In re Werthen

In their 2000 Massachusetts divorce decree, Kathleen Werthen (plaintiff), the primary caretaker of the couple's four young children with limited education and back problems restricting her ability to work, was awarded 'Child Support and Alimony' of one-third of Paul Werthen's (defendant) future bonuses (from his roughly $150,000/year family-business job) plus $450 weekly child support. Separately, under the heading 'Property Division,' she was awarded $124,485.84 representing a share of Paul's past bonuses and $611,163.20 representing 40% of his equity in the family business, both payable over nine annual $50,000 installments plus large catch-up payments in years 10 and 11. Within 90 days of the decree, Paul filed for chapter 7 bankruptcy, and Kathleen sought to have the bonus and stock awards declared nondischargeable support under section 523(a)(5); the bankruptcy court agreed, emphasizing Kathleen's limited resources and the payments' extended schedule, and the Bankruptcy Appellate Panel affirmed. Paul appealed.