El-Sharkawy v. El-Sharkawy ( 2018 )


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  •                       NOTICE: NOT FOR OFFICIAL PUBLICATION.
    UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL
    AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.
    IN THE
    ARIZONA COURT OF APPEALS
    DIVISION ONE
    In re the Marriage of:
    MOHAMED EL-SHARKAWY, Petitioner/Appellant,
    v.
    PATRICIA EL-SHARKAWY, Respondent/Appellee.
    No. 1 CA-CV 17-0425 FC
    FILED 7-19-2018
    Appeal from the Superior Court in Maricopa County
    No. FC2016-003808
    The Honorable William L. Brotherton Jr., Judge, Retired
    AFFIRMED IN PART; VACATED IN PART; AND REMANDED
    COUNSEL
    Wilkins Law Firm PLLC, Phoenix
    By Amy M. Wilkins
    Counsel for Petitioner/Appellant
    Amicus Law PLLC, Higley
    By Marisa Kotalik
    Counsel for Respondent/Appellee
    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    MEMORANDUM DECISION
    Presiding Judge Kenton D. Jones delivered the decision of the Court, in
    which Judge Michael J. Brown and Judge Jon W. Thompson joined.
    J O N E S, Judge:
    ¶1            Mohamed El-Sharkawy (Husband) appeals from a decree of
    dissolution, asserting the family court erred by: (1) improperly calculating
    Husband’s income, (2) improperly allocating the property and debt, and
    (3) awarding Patricia El-Sharkawy (Wife) indefinite spousal maintenance
    of $2,500 per month. Husband also argues he is entitled to a new trial
    because he claims the trial judge exhibited bias against him. For the reasons
    stated below, we affirm the calculation of Husband’s income and reject the
    allegation of bias, but find the court abused its discretion in allocating the
    community property and debts. Accordingly, we vacate the property
    allocation and the spousal maintenance award that was based, in part, on
    that allocation, and remand for reconsideration of those issues.
    FACTS AND PROCEDURAL HISTORY
    ¶2             Husband and Wife married in 1988 and have five children,
    two of whom were minors at the time Husband filed for divorce in 2016. 1
    Pursuant to temporary orders, the parties’ three community residences
    were not to be sold absent written consent of both parties, and, if sold, “the
    parties shall split the proceeds 50/50.” Husband was also ordered to pay
    all community debts, subject to reallocation, and $750 per month in
    temporary spousal maintenance.
    ¶3           Following the trial in February 2017, the family court entered
    a decree of dissolution ordering Husband to pay all community debts,
    which included credit card debt and vehicle loans. The court also ordered
    Husband to pay child support, as well as $2,500 per month in spousal
    maintenance indefinitely. In calculating these sums, the court included
    Husband’s earnings as a part-time adjunct professor at Maricopa
    Community Colleges (MCC) in addition to his regular, full-time earnings
    1      “We view the facts in the light most favorable to sustaining the
    family court’s ruling.” Bell-Kilbourn v. Bell-Kilbourn, 
    216 Ariz. 521
    , 522 n.1,
    ¶ 1 (App. 2007) (citing Kohler v. Kohler, 
    211 Ariz. 106
    , 107, ¶ 2 (App. 2005)).
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    at American Airlines. The court rejected Husband’s argument that he was
    entitled to credit for one-half of the mortgage payments he was ordered to
    pay pending sale of two community residences and, finally, ordered
    Husband to pay Wife one-half of the total proceeds from the sale of the
    parties’ Tucson house, implicitly rejecting his claim that most of the
    proceeds were used for the community expense of sending one of the
    parties’ minor children to a rehabilitation facility.
    ¶4          Husband timely appealed. We have jurisdiction pursuant to
    Arizona Revised Statutes (A.R.S.) §§ 12-120.21(A)(1)2 and -2101(A)(1).
    DISCUSSION
    I.     Husband’s Income
    ¶5               Husband argues the family court improperly calculated his
    earnings when calculating spousal maintenance and child support.
    Generally, we review the factual determinations underlying the calculation
    of child support and the resulting award for an abuse of discretion. See In
    re Marriage of Robinson, 
    201 Ariz. 328
    , 331, 335, ¶¶ 5, 17 (App. 2001) (citing
    Little v. Little, 
    193 Ariz. 518
    , 520, ¶ 5 (1999)). Whether the court properly
    considered Husband’s income from his second job as gross income for the
    purpose of calculating support obligations presents a question of law
    reviewed de novo. 
    Id. at 331,
    ¶ 5 (citations omitted). Because neither party
    requested written findings of fact or conclusions of law, we presume the
    court found every fact necessary to support its ruling. See Rinegar v. Rinegar,
    
    231 Ariz. 85
    , 90, ¶ 20 (App. 2012) (citing Able Distrib. Co. v. James Lampe, Gen.
    Contractor, 
    160 Ariz. 399
    , 402 (App. 1989)).
    ¶6             According to the record, Husband worked full-time at
    American Airlines, earning $39.62 an hour. Husband also worked as an
    adjunct professor at MCC, a position he had held since 2008. Husband’s
    MCC earnings historically varied depending on the number of classes he
    taught. For example, in 2014 and 2015, Husband earned approximately
    $25,000 per year from MCC, but, according to Husband, he earned only
    $7,000 in 2016 because he was offered fewer classes. Husband testified he
    would earn only $7,000 in 2017, adding that the extra hours at MCC were
    difficult for him, and he did not plan to continue teaching.
    ¶7          In the decree, the family court calculated Husband’s monthly
    income from American Airlines to be $6,867. Husband argues this amount
    2     Absent material changes from the relevant date, we cite a statute’s
    current version.
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    is not supported by the evidence and is contrary to the Arizona Child
    Support Guidelines, A.R.S. § 25-320 app. (Guidelines). Instead, Husband
    argues his monthly income from American Airlines is $70,265 annually, or
    $5,855 per month. However, he did not submit a 2016 tax return or W-2 to
    support this assertion; rather, Husband averred in his Affidavit of Financial
    Information that he earns $39.62 per hour. The family court used that
    hourly wage to calculate a monthly income of $6,867.3 The court did not
    abuse its discretion in using the information Husband provided to calculate
    his gross monthly income of $6,867 from American Airlines, and we find
    no error.
    ¶8            Husband also contends the family court incorrectly included
    $7,000 in annual income from his second job at MCC. For purposes of
    calculating child support, a party’s “gross income” includes:
    income from any source, and may include, but is not limited
    to, income from salaries, wages, commissions, [and] bonuses
    . . . . Generally, the court should not attribute income greater
    than what would have been earned from full-time
    employment. Each parent should have the choice of working
    additional hours through overtime or at a second job without
    increasing the child support award. The court may, however,
    consider income actually earned that is greater than would have
    been earned by full-time employment if that income was historically
    earned from a regular schedule and is anticipated to continue into
    the future.
    The court should generally not attribute additional
    income to a parent if that would require an extraordinary
    work regimen.      Determination of what constitutes a
    reasonable work regimen depends upon all relevant
    circumstances including the choice of jobs available within a
    particular occupation, working hours and working
    conditions.
    Guidelines § 5(A) (emphasis added). Thus, the Guidelines do not “entitle a
    parent who continues to work the same schedule as he or she consistently
    worked during the marriage to a decreased support obligation.” McNutt v.
    3     To reach this figure, the family court first calculated Husband’s
    annual income by multiplying the hourly wage, $39.62, by 40 hours a week
    and 52 weeks per year. The court then divided the annual income by 12 to
    reach Husband’s monthly income.
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    McNutt, 
    203 Ariz. 28
    , 31-32, ¶ 14 (App. 2002) (citing Jensen v. Bowcut, 
    892 P.2d 1053
    , 1057 n.3 (Utah App. 1995)).
    ¶9            The record reflects Husband had taught at MCC for eight
    years before filing for dissolution, with varied hours and earnings.
    Although Husband claimed the additional hours were now difficult for
    him, the record does not suggest that teaching one class each year, as he did
    in 2016, would require an “extraordinary work regimen.” To the contrary,
    the evidence shows this income was “historically earned from a regular
    schedule” and would “continue into the future.” See Guidelines § 5(A); cf.
    Lundy v. Lundy, 
    242 Ariz. 198
    , 200, ¶ 9 (App. 2017) (finding error in the
    decision to include income from a second job where there was no evidence
    that such income was “historically earned from a regular schedule and . . .
    anticipated to continue into the future”). Accordingly, the family court did
    not err by concluding Husband’s historical work at MCC would likely
    continue into the future and including income received from MCC in
    Husband’s gross income.
    ¶10            Husband also argues the family court erred by failing to apply
    the balancing test set forth in Pullen v. Pullen, 
    223 Ariz. 293
    , 297-98, ¶¶ 15-
    18 (App. 2009), to determine whether to include income from his second job
    for purposes of spousal maintenance. In Pullen, one spouse quit a higher
    paying job in Arizona and relocated to another state where he could only
    find a lower paying job. 
    Id. at 295,
    ¶ 4. The court attributed his income at
    the higher earning capacity for purposes of calculating his support
    obligation. 
    Id. at ¶
    6. This Court affirmed after considering several factors,
    including the spouse’s reasons for relocating, the timing and circumstances
    of the change, the impact on and conduct of the parties, and the spouse’s
    efforts to secure similar employment. 
    Id. at 297-98,
    ¶¶ 19-20. Here,
    however, the court was not considering a voluntary reduction in earnings.
    Instead, the court considered Husband’s actual historical earnings from
    both jobs, in accordance with the Guidelines. See supra ¶¶ 8-9. Pullen does
    not apply.
    II.    Property Allocation
    ¶11           Husband argues the family court erred in its allocation of
    property and debts. Within the decree, the court awarded each party one-
    half of the community assets but ordered Husband to pay all community
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    debts after finding Wife was unable to work.4 The court advised it would
    attempt to remedy this inequity by “consider[ing] the disproportionate
    distribution of debts in determining the amount and duration of spousal
    maintenance awarded to [Wife].” We review the allocation of community
    property and debt for an abuse of discretion. Boncoskey v. Boncoskey, 
    216 Ariz. 448
    , 451, ¶ 13 (App. 2007) (citing Miller v. Miller, 
    140 Ariz. 520
    , 522-23
    (App. 1984), and Lee v. Lee, 
    133 Ariz. 118
    , 121 (App. 1982)). “An abuse of
    discretion occurs when a court commits an error of law in the process of
    reaching a discretionary conclusion.” In re Marriage of Williams, 
    219 Ariz. 546
    , 548, ¶ 8 (App. 2008) (citing Grant v. Ariz. Pub. Serv. Co., 
    133 Ariz. 434
    ,
    456 (1982)).
    ¶12              Although the court may order an unequal division of
    community property under certain circumstances, see Inboden v. Inboden,
    
    223 Ariz. 542
    , 547, ¶ 18 (App. 2010), our supreme court has held that
    “property division and spousal maintenance are two separate and distinct
    considerations at dissolution,” Koelsch v. Koelsch, 
    148 Ariz. 176
    , 182 (1986)
    (citing In re Marriage of Foster, 
    125 Ariz. 208
    , 210-11 (App. 1980)); see also
    Elliott v. Elliott, 
    165 Ariz. 128
    , 137 (App. 1990) (“Property settlements,
    spousal maintenance awards, and child support awards involve distinct
    considerations.”). Just as “increased spousal maintenance cannot justify
    depriving a spouse of his or her property right,” nor can a decreased
    support obligation justify inequitable distribution of community debts.
    
    Koelsch, 148 Ariz. at 182
    (citing Buttram v. Buttram, 
    122 Ariz. 581
    , 582 (1979));
    cf. 
    Elliott, 165 Ariz. at 137
    (“The trial court may not adjust the amount of a
    spousal maintenance or child support award to account for a community
    debt that was not allocated in the property settlement.”). Doing so
    essentially creates a nonmodifiable award of maintenance that
    impermissibly “ignores the respective spouses’ needs and ability to pay,
    and deprives the trial court of any flexibility to respond to the parties’
    changing economic circumstances.” 
    Foster, 125 Ariz. at 211
    . Accordingly,
    awarding one spouse a lesser share of debt as a substitute for spousal
    maintenance is contrary to law.
    ¶13           Here, the family court awarded Husband half the community
    property but assigned him all community debts with the intent to “make
    up the difference” in its spousal maintenance calculation. This was error.
    To the extent Wife was unable to pay her share of the debts, the court should
    4      Although Husband argues the family court erroneously
    characterized the debt as his separate debt, the record indicates the court
    identified the debts as belonging to the community and simply ordered
    Husband to pay them all.
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    have adjusted the allocation of community property to account for
    Husband’s greater debt obligation. Thus, the property could have, and
    should have, been allocated in a manner that would achieve an equitable
    result without improperly conflating the spousal maintenance award and
    property allocation. Accordingly, we vacate the portions of the decree
    allocating community property and debt, and remand the issues for
    reconsideration consistent with Arizona law.
    ¶14            Husband separately argues the family court erred in
    requiring him to reimburse Wife for one-half the proceeds of the sale of one
    residence after he had already used those funds to pay for their minor son
    to attend a rehabilitation facility. Husband testified, however, that he did
    not object to reimbursing Wife for half of the net proceeds of the sale.
    Therefore, Husband has waived this argument. See Servs. Holding Co. v.
    Transam. Occidental Life Ins., 
    180 Ariz. 198
    , 208 (App. 1994) (holding a party
    may not raise on appeal an issue he abandoned below) (citing Stuart v. Ins.
    Co. of N. Am., 
    152 Ariz. 78
    , 84 (App. 1986)).
    ¶15           Husband also argues the family court abused its discretion by
    ordering him to pay the mortgages and expenses pending the sale of the
    community residences without reimbursing him for those payments from
    the sales proceeds. On remand, the court is directed to consider each
    spouse’s payment of community debts or expenses following service of a
    petition before making an equitable property distribution. See Bobrow v.
    Bobrow, 
    241 Ariz. 592
    , 596, ¶ 19 (App. 2017) (noting efforts to service
    community debt and maintain community assets with post-petition
    separate property “must be accounted for in an equitable property
    distribution”).
    III.   Spousal Maintenance
    ¶16            Husband argues the record lacks sufficient evidence to
    sustain the family court’s findings regarding Wife’s ability to work and that
    the subsequent indefinite award of spousal maintenance to Wife constitutes
    an abuse of discretion. We do not reweigh evidence on appeal and will
    affirm the court’s factual findings so long as a reasonable person could
    draw the same conclusion from the evidence presented. Denise R. v. Ariz.
    Dep’t of Econ. Sec., 
    221 Ariz. 92
    , 93-94, ¶¶ 4-5 (App. 2009).
    ¶17           Here, the family court found Wife had not been employed
    since 1991, was certified as disabled, could not work, and had no earning
    ability. Moreover, given her lack of employment history, poor health, and
    the children’s special needs, Wife was unable to acquire sufficient training
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    or education to find adequate employment. The court found Wife had
    contributed to Husband’s earning ability by taking care of the home and
    children during the marriage and reduced her own income and career
    opportunities by leaving her job so Husband could pursue his career. It
    also concluded Wife should not be required to deplete the retirement assets
    awarded to her or the funds from the sale of the community homes prior to
    retirement. See Gutierrez v. Gutierrez, 
    193 Ariz. 343
    , 348, ¶¶ 18-19 (App.
    1998) (citing Thomas v. Thomas, 
    142 Ariz. 386
    , 391 (App. 1984)). Although
    Husband challenges the 1999 certificate of disability Wife offered into
    evidence as outdated and contends a letter from her doctor detailing her
    foot-related problems established that Wife could work in a limited
    capacity at jobs that allowed her to sit, the court rejected these contentions,
    and we will not second-guess its evaluation of the weight to be given and
    inferences to be drawn from conflicting evidence. 
    Id. at 347-48,
    ¶ 13 (citing
    Premier Fin. Servs. v. Citibank (Ariz.), 
    185 Ariz. 80
    , 85 (App. 1995)). A
    reasonable person could agree with the court’s findings based upon the
    evidence presented, and they are affirmed.
    ¶18           Nevertheless, because the family court must consider the
    allocation of property and debt between the parties before fashioning a
    spousal maintenance award, see A.R.S. § 25-319(B)(4), (5), (9) (directing the
    court to consider “[t]he ability of the spouse from whom maintenance is
    sought to meet that spouse’s needs while meeting those of the spouse
    seeking maintenance, . . . [t]he comparative financial resources of the
    spouses, . . . [and] [t]he financial resources of the party seeking
    maintenance, including marital property apportioned to that spouse” when
    determining a fair amount and period for spousal maintenance), and we
    have already vacated the allocation of property and debt, the award of
    spousal maintenance is likewise vacated. On remand, the court is directed
    to reconsider the duration and amount of spousal maintenance in
    accordance with A.R.S. § 25-319(B).
    IV.    Judicial Bias
    ¶19           Finally, Husband argues the family court judge was biased
    and should have recused himself sua sponte pursuant to Arizona Code of
    Judicial Conduct Rule 2.11. Rule 2.11 provides: “A judge shall disqualify
    himself or herself in any proceeding in which the judge’s impartiality might
    8
    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    reasonably be questioned, including . . . [when] the judge has a personal
    bias or prejudice concerning a party.”5
    ¶20           A party asserting judicial bias must overcome a strong
    presumption that trial judges are free from bias and prejudice and “prov[e]
    ‘a hostile feeling or spirit of ill-will, or undue friendship or favoritism,
    towards one of the litigants.’” State v. Cropper, 
    205 Ariz. 181
    , 185, ¶ 22 (2003)
    (quoting In re Guardianship of Styer, 
    24 Ariz. App. 148
    , 151 (1975)).
    “Opinions formed by the judge on the basis of facts introduced or events
    occurring in the course of the current proceedings, or of prior proceedings,
    do not constitute a basis for a bias or partiality motion unless they display
    a deep-seated favoritism or antagonism that would make fair judgment
    impossible.” State v. Henry, 
    189 Ariz. 542
    , 546 (1997) (quotation omitted).
    ¶21           Husband claims the family court judge showed improper bias
    by stating that gender equality was not the “controlling culture” in the
    Middle East and then finding Husband lacked credibility because he lied to
    the court-appointed advisor about the judge’s statements. Having
    considered the context within which the judge’s comments were made, we
    find no indication that the judge had a deep-seated antagonism that would
    make fair judgment impossible. See 
    Henry, 189 Ariz. at 546
    . Additionally,
    the court cited other grounds for questioning Husband’s credibility,
    including: that Husband denied committing domestic violence but
    admitted to acts that constitute domestic violence; that Husband lied about
    speaking to the children about the litigation; and that Husband denied
    having a pension through MCC when his paystubs showed pension
    deductions. The record does not reflect the judge had a personal bias
    requiring disqualification pursuant to Rule 2.11, and we find no error.
    CONCLUSION
    ¶22          The factual findings underlying the family court’s spousal
    maintenance award are affirmed. The allocation of community and
    property debts contained within the decree of dissolution is vacated, as is
    the court’s determination of the appropriate amount and duration of
    spousal maintenance. The case is remanded for reconsideration of these
    5       Wife argues Husband waived this argument by raising it for the first
    time in his opening brief. However, the comments to Rule 2.11 state that a
    judge’s obligation to disqualify himself for any reason listed in the rule
    “applies regardless of whether a motion to disqualify is filed.” Ariz. R. Sup.
    Ct. 81, Canon 2.11 cmt. 2.
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    EL-SHARKAWY v. EL-SHARKAWY
    Decision of the Court
    issues. We leave it to the court’s discretion to determine if further evidence
    or argument would be beneficial to proper application of the law.
    ¶23          Wife requests an award of attorneys’ fees and costs on appeal
    pursuant to A.R.S. § 25-324(A). In our discretion, we decline that request.
    Additionally, because neither party was entirely successful on appeal, we
    decline to award costs.
    AMY M. WOOD • Clerk of the Court
    FILED: AA
    10