Barry Shawn Ralston v. Gina Ione HollowwayRalston

CourtCourt of Appeals of Tennessee
DecidedAugust 3, 1999
Docket01A01-9804-CV-00222
StatusPublished

This text of Barry Shawn Ralston v. Gina Ione HollowwayRalston (Barry Shawn Ralston v. Gina Ione HollowwayRalston) 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
Barry Shawn Ralston v. Gina Ione HollowwayRalston, (Tenn. Ct. App. 1999).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE

BARRY SHAWN RALSTON ) FILED ) Plaintiff/Appellant, ) Appeal No. August 3, 1999 ) 01A01-9804-CV-00222 Cecil Crowson, Jr. v. ) Appellate Court Clerk ) Davidson Circuit GINA IONE HOLLOWAY ) No. 96D-2621 RALSTON ) Defendant/Appellee. ) )

APPEAL FROM THE CIRCUIT COURT FOR DAVIDSON COUNTY

THE HONORABLE MURIEL ROBINSON PRESIDING

ROBERT L. JACKSON W. SCOTT ROSENBERG 214 2nd AVENUE, NORTH/SUITE 103 NASHVILLE, TENNESSEE 37201

ATTORNEYS FOR PLAINTIFF/APPELLANT

ROSEMARY E. PHILLIPS 429 CHURCH STREET P.O. BOX 590 GOODLETTSVILLE, TENNESSEE 37070-0590

ATTORNEY FOR DEFENDANT/APPELLEE

VACATED AND REMANDED

PATRICIA J. COTTRELL

CONCUR:

CANTRELL, J. KOCH, J. OPINION This appeal arose after the trial court rejected Appellant Barry Shawn

Ralston's ("the father") petition to reduce child support on the basis of his

reduced actual income. In his sole issue on appeal, the father argues that the trial

court misapplied Tenn. Code Ann. § 36-5-101 (a) (1), which he claims mandated

the modification of child support on a showing of a significant variance between

the amount of child support required by application of the Child Support

Guidelines to his current actual income and the previously-ordered support

obligation. Appellee Gina Ione Holloway Ralston ("the mother") responds that

the father remains intentionally underemployed and that the trial court properly

considered the father’s potential income in denying the requested reduction. For

the reasons set out herein, we vacate and remand for further proceedings.

When the parties divorced in April 1997, they stipulated to the grounds.

At the time, they had two minor children. The final decree of divorce, which

reflected the parties' settlement agreement, awarded the mother primary physical

custody of the children and ordered the father, inter alia, to pay monthly child

support in the amount of $1,540, which, according to the decree, was in

accordance with the Child Support Guidelines.

In August 1997, the father filed a Petition to reduce child support,

alleging that he had lost his job earning over $82,000 as a director of sales and

marketing and was presently earning a yearly salary of $35,000. The mother

filed motions seeking payment of his child support arrearage and for attorney

fees incurred in bringing that motion. After an August hearing, the trial court

ordered the father to pay the child support arrearage and $250 in attorney fees.

-2- In December 1997, the mother filed an Answer and Counter-petition

seeking contempt sanctions for the father's purported failure to pay child support

in November or December. This matter and the father's request for modification

of the child support were heard in February 1998. At the hearing, the father

testified that his job was eliminated after his company downsized due to a

Chapter 11 proceeding. He then formed a partnership, Primary Care Consultants,

Ltd., with his brother, a general contractor. The father testified that he had

borrowed money from his family to pay the child support arrearage.

After the hearing concluded, the court denied the father's request for

modification of the child support. It found that the father had been in arrears on

his child support in the amount of $3,850, but had paid that sum current on the

date of the hearing. The hearing on the petition was not transcribed, and the case

is before this court on a Statement of the Evidence as contemplated by Tenn. R.

App. P. 24 (c).

I.

The sole issue on appeal is whether the trial court correctly applied the

standard for modification of a prior support order. The proper standard for

determining whether an existing child support order should be modified is the

"significant variance test" which the General Assembly adopted in 1994. Turner

v. Turner, 919 S.W.2d 340, 342-343 (Tenn. App. 1995). This legislation

provides that:

In cases involving child support, upon application of either party, the court shall decree an increase or decrease of such allowance when there is found to be a significant variance, as defined in the child support guidelines . . . between the guidelines and the amount of support currently ordered unless the variance has resulted from a previously court-ordered deviation from the guidelines and the circumstances which caused the deviation have not changed. Tenn. Code Ann. § 36-5-101 (a) (1) (Supp. 1998). Under the guidelines, the

-3- amount of support is formulaic, unless special circumstances are found, and is

based on a flat percentage of the obligor’s net income. Tenn. Comp. R. & Regs.,

ch. 1240-2-4-.03(2)(1994). The party seeking the modification bears the burden

of showing the necessary significant variance. See Seal v. Seal, 802 S.W.2d 617,

620 (Tenn. App. 1990); Turner, 919 S.W.2d at 345.

A significant variance between the guideline amount and the current

support order is defined as “at least 15% if the current support is one hundred

dollars ($100.00) or greater per month”, and “[s]uch variance would justify the

modification of a child support order unless, in situations where a downward

modification is sought, the obligor is willfully and voluntarily unemployed or

underemployed.” Tenn. Comp. R. & Regs., ch. 1240-2-4-.02(3)(1994)

The significant variance test requires that the court first determine the

obligor’s income to which the guidelines’ formula will be applied.

Determining the amount of the non-custodial parent’s income is the most important element of proof in a proceeding to set child support [citations omitted.] This is the case when setting initial support and when considering requests for modification of an existing support obligation. The non- custodial parent’s income is, in fact, doubly important in a modification proceeding because the child support guidelines require the courts to examine the basis for the current support order and the non-custodial parent’s current income.

Turner, 919 S.W.2d at 344.

In this case, the father sought reduction of his support obligation on the

basis of his reduced actual earnings. However, courts may use the obligor

parent’s potential, rather than actual, income where that parent is willfully and

voluntarily unemployed or underemployed.

If an obligor is willfully and voluntarily unemployed or underemployed, child support shall be calculated based upon a determination of potential income, as evidenced by educational level and/or previous work experience.

-4- Tenn. Comp. R. & Regs., ch. 1240-2-4-.03(3)(d)(1994).

In other words, where a lower income is due to willful1 and voluntary

unemployment or underemployment, the courts must determine the potential

income of the obligor parent, instead of using the actual income, before a

determination of the amount due under the guidelines can be made.

II.

The issue of willful and voluntary underemployment can arise in the

initial setting of child support as well as in modification proceedings. It can arise

where the obligee parent seeks an upward modification, as well as where the

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Related

Brooks v. Brooks
992 S.W.2d 403 (Tennessee Supreme Court, 1999)
Garfinkel v. Garfinkel
945 S.W.2d 744 (Court of Appeals of Tennessee, 1996)
Turner v. Turner
919 S.W.2d 340 (Court of Appeals of Tennessee, 1995)
Seal v. Seal
802 S.W.2d 617 (Court of Appeals of Tennessee, 1990)
Devorak v. Patterson
907 S.W.2d 815 (Court of Appeals of Tennessee, 1995)
Herrera v. Herrera
944 S.W.2d 379 (Court of Appeals of Tennessee, 1996)
Kelly v. Kelly
679 S.W.2d 458 (Court of Appeals of Tennessee, 1984)

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