Hudson v. Hudson
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In this case, Veronica Louise Hudson and Daniel Lee Hudson, a married couple in Alaska, divorced. The major points of contention revolved around the division of marital property and the classification of a severance and bonus package received by Daniel from his former employer, BP. Veronica argued that the severance and bonus pay were marital property, while Daniel contended that they were his separate property. The trial court ruled that the severance and bonus pay were separate property, and divided the remaining marital property equally between the parties. Veronica also challenged the court's order allowing Daniel to make an equalization payment over five years rather than in a lump sum and the court's denial of her request for attorney fees.
The Supreme Court of the State of Alaska concluded that the lower court erred in classifying the severance and bonus pay without sufficient information, and in its findings related to economic misconduct and the financial condition of the parties. The court also held that the lower court abused its discretion in ordering a schedule of equalization payments over multiple years. The court remanded the case for further proceedings to determine the purpose of the severance and bonus pay, and whether a different division of property is warranted. The court also required the lower court to reconsider the terms of any equalization payment. The court affirmed the lower court's denial of attorney's fees.
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