5 In the Interest of NJC

2019 COA 153
CourtColorado Court of Appeals
DecidedOctober 10, 2019
Docket2018CA91
StatusPublished

This text of 2019 COA 153 (5 In the Interest of NJC) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
5 In the Interest of NJC, 2019 COA 153 (Colo. Ct. App. 2019).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY October 10, 2019 2019COA153

No. 2018CA915 In the Interest of NJC — Family Law — Juvenile Court — Uniform Parentage Act — Modification of Child Support — Deferred Compensation

A division of the court of appeals holds that deferred

compensation in a nonqualified retirement plan is not income for

child support purposes under the Uniform Parentage Act, section

19-4-101 to 130, C.R.S. 2019. Applying the definition of “income”

in section 14-10-115 of the Uniform Dissolution of Marriage Act,

the division concludes that the father’s deferred compensation is

not income because he did not have the ability to use it to pay his

expenses, including child support.

The division also concludes that the magistrate did not abuse

his discretion in determining not to reallocate to father ninety

percent of the costs paid for parental responsibilities evaluations.

In addition, the division affirms the trial court’s decision not to reconsider mother’s request for attorney fees paid by maternal

grandfather that were incurred in connection with father’s motion

to modify parenting time. COLORADO COURT OF APPEALS 2019COA153

Court of Appeals No. 18CA0915 Douglas County District Court No. 12JV77 Honorable Natalie T. Chase, Judge

In re the Parental Responsibilities Concerning N.J.C., a Child,

and Concerning N.E.,

Appellant,

and

V.J.C.,

Appellee.

ORDER AFFIRMED IN PART, REVERSED IN PART, AND CASE REMANDED WITH DIRECTIONS

Division I Opinion by JUDGE TAUBMAN Freyre and Pawar, JJ., concur

Announced October 10, 2019

Fairfield and Woods, P.C., Lee Katherine Goldstein, Michael R. McCurdy, Denver, Colorado, for Appellant

James J. Keil, Jr., Denver, Colorado, for Appellee ¶1 As a matter of first impression, N.E. (mother) urges us to

conclude that deferred compensation in a nonqualified plan 1 is

income for child support purposes if it is being earned during a

period when a parent is obligated to pay child support. We disagree

with her arguments, and therefore affirm the juvenile court’s order

adopting the magistrate’s order modifying mother’s child support

award from V.J.C. (father). We also affirm the juvenile court’s order

denying mother’s request to reallocate costs paid for parental

responsibilities evaluations (PRE).

¶2 However, we reverse the portion of the juvenile court’s order

denying mother’s request for attorney fees, and we remand the case

to the juvenile court for it to determine the amount. We further

remand for the juvenile court to consider mother’s request for

appellate attorney fees under section 19-4-117, C.R.S. 2019.

1 A “nonqualified deferred-compensation plan” is “[a]n unfunded compensation arrangement, frequently offered to executives, that defers compensation and the recognition of its accompanying taxable income to a later date. . . . It is termed ‘nonqualified’ because it does not qualify for favorable tax treatment” under the Internal Revenue Code. Black’s Law Dictionary 663 (11th ed. 2019).

1 I. Appellate Standard of Review

¶3 This case arises out of the Uniform Parentage Act (UPA),

sections 19-4-101 to -130, C.R.S. 2019. Magistrates may preside

over UPA actions, but parties have the right to seek a judge’s review

of the magistrate’s findings and rulings. § 19-1-108(1), (4)(b), (5.5),

C.R.S. 2019.

¶4 “We defer to the magistrate’s and district courts’ findings of

fact if they are supported by the evidence and we review

conclusions of law de novo.” In re B.J., 242 P.3d 1128, 1132 (Colo.

2010).

II. Father’s Deferred Compensation Plan

A. Relevant Facts

¶5 Mother and father are the unmarried parents of one child,

N.J.C. In 2013, and as part of the initial paternity proceeding in

this case, father’s child support calculation was based on the salary

he earned working as a cardiologist for his own medical practice.

¶6 In 2016, father closed his practice and accepted a job with

Healthy Connections, Inc. (HCI), a health care center providing

medical, dental, and outreach services to impoverished

communities. Believing that father’s income had gone up at his

2 new job, mother moved to increase child support. Father, however,

responded that his income had actually decreased.

¶7 Evidence presented at a hearing on mother’s motion showed

that father’s compensation package with HCI consisted of a

$150,000 annual salary and $200,000 of yearly deferred

compensation in a nonqualified plan. Father, who was then

fifty-two years old, testified that he would only receive the deferred

compensation after he retired from HCI at age sixty-five. HCI’s

CEO, his brother, agreed that father “does not receive — physically

receive $200,000 above his salary,” and he described the deferred

compensation as “an obligation at a future date and time for

[father’s] benefit providing that he meets the criteria after his

retirement.”

¶8 The CEO explained that the deferred compensation plan

allowed HCI to attract and retain qualified medical doctors, like

father, that it could not otherwise afford. He testified that half of

the ten to thirteen medical doctors on HCI’s staff were employed

under the deferred compensation plan. According to the CEO,

while each plan was tailored to the employee, they all had the same

payout structure — the employee had to retire from HCI at a certain

3 age before he or she would receive any deferred funds, which would

then be paid over ten years. As of the hearing date, the CEO said

that the deferred compensation plan was unfunded; in fact, the

CEO stated there was not even an account established with which

to pay deferred compensation.

¶9 Regarding father’s specific deferred compensation plan, the

CEO submitted a letter to father’s counsel (admitted at the hearing

as Exhibit A) detailing that father had no control over the funds or

the plan; the deferred amounts belonged to HCI and were not

protected in case of insolvency or creditor claims; the deferred

amounts were subject to forfeiture if father was fired, quit, or

retired before age sixty-five; father would not be fully vested until he

worked at HCI for five years; and the funds were not taxable until

received by the employee.

¶ 10 Arguing that it was significant that father earned the money,

even if he did not actually receive it, mother asked the magistrate to

include the deferred compensation as income to father. The

magistrate declined to do so, based on the restrictive provisions of

father’s plan described above. The magistrate then modified

4 father’s child support obligation, including in father’s income only

his salary and nominal dividend and interest income.2

¶ 11 The juvenile court judge adopted the magistrate’s decision not

to include the deferred compensation, pointing out the magistrate’s

reasoning that father could not contribute to the plan, had no

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bergstrom v. Lindback
779 P.2d 1235 (Alaska Supreme Court, 1989)
Jordan v. Brackin
992 P.2d 1096 (Wyoming Supreme Court, 1999)
In Re the Marriage of Eisenhuth
976 P.2d 896 (Colorado Court of Appeals, 1999)
In Re Marriage of Marson
929 P.2d 51 (Colorado Court of Appeals, 1996)
Jones v. Jones
883 So. 2d 207 (Court of Civil Appeals of Alabama, 2003)
Palm Harbor Homes, Inc. v. Crawford
689 So. 2d 3 (Supreme Court of Alabama, 1997)
In Re the Marriage of Davis
252 P.3d 530 (Colorado Court of Appeals, 2011)
People v. Simpson
93 P.3d 551 (Colorado Court of Appeals, 2004)
In Re the Marriage of Anthony-Guillar
207 P.3d 934 (Colorado Court of Appeals, 2009)
In the Interest of D.R.Y.
885 P.2d 351 (Colorado Court of Appeals, 1994)
In Re the Marriage of Mugge
66 P.3d 207 (Colorado Court of Appeals, 2003)
Leineweber v. Leineweber
102 A.3d 827 (Court of Special Appeals of Maryland, 2014)
Murray v. Murray
716 N.E.2d 288 (Ohio Court of Appeals, 1999)
In re Marriage Heine
2018 COA 154 (Colorado Court of Appeals, 2018)
People in the Interest of A.N-B
2019 COA 46 (Colorado Court of Appeals, 2019)
of Tooker
2019 COA 83 (Colorado Court of Appeals, 2019)
Paula J. Severn v. William t. Severn
567 S.W.3d 246 (Missouri Court of Appeals, 2019)
In re the Marriage of Krejci
2013 COA 6 (Colorado Court of Appeals, 2013)
In re the Marriage of Benjamin
740 P.2d 532 (Colorado Court of Appeals, 1987)
W.C. ex rel. A.M.K.
907 P.2d 719 (Colorado Court of Appeals, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
2019 COA 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/5-in-the-interest-of-njc-coloctapp-2019.