Council v. Owens
Arkansas Court of Appeals
770 S.W.2d 193, 28 Ark.App.49 (1989)
- Written by Serena Lipski, JD
Facts
Freda B. Council and Henry C. McGregor were divorced in 1982. Under the terms of the property-settlement agreement, Henry agreed to pay Freda one-half of his net income from all sources, including trusts, or $700 per month, whichever was greater. In 1986 Freda obtained a judgment against Henry for an arrearage in alimony. Freda filed an action against Edward M. Owens, the trustee of the McGregor Family Trust, seeking a determination as to whether Henry’s interest in the trust as a beneficiary was subject to Freda’s judgment against Henry for unpaid alimony. Under the McGregor Family Trust, Owens was required to pay Henry his share of trust income. Owens had no discretion to determine whether to disburse the income. The McGregor Family Trust also contained a spendthrift provision. The chancery court determined that due to the spendthrift provision, Henry’s interest in the trust was not subject to Freda’s claims. Freda appealed.
Rule of Law
Issue
Holding and Reasoning (Rogers, J.)
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