Chao Liu v. Junhua Chang

Court of Appeals of Washington·Decided April 20, 2020·No. 78999-6·Unpublished

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION ONE

CHAO LIU, ) No. 78999-6-I Respondent, ) DIVISION ONE

v. ) UNPUBLISHED OPINION )

JUNHUACHANG, )

Appellant. )

PER CURIAM. — Junhua Chang appeals a decree of dissolution. He challenges

the trial court’s property distribution, consideration of Bitcoin assets, and maintenance award. Because Chang fails to comply with the Rules of Appellate Procedure and, in any event, does not demonstrate an abuse of discretion, we affirm.

FACTS

In 2002, Junhua Chang married Chao Liu in Beijing, China. They lived in a condominium provided by Chang’s employer. They subsequently moved to the United States, purchased a house in Bellevue, and had two children.

Chang is currently a software engineer with two master’s degrees and earns between $15,000 and $17,500 per month. Chang also started four companies (General Computer Inc., General Group, Lightening Network LLC, and Lightening Express LLC), none of which are profitable. Liu works for the Seattle School District as a payroll technician earning $3,400 per month.

No. 78999-6-112 In 2012, Chang left Liu and their children in Bellevue to start a company in Beijing. Chang and Liu discussed dissolving their marriage at that time, but reconciled when he returned to the United States in 2013 after his start-up failed.

Since 2012, Chang has had at least three extramarital romantic relationships.

He used community income to support his girlfriends, giving one $4,000 per month. He also used community income to purchase gifts and to rent hotel rooms and apartments for his girlfriends. He spent up to $174,698 on these relationships.

In June 2017, Liu filed a petition for dissolution. The assets before the court included the Bellevue house, four motor vehicles, Chang’s four businesses, Chang’s Bitcoin account, and the parties’ retirement accounts. Chang claimed Liu also received rental income from the condominium. Liu asked the court to award her the Bellevue house and to award Chang the Bitcoin account.

At the time of trial, the house was valued at $863,895, but had $297,246 in liens against it. The parties disputed ownership of the Beijing condominium. Liu testified that Chang’s former employer, the Beijing Institute of Technology, owned it, but that she and Chang leased it to students and family members for a number of years. Chang, on the other hand, testified that he purchased the condominium and that Liu receives rental income from it.

Much of the trial focused on Chang’s acquisition of Bitcoins during the marriage.

In November 2017, Liu took a photograph of Chang’s computer screen showing his MultiBit Classic Bitcoin Wallet with 53.21 Bitcoin valued at $504,766. A May 2018 email from Chang contained screenshots of transactions for the Bitcoin wallet and showed the

No. 78999-6-1/3 same number of Bitcoins but with a lower value.1 Chang testified that he sold all of the Bitcoin by 2015 and that the Wallet’s balance was actually zero at the time of trial. He claimed the screens hots Liu provided were from obsolete software that stopped working before he transferred and sold his Bitcoin.

The court found that, ‘overall,” Chang was not credible and that it could not determine “to what extent he was lying or delusional.” The court found that Liu presented compelling evidence that Chang had 53+ Bitcoin as of May 2018 and Chang provided no evidence to support his claim that he had no Bitcoin. The court valued the Bitcoin at $328,903 as of June 24, 2018, and awarded it to Chang “because the court has no viable way to transfer it to the wife.” The court declined to rule on the ownership of the Bejing condominium or past rents for the condominium. The court found that neither party had an equity interest in the condominium and that there was no proof that Liu receives income from it.

The court further found that Chang’s use of community income in his extramarital relationships constituted “waste” of community assets in the amount of $174,698. Accordingly, the court put that amount “on his side of the ledger,” finding that Chang “got the entire benefit of that, because he got the benefit of spending time with his girlfriends.”

After considering the disparity in the parties’ current and potential earnings, the court concluded that “an unequal division of assets is warranted in this case.” Noting the parties had very few assets, the court found:

While this is a no-fault state, and the court cannot award money based on the husband’s bad behavior, the court does note that giving the wife more than half of the community assets will help to make up in some way for the 1 The May 2018 emails were admitted as Exhibit 57, but the exhibit has not been designated on appeal.

No. 78999-6-1/4

husband’s having spent community assets on unproductive projects or simply on girlfriends.

The court then awarded the Bellevue house to Liu, explaining:

The court cannot go back and award the money the husband spent on girlfriends, or took out in cash, to the wife. That money is simply gone. It cannot award the Bitcoins, because their nature is that they are untraceable, and the court has no way to reach them. The court will therefore award the house to the wife.

The court also awarded Lui one of the parties’ cars and her retirement accounts.

The court awarded Chang the value of the Bitcoin account and the other three cars.2 This resulted in a property distribution of 55.41% to Liu and 44.59% to Chang. In making this determination, the court stated, “This is actually a lower ratio [for Liu] than the court would otherwise find appropriate, but there are no other assets to award her.”

The court awarded Liu maintenance of $3,000 per month for five years “based on the wife’s needs and husband’s ability to pay.” Chang appeals.

DECISION

RAP Violations Initially, we address Chang’s noncompliance with our Rules of Appellate Procedure (RAP). “[P]ro se litigants are bound by the same rules of procedure and substantive law as attorneys.” Westberq v. All-Purpose Structures Inc., 86 Wn. App. 405, 411, 936 P.2d 1175 (1997). Failure to comply with the RAP and related case law may preclude review. State v. Marintorres, 93 Wn.App. 442, 452, 969 P.2d 501 (1999). For example, arguments unsupported by references to the record or citation to authority need not be considered. Cowiche Canyon Conservancy v. Bosley, 118

Wn.2d 801, 809, 828 P.2d 549 (1992). Appellate courts are not required to search 2 The court also awarded Chang his four businesses but noted they do not seem to make any

money or have any assets.

No. 78999-6-115 the record to locate portions relevant to a litigant’s arguments. Mills v. Park, 67 Wn.2. 717, 721, 409 P.2d 646 (1966). And conclusory claims presented without meaningful argument also need not be considered. State v. Rafay, 168 Wn.App. 734, 843, 285 P.3d 83 (2012). Chang’s opening and reply briefs violate several of these principles.

RAP 1 0.3(a)(5) requires the appellant’s brief to include “[a] fair statement of the facts and procedure relevant to the issues presented for review, without argument. Reference to the record must be included for each factual statement.” Chang’s statement of the case contains no references to the record. And with few exceptions, the argument section of his briefs violate RAP 10.3(a)(6), which requires ‘argument in support of the issues presented for review, together with citations to legal authority and references to relevant parts of the record.” Finally, Chang has failed provide portions of the record necessary for review. Taken together, these omissions are fatal to Chang’s appeal. Moreover, as discussed below, his arguments on appeal lack merit. Property Distribution Chang challenges the trial court’s property distribution, arguing that the court abused its discretion by awarding Liu the majority of the assets, giving her the family home, and leaving him with an empty Bitcoin account.

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

Chao Liu v. Junhua Chang, (Wash. Ct. App. 2020).

Chao Liu v. Junhua Chang (Chao Liu v. Junhua Chang) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Marriage of Zahm
978 P.2d 498 (Washington Supreme Court, 1999)
Cowiche Canyon Conservancy v. Bosley
828 P.2d 549 (Washington Supreme Court, 1992)
In Re Marriage of Littlefield
940 P.2d 1362 (Washington Supreme Court, 1997)
Mills v. Park
409 P.2d 646 (Washington Supreme Court, 1966)
In Re Marriage of Griffin
791 P.2d 519 (Washington Supreme Court, 1990)
In Re the Marriage of Washburn
677 P.2d 152 (Washington Supreme Court, 1984)
State v. Powell
893 P.2d 615 (Washington Supreme Court, 1995)
State v. Marintorres
969 P.2d 501 (Court of Appeals of Washington, 1999)
In Re Marriage of Fahey
262 P.3d 128 (Court of Appeals of Washington, 2011)
In the Matter of Marriage of Bulicek
800 P.2d 394 (Court of Appeals of Washington, 1990)
Dewberry v. George
62 P.3d 525 (Court of Appeals of Washington, 2003)
In Re Marriage of Muhammad
108 P.3d 779 (Washington Supreme Court, 2005)
In re the Marriage of Chandola
180 Wash. 2d 632 (Washington Supreme Court, 2014)
In re the Marriage of Littlefield
133 Wash. 2d 39 (Washington Supreme Court, 1997)
In re the Marriage of Zahm
138 Wash. 2d 213 (Washington Supreme Court, 1999)
In re the Marriage of Muhammad
153 Wash. 2d 795 (Washington Supreme Court, 2005)
In re the Marriage of Katare
283 P.3d 546 (Washington Supreme Court, 2012)
In re the Marriage of DewBerry
115 Wash. App. 351 (Court of Appeals of Washington, 2003)
In re the Marriage of Rockwell
170 P.3d 572 (Court of Appeals of Washington, 2007)
In re the Marriage of Fahey
164 Wash. App. 42 (Court of Appeals of Washington, 2011)