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Hendry v. Hendry

The trial court erred in calculating the father's gross income, for purposes of a child support award, to include the $935 his employer paid him each month to reimburse the costs of his family health insurance premiums.

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John Allan Hendry and Sally Frances Hendry were married in 1998, and after three children were born of the marriage, they were divorced. In its final judgment and decree of divorce, the trial court awarded primary physical custody of the children to Sally, and it ordered John to pay $2,400 to Sally each month as child support. John appeals,1 contending that the court erred in several respects in its determination of his child support obligations. We agree with John that the trial court erred when it calculated his gross income to include amounts that his employer pays him to reimburse the costs of his family health insurance premiums, but we find no merit in his other claims of error. Accordingly, we affirm in part, reverse in part, and remand for the trial court to recalculate his gross income and to consider again the amount of his child support obligation.

1. The record shows that John is paid $935 each month by his employer to reimburse the amount that he pays from a checking account as a premium for family health insurance, insurance that covers the children born of his marriage to Sally. The reimbursement covers the entire cost of the premium, and his employer identifies the reimbursement as a benefit, not as salary. Nothing in the record indicates that, if the cost of the premium decreased, his employer would continue to pay the same amount to John as a benefit, such that John might redirect the portion of the benefit in excess of the cost of the premium to his ordinary living expenses. The trial court counted the reimbursement as gross income attributable to John, and John contends that this finding was erroneous. We agree.

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