitled to a partial divorce, based the award of $145 per week for alimony and support primarily on the undisputed weekly salary and incidental benefits received by the husband from the