Chao Liu v. Junhua Chang

CourtCourt of Appeals of Washington
DecidedApril 20, 2020
Docket78999-6
StatusUnpublished

This text of Chao Liu v. Junhua Chang (Chao Liu v. Junhua Chang) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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v. ) UNPUBLISHED OPINION ) JUNHUACHANG, ) Appellant.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

2 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.

3 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.

4 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.

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