FOR PUBLICATION
ATTORNEYS FOR APPELLANT
: ATTORNEY FOR APPELLEE:
THOMAS M. BARR MELINDA ODELL
DAVID C. GRUPENHOFF
Mooresville, Indiana
Nashville, Indiana
IN THE
COURT OF APPEALS OF INDIANA
SONDRA L. RATLIFF, )
)
Appellant-Respondent, )
)
vs. ) No. 07A01-0307-CV-249
)
MICHAEL K. RATLIFF, )
)
Appellee-Petitioner. )
APPEAL FROM THE BROWN CIRCUIT COURT
The Honorable Judith A. Stewart, Judge
Cause No. 07C01-0002-DR-44
March 4, 2004
OPINION - FOR PUBLICATION
SHARPNACK, Judge
Sondra L. Ratliff Haggard (Mother) appeals the trial courts order amending Michael K.
Ratliffs (Father) and Mothers child support obligations. Mother raises numerous issues, which
we restate as:
Whether the trial courts calculation of weekly gross income for child support purposes
was clearly erroneous;
Whether the trial courts finding that the parties nineteen-year-old child was partially emancipated
was clearly erroneous;
Whether the trial courts finding denying Mothers request to credit her litigation expenses
against one childs post-secondary education expenses was clearly erroneous; and
Whether the trial court abused its discretion by denying Mothers motion for attorney
fees.
We affirm in part, reverse in part, and remand.
The relevant facts follow.
See footnote Mother and Father married in 1989. They
have three children: J.B.R., born September 14, 1983, D.R., born December 6,
1984, and A.R., born November 28, 1989.See footnote In February 2000, Father filed
a petition for dissolution of the marriage. In August 2001, the trial
court entered its dissolution decree and awarded physical custody of the children to
Mother and ordered Father to pay child support.
In October 2001, Mother married Wayne Haggard (Stepfather). In July 2002, D.R.
alleged that Stepfather had sexually molested her. The Shelby County Office of
Family and Children (OFC) filed a Child in Need of Services (CHINS) petition
on behalf of D.R., removed D.R. from Mothers house, and placed her with
Father. Because of the allegations D.R. made against Stepfather, Father filed an
emergency motion for change of physical custody of A.R. on August 9, 2002.
The trial court granted a temporary change in physical custody of A.R.
from Mother to Father. In December 2002, D.R. recanted her molestation allegations
against Stepfather. The trial court then returned physical custody of A.R. to
Mother. D.R. remained with Father.
On May 20, 2003, the trial court held a child support modification hearing
due to the fact that Father had custody of D.R. At the
time of the hearing, Mother worked as a pharmacist at Apria Health Care,
earned $35.79 per hour, and worked 40 hours per week; thus, her weekly
wages were $1,431.60. Mother also worked some overtime, and at the time
of the hearing her year-to-date average weekly gross income, including overtime, was $1,926.40.
Father worked
at Ingersoll Cutting Tools and earned a base salary of
approximately $1,261.00 per week. Father also earned bonuses and commissions, and his
income included some reimbursed expenses and allowances. At the time of the
hearing Fathers year-to-date average weekly gross income, including commission and bonuses, was $2,108.71
per week.
Mother and Father each submitted child support obligation worksheets in order to assist
the trial court in calculating their weekly gross incomes. In Mothers child
support obligation worksheet, she calculated her and Fathers weekly gross income based upon
their base pay plus any overtime, bonuses, and commissions, and she proposed that
the trial court find that her weekly gross income was $1,926 and that
Fathers weekly gross income was $2,109. Mother used her and Fathers year-to-date
pay from their latest 2003 pay stub and divided that amount by the
number of weeks reflected in the pay stub. In Fathers child support
obligation worksheet, he proposed that the trial court find that his weekly gross
income was $1,261 and that Mothers weekly gross income was $1,400. Fathers
calculation of weekly gross income did not include any overtime, bonuses, and commissions.
Instead, Father proposed that both he and Mother pay 17% of any
overtime, bonuses, and commissions that they earned above their base pay on a
quarterly basis.
During the hearing, the trial court also heard testimony regarding pending motions.
Father had filed a motion regarding the emancipation of J.B.R. J.B.R. was
nineteen years old and lived with Mother. J.B.R., who was home schooled,
was classified as a senior in high school but had not completed all
his junior level requirements. He worked full-time at Wal-Mart and earned $8.50
to $8.75 an hour. Father argued that he should not have to
pay base child support for J.B.R. because he was emancipated.
Mother asked the trial court to order Father to pay her approximately $12,645
in attorney fees and expenses that stemmed from the litigation surrounding Fathers motion
for temporary custody of A.R. Mother argued that attorney fees were appropriate
because Father, who filed the change of custody motion after D.R. alleged that
she was sexually abused by Stepfather, should have known that D.R.s allegations were
not truthful. Mother also requested that the trial court credit
her litigation
expenses stemming from D.R.s sexual molestation allegations against her post-secondary education expenses for
D.R.
On June 4, 2003, the trial court entered its order determining Mother and
Fathers child support obligation. In calculating the parties child support obligations, the
trial court determined that Mothers weekly gross income was $1,926 and that Fathers
weekly gross income was $1,685. In its order, the trial court also
determined that J.B.R. was partially emancipated, and it denied Mothers request for attorney
fees and her request for credit against D.R.s post-secondary education expenses. The
trial courts order provided in pertinent part, that:
The parties were able to agree on the majority of the pending issues
in this case. The agreement was stated on the record, and counsel
for the parties will revise their draft of the agreed entry to reflect
all changes and submit the agreement to the Court for review and approval.
The contested issues that remained for hearing were the appropriate child support order,
whether [Mother] should receive any credit toward her share of [D.R.s ] college
expenses, and attorney fees.
Current Support
The issues with respect to the parties current support obligation are: first,
the appropriate amount of weekly income to attribute to [Father]; and, second, whether
[Father] should be required to pay basic child support for [J.B.R.].
[Father] earns a gross annual salary without commissions, bonuses or reimbursed expense of
approximately $62,572.00 or $1,261.00 per week. However, he also regularly earns commissions
and/or bonuses and receives income consisting of reimbursed expenses. In 2002, he
reported an adjusted gross income of $92,375.00. Through April 30, 2003, he
had earned a gross income of $35,848.00.
[Father] requests the Court to use his basic weekly salary of $1,261.00 in
establishing his weekly child support obligation, and also order that he pay a
percentage of any bonuses, commissions or other income he receives on a periodic
basis. This approach would insure (sic) that he is able to meet
the basic child support obligation regardless of the amount he receives from the
less certain portions of his income. However, it results in a weekly
obligation of much lower than his income would justify, with [Mother] having to
wait for the additional support on a quarterly or other regular basis.
[Mother] requests the Court to set [Fathers] weekly income at $2,109.00, his total
income year to date divided on a weekly basis. This approach would
insure (sic) that all of [Fathers] income would be included in determining the
weekly child support obligation, would provide a consistent amount of support for the
children, and would be less complicated and time consuming for the parties.
However, it runs the risk of overstating [Fathers] income.
The Court finds that [Father] earns commissions on a regular enough basis to
include some amount of commissions in his weekly income. Assigning some additional
income to [Father] above his regular earnings, but less than requested by [Mother],
would result in a more accurate weekly child support obligation without incurring the
risk of overstating [Fathers] income. Consequently, the Court will use a weekly
income figure for [Father] of $1,685.00, which represents his weekly regular earnings of
$1,261.00 plus ½ of the additional weekly income he has received year to
date. He will also pay, on a periodic basis, a percentage of
any income he earns in excess of $1,685.00 (his excess earnings). The
percentage will equal the ratio of the basic child support obligation to the
combined income of the parties as suggested in the Commentary to Guideline 6
of the Indiana Child Support Guidelines.
The parties agreed that they would divide the costs of postsecondary education with
each of their children, with each party and the child paying 1/3 of
that childs expenses. [Father] argues that while he is willing to pay
his share of college expenses for [J.B.R.], he should not be required to
pay weekly child support because [J.B.R.] is partially emancipated. The parties
agreement calls for a determination that [J.B.R.] is completely emancipated as of January
1, 2004. [Father] argues that [J.B.R.] is partially emancipated at this time.
The evidence showed that [J.B.R.] continues to live with his mother, that he
works approximately full time at Wal-Mart earning $8.50 or $8.75 per hour, and
that he earned $15,139.82 in 2002. He pays for his own vehicle
expenses including insurance, and the expenses for his hair cuts (sic) and cell
phone. His mother pays his remaining expenses, including health insurance. The
Court finds that based on the evidence presented, [J.B.R.] is partially emancipated.
The parties shall be obligated to pay some basic support for [J.B.R.]
so long as he continues to live with his mother under the current
circumstances, but that obligation shall be in a reduced amount.
The Court finds the parties are entitled to a 17% reduction in the
basic child support obligation based on [J.B.R.s] partial emancipation. This reduction equals
½ the difference between the basic child support obligation for one child, and
the basic child support obligation for two children. (See Child Support Obligation
Worksheet A). Consequently, [Father] will owe a weekly child support obligation for
the benefit of [J.B.R.] and [A.R.] in a total amount of $155.00 plus
12% of any gross income earned above $1,685.00 per week. (12% equals
the ratio of the basic child support obligation of $397.00 to the parties
combined income of $3,450.00). Unless otherwise agreed by the parties, [Father] will
be required to figure the gross income he earns above $1,685.00 per week
($21,905.00 per quarter) and the 12% child support owed on the excess earnings
on a quarterly basis. He shall provide copies of pay stubs or
other employment records as documentation of the excess earnings to [Mother].
[Mother] will owe child support for the benefit of [D.R.] in the sum
of $178.00 per week, resulting in a net difference owed by [Mother] to
[Father] of $23.00 per week ($299.00 per quarter) pursuant to the split custody
arrangement. (See Child Support Obligation Worksheet B.) Because [Father] will pay
the child support obligated by his excess earnings on a quarterly basis, [Mother]
will not be required to pay any child support to [Father] until after
[Father] provides [Mother] with record of his quarterly excess earnings. Each quarter,
the parties shall ascertain which party owes the other support, depending on whether
the $299.00 per quarter owed by [Mother] exceeds or is less than 12%
of [Fathers] gross earnings in excess of $21,905.00 per quarter. Whoever owes
the greater amount of support shall pay the difference no later than two
weeks after the support documentation has been provided[.]
The Court will also deviate from the guideline division of uninsured health care
expenses. The Court orders that any uninsured health care expenses for the
children be divided equally between the parties. The Court bases this deviation
on the fact that the parties are enjoying split custody of the children,
and because once all support is paid by both parties, including the bonuses
and commissions earned by [Father], the evidence indicates the parties[] incomes will be
relatively equal.
Attorney Fees
Credit Toward College Expenses
Finally the Court must determine whether [D.R.] should bear a greater portion of
her college expenses based on the expenditure of funds made by her parents
directly related to her allegations against [Stepfather]. [Mother] contends that an order
requiring [D.R.] to pay a greater percentage of her college expenses would serve
to teach [D.R.] the negative consequences of her actions. The evidence did
not show why [D.R.] made the allegations she did. Assuming they are
not true in light of her subsequent recantation, the consequences to her are
better determined by her parents than by a court order regarding her college
expenses. The Court will not order any credit to [Mother] or [Father]
for his or her share of [D.R.s] college expenses as punishment to [D.R.]
for her actions.
However, the Court recognizes that the parties incurred very real economic consequences as
a result of the allegations, and that those economic circumstances will no doubt
have an impact on the parties ability to pay for [D.R.s] postsecondary education.
Consequently, the Court, in anticipated acceptance of the parties[] agreement that they
and the children will each pay 1/3 of the childrens college expense, now
orders that in determining each partys 1/3 of [D.R.s] college expenses, any grants,
scholarships or other financial assistance obtained by the child and her parents shall
be credited equally to [D.R.s], [Mothers] and [Fathers] 1/3 of the expenses.
Appellants Appendix at 16-21. Mother now appeals the trial courts order.
When reviewing the trial courts findings of fact and conclusions thereon, we consider
whether the evidence supports the findings and whether the findings support the judgment.
Yanoff v. Muncy, 688 N.E.2d 1259, 1262 (Ind. 1997). Findings are
clearly erroneous only when the record contains no facts to support them either
directly or by inference. Id. A judgment is clearly erroneous if
it applies the wrong legal standard to properly found facts. Id.
In order to determine that a finding or conclusion is clearly erroneous, our
review of the evidence must leave us with the firm conviction that a
mistake has been made. Id. Here, the trial court sua
sponte entered specific findings of fact and conclusions. Sua sponte findings control
only as to the issues they cover and a general judgment will control
as to the issues upon which there are no findings. Id.
A general judgment entered with findings will be affirmed if it can be
sustained on any legal theory supported by the evidence. Id.
While the guidelines advocate a total income approach to calculating weekly gross income,
the Guidelines recognize that determining income is fact-sensitive when irregular income, such as
bonuses, overtime, and commissions, is involved. In re A.J.R., 702 N.E.2d 355,
359 (Ind. Ct. App. 1998). The commentary to Ind. Child Support Guideline
3(A) provides:
There are numerous forms of income that are irregular or nonguaranteed, which cause
difficulty in accurately determining the gross income of a party. Overtime, commissions,
bonuses, periodic partnership distributions, voluntary extra work and extra hours worked by a
professional are all illustrations, but far from an all-inclusive list, of such items.
Each is includable in the total income approach taken by the Guidelines,
but each is also very fact-sensitive.
The Guidelines suggest that one method of treating irregular income is to require
the obligor to pay a fixed percentage of the irregular income in child
support on a periodic but predetermined basis (weekly, bi-weekly, monthly, quarterly) rather than
by the process of determining the average of the irregular income by past
history and including it in the obligors gross income calculation. Ind. Child
Support Guideline 3(A) (Commentary 2(b)).
Mother argues that the trial court erroneously calculated the parties weekly gross incomes.
Mother, however, does not argue that the trial courts calculation of her
and Fathers weekly gross income fails to comply with the Child Support Guidelines.
Indeed, she concedes that there is no error in the method utilized
by the trial court to calculate either her or Fathers income. Instead,
she contends that the trial court erred by including all of her irregular
income in her weekly gross income while including only part of Fathers irregular
income in his weekly gross income.
Mother and Father each submitted child support obligation worksheets to assist the trial
court in calculating their weekly gross incomes. In Mothers child support worksheet,
she included any overtime, bonuses, and commissions in her weekly gross income calculation
and proposed that the trial court find that her weekly gross income was
$1,926 and that Fathers weekly gross income was $2,109. In Fathers child
support obligation worksheet, he did not include any overtime, bonuses, and commissions in
his calculation of weekly gross income and proposed that the trial court find
that his weekly gross income was $1,261 and that Mothers weekly gross income
was $1,400. Father proposed that both he and Mother pay 17% of
any overtime, bonuses, and commissions that they earned above their base pay on
a quarterly basis. Father testified that his bonuses and commissions had significantly
decreased and that the income reflected in his pay stubs and W-2 forms
included reimbursed expenses and allowances.
The trial court, per Mothers request, included her overtime pay in the calculation
of her weekly gross income and determined that Mothers weekly gross income was
$1,926. The trial court included some of Fathers irregular income in his
weekly gross income and determined that Fathers weekly gross income was $1,685.
The trial court ordered Father to pay a percentage of the remainder of
his irregular income on a periodic basis.
We cannot say that the trial courts finding regarding Mother and Fathers weekly
gross income is clearly erroneous. To the extent that Mother is challenging
the inclusion of her irregular income in the calculation of her weekly gross
income, she has waived that argument on appeal. When Mother submitted her
child support worksheet to the trial court, she expressly recommended to the trial
court that her overtime pay be included in her weekly gross income.
Thus, any error Mother alleges to exist in the trial courts inclusion of
irregular income in her weekly gross income is invited error and not reviewable
on appeal. In re Adoption of B.C.S., 793 N.E.2d 1054, 1061 (Ind.
Ct. App. 2003) (holding appellants waived arguments regarding trial courts consideration of hearsay
documents when they offered two of them for admission themselves). In calculating
Fathers weekly gross income, the trial court determined that Father received commissions consistently
enough to include some of them in his weekly gross income, while it
ordered Father to pay a percentage of the remainder of his irregular income
on a periodic basis. The trial court recognized the fact-sensitive nature of
Fathers irregular income and followed the Guidelines in determining his weekly gross income.
See Ind. Child Support Guideline 3(A). Therefore, we cannot say that
the trial courts calculation of Fathers weekly gross income was clearly erroneous.
See, e.g., Lea, 691 N.E.2d at 1217 (noting that there is a rebuttable
presumption that the amount of the award which would result from the application
of the Indiana Child Support Guidelines is the correct amount of child support
to be awarded); Thomas v. Smith, 794 N.E.2d 500, 506 (Ind. Ct. App.
2003), trans. denied (holding that trial courts calculation of weekly gross income was
not clearly erroneous). Accordingly, we affirm the trial courts calculation of weekly
gross income for child support purposes.
(1) The child is emancipated before becoming twenty-one (21) years of age.
In this case the child support, except for the educational needs outlined in
section 2(a)(1) of this chapter, terminates at the time of emancipation, although an
order for educational needs may continue in effect until further order of the
court.
(2) The child is incapacitated. In this case the child support continues
during the incapacity or until further order of the court.
(3) The child:
is at least eighteen (18) years of age;
(B) has not attended a secondary or postsecondary school for the prior four
(4) months and is not enrolled in a secondary or postsecondary school;
and
(C) is or is capable of supporting himself or herself through employment.
In this case the child support terminates upon the courts finding that the
conditions prescribed in this subdivision exist. However, if the court finds that
the conditions set forth in clauses (A) through (C) are met but that
the child is only partially supporting or is capable of only partially supporting
himself or herself, the court may order that support be modified instead of
terminated.
(b) For purposes of determining if a child is emancipated under subsection (a)(1),
if the court finds that the child:
has joined the United States armed services;
has married; or
is not under the care or control of:
either parent; or
(B) an individual or agency approved by the court;
the court shall find the child emancipated and terminate the child support.
Mother argues that the trial court erred by finding that J.B.R. was partially
emancipated. Specifically, Mother argues that because Father failed to meet his burden
of proving that J.B.R. had not attended and was not enrolled in school,
see I.C. § 31-16-6-6(a)(3)(B), the trial court erred by finding J.B.R. to be
partially emancipated.
See footnote
Although the trial court made no specific finding that it
found J.B.R. partially emancipated under I.C. § 31-16-6-6(a)(3)(B), we conclude that the trial
courts finding regarding emancipation must be reviewed under that portion of the emancipation
statute because it is the only section of the statute that allows for
a finding of partial emancipation.
Here, the only evidence presented regarding J.B.R.s school status was that J.B.R., who
was home schooled, was a senior in high school but had not yet
completed all his junior level requirements. Father, who had the burden of
proving that J.B.R was emancipated, presented no evidence that J.B.R. had not attended
school for the prior four months and no evidence that J.B.R. was not
enrolled in school. Although J.B.R. was working full-time, the evidence presented showed
that he was still enrolled in school. Thus, the trial courts finding
that J.B.R. was partially emancipated is not supported by the evidence and is
clearly erroneous. See, e.g., Taylor v. Chaffin, 558 N.E.2d 879, 883 (Ind.
Ct. App. 1990) (holding that evidence that child was enrolled in and attending
school precluded finding of emancipation under section of emancipation statute requiring a showing
of the child being eighteen years old, not enrolled in school, and capable
of supporting himself). Accordingly, we must reverse the trial courts finding of
partial emancipation and remand this issue to the trial court.