In re Marriage of Boettcher — Family Law ( 2018 )


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  •      The summaries of the Colorado Court of Appeals published opinions
    constitute no part of the opinion of the division but have been prepared by
    the division for the convenience of the reader. The summaries may not be
    cited or relied upon as they are not the official language of the division.
    Any discrepancy between the language in the summary and in the opinion
    should be resolved in favor of the language in the opinion.
    SUMMARY
    March 8, 2018
    2018COA34
    No. 17CA0262, In re Marriage of Boettcher — Family Law —
    Post-dissolution — Modification of Child Support — Schedule of
    Basic Child Support Obligations — Discretion
    In this appeal of a post-dissolution of marriage order
    modifying the amount of the father’s child support obligation, a
    division of the court of appeals addresses the requirements for
    modifying such support when the parents’ combined incomes
    exceed $30,000 per month, the highest level of the support
    schedule in section 14-10-115(7)(b), C.R.S. 2017. The division
    rejects the father’s argument that the support obligation at the
    highest level is the presumptive amount under the guidelines, such
    that any greater award constitutes a deviation requiring findings in
    accordance with section 14-10-115(8)(e). Rather, consistent with
    the plain language of section 14-10-115(7)(a)(II)(E), the district court
    may use discretion to determine support in such high income
    cases, but the presumptive amount shall not be less than it would
    be based on the highest level of the schedule.
    In this case, the district court applied the correct legal
    standard in finding that there was no presumptive child support
    amount under the parties’ circumstances, acknowledging the
    minimum presumptive amount under the guidelines, and then
    using its discretion to determine a higher amount based on the
    factors in section 14-10-115(2)(b).
    The division affirms the order of the district court.
    COLORADO COURT OF APPEALS                                        2018COA34
    Court of Appeals No. 17CA0262
    Weld County District Court No. 10DR822
    Honorable W. Troy Hause, Judge
    In re the Marriage of
    Ryan E. Boettcher,
    Appellant,
    and
    Christina L. Boettcher,
    Appellee.
    ORDER AFFIRMED
    Division IV
    Opinion by JUDGE VOGT*
    Loeb, C.J., and Casebolt*, J., concur
    Announced March 8, 2018
    Eckelberry Law Firm, LLC, John L. Eckelberry, Denver, Colorado, for Appellant
    Peek Goldstone, LLC, Amanda M. Peek, Greeley, Colorado, for Appellee
    *Sitting by assignment of the Chief Justice under provisions of Colo. Const. art.
    VI, § 5(3), and § 24-51-1105, C.R.S. 2017.
    ¶1    In this post-dissolution of marriage dispute concerning child
    support for the child of Ryan E. Boettcher (father) and Christina L.
    Boettcher (mother), father appeals the order modifying his support
    obligation and requiring him to pay a portion of mother’s attorney
    fees under section 14-10-119, C.R.S. 2017. We affirm.
    I. Background
    ¶2    The parties’ ten-year marriage ended in 2011. Their
    agreement that no child support would be owed by either of them
    was incorporated into the decree.
    ¶3    In 2015, mother moved to modify child support, alleging
    changed income resulting in more than a ten percent change in the
    amount of support that would be due. The district court ordered
    the parties to exchange financial information and mediate, but the
    support issue was not resolved.
    ¶4    After a hearing, the district court ordered father to pay mother
    $3000 in monthly child support as of the date she moved to modify,
    which, after crediting father with payments he voluntarily made,
    resulted in arrearages of $34,822, to be paid off over twenty-four
    months. Based on the disparity in the parties’ financial resources
    1
    and income, the court further ordered father to pay seventy percent
    of mother’s attorney fees incurred for the proceedings.
    II. Child Support
    ¶5    Father contends that the court erred by (1) determining that
    there was no rebuttable presumptive child support obligation when
    the parents’ combined incomes exceed the highest level of the
    statutory income schedule; (2) not making sufficient findings and
    including inappropriate expenses in awarding mother $3000 per
    month in child support; and (3) awarding retroactive child support
    back to the date of mother’s motion without making sufficient
    findings to support the award. We disagree.
    A. Standard of Review
    ¶6    “We review child support orders for abuse of discretion
    because the issue of the parents’ financial resources is factual in
    nature.” In re Marriage of Davis, 
    252 P.3d 530
    , 533 (Colo. App.
    2011). A court abuses its discretion when its decision is manifestly
    arbitrary, unreasonable, or unfair. In re Marriage of Atencio, 
    47 P.3d 718
    , 720 (Colo. App. 2002).
    ¶7    We review de novo whether the district court applied the
    correct legal standard. 
    Id.
     “Interpretation of the child support
    2
    statutes is a question of law that we review de novo.” In re Marriage
    of Paige, 
    2012 COA 83
    , ¶ 9.
    B. Determining Child Support When the Parents’ Combined
    Incomes Exceed the Highest Level of the Statutory Schedule
    ¶8     Child support is determined by applying the schedule in
    section 14-10-115(7)(b), C.R.S. 2017, to the parents’ combined
    gross incomes. See § 14-10-115(7)(a)(I); Davis, 
    252 P.3d at 534
    .
    The resulting basic child support obligation is then divided between
    the parents in proportion to their adjusted gross incomes. § 14-10-
    115(7)(a)(I).
    ¶9     The schedule establishes child support amounts for parents
    with combined monthly incomes from $1100 to $30,000. See § 14-
    10-115(7)(b). There is a rebuttable presumption in such cases that
    child support should be ordered in the amount indicated by the
    schedule. See § 14-10-115(8)(e); In re Marriage of Wells, 
    252 P.3d 1212
    , 1214 (Colo. App. 2011). The court may deviate from the
    schedule if it determines that the amount indicated would be
    inequitable, unjust, or inappropriate, but it must make findings
    specifying the presumptive amount and its reasons for the
    deviation. § 14-10-115(8)(e); Wells, 
    252 P.3d at 1214
    .
    3
    ¶ 10   For parents with combined incomes above the highest level of
    the schedule, or greater than $30,000 per month, “[t]he judge may
    use discretion to determine child support . . . except that the
    presumptive basic child support obligation shall not be less than it
    would be based on the highest level.” § 14-10-115(7)(a)(II)(E); see In
    re Marriage of Balanson, 
    25 P.3d 28
    , 43-44 (Colo. 2001); see also In
    re Marriage of Van Inwegen, 
    757 P.2d 1118
    , 1120 (Colo. App. 1988)
    (noting that the legislative history of the statute indicates that “the
    guideline provides calculated amounts of child support up to a
    specific combined gross income level, but in cases with a higher
    combined gross income, child support is to be determined on a
    case-by-case basis”).
    ¶ 11   In exercising its discretion, the district court considers all
    relevant factors, including: (1) the child’s and the custodial parent’s
    financial resources; (2) the standard of living the child would have
    enjoyed had the marriage not been dissolved; (3) the child’s physical
    and emotional condition and educational needs; and (4) the
    financial resources and needs of the noncustodial parent. § 14-10-
    115(2)(b); see In re Marriage of Schwaab, 
    794 P.2d 1112
    , 1113
    (Colo. App. 1990); Van Inwegen, 
    757 P.2d at 1120-21
    ; 19 Frank L.
    4
    McGuane & Kathleen A. Hogan, Colorado Practice Series: Family
    Law & Practice § 26:17, Westlaw (2d ed. database updated May
    2017).
    ¶ 12   Father argues that, under section 14-10-115(7)(a)(II)(E), for
    combined incomes above the highest level of the schedule, the child
    support obligation at the highest level is the presumptive amount
    under the guidelines, such that any greater award constitutes a
    deviation under section 14-10-115(8)(e). We are not persuaded.
    ¶ 13   First, the statute does not by its plain language state that the
    support amount at the highest level of the schedule is the
    presumptive amount whenever the parents’ combined incomes
    exceed the highest level of the schedule. Cf. Paige, ¶ 9 (if statutory
    language is clear and unambiguous on its face, we apply it as
    written). Instead, the statute provides that the court “may use
    discretion” to determine support in that circumstance, but that the
    presumptive obligation “shall not be less than it would be based on
    the highest level” of the schedule. § 14-10-115(7)(a)(II)(E) (emphasis
    added). Consistent with this language, cases from this court
    describe the support amount at the highest level of the schedule in
    this circumstance as the “minimum” presumptive amount of
    5
    support, as opposed to the presumptive amount of support. See,
    e.g., In re Marriage of Ludwig, 
    122 P.3d 1056
    , 1060 (Colo. App.
    2005); In re Marriage of Antuna, 
    8 P.3d 589
    , 597 (Colo. App. 2000);
    Van Inwegen, 
    757 P.2d at 1120
    .
    ¶ 14   Thus, under the statute, a court may not award less than the
    support amount at the highest level of the schedule without
    deviating under section 14-10-115(8)(e). However, deviation does
    not apply when the court awards more than the amount of support
    from the highest income level of the schedule. Rather, in that
    circumstance, the court exercises its discretion to determine an
    appropriate amount of support based on relevant factors, including
    those listed at section 14-10-115(2)(b)(I)-(V). See Schwaab, 
    794 P.2d at 1113
    ; Van Inwegen, 
    757 P.2d at 1120-21
    ; cf. In re Marriage
    of Nimmo, 
    891 P.2d 1002
    , 1007 (Colo. 1995) (noting that the child
    support guidelines “were not enacted to prevent an increase in a
    child’s standard of living by denying a child the fruits of one
    parent’s good fortune after a divorce”); In re Marriage of Bohn, 
    8 P.3d 539
    , 541-42 (Colo. App. 2000) (upholding child support
    obligation set at twice the amount of the child’s needs when parent
    had won lottery and noting that “[n]othing in the child support
    6
    statute precludes the trial court from ordering a support payment
    that exceeds the known needs of the child”). As a division of this
    court described the standard in Schwaab, “it is to be presumed,
    subject to rebuttal, that the minimum amount of support is that set
    forth in the highest level of the guidelines;” however, “[t]he actual
    level of support required . . . will depend upon the court’s exercise
    of its discretion” in applying the section 14-10-115(2)(b) factors.
    
    794 P.2d at 1113
    .
    ¶ 15   Based on these authorities and the plain language of section
    14-10-115(7)(a)(II)(E), because the district court did not award less
    than the highest amount indicated by the statutory schedule, it did
    not err in failing to treat the highest amount as presumptive. To
    the extent other divisions of this court have held otherwise and
    required deviation findings in this context, we decline to follow
    those cases. See, e.g., In re Marriage of Upson, 
    991 P.2d 341
    , 344-
    45 (Colo. App. 1999); see also People v. Abu-Nantambu-El, 
    2017 COA 154
    , ¶ 88 (“[O]ne division of the court of appeals is not bound
    by a decision of another division.”).
    ¶ 16   Had the legislature intended the amount of child support at
    the highest level of the income schedule to be the presumptive
    7
    amount of support in all cases where the parents’ combined
    incomes exceed the highest level of the schedule, it could have
    clearly so provided, as, for example, Arizona’s child support
    guidelines do. See 
    Ariz. Rev. Stat. Ann. § 25-320
     app. ¶ 8 (Child
    Support Guidelines 2017) (“If the combined adjusted gross income
    of the parties is greater than $20,000 per month, the amount set
    forth for combined adjusted gross income of $20,000 shall be the
    presumptive Basic Child Support Obligation.”). Our legislature did
    not use such language, but instead stated that the presumptive
    obligation in such cases “shall not be less than” the highest
    amount. § 14-10-115(7)(a)(II)(E). We apply the statute as its plain
    language dictates. See Paige, ¶ 9.
    ¶ 17   Additionally, father’s argument that the basic child support
    obligation in this case — where father alone earns $92,356 per
    month and the parties together earn $105,699 per month — should
    be presumed at the level of parents who earn a combined $30,000
    per month conflicts with the “Income Shares Model” on which
    Colorado’s child support guidelines are based. See Nimmo, 891
    P.2d at 1006. That model assumes that a certain percentage of the
    parents’ combined income in an intact household will be spent on
    8
    their children and calculates child support obligations accordingly.
    Id. at 1006-07. The model was formulated to address concerns that
    child support levels were being set too low and that children were
    suffering a decrease in their standard of living after their parents
    divorced. Id. As the supreme court in Nimmo recognized, children
    are not locked into their parents’ marital standard of living until
    emancipation, but rather are entitled to share in a parent’s good
    fortune, such as father’s significant increase in income here, after a
    divorce. See id. at 1007; see also Bohn, 
    8 P.3d at 542
    .
    ¶ 18   It would accordingly not be appropriate under the Income
    Shares Model to treat the parents here the same as parents earning
    less than one-third of their income, or to impose the same
    presumptive child support obligation on both sets of parents.
    ¶ 19   In sum, we conclude that the district court applied the correct
    legal standard in (1) finding that there was no presumptive child
    support amount under the parties’ circumstances; (2) recognizing
    the minimum presumptive amount under the guidelines; and (3)
    then using its discretion to determine a higher amount based on
    the section 14-10-115(2)(b) factors.
    9
    C. Sufficiency of the District Court’s Findings
    ¶ 20   We further conclude that, in determining child support, the
    district court made sufficient findings concerning the relevant
    statutory factors and did not include inappropriate expenses in its
    award. Additionally, the amount of support it awarded — $3000
    per month — is not manifestly arbitrary, unreasonable, or unfair
    under the parties’ circumstances and thus does not constitute an
    abuse of discretion. See Atencio, 
    47 P.3d at 720
    .
    ¶ 21   The district court acknowledged father’s argument that his
    monthly child support obligation under the highest income level of
    the schedule would be $1424.82, as well as mother’s argument that
    it should extrapolate upward from the highest level, which would
    result in a monthly child support payment of $5024.52 for father.
    In rejecting both parties’ arguments and setting father’s obligation
    at $3000 per month, the court noted that it was required to
    consider the relevant factors at section 14-10-115(2)(b) and that it
    had done so. As noted supra Part II.B, the court was not required
    to make deviation findings under section 14-10-115(8)(e) because
    there was no presumptive support amount here.
    10
    ¶ 22   The court found that the child had no financial resources of
    his own and that the marital standard of living, while relevant, was
    not dispositive. Rather, the child was entitled to benefit from the
    fact that father had done very well financially since the dissolution.
    See § 14-10-115(2)(b)(II), (III), (V) (court considers both parents’
    financial resources and standard of living child would have enjoyed
    had marriage not ended). The court noted the disparity in the
    parties’ abilities to provide for shared activities and experiences
    with the child, and it credited mother’s concern that this disparity
    would have an impact on her relationship with the child as he grew
    older. It further found mother credible in her testimony that she
    would spend child support payments to raise the child’s standard of
    living, and it found that it was reasonable for her to want to save for
    his future college expenses even though doing so was not legally
    required. See § 14-10-115(2)(b)(IV) (court is to consider child’s
    educational needs).
    ¶ 23   The court’s findings are supported by the record. Mother
    testified to the differences in the level of experiences the parties
    were able to provide for the child and that child support would
    enable her to purchase better clothes for him, travel more, eat at
    11
    nicer restaurants, and participate in boating, which was an activity
    the child enjoyed with father. She further testified that she wanted
    to continue to save for the child’s college expenses and was afraid
    she would not be able to do so as the parties’ distributions from
    their partnership, PFC Funding, declined — which both testified
    would happen.
    ¶ 24   Father did not dispute the level of experiences and activities
    he was able to provide, including numerous trips with the child;
    however, he argues on appeal that the court did not consider
    additional financial circumstances, such as his tax liability and a
    significant debt obligation, that affected his ability to pay support.
    Nor, he argues, did the court acknowledge mother’s monthly
    surplus as a financial resource.
    ¶ 25   Although the court’s order does not reference these
    circumstances, we presume that the court considered the testimony
    on the subject. See In re Marriage of Hatton, 
    160 P.3d 326
    , 329
    (Colo. App. 2007). Additionally, even assuming the amount of debt
    and taxes father claimed, his remaining monthly income is still
    sufficient to provide support at the $3000 per month amount
    ordered by the court.
    12
    ¶ 26   Nor do we agree with father that the court included
    inappropriate expenses, such as mother’s travel and activity
    expenses, in imposing a $3000 per month support obligation. As
    noted, the court considered mother’s testimony concerning the
    parties’ differing abilities to engage in discretionary spending on
    vacations and special activities with the child. The child was ten
    years old at the time of the hearing and thus could not reasonably
    participate in such activities without a parent also participating.
    ¶ 27   Father’s reliance on section 14-10-115(11)(a)(II), which allows
    a court to apportion only a child’s transportation expenses between
    the parties, see In re Marriage of Elmer, 
    936 P.2d 617
    , 622-23 (Colo.
    App. 1997), is misplaced. That statute by its plain terms applies
    only to transportation expenses for travel between the parents’
    homes for parenting time. See § 14-10-115(11)(a)(II); Elmer, 
    936 P.2d at 622-23
    . It does not apply when the court is exercising its
    discretion to determine child support for high income parents under
    sections 14-10-115(2)(b) and 14-10-115(7)(a)(II)(E). Further, even if
    it did apply in that context, it allows the court to include an
    accompanying parent’s travel expenses for a child under the age of
    twelve.
    13
    ¶ 28   The court also did not abuse its discretion by considering
    mother’s desire to save for the child’s college expenses, even
    though, as it noted, neither she nor father was obligated to pay
    such expenses as a part of their child support obligation. The
    child’s “educational needs” are a factor that the court considers
    under section 14-10-115(2)(b). By considering that factor, the court
    did not order father to pay postsecondary education expenses in
    contravention of section 14-10-115(13)(a), as father argues.
    ¶ 29   Finally, we note that the district court did not “mechanically
    extrapolate” above the guidelines, as mother had requested. See
    Van Inwegen, 
    757 P.2d at 1121
    . Rather, it specifically declined to
    do so and instead relied on the section 14-10-115(2)(b) factors. We
    conclude that its findings under those factors are sufficient to
    support the amount of child support it ordered. Cf. Ludwig, 
    122 P.3d at 1060
     (remanding for additional findings under the statutory
    factors to support extrapolation when the court had made no
    findings concerning the child’s specific needs); Van Inwegen, 
    757 P.2d at 1121
     (“Inasmuch as the trial court here set child support by
    mechanically extrapolating the amounts specified in the guideline,
    it did not consider the statutorily specified relevant factors. Thus,
    14
    its order represents an abuse of discretion and cannot stand.”). But
    cf. Upson, 
    991 P.2d at 344-45
     (applying deviation standard and
    concluding that general findings concerning child’s needs were
    insufficient). Thus, we discern no abuse of the discretion provided
    to the court in this situation. See § 14-10-115(7)(a)(II)(E); see also
    Bohn, 
    8 P.3d at 542
    .
    D. Retroactive Modification
    ¶ 30   We are not persuaded by father’s contention that the court
    erred by retroactively modifying child support back to the date
    mother moved to modify.
    ¶ 31   A child support modification “should be effective as of the date
    of the filing of the motion, unless the court finds that it would cause
    undue hardship or substantial injustice.” § 14-10-122(1)(d), C.R.S.
    2017; see In re Marriage of Nelson, 
    2012 COA 205
    , ¶ 40.
    ¶ 32   As mother points out, father did not argue, nor does the
    record show, that applying the statute would cause undue hardship
    or substantial injustice. Cf. Nelson, ¶ 41 (upholding maintenance
    modification as of date of motion to modify when, although the
    court made no finding concerning hardship, the husband’s income
    had increased such that he was able to pay the retroactive
    15
    maintenance). Thus, the court did not abuse its discretion in
    applying the statute here, and because father did not argue a basis
    for undue hardship or substantial injustice, it also did not err in
    not addressing that issue.
    III. Section 14-10-119 Attorney Fees
    ¶ 33   Last, father contends that the district court abused its
    discretion by awarding mother a portion of her attorney fees under
    section 14-10-119 without making sufficient findings to support the
    award. We disagree.
    ¶ 34   Section 14-10-119 empowers the trial court to apportion costs
    and fees equitably between parties based on their relative ability to
    pay. In re Marriage of Gutfreund, 
    148 P.3d 136
    , 141 (Colo. 2006).
    Courts are allowed great latitude under the statute to craft attorney
    fees orders appropriate to the circumstances in a given case. Id.;
    see Davis, 
    252 P.3d at 538
     (decision whether to award fees under
    section 14-10-119 will not be disturbed absent abuse of discretion).
    ¶ 35   After finding the parties’ incomes for child support
    modification purposes, the district court found, based on the
    disparity in their resources and income, that it was equitable to
    16
    award mother seventy percent of her attorney fees exclusive of her
    expert witness fees.
    ¶ 36   We conclude that these findings, when considered along with
    the evidence in the record, are sufficient to support the attorney
    fees award. See Bohn, 
    8 P.3d at 542
     (“[A]fter making findings as to
    both parties’ financial resources for purposes of child support, the
    trial court found that the father ‘is far better able to pay the cost of
    this proceeding than the [mother].’ This is a sufficient basis to
    support the award.”). Again, we presume that the court considered
    the evidence before it concerning the parties’ financial
    circumstances. Contrary to father’s argument, it was not required
    to award a lesser amount simply because father’s own attorney fees
    were almost twice as much as mother’s.
    IV. Appellate Attorney Fees
    ¶ 37   Mother requests her attorney fees incurred on appeal under
    section 13-17-102, C.R.S. 2017, contending that the appeal is
    substantially frivolous. We deny the request.
    ¶ 38   “Standards for determining whether an appeal is frivolous
    should be directed toward penalizing egregious conduct without
    deterring a lawyer from vigorously asserting his client’s rights.”
    17
    Mission Denver Co. v. Pierson, 
    674 P.2d 363
    , 365 (Colo. 1984). Fees
    should be awarded only in clear and unequivocal cases when the
    appellant presents no rational argument, or the appeal is
    prosecuted for the purpose of harassment or delay. See Wood Bros.
    Homes, Inc. v. Howard, 
    862 P.2d 925
    , 934-35 (Colo. 1993). That is
    not the situation here. We therefore decline to award mother
    appellate fees.
    V. Conclusion
    ¶ 39   The order is affirmed.
    CHIEF JUDGE LOEB and JUDGE CASEBOLT concur.
    18