Sherry P. Aude - Page 9

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          arrears in the alimony and child support payments.                          
          Events Subsequent to the Audes' Divorce                                     
               After the marriage ended, petitioner learned information               
          regarding the financial affairs for the years at issue.  She                
          discovered that Mr. Aude had written checks to supermarkets,                
          which were hundreds of dollars over the actual purchase price.              
          She also learned the financial worth of the household during the            
          years at issue.                                                             
               In 1988, petitioner sold the family home, which she received           
          in the divorce, and used the proceeds to purchase a home in                 
          Palmdale, California (Palmdale home).  The Palmdale house was               
          later refinanced to pay Erik's medical bills.  Currently, the               
          Palmdale home is held as a rental property, but the rental income           
          derived from the property does not cover the mortgage on the                
          property.  After withdrawing funds for attorney fees for the                
          divorce and for medical expenses for Erik, petitioner rolled over           
          the balance of the profit-sharing fund into an individual                   
          retirement account.                                                         
               After her divorce from Mr. Aude, petitioner worked part-time           
          for a university.  She attended college on a part-time basis from           
          1983 through 1985, but she had to quit when Mr. Aude became                 
          delinquent in his alimony payments.  In 1990, petitioner enrolled           
          in a junior college to study computers.  Petitioner remarried in            
          1990.  At the time of trial, petitioner and her current husband             
          were unemployed.                                                            




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