Marriage of Mitchell CA4/2 ( 2015 )

Filed 12/7/15 Marriage of Mitchell CA4/2
NOT TO BE PUBLISHED IN OFFICIAL REPORTS
California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for
publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication
or ordered published for purposes of rule 8.1115.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
FOURTH APPELLATE DISTRICT
DIVISION TWO
In re the Marriage of CHRISTINE M. and
DAVID P. L. MITCHELL.
CHRISTINE M. MITCHELL,
E060112
Respondent,
(Super.Ct.No. IND1201277)
v.
OPINION
DAVID P. L. MITCHELL,
Appellant.
APPEAL from the Superior Court of Riverside County. Otis Sterling III, Judge.
Affirmed.
Iris Joan Finsilver for Appellant.
Sheila A. Williams and Laura J. Fuller for Respondent.
1
Appellant David P. L. Mitchell appeals from an order denying his application for
temporary spousal support and attorney fees in an action for dissolution of marriage
initiated by his now ex-wife, Christine M. Mitchell.1 We conclude the family court did
not abuse its discretion by denying David’s requests and affirm.
I.
FACTS
Christine initiated this dissolution action in July 2012. Almost one year later,
David filed a request for temporary spousal support from Christine (according to the
family court’s guidelines), and for $15,000 in attorney fees and costs. In a supporting
declaration, David stated he was unable to pay his living expenses and was forced to live
on credit cards and withdrawals from retirement accounts. In his income and expense
declaration, David stated his monthly gross income from retirement funds was $7,741.63,
and Christine’s monthly gross income was $20,000. David estimated his average
monthly expenses were $9,118, which included $1,200 in out-of-pocket medical
expenses and $1,867 for payments on a home equity line of credit and a home owner’s
insurance policy for the community home.
In her response, Christine consented to an award of spousal support (according to
the family court’s guidelines), but argued each party should pay their own attorney fees.
Christine requested an order directing the lines of credit on the home be paid from two
1 To avoid confusion, we will refer to the parties by their first names. We mean
no disrespect. (See In re Marriage of Honer (2015) 236 Cal.App.4th 687, 689, fn. 1.)
2
community E*TRADE equity accounts with a combined balance of $143,000. Christine
stated David removed $75,000 from his retirement accounts in the months before he filed
his request for spousal support, and David had been living above his means since the
marital separation. Christine declared her average monthly gross income was $14,974,
and her average monthly expenses were $13,056.
David replied Christine’s monthly income was much higher than she reported
because she received a $55,408 bonus, and he declared Christine’s true average monthly
income was $20,639.27.
At the hearing on the request for temporary spousal support and attorney fees, the
family court stated its intention of determining whether an award should be made by
looking at the parties’ income and expense declarations, “subject to reallocation at a later
date.” David’s attorney argued the court should look beyond Christine’s income
declaration and consider her bonus. “My feeling would be that the Court [should]
amortize the total gross amount of $172,496 over a 12-month period because that really
reflects what her true income is.”
Christine’s attorney argued the court should not consider the bonus in determining
temporary spousal support payments in the future because it was speculative whether she
would earn another bonus the next year. Instead, counsel argued the family court should
retain jurisdiction and make adjustments in the future should Christine earn another
bonus. Moreover, counsel argued David’s true monthly income, when factoring in his
withdrawals from retirement accounts, was $14,574. Because David’s monthly income
was equal to Christine’s, counsel argued an order of spousal support would be unfair.
3
David’s attorney responded the family court should not consider David’s withdrawals
from retirement accounts when determining his monthly income because, assuming those
retirement funds were later characterized as community assets, Christine would be
credited for those withdrawals when the community’s assets are divided.
The family court inquired into Christine’s allegations that David absconded with
valuable coin and wine collections, and that he purchased a $60,000 vehicle despite
Christine’s offer that he use one of the three community vehicles. David denied taking
the coin collection, and explained he only took some of the wine collection, which
Christine conceded. With respect to the purchase of the vehicle, David denied that
Christine offered him one of the community vehicles, and he told the court he purchased
the vehicle on credit with no money down. The court concluded David had access to
sufficient assets to live on temporarily and make an expensive vehicle purchase, so it
denied his request for temporary spousal support and attorney fees. The court retained
jurisdiction to make a permanent determination of support at trial, at which time the court
could take into consideration any additional bonus earned by Christine.
With respect to the line of credit on the home and the insurance payments,
Christine’s attorney argued the fairest solution was to liquidate the community
E*TRADE investment account and use it to pay off the line of credit and, further, to
direct David to continue paying the insurance policy until the final division of assets.
David’s attorney responded Christine continued to live in the community home and
therefore she should make payments on the line of credit and the insurance policy. The
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court directed the E*TRADE account be liquidated to pay off the line of credit, and that
Christine pay off the remaining amount owed.
David timely appealed.
II.
DISCUSSION
A. The Family Court Did Not Abuse Its Discretion by Denying David’s
Request for Temporary Spousal Support
1. Applicable Law and Standard of Review
During the pendency of a proceeding for marital dissolution, the family court may
order temporary spousal support in “any amount that is necessary for the support of the
other spouse.” (Fam. Code,2 § 3600.) “Temporary spousal support allows the parties to
maintain living conditions and standards pending trial and division of the community
property and obligations. [Citation.] It results from the mutual duty of support inherent
in marriage. (§§ 720 [spouses have obligations of mutual support] & 4300 [spouses shall
support each other].)” (In re Marriage of Jacobsen (2004) 121 Cal.App.4th 1187, 1192.)
An order on a request for temporary spousal support is immediately appealable.
(In re Marriage of Samson (2011) 197 Cal.App.4th 23, 26, fn. 2.) A temporary spousal
support order is reviewed for abuse of discretion. (In re Marriage of MacManus (2010)
182 Cal.App.4th 330, 337.) “‘Subject only to the general “need” and “the ability to pay,”
the amount of a temporary spousal support award lies within the court’s sound discretion,
2 All further statutory references are to the Family Code.
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which will only be reversed on appeal on a showing of clear abuse of discretion.
[Citations.]’” (In re Marriage of Lim & Carrasco (2013) 214 Cal.App.4th 768, 773.)
2. Failure to Use Guidelines
David contends the family court erred by not awarding temporary spousal support
according to the court’s guidelines. We disagree.
The appellate courts have generally supported the use of temporary spousal
support guidelines adopted by family courts. “The use of such guidelines ‘should be
encouraged to help lawyers and litigants predict more accurately what temporary support
order would be issued if the case proceeded to a contested hearing. . . . They promote
consistency in the temporary orders issued in a department with a busy domestic relations
motion calendar, and are especially valuable in achieving comparable orders under
similar financial facts . . . .’” (In re Marriage of Winter (1992) 7 Cal.App.4th 1926,
1933, quoting In re Marriage of Burlini (1983) 143 Cal.App.3d 65, 69.)
However, when ruling on a request for temporary spousal support, the family court
is not bound by any statutory guidelines or locally adopted support guidelines. (In re
Marriage of Wittgrove (2004) 120 Cal.App.4th 1317, 1327 [“The court is not restricted
by any set of statutory guidelines in fixing a temporary spousal support amount”];
Hogoboom & King, Cal. Practice Guide: Family Law (The Rutter Group 2015) ¶ 5:163,
p. 5-85 [“Although concededly a ‘valuable tool,’ standardized temporary spousal support
schedules are only guidelines and, therefore, are not binding on the court”].) An award of
temporary spousal support is correct as long as it properly reflects the supported spouse’s
need and the supporting spouse’s ability to pay, and as long as the award achieves the
6
“benchmark” of spousal support—maintaining the status quo pending a final division of
property and a permanent support order. (In re Marriage of Wittgrove, at p. 1328.)
Although both parties here agreed to an award of temporary spousal support
according to the family court’s guidelines, the family court was justified in departing
from the guidelines given the somewhat unusual facts in this case. (In re Marriage of
Burlini, supra, 143 Cal.App.3d at p. 70 [“Although the adoption of guidelines for
temporary support is to be encouraged, it should be emphasized that they are only
guidelines to be utilized in cases with no unusual facts or circumstances”].) As will be
discussed in the following sections, the family court was tasked with determining need
and ability to pay based on evidence of David’s withdrawals from retirement accounts,
his recent purchase of an expensive vehicle, and Christine’s bonus. The court did not
abuse its discretion by departing from the guidelines.
3. David’s Retirement Accounts
David argues the family court abused its discretion by considering his retirement
accounts as available income when determining his need for temporary spousal support.
According to David, this was erroneous because the court essentially directed him to
invade a community asset that would have to be divided in a final decree.3 We find no
abuse of discretion.
David does not challenge the family court’s order directing the community
3
E*TRADE accounts be liquidated to pay off the line of credit on the community home.
7
David concedes there is no precise definition of income for purposes of temporary
spousal support, but he suggests this court look to section 4058. That section defines
income solely for purposes of child support, and David cites no authority for the
proposition that application of section 4058 to temporary spousal support would be
appropriate. (Cf. In re Marriage of Blazer (2009) 176 Cal.App.4th 1438, 1445-1446
[questioning the relevance of § 4058 to an award of permanent spousal support under
§ 4320].) As noted, the family court is not bound by any statutory guidelines or
definitions when awarding temporary spousal support. (In re Marriage of Wittgrove,
supra, 120 Cal.App.4th at p. 1327.)
“[I]n exercising its broad discretion, the court may properly consider the ‘big
picture’ concerning the parties’ assets and income available for support in light of the
marriage standard of living. [Citation.] . . . ‘Ability to pay encompasses far more than
the income of the spouse from whom temporary support is sought; investments and other
assets may be used for . . . temporary spousal support . . . . [Citations.]’” (In re Marriage
of Wittgrove, supra, 120 Cal.App.4th at p. 1327.) If a family court may properly consider
investments for purposes of determining a spouse’s ability to pay temporary spousal
support, we see no reason why the court may not consider those forms of assets—
including retirement accounts—when determining a spouse’s need for temporary spousal
support.
David’s reliance on In re Marriage of Reynolds (1998) 63 Cal.App.4th 1373(Fourth Dist., Div. Two) does not persuade us otherwise. There, this court held a family
court may only order a supporting spouse to use income from vested retirement accounts
8
to pay support payments, and may not require the supporting spouse to invade the
principal of those investments. (Id. at p. 1380.) Here, the family court did not require
David to pay Christine with his retirement accounts, but to continue using them to
supplement his own regular retirement income.
David also contends the family court ignored the policy of preserving community
assets until the time of trial. But that policy is not absolute. For example, upon service
of the summons and petition for dissolution of marriage, both spouses are automatically
restrained “from transferring, encumbering, hypothecating, concealing, or in any way
disposing of any property, real or personal, whether community, quasi-community, or
separate, without the written consent of the other party or an order of the court, except in
the usual course of business or for the necessities of life, and requiring each party to
notify the other party of any proposed extraordinary expenditures at least five business
days before incurring those expenditures and to account to the court for all extraordinary
expenditures made after service of the summons on that party.” (§ 2040, subd. (a)(2),
italics added.) “Besides being a matter of common sense, these qualifiers [in the
language from section 2040, subdivision (a)(2) we italicized] are mandated by a
formidable body of constitutional law precluding the summary deprivation of property
without due process, i.e., without notice and hearing.” (Gale v. Superior Court (2004)
122 Cal.App.4th 1388, 1392.)
As long as David’s use of community assets was limited to paying for necessities
of life and not for extraordinary expenditures, and as long as the family court credited
Christine for the reduction of community assets in the final decree, the court did not err
9
by requiring David to continue dipping into his retirement accounts to supplement his
normal retirement income.4
4. David’s Purchase of a Vehicle
According to David, the family court erred by placing great weight on his
purchase of an expensive vehicle when determining his need for temporary spousal
support. This portion of David’s brief consists almost entirely of quotes from the record,
and one paragraph of argument without any citation to relevant authority. The argument
is therefore waived. (In re Marriage of Falcone & Fyke (2008) 164 Cal.App.4th 814,
830; Cal. Rules of Court, rule 8.204(a)(1)(B) [every brief must “support each point by
argument and, if possible, by citation of authority”].)
Even if David did not waive this argument, it is unpersuasive. Although the
family court spent some time discussing David’s purchase of an expensive vehicle, we
cannot say on this record that the family court placed excessive weight on that one factor.
Moreover, the court was permitted to consider the “‘big picture’” when determining
David’s need for temporary spousal support (In re Marriage of Wittgrove, supra, 120
Cal.App.4th at p. 1327), which certainly included David’s ability to purchase a vehicle on
credit. We find no abuse of discretion.
4 For the same reasons, we reject David’s argument the family court erred by
directing him to live off his retirement accounts before those assets were classified as
community or separate property, and without considering that Christine would have to be
credited for David’s withdrawals in a final decree. The family court did recognize it
would have to make a “reallocation” in the final decree.
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5. Christine’s Bonus
Finally, David contends the family court erred by not considering a bonus
Christine earned when determining her ability to pay temporary spousal support. Again,
we find no abuse of discretion.
David cites decisions which held salary bonuses are properly considered when
determining the amount of permanent spousal support under section 4320. (See, e.g., In
re Marriage of Mosley (2008) 165 Cal.App.4th 1375, 1387; In re Marriage of Ostler &
Smith (1990) 223 Cal.App.3d 33, 46-50.) However, he concedes no published appellate
decision has extended that practice to awards of temporary spousal support, and we have
doubts whether it should. Temporary and permanent spousal support orders serve very
different purposes. Whereas temporary spousal support serves to maintain the status quo
of the party’s lifestyle during the marriage pending a final decree, “‘the purpose of
permanent spousal support is not to preserve the preseparation status quo but to provide
financial assistance, if appropriate, as determined by the financial circumstances of the
parties after their dissolution and the division of their community property.’ [Citations.]”
(In re Marriage of Murray (2002) 101 Cal.App.4th 581, 594.)
Even if potential, future salary bonuses are properly considered when determining
ability to pay temporary spousal support, a family court should treat a potential bonus as
it does imputed income. “In an appropriate case, the trial court may take into account
either party’s earning capacity as well as his or her actual income in fixing temporary
spousal support . . . but subject to the same limitations on imputing income that apply in
adjudicating ‘permanent’ spousal support—i.e., there must be competent evidence that
11
the party sought to be charged with imputed income has both the ability and opportunity
to earn the imputed income amount [citation].” (Hogoboom & King, Cal. Practice
Guide: Family Law, supra, ¶ 5:159.5, p. 5-83.)
In this case, David presented no competent evidence that Christine was likely to
earn another salary bonus, and the family court prudently deferred consideration of any
future bonus until a final decree and award, if any, of permanent spousal support.
B. The Family Court Did Not Abuse Its Discretion by Denying David’s
Request for Attorney Fees
David contends the family court abused its discretion by denying his request for
pendente lite attorney fees. As he did in the context of temporary spousal support, David
contends the evidence clearly showed Christine’s income far exceeded his own, and that
the family court erred by considering his withdrawals from retirement accounts as income
and by considering his purchase of an expensive vehicle when determining David’s need.
We find no abuse of discretion.
An order denying a request for pendente lite attorney fees is immediately
appealable. (In re Marriage of Tharp (2010) 188 Cal.App.4th 1295, 1311.) “Under
sections 2030 and 2032, a family court may award attorney fees and costs ‘between the
parties based on their relative circumstances in order to ensure parity of legal
representation in the action.’ [Citation.] The parties’ circumstances include assets, debts
and earning ability of both parties, ability to pay, duration of the marriage, and the age
and health of the parties. [Citation.] . . . The family court has broad discretion in ruling
on a motion for fees and costs; we will not reverse absent a showing that no judge could
12
reasonably have made the order, considering all of the evidence viewed most favorably in
support of the order. [Citation.]” (In re Marriage of Winternitz (2015) 235 Cal.App.4th
644, 657.)
David appears to argue the family court erred by not making all the necessary
findings when it denied his request for attorney fees. When ruling on a request for
attorney fees, the family court must determine: (1) whether an award of fees is
appropriate; (2) whether there is a disparity between the parties’ access to funds to retain
counsel; and (3) whether one party has the ability to pay for both parties’ legal
representation. (§ 2030, subd. (a)(2); In re Marriage of Sharples (2014) 223 Cal.App.4th
160, 168 [Fourth Dist., Div. Two].) David did not object that the family court failed to
make all the necessary findings. Moreover, as long as they are supported by substantial
evidence, we may affirm the family court’s implied findings. (E.g., In re Marriage of
Cohn (1998) 65 Cal.App.4th 923, 928.)
David contends the family court erred by denying his request for attorney fees
based solely on his retirement account withdrawals and purchase of an expensive vehicle.
“Instead,” David argues, “the trial court is required to determine how to apportion the
overall cost of the litigation equitably between the parties under the relative
circumstances.” But the family court is only required to equalize the cost of litigation if it
first determines there is a disparity between the parties’ ability to access funds to retain
counsel. (§ 2030, subd. (a)(2).) Here, the family court concluded, properly, that David
had at his disposal sufficient funds to live on temporarily and to pay his attorney.
Because the family court properly concluded David had access to sufficient funds to pay
13
his attorney, it was not required to equalize his and Christine’s litigation costs. In sum,
the family court did not abuse its discretion by denying David’s request.
III.
DISPOSITION
The spousal support and attorney fees orders are affirmed. Respondent Christine
M. Mitchell shall recover her costs on appeal.
NOT TO BE PUBLISHED IN OFFICIAL REPORTS
McKINSTER
Acting P. J.
We concur:
KING
J.
MILLER
J.
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