Opinion
No. 2-1049 / 02-1053.
Filed June 25, 2003.
Appeal from the Iowa District Court for Jefferson County, Annette J. Scieszinski, Judge.
Respondent-appellant appeals the trial court's denial of his petition to modify the child support and medical support provisions of the parties' dissolution decree. AFFIRMED.
Jean Pendleton of Pingel Templer, P.C., West Des Moines, for appellant.
Ryan Maas, Ottumwa, for appellee.
Considered by Vogel, P.J., and Miller and Eisenhauer, JJ.
Victor L. Combs appeals the trial court's denial of his petition to modify the child support and medical support provisions of the parties' dissolution decree. We affirm.
I. BACKGROUND FACTS AND PROCEEDINGS.
Victor and Christy Combs were divorced on December 29, 1997. The parties had one child together, Hannah, born February 22, 1997. The dissolution decree placed Hannah in the parties' joint legal custody with Christy having physical care of Hannah. The decree ordered Victor to pay $462.31 per month in child support for Hannah.
Victor filed a petition for modification of the dissolution decree on November 26, 2001. At trial he sought reduction of his monthly child support from $462.31 to $391.94 due to a reduction in his income. Although not requested in his petition, at trial he also requested the court to "update" the medical support provisions of the decree due to a change in the child support guidelines. Trial was held on his petition to modify on May 22, 2002. The following facts appear in the record.
At the time of trial Victor had been a teacher for approximately sixteen years and had taught and coached at Fairfield Middle School from approximately 1993 to 2001, earning nearly $40,000 per year in that position. Victor is certified to teach business and social studies and has a coaching endorsement.
At some time after dissolution of the parties' marriage Victor developed a relationship with his present wife, Michelle. Michelle worked in Grinnell. Michelle, with Victor's participation, decided to take a new job at Broadlawns Medical Center in Des Moines, and moved to that area because the job was a good career advancement with substantially higher compensation. She bought a home in Waukee and moved there.
About February 2001 Victor decided to resign from his teaching position in Fairfield and move to Waukee to live with Michelle. He moved and joined her in June 2001. They married in July 2001.
Victor began searching for a new job in and around the Waukee area in February 2001 in anticipation of the move, presuming he would easily find a teaching job quickly because of his experience. However, he in fact found it extremely difficult to find a job teaching in the subjects he was certified in. Victor submitted approximately eighteen teaching applications, an application to the City of Des Moines, and two applications to bottling companies in the fifteen months prior to trial. During this time Victor did periodically substitute teach. However, he eventually took a job in October of 2001 with American Bottling Company as a merchandiser, vendor, display builder, and shelf stocker earning $10.25 per hour. He took this job because he estimated he could earn approximately $9,000 more at the bottling company than substituting full time. With some overtime Victor earns approximately $28,000 per year at his bottling company job, and an additional $500-$600 as a substitute football referee.
At the time of trial Christy was also a teacher. She teaches sixth-grade math, coaches, and teaches summer school. After the dissolution Christy moved from Iowa to Arizona to take a teaching job there. The trial court found Christy was to earn approximately $36,181 in the coming year from her teaching job in Arizona and that Hannah's monthly daycare expenses, once she started half-day kindergarten, would be $394. The court further found Christy is responsible for the day to day expense of raising both Hannah and her son Spencer, who was twelve years old at the time of trial.
The trial court filed a written ruling denying Victor's petition to modify the dissolution decree. The court concluded that although there had been a substantial change in circumstances since the decree it did not warrant reduction of Victor's child support because his situation was not permanent, his acts were done in reckless disregard of his primary duty to support Hannah, and because his overall financial situation and ability to pay child support had not diminished since the decree. Specifically, the court held that Victor had "traded his secure income for fallback support by a new spouse. Indeed, Victor's personal financial status and standard of living have not been diminished, and may have been enhanced. " It concluded that a "reduction of child support would . . . deny Hannah resources; and, on this trial record, that would be an unfair and inappropriate outcome."
After acknowledging there had been an update of the child support guidelines regarding apportionment of child health expenses not covered by insurance since the parties' decree, the court also concluded that under the unique circumstances of this case this new directive should not be implemented. The decree requires that Victor provide health insurance for Hannah, which he does through Michelle's group plan, and that the parents divide equally expenses that are not covered. Based on the particular circumstances of this case the court determined, "It would be unjust to impose a different allocation formula on these parties at this time."
II. SCOPE AND STANDARDS OF REVIEW.
In this equity case our review is de novo. Iowa R.App.P. 6.4. We examine the entire record and adjudicate rights anew on the issues properly presented . In re Marriage of Smith, 573 N.W.2d 924, 926 (Iowa 1998). We give weight to the fact-findings of the trial court, especially when considering the credibility of witnesses, but are not bound by them. Iowa R.App.P. 6.14(6)( g). This is because the trial court has a firsthand opportunity to hear the evidence and view the witnesses. In re Marriage of Will, 489 N.W.2d 394, 397 (Iowa 1992). Prior cases have little precedential value, except to provide a framework for analysis, and our decision must be based on the particular facts and circumstances before us. Id.
III. MERITS.
A court may modify an order of child support when a "substantial change in circumstances" has been shown to exist. Iowa Code § 598.21(8) (2001); In re Marriage of Walters, 575 N.W.2d 739, 741 (Iowa 1998). The changed circumstances relied upon must be material and substantial, not trivial, more or less permanent or continuous, not temporary, and must be such as were not within the knowledge or contemplation of the court when the decree was entered. In re Marriage of Rolek, 555 N.W.2d 675, 679 (Iowa 1996); In re Marriage of Ales, 592 N.W.2d 698, 702 (Iowa Ct.App. 1999). When modifications of child support are made they should be in the best interest of the children. Rolek, 555 N.W.2d at 679.
"Changes in the employment, earning capacity, income or resources of a party" is one factor which may be considered by the court. Iowa Code § 598.21(8)(a); Walters, 575 N.W.2d at 741. This is the factor relied upon by Victor here in his request to have his support obligation reduced. The party seeking the modification must prove the change in circumstances by a preponderance of the evidence . Walters, 575 N.W.2d at 741.
Nevertheless, a parent may not rely on a claim of decreased income to obtain a modification of a support order if the parent's reduced earning capacity and inability to pay support is self-inflicted or voluntary. Therefore, parents who reduce their income through an improper intent to deprive their children of support or in reckless disregard for their children's well-being are not entitled to a commensurate reduction in child support payments.
In re Marriage of Swan, 526 N.W.2d 320, 323-24 (Iowa 1995) (citations omitted).
A primary factor to be considered in determining whether support obligations should be modified is whether the obligor's reduction in income and earning capacity is the result of activity, which, although voluntary, was done with an improper intent to deprive his or her dependents of support. This is because we have held that an obligor's voluntary reduction in income or earning capacity may be a basis for refusing to modify support obligations.
In re Marriage of Rietz, 585 N.W.2d 226, 229-30 (Iowa 1998) (citations omitted).
We, like the trial court, find that although there has been a substantial change in circumstances since the dissolution decree, it does not warrant reduction of Victor's child support. However, we reach the same conclusion on slightly different grounds.
We agree with the trial court that Victor's current "employment dilemmas" and the resultant reduction in his personal income are a result of his voluntary and self-inflicted choice to quit an established job and risk unemployment or underemployment in order to join his future wife in a different town. However, we disagree with the trial court's determination that his acts were done with reckless disregard of his support obligation or with the improper intent of depriving Hannah of support. Victor believed he would have no trouble finding teaching work, based on his experience. He did not foresee that he could not find such work despite a reasonably diligent search. Unable to find work in his field, Victor took the best paying job he could find. We do not believe these are the actions of a person who is operating under an improper motive or with reckless disregard for the support of his child.
Additionally, we do not agree with the trial court that the change in Victor's circumstance, his reduced income, is not "permanent" as that term is used in our case law. Initially, we note the case law is clear that the "permanency" requirement of the changed circumstances necessary to warrant modification is a change that is more or less permanent or continuous. Rolek, 555 N.W.2d at 679; Ales, 592 N.W.2d at 702; Simpkins v. Simpkins, 258 Iowa 87, 92, 137 N.W.2d 621, 623-24 (1965). We conclude the change in Victor's financial circumstance is more or less permanent and continuous, rather than temporary. At the time of the modification hearing he had searched unsuccessfully for approximately fifteen months for employment in his field and at a level of pay comparable to what he was receiving at his previous teaching job. Further, there is no substantial evidence in the record indicating he will be able to obtain such employment within the foreseeable future. See Simpkins, 258 Iowa at 92, 137 N.W.2d at 624 (finding grounds for modification sufficient when petitioner would not recover from injuries necessitating modification within the foreseeable future, even though she might eventually recover sufficiently to resume employment).
Victor next argues the trial court erred in not modifying his child support obligation based on the ten percent deviation rule. Specifically, he asserts the court found a substantial change in circumstances had occurred under the ten percent deviation rule and thus it was inappropriate for the court to take into account any of the statutory factors for modification set forth in Iowa Code section 598.21(8), such as his remarriage and his new spouse's income.
As set forth above, a court may modify the terms of child support set forth in a decree if the party seeking modification proves there has been a substantial change in circumstances. Iowa Code§ 598.21(8); Walters, 575 N.W.2d at 741. By statute, one such substantial change in circumstances exists when the court order for child support varies by ten percent or more from the amount which would be due pursuant to the most recent child support guidelines. Iowa Code § 598.21(9). This is the ten percent deviation rule referred to by Victor here.
It does appear the trial court found, at least implicitly, that based on Victor's current income the existing court order for child support varied by ten percent or more, warranting modification of support if the guidelines were applied. However, the court did not apply the guidelines because it determined such modification would be "unfair and inappropriate" under the special circumstances of this case because a reduction of support would deny Hannah resources. In making this determination the trial court considered and relied in part on the facts that Michelle had very high income and had assumed Victor's obligation to provide health insurance for Hannah, resulting in little or no decrease in Victor's ability to pay child support.
Michelle apparently earns approximately $90,000 per year.
Victor acknowledged during trial that he had considered Michelle's income in making his decision to quit his Fairfield teaching job to join her without first obtaining a new job and that he relies on her to assist him meeting his expenses, including his child-support responsibilities. The court concluded that Victor "traded his secure income for fallback support by a new spouse," "admittedly, placing priority on Michelle's needs and opportunities," and that his "personal financial status and standard of living have not been diminished, and may have been enhanced."
There is a rebuttable presumption that the amount of child support which would result from the application of the guidelines is the correct amount of child support. Iowa Code§ 598.21(4)(a); In re Marriage of Brown, 487 N.W.2d 331, 333 (Iowa 1992); In re Marriage of Will, 602 N.W.2d 202, 205 (Iowa Ct.App. 1999). However, the court may vary from the guideline amount if it determines application of the guidelines would be unjust or inappropriate. Iowa Code § 598.21(4)(a); State ex rel. Nicholson v. Toftee 494 N.W.2d 694, 695 (Iowa 1993); In re Marriage of Bergfeld, 465 N.W.2d 865, 870 (Iowa 1991). In making this equitable determination, the court must make written findings using the following criteria: (1) substantial injustice would result to the payor, payee, or child; (2) adjustments are necessary to provide for the needs of the child and to do justice between the parties, payor, or payee under the special circumstances of the case; and (3) circumstances contemplated in Iowa Code section 234.39. Iowa Ct. R. 9.9; Bergfeld, 465 N.W.2d at 870.
Here the trial court implicitly found that under the special circumstances of the case departure from the guidelines was necessary to provide for the needs of Hannah and to do justice between the parties. One of the "special circumstances" relied upon by the trial court was that despite the fact Victor was individually making less money than at the time of the original support order, his overall financial status and standard of living had not diminished, but in fact may have improved, and his general financial ability to pay child support had not changed due to his remarriage to Michelle, her high income, and her assumption of his obligation to provide health insurance for Hannah.
Based on our de novo review of the record we agree with the trial court's implicit conclusion that the special circumstances of this case merit a departure from the child support guidelines in order to provide for Hannah's support and to do justice between the parties. It is true that the "mere fact that a party has remarried does not alone constitute a `special circumstance' which otherwise warrants a court in departing from the requirements of the child support guidelines." In re Marriage of Gehl, 486 N.W.2d 284, 287 (Iowa 1992) (emphasis added). Here, however, not only did Victor's remarriage leave him with an ability to pay child support that was at least as good as at the time of the parties' dissolution decree, but he specifically testified that he relied on Michelle's income in making his decision to quit a job with a secure income and risk unemployment or underemployment to move with her, a decision he had to know could affect his ability to personally meet his support obligation to Hannah.
Furthermore, although we do not find Victor's actions were taken with an improper intent or with a reckless disregard for his support obligation, we do find them completely voluntary and any consequences voluntarily incurred. We agree with the trial court that it seems Victor placed Michelle's needs and opportunities above his own by voluntarily forfeiting secure income and risking unemployment to move in with her. Although his decision reduced his personal, individual income, it in fact resulted in him being in a somewhat better financial position overall. He acknowledged that he was able to move and take the risk of unemployment or underemployment largely because of Michelle's high income. He should not now, after having relied on Michelle's income in making his decision, be able to decrease his support obligation regardless of her income.
In addition, our courts have previously indicated that although a divorced parent's new spouse has only a limited obligation to support a child of the divorced parent, the new spouse's income can be considered as it relates to the divorced parent's overall financial condition and ability to support the child. Gehl, 486 N.W.2d at 287; In re Marriage of Dawson, 467 N.W.2d 271, 276 (Iowa 1991).
Finally, we agree with the trial court that the medical expense provisions of the decree are fair and equitable and it would be unjust and unnecessary at this point to impose a different allocation of Hannah's medical expenses. In reaching this conclusion we again note that Michelle has assumed Victor's obligation to provide health insurance for Hannah, and has apparently done so at no additional cost beyond the cost of family coverage for herself and Victor.
IV. CONCLUSION
Based on our de novo review of the entire record, and for all of the reasons set forth above, we conclude that application of the child support guidelines would be unjust and inappropriate in this situation. The special circumstances of this case warrant a departure from the guidelines in order to provide for Hannah's support and to do justice between the parties. Victor voluntarily terminated his secure employment, along with its secure income, and took the risk of unemployment to move with Michelle. He did so without feeling it necessary to first secure comparable employment, in large part because of his reliance on Michelle's income. Victor's resultant decrease in income was thus self-imposed. Therefore, despite the fact that Victor has been unable to find a new job in his field at a comparable rate of pay, his overall financial situation and ability to pay child support has not diminished. Accordingly, we conclude Victor's child support obligation should remain unchanged. The trial court was correct in denying Victor's petition to reduce his child support obligation.