Michael Mansfield v. Micah Mansfield (mem. dec.) ( 2019 )

MEMORANDUM DECISION
Pursuant to Ind. Appellate Rule 65(D),
this Memorandum Decision shall not be FILED
regarded as precedent or cited before any Dec 23 2019, 5:31 am
court except for the purpose of establishing
CLERK
the defense of res judicata, collateral Indiana Supreme Court
Court of Appeals
estoppel, or the law of the case. and Tax Court
ATTORNEY FOR APPELLANT ATTORNEYS FOR APPELLEE
Christopher M. Forrest Timothy M. Pape
Forrest Legal, LLC Jamie C. Slotsema
Fort Wayne, Indiana Carson, LLP
Fort Wayne, Indiana
IN THE
COURT OF APPEALS OF INDIANA
Michael Mansfield, December 23, 2019
Appellant-Respondent, Court of Appeals Case No.
18A-DR-2983
v. Appeal from the Allen Superior
Court
Micah Mansfield, The Honorable Charles F. Pratt,
Appellee-Petitioner. Judge
The Honorable Lori K. Morgan,
Magistrate
Trial Court Cause No.
02D07-1511-DR-1411
Mathias, Judge.
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[1] Michael Mansfield’s (“Husband”) and Micah Mansfield’s (“Wife”) marriage
was dissolved in Allen Superior Court. Husband appeals the trial court’s
dissolution decree and raises four issues, which we restate as:
I. Whether the trial court abused its discretion when it awarded Wife
primary physical custody of the parties’ two children;
II. Whether the trial court abused its discretion when it ordered Husband’s
child support calculation retroactive to October 17, 2017;
III. Whether the trial court abused its discretion in valuing Husband’s interest
in L. Mansfield & Heirs, LLC; and,
IV. Whether the trial court abused its discretion when it included Husband’s
January 2016 employment bonus in the marital estate.
We affirm in part, reverse in part, and remand for proceedings consistent with
this opinion.
Facts and Procedural History
[2] The parties were married on August 4, 2007. They have two children: J.M.,
born in 2010, and E.M., born in 2011. Wife was a nurse, and Husband is
employed in the information technology field. Husband often worked
significant hours during the marriage, and Wife was the primary caregiver for
the children. After the children were born, Wife stayed at home with the
children for a period of time. When she returned to work, she worked part-time.
[3] Wife filed a petition for dissolution of marriage on November 16, 2015.
Initially, the parties agreed to a “bird’s nest” arrangement where the children
remained in the marital residence at all times. The parties exercised their
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parenting time and overnights with the children at the marital residence. Wife
was hopeful that the “bird’s nest” arrangement would help the children
transition and adjust to the parties’ separation. Under the parties’ agreed
parenting time schedule, in every two-week period, Wife exercised 8 of the 14
overnights with the children.
[4] In August 2016, Wife decided that the “bird’s nest” arrangement was confusing
the children because it gave the children the impression that the parties were
still living together. She believed that maintaining her own residence would
help the children understand that the parties were in the process of dissolving
the marriage. Therefore, Wife obtained her own residence and exercised
parenting time with the children in her new home. Shortly thereafter, the
children began to experience separation anxiety when they would leave Wife’s
home to go to Husband’s home for his overnights. E.M.’s separation anxiety
was particularly severe. J.M. began acting out at school.
[5] The children began to participate in counseling to help them deal with their
anxiety. The parties were receptive to the counselor’s suggestions and tried to
incorporate them into their parenting routines. However, Husband would not
agree to testing that the counselor recommended for J.M. due to the behaviors
that J.M. exhibited at school.
[6] On October 17, 2017, the trial court granted the parties’ joint stipulation to
dissolve their marriage but bifurcated the child custody determination and
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division of the marital estate. Thereafter, final hearings were held in this case on
September 22 and 28, 2017, January 22, 2018, and April 23, 2018.
[7] Child custody and the parenting time schedule were significant sources of
conflict between the parties at the hearing. The trial court found
the testimony credible that the children are experiencing anxiety
related to the current parenting time schedule especially given a
consideration of their young ages, the instability in their living
arrangements, the frequency of the parenting time exchanges as
well as the confusion that sometimes occurs during parenting
time exchanges. [Wife] has functioned in the role of the
children’s primary caregiver during the marriage and the children
have developed a strong bond and attachment with her. The
Court finds that the entry of an order modifying the current
parenting time schedule to provide the children with more
stability in their home environment is in the children’s best
interests. The Court further finds that the entry of an order
awarding [Wife] primary physical custody of the minor children
is in the minor children’s best interests.
Appellant’s App. p. 49.
[8] Husband was awarded parenting time as set forth in the Indiana Parenting
Time Guidelines, except Husband was awarded a mid-week overnight on
Wednesdays. Husband, who did not pay child support during the dissolution
proceedings, was ordered to pay $141 per week in child support, and child
support was ordered to be paid retroactive from October 17, 2017, the date the
marriage was dissolved.
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[9] With regard to the parties’ marital assets, the parties presented significantly
different valuations for Mansfield & Heirs, LLC. The assets held by the
company consist of a remainder interest in four tracts of farmland in Ohio
previously owned by Husband’s grandfather, Gilbert Schick. The trial court
found that
. . . Subsequently, the [Wife] and [Husband] created a Limited
Liability Corporation called L. Mansfield & Heirs, LLC (the
“LLC”) and transferred their interest in the real estate to be held
by the LLC. [Husband’s] sister transferred her one-half
Remainder Interest in the land into the LLC as well. The LLC’s
Remainder Interest in one of the four underlying tracts of land is
subject to a life estate vested in [Husband’s] uncle. The other
three tracts of land are subject to a life estate vested in
[Husband’s] mother, Lesa Mansfield. The real estate is subject to
[Husband’s] uncle’s ability to farm the land for life. [Husband]
and his sister each own a 50% membership interest in the LLC
and [Husband’s] mother serves as the manager of the LLC. She
may only be removed as the manager by a majority of the
members. The Remainder Interest is the sole asset of the LLC . . .
***
In connection with the transfer of the Remainder Interest to the
LLC, during the marriage, [Wife] was asked to, and ultimately
did, execute Quit Claim Deeds quit-claiming and relinquishing
any right, title, or interest to the underlying real estate. [Husband]
then retained a 50% ownership interest in the LLC. According to
[Husband’s] testimony at trial, during the marriage, the parties
did not receive a financial benefit as a result of the Remainder
Interest or the LLC, nor did they make plans or decisions during
the marriage based upon the expectation of realizing such
interest. He advises that he and [Wife] did not discuss the
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Remainder Interest of LLC much during the marriage and that
he only recently began to understand the kind of interest that he
holds. He contends that [Wife] had knowledge of all of the
communications that occurred during the marriage regarding the
Remainder Interest and the LLC. He further advised at trial that
he had always believed that the Remainder Interest and/or
interest in the LLC was a future inheritance that he would
receive upon the death of several family members and did not
understand until recently, that he held a present right to the
Remainder Interest and/or LLC. He testified that at trial that he
was still attempting to understand the exact nature of the interest
that he and/or the LLC holds.
Id. at 52, 54–55.
[10] Each party hired experts to value the remainder interest held by the LLC.
Wife’s expert concluded that Husband’s 50% interest in the LLC was worth
$252,800.00. Husband’s expert determined that Husband’s 50% ownership
interest in the LLC was worth $38,000.00. The trial court adopted the value
calculated by Wife’s experts after concluding that they were reliable and their
opinions were “based upon sound valuation principles.” Id. at 58.
[11] The parties also could not agree whether a bonus Husband received from his
employer in January 2016 was a marital asset. The trial court also concluded
that it was and included it in the marital estate because the bonus was for work
performed in the 2015 calendar year.
[12] Husband now appeals the trial court’s November 16, 2018 order addressing
custody and parenting time of the parties’ children and dividing the marital
estate. Additional facts will be provided as necessary.
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Standard of Review
[13] Husband requested findings of fact and conclusions of law. Therefore, first we
determine whether the evidence supports the trial court’s findings, and second
we determine whether the findings support the judgment. Lechien v. Wren, 950
N.E.2d 838, 841 (Ind. Ct. App. 2011). We will set aside the trial court’s specific
findings only if they are clearly erroneous, that is, when there are no facts or
inferences drawn therefrom to support them. Id. A judgment is clearly
erroneous when a review of the record leaves us with a firm conviction that a
mistake has been made. Id. We neither reweigh the evidence nor assess the
credibility of witnesses but consider only the evidence most favorable to the
judgment. Id. The findings control only as to the issues they cover, and a
general judgment standard applies to issues upon which the trial court made no
findings. Id.
I. Custody and Parenting Time
[14] Husband argues that the trial court abused its discretion when it awarded Wife
primary physical custody of the children and awarded him “minimum”
parenting time. See Appellant’s Br. at 24. Our standard of review of initial child
custody determinations is well settled. Child custody decisions fall within the
trial court's sound discretion. Swadner v. Swadner, 897 N.E.2d 966, 973 (Ind. Ct.
App. 2008).
[15] In an initial custody determination, both parents are presumed equally entitled
to custody. Hamilton v. Hamilton, 103 N.E.3d 690, 694 (Ind. Ct. App. 2018),
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trans. denied. The trial court shall determine custody and enter a custody order
in accordance with the best interests of the child by considering all relevant
factors, including:
(1) The age and sex of the child.
(2) The wishes of the child’s parent or parents.
(3) The wishes of the child, with more consideration given to the
child's wishes if the child is at least fourteen (14) years of age.
(4) The interaction and interrelationship of the child with:
(A) the child's parent or parents;
(B) the child's sibling; and
(C) any other person who may significantly affect the
child’s best interests.
(5) The child’s adjustment to the child’s:
(A) home;
(B) school; and
(C) community.
(6) The mental and physical health of all individuals involved.
(7) Evidence of a pattern of domestic or family violence by either
parent.
(8) Evidence that the child has been cared for by a de facto
custodian, and if the evidence is sufficient, the court shall
consider the factors described in section 8.5(b) of this chapter.
Ind. Code § 31-17-2-8.
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[16] In deference to the trial court’s proximity to the issues, we do not reweigh the
evidence or determine the credibility of witnesses. Hughes v. Rogusta, 830
N.E.2d 898, 902 (Ind. Ct. App. 2005). Instead, we consider the evidence most
favorable to the judgment, with all reasonable inferences drawn in favor of the
judgment. Id. We will affirm the trial court’s custody determination absent an
abuse of discretion. Swadner, 897 N.E.2d at 973.
[17] Husband argues that he was exercising near equal parenting time, with Wife’s
agreement, during the dissolution proceedings. Therefore, he argues that the
trial court should have treated the custody and parenting time issues as
modifications of custody and parenting time and should have applied the more
stringent modification standard.1
[18] Throughout these proceedings, Husband was on notice that the trial court
would make an initial custody determination when issuing its decree, and the
parties’ provisional agreement was temporary. Moreover, during the pendency
of the dissolution proceedings, Wife expressed her belief to Husband that their
provisional custody and parenting time arrangement was causing the children
1
A party who seeks modification of custody must prove modification is in the child’s best interests and a
substantial change in one or more of the statutory factors enumerated in Indiana Code section 31-17-2-8. In
support of his argument that the modification standard should apply, Father relies on In re Paternity of
Winkler, 725 N.E.2d 124, 127–28 (Ind. Ct. App. 2000). But in that case, Mother had sole legal custody of the
child for twelve years, and Father “acquiesced to the custody arrangement for this long period of time.” Id. at
128. Therefore, “the same concerns about stability and continuity present in sole and joint custody
modifications are present.” Id. Moreover the paternity statute effectively provides that the child’s mother will
have sole custody of a child born out-of-wedlock. Id. at 127. Although the dissolution proceedings in this case
pended for nearly three years, the circumstances present in this appeal are not legally or factually analogous
to those in Winkler.
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to suffer from anxiety, and she sought to change the arrangement. But Husband
would not agree to any changes. For these reasons, Husband has not persuaded
us that the trial court was required to consider its custody and parenting time
decisions under the more stringent modification standard.
[19] Wife was the children’s primary caretaker throughout the marriage. After the
children were born, when she returned to work, Wife worked part-time until
June 2015. Wife adjusted her work schedule to take care of the children’s needs.
Husband would often work overtime and assist at his family’s business.
However, during the parties’ separation, Husband cared for the children six out
of every fourteen overnights. Husband substantially relies on this fact to support
his argument that the trial court should have awarded joint physical custody.
[20] But the children began to suffer anxiety during the parties’ provisional custody
arrangement, and J.M. began acting out at school. Husband’s challenge to the
trial court’s finding that the children suffered anxiety throughout the parties’
separation is simply a request to reweigh the evidence and the credibility of the
witnesses. With Husband’s agreement and support, the children were in
counseling to deal with their anxiety. The parties have implemented strategies
suggested by the children’s counselor, and the children’s anxiety has lessened
over their two years of counseling. But the children’s issues with anxiety still
persist. And Husband refused to consider changing the parties’ parenting time
schedule even though the children struggled to adjust to the multiple parenting
exchanges each week.
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[21] This evidence supports the trial court’s award of primary physical custody to
Wife. The trial court considered the statutory factors and determined that the
children need more stability and less parenting time exchanges. The court also
considered that the children have a stronger bond and attachment to Wife.
Finally, the evidence supports the trial court’s determination that awarding
Wife primary physical custody is in the children’s best interests.
[22] Husband also argues that the trial court abused its discretion by awarding him
minimal parenting time. In all parenting time controversies, courts must give
foremost consideration to the best interests of the child. Hazelett v. Hazelett, 119
N.E.3d 153, 161 (Ind. Ct. App. 2019). We review a trial court’s parenting time
determination under an abuse of discretion standard. Id. If the record reveals a
rational basis supporting the trial court’s decision, no abuse of discretion
occurred. Id. In reviewing a trial court’s determination, we will not reweigh the
evidence or judge the credibility of the witnesses. Id.
[23] The trial court awarded Husband parenting time consistent with the guidelines,
but in addition, awarded Husband a mid-week overnight. Husband was
awarded more than minimal parenting time. The trial court’s parenting time
decision took into account the children’s ages, their need for more stability and
fewer exchanges between the parents, but also the fact that Husband has had
significant parenting time with the children throughout the dissolution
proceedings. For these reasons, we conclude that the trial court acted within its
discretion when it entered its parenting time order.
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II. Child Support Calculation and Retroactivity
[24] Husband argues that the trial court abused its discretion when it ordered his
child support obligation retroactive to October 17, 2017. There was no child
support order in place during the dissolution proceedings.
[25] A trial court’s calculation of child support is presumptively valid. Young v.
Young, 891 N.E.2d 1045, 1047 (Ind. 2008). We will reverse a trial court’s
decision in child support matters only if it is clearly erroneous or contrary to
law. Id. A decision is clearly erroneous if it is clearly against the logic and effect
of the facts and circumstances that were before the trial court. Id.
[26] It is well settled that an initial child support order can be retroactive to the date
of the petition for dissolution. Mitten v. Mitten, 44 N.E.3d 695, 705 (Ind. Ct.
App. 2015) (citing Boone v. Boone, 924 N.E.2d 649, 652 (Ind. Ct. App. 2010)).
The trial court chose October 17, 2017 for the effective start date of the child
support order because that is the date the court granted the parties’ joint
stipulation to dissolve their marriage. It was well within the trial court’s
discretion to do so.
[27] Husband argues that “even if the support obligation is retroactive to October
17, 2017, Husband should have been provided an appropriate parenting time
credit from October 17, 2017 to November 16, 2018” because during those
dates, he was exercising more overnight visitation than provided for in the
decree. Appellant’s Br. at 31.
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[28] In its child support calculation, the trial court gave Husband credit for 150
overnights per year. The evidence presented at the hearing established that
Husband was exercising 6 overnights with the children in every two-week
period while the dissolution was pending. Therefore, from October 17, 2017 to
November 16, 2018 (the date of the dissolution decree), Husband exercised
approximately 156 overnights annually with the children. Husband has not
provided us with a calculation of his child support obligation giving him credit
for 156 overnights as opposed to 150 overnights. After reviewing the child
support obligation worksheet, we conclude that giving Husband credit for 156
annual overnights will result in a change in the calculation of his weekly,
retroactive child support obligation to the amount of $134 per week, or an
aggregate difference of $395. For this reason, we remand this case to the trial
court to recalculate Husband’s weekly retroactive child support obligation
accordingly.
III. The Value of L. Mansfield & Heirs, LLC
[29] Next, Husband argues that the value the trial court assigned to L. Mansfield &
Heirs, LLC (“LLC”) is not supported by the evidence. A trial court’s decision
in assigning a value to property in a dissolution action is reviewed for an abuse
of discretion. Del Priore v. Del Priore, 65 N.E.3d 1065, 1076 (Ind. Ct. App. 2016),
trans. denied. Generally, there is no abuse of discretion if a trial court’s chosen
valuation is within the range of values supported by the evidence. Id. “A
valuation submitted by one of the parties is competent evidence of the value of
property in a dissolution action and may alone support the trial court's
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determination in that regard.” Id. (citing Alexander v. Alexander, 927 N.E.2d 926,
935 (Ind. Ct. App. 2010), trans. denied). On appeal, “we resist the temptation to
get deeply involved in analyzing the valuation evidence presented at trial.”
Quillen v. Quillen, 671 N.E.2d 98, 100 (Ind. 1996). Finally, when we review a
trial court’s valuation of property in a dissolution, we will neither reweigh the
evidence nor judge the credibility of witnesses. Del Priore, 65 N.E.3d at 1076–
77.
[30] The LLC’s assets consist solely of remainder interests in the four parcels of
Ohio farmland that are subject to Husband’s uncle’s right to farm the land, and
the life estates granted to his uncle or his mother, depending on the parcel. Both
parties had the farmland appraised, and then each hired a certified public
accountant to value the interest owned by the LLC. Each expert testified at trial
and explained their respective methodologies for calculating the remainder
interest held by the LLC. Wife’s expert concluded that Husband’s 50%
ownership interest in the LLC was worth $252,800, and Husband’s expert
concluded that it was worth $38,000.2
[31] The trial court found both Husband’s and Wife’s experts’ testimonies and
evidence “to be credible regarding the value of the land and the value of
[Husband’s] 50% ownership interest in the LLC[.]” Appellant’s App. p. 58. But
the trial court specifically found that the testimony of Wife’s experts was
2
The appraisers concluded that the four parcels of land were collectively worth between $1,187,000 and
$1,311,000.
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“reliable and based on sound valuation principles.” Id. Therefore, the trial court
found that Husband’s interest in the LLC was worth $252,800. The trial court
acted within its discretion when it determined that Wife’s expert’s methodology
of calculating Husband’s 50% interest in the LLC was reliable.
[32] However, the most significant difference between the two experts’ opinions was
whether the LLC owns a 100% remainder interest in the four parcels of
farmland or a 50% remainder interest, subject to the life estates of Robert Schick
and Lesa Mansfield. The trial court’s conclusion in finding number 31 that
Husband’s grandfather transferred a remainder interest in one-half of the
farmland to Husband and one-half to Husband’s sister, who then both
transferred their interests to the LLC, is not supported by the evidence.
[33] The quit claim deeds for each transfer were admitted into evidence. The quit
claim deed for parcel number 27-24S-010-00 states that “Ruth Ann Bair and
Dana Bair, her husband; and Gloria Grimes and Eugene H. Grimes, her
husband, for valuable consideration paid, grant to L. Mansfield & Heirs, LLC”
the real estate described “subject to the life estate granted to Robert A.
Schick[.]” Ex. Vol. 1, p. 108. Therefore, as to this parcel, the entire remainder
interest was transferred to the LLC.
[34] However, the quit claim deed for parcel number 27-24S-010-03 establishes that
Husband and his sister transferred to L. Mansfield and Heirs, LLC, a
“remainder interest in an undivided one-half” of the described real estate,
subject to the life estate granted to Lesa Mansfield. Id. at 111. Finally, the quit
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claim deed for parcel number 08-28S-001-00, which consists of two separate
tracts of farmland, established that the several family members, including
Husband and his sister, transferred to “Lesa Mansfield, for and during the term
of her natural life, the remainder to L. Mansfield & Heirs, LLC. . . an
undivided one-half interest” in the described real estate. Id. at 116.
[35] Therefore, on the face of the deeds, 100% of the remainder interest in parcel
number 27-24S-010-00 was transferred to the LLC, but as to parcel numbers 27-
24S-010-03 and 08-28S-001-00 only one-half of the remainder interest was
transferred to the LLC. For this reason, neither of the experts appropriately
calculated the value of the remainder interests owned by the LLC.3
[36] For all of these reasons, the trial court abused its discretion when it concluded
that Husband’s 50% interest in the LLC was worth $252,800. Therefore, we
remand this case with instructions to recalculate the value of Husband’s
interest.
IV. Husband’s January 2016 Bonus
[37] Finally, Husband argues that the trial court abused its discretion when it
included the bonus he received from his employer in January 2016, after the
dissolution petition was filed, in the marital estate.
3
Wife’s expert calculated the value as if the LLC owned 100% of the remainder interest, and Husband’s
expert calculated the value as if the LLC owned only a 50% remainder interest in all four parcels.
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The division of marital assets is within the trial court’s discretion,
and we will reverse only for an abuse of discretion. A party
challenging the trial court's division of marital property must
overcome a strong presumption that the trial court considered
and complied with the applicable statute, and that presumption is
one of the strongest presumptions applicable to our consideration
on appeal. We may not reweigh the evidence or assess the
credibility of the witnesses, and we will consider only the
evidence most favorable to the trial court's disposition of the
marital property.
O’Connell v. O’Connell, 889 N.E.2d 1, 10 (Ind. Ct. App. 2008) (citations and
quotations omitted).
[38] All property, whether acquired before or during the marriage, is included in the
marital estate for property division. Webb v. Schleutker, 891 N.E.2d 1144, 1149
(Ind. Ct. App. 2008). The marital pot usually closes on the date the dissolution
petition is filed. Sanjari v. Sanjari, 755 N.E.2d 1186, 1192 (Ind. Ct. App. 2001).
[39] Wife argued and the trial court found that Husband received the bonus for work
performed in 2015. “Indiana's ‘one pot’ theory prohibits the exclusion of any
asset in which a party has a vested interest from the scope of the trial court's
power to divide and award.” Falatovics v. Falatovics, 15 N.E.3d 108, 110 (Ind.
Ct. App. 2014). Whether a right to a present or future benefit constitutes an
asset that should be included in the marital pot depends mainly on whether it
has “vested” by the time of dissolution. Ford v. Ford, 953 N.E.2d 1137, 1142
(Ind. Ct. App. 2011). That is, “vesting is both a necessary and sufficient
condition for a right to a benefit to constitute an asset.” Id. (quoting Bingley v.
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Bingley, 935 N.E.2d 152, 154 (Ind. 2010)). There are two ways in which a right
to a benefit can vest: (1) vesting in possession or (2) vesting in interest. Id.
Vesting in possession connotes an immediately existing right of present
enjoyment, while vesting in interest implies a presently fixed right to future
enjoyment. Id.; see also In re Marriage of Preston, 704 N.E.2d 1093, 1097 (Ind. Ct.
App. 1999)).
[40] The only testimony on this issue came from Husband, who testified that annual
employment bonuses he receives are based on the profitability of the company.
Tr. Vol. 3, p. 43. He stated that if he had not been employed with the company
in January 2016, he would not have received a bonus.
[41] Because Husband did not have a right to his bonus on November 16, 2015, the
evidence leads to the conclusion that Husband’s 2016 bonus had not vested on
the date Wife filed her petition for dissolution. Wife did not present any
contrary evidence. Accordingly, we conclude that the trial court should not
have included Husband’s January 2016 bonus in the marital estate.
Conclusion
[42] Husband has not established any reversible error concerning the trial court’s
custody and parenting time. However, we remand this case to the trial court
with instructions to recalculate Husband’s retroactive child support obligation,
as set forth in this opinion. In addition, the value the trial court assigned to the
Mansfield, LLC is not supported by the evidence and Husband’s January 2016
bonus should not have been included in the marital estate. We therefore
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remand this case with instructions to recalculate the value of Husband’s interest
in Mansfield, LLC and to exclude his 2016 bonus from the marital estate.
[43] Affirmed in part, reversed in part, and remanded for proceedings consistent
with this opinion.
May, J., and Brown, J., concur.
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