Marriage of Luetters ( 2024 )


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  • 23CA0150 Marriage of Luetters 07-25-2024
    COLORADO COURT OF APPEALS
    Court of Appeals No. 23CA0150
    Jefferson County District Court No. 21DR30252
    Honorable Lily W. Oeffler, Judge
    In re the Marriage of
    Byron Luetters,
    Appellant,
    and
    Michele Luetters n/k/a Michele McGlasson,
    Appellee.
    JUDGMENT AFFIRMED AND CASE
    REMANDED WITH DIRECTIONS
    Division I
    Opinion by JUDGE J. JONES
    Welling and Schock, JJ., concur
    NOT PUBLISHED PURSUANT TO C.A.R. 35(e)
    Announced July 25, 2024
    Law Office of Dailey & Pratt, LLC, Lisa M. Dailey, Joel M. Pratt, Colorado
    Springs, Colorado, for Appellant
    Fourth Street Law, LLC, Caroline C. Cooley, Christopher J. Linas, Castle Rock,
    Colorado, for Appellee
    1
    ¶ 1 In this dissolution of marriage proceeding involving Byron
    Luetters (husband) and Michele Luetters, now known as Michele
    McGlasson (wife), husband appeals those portions of the permanent
    orders concerning property division and maintenance. We affirm
    the judgment and remand the case to the district court to resolve
    wife’s request for appellate attorney fees under section 14-10-119,
    C.R.S. 2023.
    I. Background
    ¶ 2 The parties married in 1995 and have three children.
    ¶ 3 After the parties separated in late 2018, wife stayed in the
    marital home and husband provided her with financial support.
    ¶ 4 In 2021, husband petitioned to dissolve the marriage. Around
    that time, he reported that he was the chief financial officer (CFO)
    for Landmark Management Services, LLC (Landmark), earning
    approximately $254,000 per year. Wife, for her part, reported that
    she was a delivery driver and plasma donor, earning $1,320 per
    year.
    ¶ 5 In January 2022, husband indicated that Landmark, through
    no fault of his own, had demoted him and intended to reduce his
    yearly income to $197,000. Then, a few months later, Landmark
    2
    decided to let him go, giving him a severance payout (based on his
    former CFO base salary) plus a disbursement for his unused paid
    time off (PTO).
    1
    ¶ 6 Beginning on June 9, 2022, the district court held a four-day
    evidentiary hearing. The court dissolved the marriage and entered
    permanent orders. It divided the marital estate disproportionately
    in wife’s favor as follows:
    Marital Asset/Debt
    Marital
    Value
    Wife’s
    Portion
    Husband’s
    Portion
    Equity in the Marital
    Home
    $333,628
    $333,628
    Investment/Retirement
    Accounts
    $117,052
    $117,052
    Bank Accounts
    $62,774
    $45,520
    $17,254
    Vehicles
    $27,276
    $18,156
    $9,120
    Personal Property
    $1,900
    $1,150
    $750
    Debts
    ($77,666)
    ($3,014)
    ($74,652)
    TOTAL
    $464,964
    $395,440
    $69,524
    1
    It appears that Landmark didn’t reduce husband’s salary but
    rather continued to pay him his CFO salary until he left Landmark.
    But the record isn’t entirely clear in this regard.
    3
    ¶ 7 It then ordered husband to pay wife modifiable maintenance of
    $3,900 per month for an indefinite term and to pay $10,000 of her
    attorney fees under section 14-10-119. Because the parties’
    youngest child was eighteen years old, the court didn’t enter any
    parental responsibilities orders. On September 23, 2022, the court
    entered a dissolution decree and a written judgment tracking its
    oral ruling.
    ¶ 8 The district court subsequently denied husband’s C.R.C.P. 59
    post-trial motion, which sought, among other things,
    reconsideration of the unequal property division. In doing so, the
    court further explained and clarified its reasoning behind the
    property division.
    II. Property Division
    A. Standard of Review
    ¶ 9 A district court has great latitude to make an equitable
    property division based on the facts and circumstances of each
    case, and we won’t disturb its decision absent a showing of an
    abuse of its discretion. In re Marriage of Collins, 2023 COA 116M,
    ¶ 19; see § 14-10-113(1), C.R.S. 2023. A court abuses its discretion
    when its decision is manifestly arbitrary, unreasonable, or unfair,
    4
    or when it misconstrues or misapplies the law. In re Marriage of
    Fabos, 2022 COA 66, ¶ 16.
    B. Relevant Law
    ¶ 10 “The property division must be equitable, but not necessarily
    equal.” In re Marriage of Wright, 2020 COA 11, ¶ 3; see In re
    Marriage of Gallo, 752 P.2d 47, 55 (Colo. 1988) (“The key to an
    equitable distribution is fairness, not mathematical precision.”). In
    making an equitable division, the district court must consider all
    relevant factors, including, among other things, each spouse’s
    contribution to the acquisition of the marital property, including the
    contribution of a spouse as homemaker, and each spouse’s
    economic circumstances. § 14-10-113(1)(a), (c); In re Marriage of
    Evans, 2021 COA 141, ¶ 50.
    ¶ 11 The weighing of these factors is within the district court’s
    sound discretion. In re Marriage of Powell, 220 P.3d 952, 959 (Colo.
    App. 2009). The court doesn’t need to make specific findings as to
    each factor so long as its findings allow us to determine that its
    decision is supported by competent evidence. Collins, ¶ 19. And we
    may look to the court’s oral ruling as supplementing its written
    order. See In re Marriage of Thorburn, 2022 COA 80, ¶ 9 n.1.
    5
    C. Discussion
    ¶ 12 Husband contends that the disproportionate property division
    cannot stand. To get there, he argues that the district court didnt
    consider the factors in section 14-10-113(1), make adequate
    findings, or explain its reasoning. We arent persuaded by these
    arguments.
    ¶ 13 In dividing the marital estate, the district court made the
    following findings:
    This was a long-term marriage lasting twenty-six years.
    See § 14-10-113(1) (property division requires
    consideration of all relevant factors).
    Husband was the sole source of income for most, if not
    all, of the marriage. See § 14-10-113(1)(a).
    During the marriage, wife provided little financially but
    contributed as a full-time homemaker, taking care of the
    children and maintaining the household. See id.
    Although currently unemployed, husband could a earn a
    minimum of $220,000 per year. See § 14-10-113(1)(c).
    In fact, husband confidently represented that he could
    find a position within the same field earning a salary
    6
    similar to that he had earned as CFO for Landmark. See
    § 14-10-113(1).
    In 2020, husband earned roughly $326,536, which
    included a bonus. See id.
    Upon leaving Landmark, husband would receive eight
    weeks of severance pay at his former CFO salary as well
    as a disbursement for his unused PTO. See § 14-10-
    113(1)(c).
    Wife hadn’t “worked outside the home in years and
    therefore [had] not built up a resume and work history.”
    See § 14-10-113(1).
    Wife received a high school diploma and was taking a few
    college classes. See id.
    Wife was diagnosed with a vision impairment in 2021
    and granted accommodations at her college. See id.
    Wife will begin work at a much lower salary than
    husband given her limited employment history and
    education, whereas husband “worked throughout the
    marriage thereby building a significant career and is able
    7
    to earn a salary many times higher than wife.” See § 14-
    10-113(1)(c).
    Wife had the potential to earn $40,726 per year. See id.
    The bulk of the debt should be allocated to husband
    because he had “access more immediately to payments of
    cash via severance and subsequent employment. See id.
    There were minimal assets to divide possibly due to the
    parties’ decision to spend $500,000 of husband’s
    earnings on the children’s private school, which was no
    longer an expense for him. See id.
    ¶ 14 The district court’s factual findings, which enjoy ample record
    support, demonstrate that it considered all relevant factors. See
    § 14-10-113(1)(a), (c); see also Evans, ¶ 50. And those findings are
    sufficient to provide us with a clear understanding of its reasons for
    the property division. See Collins, ¶ 19. So, contrary to husband’s
    argument, the court didnt err in this regard.
    ¶ 15 Nor are we persuaded by husband’s related argument that the
    district court erred because it improperly considered the vast
    disparity in the parties’ future earning capabilities. Our supreme
    court has declared it “obvious that a spouse’s earning capabilities
    8
    are properly part of the ‘economic circumstances’ the court must
    consider in compliance with section 14-10-113(1).” See In re
    Marriage of Faulkner, 652 P.2d 572, 574 (Colo. 1982) (“[I]t does not
    follow that the court may not consider the earning capabilities of
    one spouse when determining a fair property distribution.”); see
    also In re Marriage of Morehouse, 121 P.3d 264, 265, 266-67 (Colo.
    App. 2005) (in achieving an equitable division of property, the
    district court may consider anticipated social security benefits as a
    relevant economic circumstance); Wright, ¶ 10 (district court didnt
    abuse its discretion in dividing property where the husbands
    income was more than four times the wifes because it could
    reasonably have concluded that he had the financial means with
    which to pay more of the marital debts).
    ¶ 16 And to the extent that husband asks us to reweigh the
    evidence or the section 14-10-113(1) factors in his favor and
    substitute our judgment for that of the district court, we decline the
    invitation. See In re Marriage of Nelson, 2012 COA 205, ¶ 35 (When
    reviewing for an abuse of discretion, even where “there is evidence
    in the record that could have supported a different conclusion, we
    will not substitute our judgment for that of the district court.”); see
    9
    also Thorburn, ¶ 49 (it is for the district court, not the reviewing
    court, to determine witness credibility and the weight, probative
    force, and sufficiency of the evidence, including the inferences and
    conclusions to be drawn therefrom); Powell, 220 P.3d at 959.
    ¶ 17 Husband also argues that the property division should be
    reversed given that the district court didnt consider that the
    retirement accounts allocated to him were illiquid. According to
    him, “he received a bit of retirement and more debt and obligations
    than he could meet.” But the court specifically addressed that
    issue, finding that the parties had very few marital assets to divide
    and that husband could manage the marital debts with his
    severance payout, PTO disbursement, and subsequent employment.
    We observe that husband was also awarded several bank accounts
    containing more than $17,000. And he doesnt point us to where
    he presented evidence regarding the potential lost value incurred by
    liquidating his retirement funds. In all, we can’t say that the court
    abused its discretion on this point. See In re Marriage of Davis, 618
    P.2d 692, 694 (Colo. App. 1980) (district court didnt abuse its
    discretion when it allocated to the wife all the parties cash and
    10
    liquid assets, leaving the husband with practically no marketable or
    liquid assets while saddling him extensive debts).
    ¶ 18 We understand husband to maintain that the district court
    conflated property division and maintenance when it “justified” its
    unequal property division with wife’s need for support. The record
    belies this claim. After considering the relevant factors under
    section 14-10-113(1) and making express factual findings, the court
    concluded that the property division was equitable within the
    context of the lengthy marriage, the disparity in education, job
    history, and earning potential along with immediate income
    disparities.” Thus, the court didnt rely on wife’s need for support
    or maintenance when it divided the parties’ property.
    ¶ 19 Because the district court’s decision to divide the marital
    property equitably, albeit disproportionately in wife’s favor, was
    within the court’s very broad discretion, we won’t disturb it. See
    Collins, ¶ 19.
    III. Maintenance
    A. Standard of Review
    ¶ 20 The district court has broad discretion to award maintenance,
    if any, that is fair and equitable to both spouses based on the
    11
    totality of the circumstances. § 14-10-114(3)(e), C.R.S. 2023; see
    also In re Marriage of Vittetoe, 2016 COA 71, ¶ 14. We won’t disturb
    the court’s award of maintenance absent a showing of an abuse of
    that discretion. See In re Marriage of Medeiros, 2023 COA 42M,
    ¶ 58.
    B. Relevant Law
    ¶ 21 Section 14-10-114(3) sets forth a specific process that a court
    must follow when considering a maintenance request. Wright, ¶ 13.
    ¶ 22 The district court must first make findings regarding each
    spouse’s income, the marital property apportioned to each spouse,
    the spouses’ financial resources, the spouses’ reasonable financial
    needs established during the marriage, and the taxability of the
    maintenance awarded. § 14-10-114(3)(a)(I); Wright, ¶¶ 14, 19.
    ¶ 23 Next, the district court must determine an amount and a term
    of maintenance that are fair and equitable to the parties. § 14-10-
    114(3)(a)(II); Wright, ¶ 15.
    ¶ 24 Although the district court generally must also find and
    consider the guideline amount and term of maintenance under
    sections 14-10-114(3)(b)(I) and (3)(b)(II), those guidelines dont apply
    when, as here, the spouses’ combined annual adjusted gross
    12
    income exceeds $240,000. § 14-10-114(3.5); In re Marriage of
    Herold, 2021 COA 16, ¶ 26. Still, the court isnt precluded from
    considering the guidelines. See § 14-10-114(3.5). In this context,
    the court must determine the appropriate amount of maintenance
    based on the statutory factors in section 14-10-114(3)(c). See § 14-
    10-114(3.5). Those factors include the recipient spouse’s financial
    resources and ability to meet her reasonable needs independently;
    the payor spouse’s financial needs and ability to meet his
    reasonable needs while paying maintenance; the lifestyle during the
    marriage; the distribution of marital property; each spouses
    income, employment, and employability, obtainable through
    reasonable diligence and additional training or education; whether
    a spouse has historically earned a higher or lower income; the
    duration of the marriage; the payment of temporary maintenance;
    each spouses age and health; significant economic or noneconomic
    contribution to the marriage; and any other relevant factor. § 14-
    10-114(3)(c)(I)-(X), (XIII).
    ¶ 25 The district court doesnt have to make specific factual
    findings on each factor so long as its decision gives us a clear
    understanding of the basis of its order. See Wright, ¶ 20; see also
    13
    In re Marriage of Stradtmann, 2021 COA 145, ¶ 32; § 14-10-
    114(3)(e) (“The court shall make specific written or oral findings in
    support of the amount and term of maintenance awarded pursuant
    to this section or an order denying maintenance.”).
    ¶ 26 And when a marriage exceeds twenty years, like this one, the
    district court can award maintenance for an indefinite term. § 14-
    10-114(3)(b)(II)(B).
    ¶ 27 The last step is for the district court to determine whether the
    requesting spouse qualifies for maintenance, meaning that she
    lacks sufficient property, including marital property awarded, to
    provide for her reasonable needs and is unable to support herself
    through appropriate employment. See § 14-10-114(3)(a)(II)(C),
    (3)(d); Wright, ¶ 16.
    C. Discussion
    1. Factual Findings and Consideration of the Relevant Factors
    ¶ 28 Husband contends that the district court abused its discretion
    by determining maintenance because it failed to make factual
    findings concerning the parties’ financial resources under section
    14-10-114(3)(a)(I)(C), wife’s reasonable needs under section 14-10-
    14
    114(3)(a)(I)(D), and their lifestyle during the marriage under section
    14-10-114(3)(c)(III). We disagree.
    ¶ 29 The district court found that (1) husband and wife had the
    potential to earn annual incomes of $220,000 and $40,726,
    respectively; (2) from the limited marital estate, wife was allocated
    the marital home and husband was allocated the
    investment/retirement accounts; (3) wife would be responsible for
    mortgage payments, taxes, and expenses on the marital home; (4)
    the parties lived a “comfortable lifestyle”; (5) during most of the
    marriage, husband was the sole income earner and wife worked as
    a homemaker; (6) husband had an established career and would be
    able to earn a salary many times higher than wife; (7) wife was
    financially disadvantaged given her lack of education and work
    experience; (8) wife was currently in college pursuing a bachelor’s
    degree; (9) wife was diagnosed with a vision impairment; and (10)
    the parties had a long-term marriage.
    ¶ 30 From those findings and after looking at the guidelines, the
    district court ordered husband to pay wife modifiable maintenance
    of $3,900 per month for an indefinite term, determining that wife
    lacked sufficient income from marital property and employment to
    15
    meet her reasonable needs and that husband had the ability to pay
    the amount of maintenance awarded and still meet his own
    reasonable needs.
    ¶ 31 We conclude that the district court adequately set forth its
    factual findings on the parties’ financial resources under 14-10-
    114(3)(a)(I)(C). The court found that the marital estate was
    essentially limited to the marital home and the parties’
    investment/retirement accounts. The court also highlighted the
    disparity in the parties’ potential incomes.
    ¶ 32 As to wife’s reasonable needs under section 14-10-
    114(3)(a)(I)(D), the district court expressly found that she would be
    solely responsible for all expenses associated with the marital
    home, including the mortgage and taxes. And given that the court
    said that it adopted the parties’ stipulated exhibits as identified in
    their joint trial management certificate, we may presume that it
    knew of and considered her other reasonable needs and expenses
    as reflected in her sworn financial statement. See In re Marriage of
    Udis, 780 P.2d 499, 504 (Colo. 1989); see also In re Marriage of
    Salby, 126 P.3d 291, 296 (Colo. App. 2005) (the district court may
    rely on parties’ financial affidavits to support its findings).
    16
    ¶ 33 Contrary to husband’s insistence, the district court wasnt
    required to make specific factual findings on the parties’ lifestyle
    during the marriage under section 14-10-114(3)(c)(III). See
    Stradtmann, ¶ 32. The court nevertheless credited husband’s
    testimony that they enjoyed a “comfortable” lifestyle. The court also
    said that it “looked at [their] standard of living during the marriage.
    ¶ 34 We reject husband’s argument that the district court
    “disregarded” the fact that the parties had been separated for
    several years before he petitioned for dissolution and that he had
    provided wife with consistent financial support throughout the
    dissolution proceeding. The court specifically found that he had
    provided financial support to her since the parties separated in
    2018.
    2. Maintenance Amount
    ¶ 35 Next, husband argues that the district court didnt sufficiently
    explain how it arrived at a monthly maintenance amount of $3,900.
    But the evidence shows that wife’s sworn financial statement
    represented that she had roughly $6,500 in reasonable expenses
    each month. And the court explained that the monthly
    maintenance award of $3,900, when added to her potential income
    17
    of $3,393, would meet her monthly reasonable expenses. Because
    we can understand the basis of the court’s decision, we don’t see
    any reason to disturb it. See Wright, ¶ 20.
    3. Maintenance Term
    ¶ 36 Husband claims that the district court’s decision to award wife
    indefinite or lifetime maintenance isn’t supported by the record, as
    wife testified that she intended to become self-supporting after
    finishing her bachelor’s degree, earning her master’s degree, and
    transitioning back into the work force as a therapist. Again, we
    arent persuaded. As noted above, a court may consider a spouse’s
    employability, obtainable through reasonable diligence and
    additional training or education. See § 14-10-114(3)(c)(V). And a
    vocational expert, who assessed wife’s employment prospects,
    testified that her educational goals were unrealistic,” saying that
    she would be in her mid-fifties before she meets them, if she ever
    does so.
    ¶ 37 Husband also argues that the district court failed to consider
    the parties’ ages. The evidence presented to the court included the
    parties’ ages, and we may presume that the court considered this
    circumstance. See Udis, 780 P.2d at 504.
    18
    4. Husband’s Imputed Income
    ¶ 38 Husband contends that the district court erred first by not
    expressly finding him voluntarily unemployed and then also by
    imputing to him yearly income of $220,000. We disagree.
    ¶ 39 In calculating maintenance, income means a party’s actual
    gross income if the spouse is fully employed. § 14-10-114(8)(a)(II).
    If, however, a spouse is voluntarily unemployed, maintenance is
    calculated based on that spouse’s potential income. § 14-10-
    114(8)(c)(IV). “‘[P]otential income’ is described as the amount a
    party could earn from a full-time job commensurate with the party’s
    demonstrated earning ability.” In re Marriage of Tooker, 2019 COA
    83, ¶ 26.
    ¶ 40 The district court has broad discretion in determining income
    for maintenance purposes, and whether to impute income to a
    spouse is typically a question of fact, the determination of which we
    won’t disturb if it has record support. See People v. Martinez, 70
    P.3d 474, 480 (Colo. 2003); see also Tooker, ¶ 27.
    ¶ 41 At the initial permanent orders hearing on May 23, 2022,
    husband told the district court that Landmark had recently ended
    19
    his employment. After the court expressed its frustration about the
    last-minute disclosure, husband’s attorney said the following:
    [Husband] is not here asking the [c]ourt not to
    impute income to him. He understands that
    he’s capable of making a certain amount.
    What that amount is . . . is in dispute.
    However, he’s not here to say I lost my job, so I
    shouldn’t have to pay maintenance.
    . . . .
    [Husband] is not requesting that the [c]ourt
    forego [sic] imputing income.
    The court eventually continued the hearing to June 9, 2022.
    ¶ 42 At the June 9 hearing, husband testified that the next day
    would be his last day with Landmark. He asserted that he should
    be imputed yearly income of $197,000, his “actual salary” in
    January 2022. Yet when he was asked what the “minimum
    amount” he could earn was, he replied that a yearly salary ranging
    between $175,000 and $225,000 was “achievable.” A vocational
    expert later testified that husband was “highly employable, would
    not have any difficulty landing a job in his field, and could earn as
    much as $275,000 per year. The expert added that husband was
    not performing a valid job search.
    20
    ¶ 43 While the district court credited the vocational expert’s
    opinion, the court determined that it was more appropriate to
    impute to husband a yearly income of $220,000. In support, the
    court found that husband had “marketable skills” and could find
    work in his field given the wide availability of jobs. The court also
    emphasized that husband had “expressed directly . . . that he could
    find a position with a similar salary.
    ¶ 44 Those findings, combined with the evidence in the record,
    imply a finding that husband was voluntarily unemployed by
    choosing not to earn the full-time income he was capable of
    earning. See Nelson, ¶ 41 (implied findings are sufficient); see also
    Martinez, 70 P.3d at 480 (“A court may interpret a parent’s lack of
    initiative in finding or keeping work as a voluntary refusal to fulfill a
    support obligation.”).
    ¶ 45 And because the record, including husband’s admissions,
    supports the amount of income that was imputed to him, we won’t
    disturb the court’s ruling. See Martinez, 70 P.3d at 480; see also
    Tooker, ¶ 27.
    21
    IV. Attorney Fees in the District Court
    ¶ 46 Husband requests that if we reverse the property division, we
    instruct the district court on remand to reconsider its 14-10-119
    attorney fee award. See In re Marriage of de Koning, 2016 CO 2,
    26 (when a district court is required to revisit property division, it
    must also re-evaluate its determination on attorney fees in light of
    the updated property division). Given our disposition, we decline to
    do so.
    V. Appellate Attorney Fees and Costs
    ¶ 47 Wife asks us to order husband to pay her appellate attorney
    fees under section 14-10-119, asserting that the parties’ financial
    resources are disparate. We remand her request to the district
    court. See In re Marriage of Martin, 2021 COA 101, ¶ 42; see also §
    14-10-119; C.A.R. 39.1.
    ¶ 48 Wife is also entitled to an award of her appellate costs. See
    C.A.R. 39(a)(2) (costs are taxed against the appellant if a judgment
    is affirmed).
    22
    VI. Disposition
    ¶ 49 The judgment is affirmed, and the case is remanded to the
    district court to resolve wife’s section 14-10-119 appellate attorney
    fees request.
    JUDGE WELLING and JUDGE SCHOCK concur.

Document Info

Docket Number: 23CA0150

Filed Date: 7/25/2024

Precedential Status: Precedential

Modified Date: 7/31/2024