Brahms v. Brahms

58 Va. Cir. 41, 2001 Va. Cir. LEXIS 379
CourtVirginia Circuit Court
DecidedSeptember 10, 2001
DocketCase No. (Chancery) 149046
StatusPublished

This text of 58 Va. Cir. 41 (Brahms v. Brahms) is published on Counsel Stack Legal Research, covering Virginia Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brahms v. Brahms, 58 Va. Cir. 41, 2001 Va. Cir. LEXIS 379 (Va. Super. Ct. 2001).

Opinion

By Judge Stanley P. Klein

Defendant Bradley S. Brahms (Mr. Brahms) moves this court for a reduction of his child support obligation for the parties’ children based upon alleged material changes in circumstances. Complainant, Robbin J. Brahms (Ms. Brahms), opposes the reduction and moves this court for an award of attorney’s fees incurred in defending against Mr. Brahms’ motion. Ms. Brahms contends that she is entitled to recover all of her attorney’s fees pursuant to paragraph 14(b) of the Custody, Support, and Property Settlement Agreement of the parties. In the alternative, she asks to recover all, or a reasonable share of her attorney’s fees, consistent with the equitable powers of this court. The court has considered the evidence presented and the arguments of the parties. For the reasons set out in this opinion letter, the motion for reduction of support is denied, and Ms. Brahms is awarded a reasonable portion of her attorney’s fees.

I. Background

The parties are the parents of three children, ages 17, 15, and 12. On December 22, 1997, they entered into a Custody, Support, and Property Settlement Agreement, which established, inter alia, that Ms. Brahms would [42]*42be the primary physical custodian of the children and that Mr. Brahms would pay her child support in the sum of $2,097.00 per month. This agreed child support figure was based upon a calculation of the presumptive amount of support pursuant to Virginia Code § 20-108.2, as evidenced by the guideline worksheet appended to the Agreement. The worksheet reflected monthly gross incomes of $3,414.00 for Ms. Brahms and $10,000.00 for Mi'. Brahms. In fact, however, Mr. Brahms’ true income at that time through his employment with Volt Management Corporation was $164,159.00,1 or $13,680 per month, substantially higher tiran the $10,000.00 per month utilized in the agreed child support calculations. The Agreement was incorporated in a Final Decree of Divorce entered by this court on February 23, 1998.

On March 14,2001, Mr. Brahms filed the instant Motion for Reduction of Child Support. In his motion, he alleged that: (1) Ms. Brahms’ income had increased from $3,414.00 per month to $7,300.00 per month; (2) work-related child-care costs had ended; (3) health insurance coverage for the children was now part of Ms. Brahms’ employment benefits; and (4) Mr. Brahms’ income had remained the same (to wit $120,000.00 per year).

At the June 20, 2001, hearing on Mr. Brahms’ Motion for Reduction of Child Support, Ms. Brahms stipulated that her income had indeed increased to $7,300.00 per month and that she no longer had any out-of-pocket expense for health insurance coverage for the children. The parties further agreed that their youngest son had extraordinary needs that required some after-school childcare, and the court found $617.00 per month to be a reasonable sum to meet Ms. Brahms’ work-related child-care needs. The major issue in dispute at the hearing was Mr. Brahms’ claim that his income was $10,000.00 per month.2

At the hearing, Mr. Brahms testified that in the fall of2000 he had been informed by his superiors at Volt Management that the “cost structure” for his services would have to be modified downward. He claimed to have been given the “impression” that if such a change were not effected, they would no longer use his services. As a result, Mr. Brahms voluntarily left Volt Management in October 2000 and established Bralen Technologies, Inc. Mr. Brahms is the sole shareholder of this corporation and its sole decision-maker. Although his company is receiving $174,996.00 per year for virtually the same services he previously provided to a third party while at Volt Management, Mr. Brahms elected to pay himself a salary of $ 120,000.00. He further testified that Bralen [43]*43Technologies pays his present wife $12,000.00 per year for accounting services but produced no documentation to corroborate this testimony. Mr. Brahms presented no further evidence concerning any additional out-of-pocket expenses of the company and claimed that the profits of the company were being used to fund the corporation. Again, no additional testimony or documentary evidence was presented to corroborate this claim.

II. Analysis

A. Motion to Reduce Child Support

At the conclusion of the hearing on June 20, 2001, Mr. Brahms argued that this court should once again find his income to be $120,000.00 for purposes of calculating his child support obligation. The court declines to so rule. In calculating a person’s income for purposes of determining child support pursuant to Virginia Code § 20-108.2, “gross income shall be subject to deduction of reasonable business expenses for persons with income from self-employment, a partnership, or a closely held business.” Virginia Code § 20-108.2(C) (emphasis added). As such, the salary, benefits, and dividends one elects to pay himself in his solely-owned corporation must be reasonably related to the income and expenses of the entity.

This court has previously held that a party claiming deductions from the gross income of a business bears the burden of proving by the greater weight of the evidence that the claimed deductions are reasonable. Meyers v. Meyers, 38 Va. Cir. 78 (Fairfax 1995). One who runs a self-owned business is clearly in a much better position to establish the reasonable nature of claimed expenses than one’s estranged spouse or former spouse. A panel of the Court of Appeals, albeit in an unpublished decision, reached the same conclusion in Taslitt v. O’Conner, 1999 Va. App. LEXIS 655, No.2724-98-4 (Va. App. Dec. 7,1999) (unpublished) (“We agree with wife that husband... bore the burden of establishing reasonable business expenses to be deducted from gross income figures for purposes of calculating his gross income.”).

Based upon the credible evidence presented at the hearing, the court finds that Mr. Brahms has failed to meet his burden of proof to establish any need for business expenses other than a salary for himself and possibly the $12,000.00 he claims to pay his wife yearly for accounting services. Mr. Brahms’ personal services contract generates $174,996.00 per year for his corporation. The court rejects his uncorroborated claim that $42,996.00 of profit from Mr. Brahms’ service contract has been reasonably utilized to [44]*44“properly fund” Bralen Technologies. The court, therefore, finds that Mr. Brahms’ unilaterally determined salary of $120,000.00 is artificially deflated and finds his gross income for child support calculation purposes to be at least $162,996.00. When the appropriate calculations are undertaken utilizing the sole custody guidelines of Virginia Code § 20-108.2,3 the presumptive amount of support exceeds the $2,097.00 per month previously agreed to by the parties and ordered by the court in the parties’ divorce decree. No claim has been made that the court should deviate from the presumptive amount of child support as a result of any of the factors delineated in Virginia Code § 20-108.1. Accordingly, this court denies Mr. Brahms’ Motion for Reduction of Child Support, as no material change in circumstances has occurred which warrants a reduction in the support. See Yohay v. Ryan, 4 Va. App. 559 (1987).

B. Request for Attorney’s Fees

At the June 20 hearing, counsel for Ms. Brahms sought an award of attorney’s fees.

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Related

Yohay v. Ryan
359 S.E.2d 320 (Court of Appeals of Virginia, 1987)
Alig v. Alig
255 S.E.2d 494 (Supreme Court of Virginia, 1979)
Ted Lansing Supply Co. v. Royal Aluminum & Construction Corp.
277 S.E.2d 228 (Supreme Court of Virginia, 1981)
Edwards v. Lowry
348 S.E.2d 259 (Supreme Court of Virginia, 1986)
Carswell v. Masterson
295 S.E.2d 899 (Supreme Court of Virginia, 1982)
Gilmore v. Basic Industries, Inc.
357 S.E.2d 514 (Supreme Court of Virginia, 1987)
McKeel v. McKeel
37 S.E.2d 746 (Supreme Court of Virginia, 1946)
Meyers v. Meyers
38 Va. Cir. 78 (Fairfax County Circuit Court, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
58 Va. Cir. 41, 2001 Va. Cir. LEXIS 379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brahms-v-brahms-vacc-2001.