In re The Marriage of Nystrom ( 2023 )


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  •                     IN THE COURT OF APPEALS OF IOWA
    No. 22-1510
    Filed March 29, 2023
    IN RE THE MARRIAGE OF MELISSA LEA NYSTROM
    AND DAVID PETER NYSTROM
    Upon the Petition of
    MELISSA LEA NYSTROM,
    Petitioner-Appellee,
    And Concerning
    DAVID PETER NYSTROM,
    Respondent-Appellant.
    ________________________________________________________________
    Appeal from the Iowa District Court for Carroll County, Adria Kester, Judge.
    David Nystrom appeals the spousal-support provisions of the decree
    dissolving his marriage to Melissa Nystrom. AFFIRMED.
    Bryan D. Swain of Salvo, Deren, Schenck, Gross, Swain & Argotsinger,
    P.C., Harlan, for appellant.
    Vicki R. Copeland of Copeland Law Firm, P.L.L.C., Jefferson, for appellee.
    Considered by Vaitheswaran, P.J., and Greer and Chicchelly, JJ.
    2
    CHICCHELLY, Judge.
    David Nystrom appeals the spousal-support provisions of the decree
    dissolving his marriage to Melissa Nystrom. David challenges the award of $5000
    per month of spousal support to Melissa. Melissa asks for an award of her
    appellate attorney fees. Finding the spousal-support award is equitable, we affirm
    but decline to award Melissa appellate attorney fees.
    I. Background Facts and Proceedings.
    David and Melissa were married for over twenty years. When they married,
    Melissa had just earned a degree in elementary and middle school education and
    David was attending medical school. At the beginning of the marriage, Melissa
    taught fifth grade to support David while he completed his medical training. When
    David finished and took a job with a hospital, he and Melissa agreed that she would
    stop working outside the home to raise their children. Melissa did not work for
    wages again until 2017, when she took a part-time position at their church.
    Melissa petitioned to dissolve the marriage in August 2021. Because the
    parties agreed to joint physical care of their three children, the trial focused on child
    support, spousal support, and the property division. The district court entered a
    decree in July 2022 that awarded property with a net value of $896,682 to David
    and $277,939 to Melissa.1 To balance the equities, the court ordered David to pay
    Melissa an equalization payment of $309,372. The court also ordered David to
    pay a hybrid of traditional and rehabilitative/reimbursement spousal support to
    Melissa: “Traditional alimony in the amount of $5000 per month is ordered and
    1   The values are rounded to the nearest dollar.
    3
    shall terminate upon the remarriage or death of either party. However, the first
    seven years of alimony shall be reimbursement/rehabilitative alimony and shall
    terminate only on the death of either party.” Finally, the court ordered David to pay
    $5000 of Melissa’s attorney fees.
    II. Scope and Standard of Review.
    David challenges the spousal-support provisions of the decree, arguing the
    award is excessive. We review dissolution proceedings de novo. See In re
    Marriage of Mauer, 
    874 N.W.2d 103
    , 106 (Iowa 2016). We give weight to the
    district court’s fact findings although they are not binding. See 
    id.
     The district court
    has “considerable latitude” in fashioning or denying an award of spousal support
    based on the particular facts of each case. In re Marriage of Mann, 
    943 N.W.2d 15
    , 20 (Iowa 2020) (citation omitted). Because “the trial court [i]s in the best
    position to balance the parties’ needs, . . . we should intervene on appeal only
    where there is a failure to do equity.” In re Marriage of Gust, 
    858 N.W.2d 402
    , 416
    (Iowa 2015).
    III. Spousal Support.
    Iowa Code section 598.21A(1) (2021) lists the relevant factors the court
    must consider in determining whether to award spousal support. See Mann, 943
    N.W.2d at 20. They include the length of the marriage, the parties’ age and health,
    the property distribution, the earning capacity of the party seeking maintenance,
    and that party’s ability to become self-supporting at a standard of living comparable
    to that enjoyed during the marriage. See 
    Iowa Code § 598
    .21A(1).
    The parties agree that Melissa’s income is $45,721, but they disagree about
    David’s income.     At the time of dissolution, David worked for the Veteran’s
    4
    Administration. In 2022, his base salary was $220,469. David also receives $2144
    in land conservation payments annually. Combining these amounts, David’s child
    support guidelines worksheet lists his gross annual income as $222,613.
    Melissa’s child support guidelines worksheet lists David’s gross annual
    income as $304,288.2 She notes that in 2021, David received a base salary of
    $205,048 with a $13,000 bonus. On that basis, she included an anticipated bonus
    of $15,000 to her calculation. Melissa also included $67,000 in income from extra
    emergency-room shifts. David began working those shifts as an independent
    contractor in 2009, earning between $130 and $200 per hour. He reported gross
    receipts of $90,094 in 2019 and $73,527 in 2020. In 2021, David reported gross
    receipts of $47,382 for these shifts, but he stopped accepting them when Melissa
    filed for divorce in August 2021.
    The district court found Melissa’s income calculations were “the most
    credible evidence in these circumstances.” David argues that the court erred in
    accepting Melissa’s calculations because they include the extra shifts he no longer
    accepts. Melissa does not deny that David stopped accepting the work but claims
    it is a voluntary reduction in income. There is evidence to support both arguments.
    On one hand, David testified that he and Melissa planned that he would reduce
    the amount he worked as he got older and their debts were extinguished. On the
    other, Melissa notes that David continued to accept extra shifts after paying off his
    medical school debt in 2018, only stopping when she filed for divorce in 2021.
    Because the trial court had a greater ability to assess the evidence and credibility
    2In her brief, Melissa states that David’s gross income is $304,613 but was listed
    as $304,288 in the child support guidelines worksheet because of an error.
    5
    of the witnesses, we defer to its finding that Melissa’s calculation best represents
    David’s income. See Neimann v. Butterfield, 
    551 N.W.2d 652
    , 654 (Iowa Ct. App.
    1996) (stating that we accord deference to the trial court's superior ability to assess
    credibility because it observes demeanor and appearance firsthand).
    David argues that even if we accept the trial court’s findings on income, the
    amount of the spousal support award is excessive. He cites several appellate
    cases in which the court awarded smaller amounts of spousal support or ordered
    that it be paid for a limited duration. But other precedent “may be of little value in
    deciding each case” because the decision to award spousal support depends on
    the particular facts of the case before us. Gust, 
    858 N.W.2d at 408
    . We thus turn
    to the facts to determine whether the spousal support is equitable.
    The factors set out in section 598.21A(1) support the award of spousal
    support. The parties were married for more than twenty years. See 
    Iowa Code § 598
    .21A(1)(a) (listing the length of the marriage as a factor in awarding spousal
    support). David was only one year into his medical studies when he and Melissa
    married. Melissa’s degree, which she earned before the marriage, allowed her to
    support David while he finished medical school. See 
    id.
     § 598.21A(1)(d) (including
    “[t]he educational level of each party at the time of marriage and at the time the
    action is commenced” as a factor to consider in awarding spousal support). Both
    worked for a wage while David completed his medical residency before they jointly
    decided Melissa would stay at home to raise their three children. That decision
    removed Melissa from the workforce for a decade, impacting her earning capacity.
    See id. § 598.21A(1)(e) (stating the court must consider “[t]he earning capacity of
    the party seeking maintenance, including . . . length of absence from the job
    6
    market”). Although Melissa began working outside the home part-time in 2017,
    she had not worked in the teaching profession for almost fifteen years when she
    filed for divorce in August 2021. That month, she began working as a teacher’s
    assistant, earning $12.85 per hour for thirty-five hours of work each week. One
    year later, Melissa secured a teaching position that pays a salary of $45,721.
    “The comparative income of the spouses is another factor for the court to
    consider when evaluating an award of spousal support.”           In re Marriage of
    Schenkelberg, 
    824 N.W.2d 481
    , 486 (Iowa 2012). Although the trial court divided
    the parties’ property equally,3 see 
    Iowa Code § 598
    .21A(1)(c) (listing the property
    distribution as a consideration in awarding spousal support), David’s earning
    capacity is significantly greater than Melissa’s, see Mann, 943 N.W.2d at 21
    (“[M]arked disparity of income is a relevant factor in considering the question of an
    award of alimony.”). The court determined David’s gross annual income at the
    time of trial was $304,288 compared to Melissa’s gross annual income of $45,721.
    Melissa hopes to obtain a master’s degree to increase her earning capacity, but
    the earliest she could complete the program would be 2026 or 2027. See 
    Iowa Code § 598
    .21A(1)(e) (requiring the court to consider the time and training needed
    to enable the party seeking support to find appropriate employment). The only
    evidence about how much a degree would increase Melissa’s salary is Melissa’s
    3 David testified that he would need to refinance the mortgage to pay Melissa the
    $300,000 equalization payment provided in the property distribution. David’s
    banker calculated refinancing the mortgage would increase his payments from
    $2370 per month to $3821 per month, although David did not know if this was
    based on a fifteen-year or thirty-year mortgage. In any event, the increase is
    reflected in his estimated monthly expenses, which we consider in determining his
    ability to pay.
    7
    testimony that it would increase “by a number of thousands of dollars.” Even if her
    salary were to increase by $20,000, there would still be a substantial disparity
    between the parties’ incomes.
    We also note that David’s net monthly income after paying $5000 in spousal
    support is $12,379, which is greater than his estimated monthly expenses of
    $12,172.4 Melissa’s net monthly income after receiving $5000 in spousal support
    is $8302. Although the precise amount of Melissa’s monthly expenses is unclear,
    the evidence shows they exceed what she can pay on her salary alone. Melissa
    testified that she and David spent about $17,000 per month during the marriage,
    and she estimated their combined spending after separating to be $22,558 per
    month. Subtracting David’s estimated monthly expenses from Melissa’s estimated
    combined expenses equals $10,386.
    David estimated that Melissa’s expenses amount to $4342 per month or
    $52,104 per year. Although he estimated that some of Melissa’s expenses are
    identical to his own (like the cost of cable, cell phones, and fuel), he estimated that
    others are considerably less. Most notably, David’s expense list sets aside $1800
    per month for charitable donations to his church while his list of Melissa’s expenses
    includes only $100 for gifts and $100 for discretionary spending. David also
    estimates a $400 monthly expense for household supplies, laundry, and cleaning
    in his own budget while allocating only $150 to Melissa for household supplies and
    making no provision for laundry or cleaning.        Finally, Melissa’s expenses for
    4 Along with the refinanced mortgage payment of $3821, David’s estimated
    monthly expense sheet lists a child-support payment that is nearly $900 higher the
    court ordered.
    8
    housing and a vehicle are not adequately represented in David’s estimate. For
    example, David allocates $1100 for her housing, the amount Melissa paid to rent
    a three-bedroom home at trial. But Melissa testified the house had inadequate
    space for the children and expected an amply sized four-bedroom house would
    cost $350,000 to $400,000. Melissa also testified that she needed to purchase a
    new vehicle, which she anticipated would cost $600 to $700 per month, and no car
    payment is included in David’s estimate of Melissa’s monthly expenses. Even
    ignoring these deficiencies, Melissa’s income cannot cover the expenses David
    estimates.
    “[A] spousal support award is to be based on post-dissolution expenses to
    arrive at an amount that permits the spouse to maintain the past lifestyle.” In re
    Marriage of Stenzel, 
    908 N.W.2d 524
    , 534 (Iowa Ct. App. 2018). An award of
    $5000 per month in spousal support provides Melissa with a standard of living
    closer to what she enjoyed during the marriage, which she cannot maintain on her
    earnings alone. See 
    Iowa Code § 598
    .21A(1)(f) (listing “[t]he feasibility of the party
    seeking maintenance becoming self-supporting at a standard of living reasonably
    comparable to that enjoyed during the marriage” as a consideration in awarding
    spousal support). Because the evidence shows David can pay this amount while
    meeting his budget, the amount of spousal support awarded is not excessive.
    Along with challenging the amount of spousal support awarded, David
    challenges     its   duration.       The       court   ordered    David     to    pay
    rehabilitative/reimbursement support for seven years, during which it would only
    9
    terminate if one party dies.5 The court then ordered David to continue paying
    $5000 per month in traditional spousal support, which would terminate if one party
    dies or Melissa remarries. The parties were married twenty years, which is enough
    to “cross the durational threshold and merit serious consideration for traditional
    spousal support.”    Gust, 
    858 N.W.2d at
    410–11.         But more important to our
    determination is Melissa’s need and David’s ability to pay. See Stenzel, 
    908 N.W.2d at 533
     (“[T]he imposition of and length of an award of traditional spousal
    support is ‘primarily predicated’ on need and the ability to pay.” (citation omitted)).
    We have already noted that Melissa cannot earn enough to maintain a lifestyle like
    the one she had during the marriage, while David is able to pay $5000 per month
    and meet his monthly expenses. On this basis, we affirm the award of spousal
    support. See Mauer, 
    874 N.W.2d at 111
     (allowing lifetime spousal support for a
    wife whose earnings would never allow her to maintain a standard of living
    comparable to what she enjoyed during the marriage).6
    IV. Appellate Attorney Fees.
    Melissa requests an award of her appellate attorney fees. Such an award
    is not a matter of right but rests in our discretion. In re Marriage of McDermott,
    
    827 N.W.2d 671
    , 687 (Iowa 2013). In exercising this discretion, we consider the
    needs of the party seeking appellate attorney fees, the other party’s ability to pay,
    and the merits of the claims made on appeal. See 
    id.
     Considering the property
    5 For four years during this period, David must also pay child support: $602 for
    three children, $524 for two children, and $372 for one child.
    6 Although David notes that the decree does not provide for a reduction when
    Melissa becomes eligible for retirement, that matter is more appropriate to consider
    in a modification action once “retirement is imminent or has actually occurred.”
    Gust, 
    858 N.W.2d at 418
    .
    10
    division and spousal-support award, we find the parties are each capable of paying
    for their appellate attorney fees.
    AFFIRMED.