Alyson Leigh Amonette Eberting v. Jeffrey Jennings Eberting

CourtCourt of Appeals of Tennessee
DecidedFebruary 27, 2012
DocketE2010-02471-COA-R3-CV
StatusPublished

This text of Alyson Leigh Amonette Eberting v. Jeffrey Jennings Eberting (Alyson Leigh Amonette Eberting v. Jeffrey Jennings Eberting) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alyson Leigh Amonette Eberting v. Jeffrey Jennings Eberting, (Tenn. Ct. App. 2012).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE November 8, 2011 Session

ALYSON LEIGH AMONETTE EBERTING v. JEFFREY JENNINGS EBERTING

Appeal from the Chancery Court for Knox County No. 171599-1 John F. Weaver, Chancellor

No. E2010-02471-COA-R3-CV - Filed February 27, 2012

After fourteen years of marriage, Alyson Leigh Amonette Eberting (“Wife”) sued Jeffrey Jennings Eberting (“Husband”) for divorce. After a trial, the Trial Court entered its Final Judgment for Divorce on August 12, 2010, which, inter alia, awarded Wife a divorce, distributed the marital property, entered a Permanent Parenting Plan, awarded Wife transitional alimony, and awarded Wife attorney’s fees as alimony in solido. Husband appeals raising issues regarding the valuation of his orthodontic practice, the parenting plan, and the award of Wife’s attorney’s fees. Wife raises issues concerning the overall property division, and the amount of attorney fees and expenses awarded to Wife as alimony in solido. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Affirmed; Case Remanded

D. M ICHAEL S WINEY, J., delivered the opinion of the Court, in which H ERSCHEL P. F RANKS, P.J., and J OHN W. M CC LARTY, J., joined.

Jerrold L. Becker, Knoxville, Tennessee, for the appellant, Jeffrey Jennings Eberting.

Alyson Amonette Eberting, Esq., Knoxville, Tennessee, pro se appellee. OPINION

Background

Husband and Wife were married in July of 1993. Wife sued Husband for divorce in February of 2008. The case was tried over multiple days in January and September of 2009, and February of 2010.

At the time of the marriage, Husband was in dental school and Wife was just beginning law school. Both parties served in the Navy during the marriage. After completing his Navy service, Husband began orthodontic school in 1999.

The parties’ first child was born in October of 1999. At that time, Husband was in orthodontic school and Wife was in the Navy. Wife was the primary care-giver for the parties’ child. The parties’ second child was born in September of 2001, days before Wife completed her Navy service and Husband graduated from orthodontic school. The parties moved to Knoxville less than one week after the birth of their second child. Wife stayed home with the Children and was the primary care-giver from the time the parties moved to Knoxville until December of 2002. In December of 2002 Wife began work as an assistant city attorney in the City of Knoxville Law Department. The parties’ third child was born in April of 2003.1

The parties purchased a house when they moved to Knoxville. In 2005, the parties purchased real property on which they planned to build their dream house. Building never started on their dream house because the parties were paying off the loan for Husband’s new orthodontic practice.

When the parties moved to Knoxville, Husband purchased the existing orthodontic practice of Dr. Thomas Pryse for $250,000. The purchase of Dr. Pryse’s practice included equipment, patient accounts, staff, and goodwill. The purchase did not include accounts receivable. Dr. Pryse’s practice encompassed two locations, one in Knoxville and one in Maryville. Initially, Dr. Pryse was to continue working with Husband for the first year after the sale. Dr. Pryse, however, required hip replacement surgery in March of 2002 and complications arose resulting in Husband’s taking over the practice sooner than anticipated. Approximately five months after he purchased Dr. Pryse’s practice, Husband negotiated to buy another practice from Rupert Knierim for $400,000. These negotiations included equipment, patient charts, and goodwill. Ultimately, Husband did not purchase Dr. Knierim’s practice.

1 At times in this Opinion we refer to the parties’ three children collectively as “the Children.”

-2- In the fall of 2004, Husband began building a new office building for his practice in Maryville. The property upon which the new building sits, 619 Smithview, is owned by Tooth Enterprises, LLC an entity formed to own the 619 Smithview building. Husband owns 50% of Tooth Enterprises, LLC and Wife owns the other 50%. Husband purchased the land for 619 Smithview for $120,000 in 2002. The construction of the 619 Smithview building cost approximately $1.1 million. Husband had the building appraised for purposes of this lawsuit at $950,000. Wife had the building appraised at $970,000.

Husband moved his practice into the new office building at 619 Smithview in March of 2005. Husband then closed the practice’s Knoxville location and original Maryville location. The new Maryville office at 619 Smithview is 6,400 square feet and has a main treatment area with eight chairs, two additional chairs for records to be taken, two individual rooms for new patient examinations and consultations, and a second floor which holds a break room for employees, Husband’s personal office, and Husband’s personal music studio where he keeps his musical instruments. Husband purchased approximately $300,000 in new state-of-the-art equipment for his practice around the time that he moved into the 619 Smithview building. Husband testified that he has purchased approximately half a million dollars in new equipment for his practice since 2001.

When Husband had the original Maryville office, he was paying $3,000 per month in rent. Husband arranged for the practice to pay Tooth Enterprises, LLC $11,000 a month in rent for the 619 Smithview building. Husband testified that Tooth Enterprises, LLC was set up, and the rent for 619 Smithview was set at $11,000 per month for tax purposes.

At the time Husband purchased the practice in 2001, Dr. Pryse was grossing approximately $550,000 annually working four days a week. Approximately three years after the purchase, in 2004, Husband had increased revenues of the practice from $550,000 to $1,250,000. Husband testified that in 2007 his practice had “about $1,050,000 or $1,060,000" in revenues. Husband testified that typically his patients commit to a treatment program and the “[a]verage orthodontic treatment time is about two years, twenty-four months.” Private pay patients pay around $5,400 or $5,500, and TennCare reimburses Husband $3,600.

When the trial began, Husband’s practice was open on Monday, Tuesday, and Wednesday from 8 a.m. to 5 p.m., on Thursday from 8 a.m. until noon and closed on Thursday afternoons, and closed all day on Fridays. Husband was working only three and a half days a week at that time. Husband testified that on Mondays, Tuesdays, and Wednesdays, he would take a two hour lunch break. When he testified again nearer to the end of trial, Husband admitted that at that time he was working only three days a week, Tuesday, Wednesday, and Thursday from 8 to 5. When asked why he changed his schedule,

-3- Husband explained: “since I had to still be in Maryville on Thursdays for the Rotary Club meetings, it just made sense.” Husband admitted that when he worked three and a half days a week he was working twenty-five hours a week, and that under his three day schedule he is working twenty-one hours per week.

Husband testified that he collects around 90% of his account receivables. Husband admitted that although his expert valued the practice at $224,000, he would “be upset at receiving that number …,” if he were to sell the practice. Husband also admitted that if he were to sell his practice he would expect to sell his equipment, his patient charts, his goodwill, and his accounts receivable. Husband’s financial statement dated June of 2004 showed the value of 70% of Husband’s practice to be $350,000. Husband testified that his accountant came up with that value.

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Alyson Leigh Amonette Eberting v. Jeffrey Jennings Eberting, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alyson-leigh-amonette-eberting-v-jeffrey-jennings-eberting-tennctapp-2012.