Keiser v. Keiser , 310 Neb. 345 ( 2021 )


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    www.nebraska.gov/apps-courts-epub/
    01/14/2022 08:10 AM CST
    - 345 -
    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    Krystal M. Keiser, appellee,
    v. Matthew G. Keiser,
    appellant.
    ___ N.W.2d ___
    Filed November 5, 2021.   No. S-20-926.
    1. Modification of Decree: Child Custody: Visitation: Child Support:
    Appeal and Error. Modification of a judgment or decree relating to
    child custody, visitation, or support is a matter entrusted to the discre-
    tion of the trial court, whose order is reviewed by an appellate court de
    novo on the record, and will be affirmed absent an abuse of discretion.
    2. Evidence: Appeal and Error. When evidence is in conflict, the appel-
    late court considers and may give weight to the fact that the trial court
    heard and observed the witnesses and accepted one version of the facts
    rather than the other.
    3. Modification of Decree: Child Custody: Proof. The party seeking
    modification of a dissolution decree has the burden to produce sufficient
    proof that a material change of circumstances has occurred that warrants
    a modification.
    4. Taxation. As a general rule, the income of a self-employed person can
    be determined from his or her income tax return.
    5. Child Support: Rules of the Supreme Court. The Nebraska Child
    Support Guidelines offer flexibility and guidance, with the understand-
    ing that not every child support scenario will fit neatly into the calcula-
    tion structure.
    6. ____: ____. Under the Nebraska Child Support Guidelines, a deviation
    is permissible whenever application of the guidelines in an individual
    case would be unjust or inappropriate.
    7. Appeal and Error. Generally, a party cannot complain of error which
    the party has invited the court to commit.
    8. Judgments: Appeal and Error. Error without prejudice is not a ground
    for reversal.
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    Appeal from the District Court for Saunders County:
    Christina M. Marroquin, Judge. Affirmed.
    Christopher A. Vacanti, of Vacanti Shattuck, for appellant.
    John H. Sohl for appellee.
    Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke,
    Papik, and Freudenberg, JJ.
    Cassel, J.
    INTRODUCTION
    Matthew G. Keiser appeals from an order modifying the
    decree dissolving his marriage to Krystal M. Keiser. He chal-
    lenges two aspects of the district court’s child support calcu-
    lation: the determination of his income and the methodology
    used. Because we find no abuse of discretion as to the income
    determination and because the court used the methodology pro-
    posed by Matthew, we affirm the order of modification.
    BACKGROUND
    A December 2018 decree dissolved the parties’ marriage.
    The court awarded the parties joint legal and physical cus-
    tody of their four children: two daughters born in 2003 and
    2005, respectively, and two sons, born in 2004 and 2007,
    respectively. The court ordered Matthew to pay child support
    of $2,000 per month for four children, which would decrease
    by $500 a month each time a child was no longer eligible to
    receive support. A child support calculation was not attached
    to the decree.
    Within 8 months, both parties sought to modify the decree.
    They alleged a material change in circumstances with respect
    to custody and child support. Prior to trial, the parties resolved
    custody and parenting time issues. They agreed for Krystal to
    have sole custody of the parties’ two daughters.
    The district court conducted a trial concerning child support.
    It received into evidence the child support calculation used
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    to arrive at the $2,000 in child support initially agreed to by
    Matthew and Krystal. Matthew sought a reduction in his child
    support obligation due to an alleged decreased income; Krystal
    desired to receive more child support due to the change in
    physical custody of two of the children.
    Evidence established that Matthew received the parties’
    landscaping business and construction company as part of the
    divorce property settlement agreement. He paid himself wages
    of $86,480 in 2017, $71,195 in 2018, and $19,182 in 2019.
    During those same years, the business’ gross receipts were
    $1,438,125, $794,227, and $955,999, respectively. When asked
    why the business’ gross receipts in 2018 were much lower
    than in 2017, Matthew responded: “[M]y best answer is I was
    broken. And we had downsized from ’17 to ’18. I had let go
    another sales lady. So, it was just me doing the sales, and my
    spark was gone so . . . .”
    Matthew wished to have his child support obligation reduced.
    He testified that during 2019, he sold some of his land because
    he was “broke.” But Matthew had taken vacations to Florida,
    Colorado, South Dakota, and Arkansas in the 2 years prior to
    trial. For Christmas, Matthew gave his sons expensive beds and
    40-inch televisions. Additionally, one son received a shotgun
    and the other an electric piano. And Matthew was building
    a 1,800-square-foot “shouse”—a shed that is a house on the
    inside—in which to reside. Matthew testified that he obtained
    a $100,000 “SBA loan” in order to build it.
    Matthew offered an exhibit demonstrating his suggestion
    of how child support should be calculated. He testified that
    his suggestion entailed calculating child support for the two
    daughters under worksheet 1 of the Nebraska Child Support
    Guidelines and for the two sons under the joint physical cus-
    tody worksheet of the guidelines. Those two numbers were
    then added together to determine his total support obligation.
    He did not propose any deviation from that total. According to
    Matthew, this methodology “makes sense” for how the court
    should determine his child support obligation.
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    In November 2020, the court entered an order of modifica-
    tion. The court stated that tax returns and testimony did not
    support Matthew’s claim that his business was not as profit-
    able. It declined to average income, explaining that Matthew
    “has not established why income in this industry, or in his
    business specifically, has fluctuated.” Thus, the court found
    that Matthew’s monthly wage should remain at $16,207.58—
    the figure used for the initial determination—for purposes of
    calculating child support. The court found a material change
    in circumstances regarding custody, because Krystal had sole
    physical custody of two children and continued to share joint
    physical custody of the other two children.
    In setting child support, the court adopted the proposed
    method as set out in Matthew’s exhibit 76. The court explained:
    “There are two child support calculations. The first awards
    physical custody of [the daughters] to [Krystal]; and the sec-
    ond, awards joint physical custody of [the sons] to [Krystal]
    and [Matthew].” It determined Matthew’s obligation for four
    minor children as follows:
    Obligation for daughters         $1,957
    Obligation for sons              $1,166
    Deviation downward              ($   250)
    Total obligation                 $2,873
    The court’s order noted that the initial child support amount,
    which was stipulated to and subsequently ordered, contained a
    downward deviation of approximately $250 per month.
    Matthew filed a timely appeal, which we moved to our
    docket. 1
    ASSIGNMENTS OF ERROR
    Matthew alleges that the district court erred (1) in determin-
    ing that his evidence did not prove reduced income for child
    support purposes and (2) in calculating child support when
    the custody arrangement is a hybrid of sole physical and joint
    physical custody.
    1
    See Neb. Rev. Stat. § 24-1106(3) (Cum. Supp. 2020).
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    STANDARD OF REVIEW
    [1] Modification of a judgment or decree relating to child
    custody, visitation, or support is a matter entrusted to the dis-
    cretion of the trial court, whose order is reviewed by an appel-
    late court de novo on the record, and will be affirmed absent
    an abuse of discretion. 2
    [2] When evidence is in conflict, the appellate court consid-
    ers and may give weight to the fact that the trial court heard
    and observed the witnesses and accepted one version of the
    facts rather than the other. 3
    ANALYSIS
    Income
    [3] Matthew first argues that the district court abused its
    discretion in determining that his evidence did not prove
    reduced income for child support purposes. The party seeking
    the modification has the burden to produce sufficient proof that
    a material change of circumstances has occurred that warrants
    a modification. 4 Matthew supported his claim with personal
    and business tax returns. He points out that his business’ gross
    receipts decreased from $1,438,125 in 2017 to $955,999 in
    2019 and that his personal income decreased from $194,491 in
    2017 to $43,403 in 2019. Matthew proposed basing his child
    support obligation on his 2019 annual income of $43,403,
    which would equate to a monthly income of $3,617.
    [4] The district court opted to use Matthew’s monthly
    income as agreed to by the parties in May 2018. That
    amount—$16,207.58—was arrived at by annualizing Matthew’s
    2017 wages of $86,480 together with the profit from his
    ­business of $108,011, as reflected by tax returns. As a gen-
    eral rule, the income of a self-employed person can be deter-
    mined from his or her income tax return. 5 Here, the court
    2
    Lindblad v. Lindblad, 
    309 Neb. 776
    , 
    962 N.W.2d 545
     (2021).
    3
    
    Id. 4
    Incontro v. Jacobs, 
    277 Neb. 275
    , 
    761 N.W.2d 551
     (2009).
    5
    Gress v. Gress, 
    271 Neb. 122
    , 
    710 N.W.2d 318
     (2006).
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    determined that Matthew failed to sufficiently explain a fluctu-
    ation in his earnings. In this regard, the district court’s implicit
    assessment of credibility is important.
    Matthew did not show that a material change in circum-
    stances had occurred such that his child support obligation
    should be reduced. We have stated that the focus should be
    on whether the present circumstances are substantially and
    materially different than they were when the court established
    the initial child support obligation. 6 When asked about the
    business’ reduced earning, Matthew explained that he “was
    broken,” that he “let go another sales lady,” and that his “spark
    was gone.” Matthew has not shown that his income decreased
    through no fault of his own. Nor has he shown a change in his
    earning capacity. In determining the amount of child support a
    parent is obligated to pay, parental earning capacity is a con-
    sidered factor. 7 We conclude the district court did not abuse its
    discretion in declining to decrease Matthew’s income for child
    support purposes.
    Methodology
    Matthew also challenges the district court’s methodology
    in calculating child support when the custody arrangement
    is a hybrid of sole physical and joint physical custody. The
    Nebraska Child Support Guidelines provide that “[a]ll orders
    for child support, including modifications, must include a basic
    income and support calculation worksheet 1, and if used, work-
    sheet 2 or 3.” 8 There is not a worksheet specifically directed to
    every conceivable custody arrangement, such as the “hybrid”
    situation present here.
    Recently, the Nebraska Court of Appeals encountered a
    similar situation. 9 There, the trial court adopted the father’s
    6
    See Incontro v. Jacobs, 
    supra note 4
    .
    7
    
    Id. 8
    Neb. Ct. R. § 4-203 (rev. 2020).
    9
    See Pearrow v. Pearrow, 
    27 Neb. App. 209
    , 
    928 N.W.2d 430
     (2019).
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    Nebraska Supreme Court Advance Sheets
    310 Nebraska Reports
    KEISER v. KEISER
    Cite as 
    310 Neb. 345
    p­ roposed child support calculation, which calculated child sup-
    port for all four children under both a sole custody and a
    joint custody calculation and then averaged the amounts. The
    Court of Appeals found no abuse of discretion, recognizing
    that “there is no one application of the guidelines for the pres-
    ent situation from which the court could deviate.” 10 Thus, the
    appellate court stated that “the child support ordered by the
    district court was not a deviation from the guidelines, but,
    rather, a flexible solution to the unique custody arrangement
    present here.” 11
    We do not read the Court of Appeals’ opinion as suggest-
    ing that no calculations are required where a court confronts a
    hybrid custody situation, and we disapprove of any such read-
    ing. Nor do we read the Court of Appeals’ opinion as implying
    that averaging is always appropriate in such a situation. There,
    the trial court made a calculation and used a methodology
    employing averaging. In our view, the Court of Appeals simply
    found no abuse of discretion in the trial court’s approach.
    Courts differ on how the application of child support guide-
    lines to particular custody arrangements should be classified.
    Some courts have determined that the guidelines do not apply;
    other courts have treated the situation as a deviation from the
    guidelines. 12 In our view, whether such a situation is viewed as
    an inability to strictly apply the guidelines or as a deviation is
    a largely theoretical distinction.
    [5,6] This court has long recognized that the child support
    guidelines offer flexibility and guidance, with the understand-
    ing that not every child support scenario will fit neatly into the
    calculation structure. 13 As we said shortly after the guidelines
    were first adopted, “we do not suggest that an appropriate
    10
    
    Id. at 214,
     928 N.W.2d at 435.
    11
    Id. at 214-15, 928 N.W.2d at 435.
    12
    See Annot., 
    57 A.L.R.5th 389
    , § 20 (1998).
    13
    See, Brooks v. Brooks, 
    261 Neb. 289
    , 
    622 N.W.2d 670
     (2001); Czaplewski
    v. Czaplewski, 
    240 Neb. 629
    , 
    483 N.W.2d 751
     (1992).
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    KEISER v. KEISER
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    310 Neb. 345
    child support and expense order may be found to be accurate
    to the penny by applying the suggested guidelines.” 14 Under
    the guidelines, a deviation is permissible whenever applica-
    tion of the guidelines in an individual case would be unjust or
    inappropriate. 15
    With that understanding, a trial court should endeavor to
    remain faithful to the goals and methodology of the child sup-
    port guidelines and should set forth its calculations sufficiently
    to allow for meaningful appellate review. Through the work-
    sheets, supplemented where necessary by related findings, “the
    trial courts must show the appellate courts, and the parties, that
    they have ‘done the math.’” 16 Here, the district court did so.
    Matthew presented a specific methodology to the district
    court. Therein, Matthew used separate calculations for two sets
    of children. One set of calculations was for the two children
    placed in Krystal’s sole physical custody. The other was for the
    two children placed in joint custody. Under this methodology,
    Matthew’s support obligations from the two calculations were
    then added together to determine his total support obligation.
    Although the district court rejected Matthew’s income num-
    bers, it followed his methodology. At oral argument, Matthew
    conceded that the court did so. After following Matthew’s
    methodology, the court reduced the resulting calculation of
    Matthew’s support obligation by employing a downward devia-
    tion. Had the court not done so, Matthew’s methodology would
    have produced a support obligation of $3,123 for four children,
    $2,560 for three children, $2,236 for two children, and $842
    for one child.
    On appeal, Matthew presents a different approach. He now
    contends that the court should have used 50 percent of the
    14
    Brandt v. Brandt, 
    227 Neb. 325
    , 327, 
    417 N.W.2d 339
    , 341 (1988), over­
    ruled on other grounds, Druba v. Druba, 
    238 Neb. 279
    , 
    470 N.W.2d 176
    (1991).
    15
    Brooks v. Brooks, 
    supra note 13
    .
    16
    Stewart v. Stewart, 
    9 Neb. App. 431
    , 434, 
    613 N.W.2d 486
    , 489 (2000).
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    KEISER v. KEISER
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    310 Neb. 345
    support calculated using worksheet 1 for four children (because
    Krystal has sole physical custody of two children) and 50
    percent of the support calculated using worksheet 3 for four
    children (because the parties have joint physical custody of
    the other two children). He then applies a $250 downward
    deviation. Matthew’s appellate brief calculates that under his
    new method—using the district court’s figures for income and
    deductions—his total obligation for all four children would
    be $1,818.50. We note that this proposed methodology would
    result in Matthew’s paying less in child support now that
    Krystal has sole physical custody of two of the children than
    he was ordered to pay when the parties shared joint physical
    custody of all four children.
    [7] Any error in the district court’s methodology was invited
    by Matthew. The court explicitly “adopt[ed] the proposed
    method of calculation as set out in [Matthew’s] Exhibit 76.”
    Although the numbers used in the district court’s calculation
    compared to those in Matthew’s exhibit are different—primar-
    ily because the court used different net monthly incomes for
    the parties—the court followed Matthew’s proposed method.
    Generally, a party cannot complain of error which the party has
    invited the court to commit. 17
    To avoid the invited error rule, Matthew orally argued that
    application of the guidelines presents a question of law upon
    which this court should reach an independent conclusion. We
    doubt that application of the guidelines is a pure question of
    law. But even if it is, this court has enforced the invited error
    rule in connection with a question of law. 18 While we have
    not applied the rule with respect to child support guidelines,
    the Court of Appeals has done so. 19 Because Matthew urged
    17
    Becher v. Becher, 
    299 Neb. 206
    , 
    908 N.W.2d 12
     (2018).
    18
    See 
    id. 19
    See, McDonald v. McDonald, 
    21 Neb. App. 535
    , 
    840 N.W.2d 573
     (2013),
    disapproved in part on other grounds, Fichtl v. Fichtl, 
    28 Neb. App. 380
    ,
    
    944 N.W.2d 516
     (2020); Willcock v. Willcock, 
    12 Neb. App. 422
    , 
    675 N.W.2d 721
     (2004).
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    KEISER v. KEISER
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    the court to use his methodology and the use of that methodol-
    ogy does not detrimentally affect the children, he cannot now
    argue the court erred by using it.
    [8] Although the district court’s downward deviation went
    beyond the calculations resulting from Matthew’s methodol-
    ogy, it did so in his favor. Error without prejudice is not a
    ground for reversal. 20 Had the court not done so, the support
    obligation resulting from Matthew’s methodology would have
    been substantially higher.
    We do not suggest that courts should emulate the method
    that Matthew presented to the district court. We simply recog-
    nize that because he urged this methodology below, the invited
    error rule precludes him from challenging it on appeal.
    Courts should bear in mind that “[t]he main principle behind
    [the child support] guidelines is to recognize the equal duty of
    both parents to contribute to the support of their children in
    proportion to their respective net incomes.” 21 In a hybrid cus-
    tody situation, the trial court’s central task may be to allocate
    the parties’ income share attributable to their children under
    table 1 of the guidelines between the parties and, if appropriate
    and permissible, to deviate from the guidelines. 22 We cannot
    prescribe a single method to fit every hybrid custody situa-
    tion or, perhaps, most situations. But we urge courts and liti-
    gants not to lose sight of the ultimate goal of the guidelines’
    main principle.
    CONCLUSION
    Because we find no abuse of discretion by the court in its
    determination of Matthew’s income for child support purposes
    and because Matthew invited any error in its methodology to
    calculate child support, we affirm the order of modification.
    Affirmed.
    20
    In re Estate of Marsh, 
    307 Neb. 893
    , 
    951 N.W.2d 486
     (2020).
    21
    Neb. Ct. R. § 4-201.
    22
    See § 4-203.