Deborah Lynn Mathews v. Douglas Clay Mathews

CourtCourt of Appeals of Tennessee
DecidedSeptember 11, 2019
DocketM2018-01886-COA-R3-CV
StatusPublished

This text of Deborah Lynn Mathews v. Douglas Clay Mathews (Deborah Lynn Mathews v. Douglas Clay Mathews) 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
Deborah Lynn Mathews v. Douglas Clay Mathews, (Tenn. Ct. App. 2019).

Opinion

09/11/2019 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE August 14, 2019 Session

DEBORAH LYNN MATHEWS v. DOUGLAS CLAY MATHEWS

Appeal from the Circuit Court for Davidson County No. 10D3341 Philip E. Smith, Judge ___________________________________

No. M2018-01886-COA-R3-CV ___________________________________

This is a post-divorce case involving a husband’s petition to terminate his alimony obligation. Husband argued that the wife cohabited with a paramour, which, pursuant to the parties’ MDA, terminated his alimony obligation. The trial court, however, found that wife and her paramour did not cohabit with one another and denied husband’s petition. Additionally, the trial court denied wife’s request for attorney’s fees, finding that her increased income, combined with the alimony she was receiving from husband, allowed her to afford to pay her attorney’s fees at trial. Wife and Husband raise separate issues on appeal. We affirm.

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

ARNOLD B. GOLDIN, J., delivered the opinion of the Court, in which J. STEVEN STAFFORD, P.J., W.S., and CARMA DENNIS MCGEE, J., joined.

Larry Hayes, Jr., Nashville, Tennessee, for the appellant, Deborah Lynn Mathews.

John J. Hollins, Jr. and L.B. McCullum, Franklin, Tennessee, for the appellee, Douglas Clay Mathews.

OPINION

BACKGROUND AND PROCEDURAL HISTORY

Deborah Mathews (“Wife”) and Douglas Mathews (“Husband”) divorced on May 18, 2011 after twenty-four years of marriage. The permanent parenting plan designated Wife as the primary residential parent of the parties’ two minor children.1 Pursuant to the parties’ Marital Dissolution Agreement (the “MDA”), Husband was obligated to pay 1 One of the parties’ children had reached the age of majority at the time of the parties’ divorce. Wife alimony in futuro in the amount of $10,000 per month, which obligation would “automatically terminate upon death of either party, or remarriage or cohabitation with a paramour of Wife.”2 The MDA also provided the following regarding future legal proceedings: “If either party reasonably institutes legal proceedings to procure the enforcement of any provision of this agreement, then he/she will also be entitled to a judgment for reasonable expenses, including attorney’s fees and accountant fees, incurred in prosecuting the action.” (emphasis added) Further, pursuant to the MDA, Wife was awarded exclusive use of the marital home located at 907 Overton Lea Road (the “Overton Lea Home”) until it was sold, at which time the parties were to equally divide the net proceeds of the sale. Husband was also required to pay to Wife an additional $115,500 upon the sale of the Overton Lea Home.

In June 2012, Wife and Shannon Leroy—whom Wife had begun dating in April 2010—formed a general partnership for the purpose of purchasing a home located at 6117 Hickory Valley Road (the “Hickory Valley Home”). The partnership obtained a construction loan and used the funds from the loan, together with a separate contribution from Mr. Leroy, to purchase and renovate the Hickory Valley Home.3 According to Wife, she and Mr. Leroy anticipated two possible scenarios when forming the partnership: (1) Wife would use the proceeds from the sale of the Overton Lea Home to buy out Mr. Leroy’s interest in their partnership; or (2) Wife and Mr. Leroy would renovate the Hickory Valley Home and then sell it for a profit. The Overton Lea Home eventually sold in July 2013, but for more than $1 million less than anticipated. Consequently, Wife was unable to buy out Mr. Leroy’s interest. As a result, they dissolved the partnership, conveyed ownership of the Hickory Valley Home to themselves, and entered into an ownership agreement.4 After the sale of the Overton Lea Home, Wife moved into the Hickory Valley Home.

On November 2, 2015, Husband filed a Petition to Terminate Alimony in the Davidson County Circuit Court (the “trial court”), asserting two bases: (1) Wife, since April 2010, had been in a romantic relationship and cohabited with Mr. Leroy, and (2) following their divorce, Wife’s income had increased significantly, constituting a substantial and material change in circumstance. On June 13, 2017, Husband filed an Amended Petition to Terminate Alimony and Petition to Modify Custody and Child Support. Therein, he expounded upon the alleged increase in Wife’s income since the parties’ divorce and, additionally, requested that the trial court designate him as the primary residential parent of his minor daughter. As to Wife’s increased income,

2 To secure his alimony obligations, the MDA also required Husband to maintain a life insurance policy in the amount of $2,000,000, payable to Wife. This obligation would terminate if the alimony obligation terminated. 3 According to Mr. Leroy, his plan was to facilitate Wife in buying the Hickory Valley Home by serving as a bridge loan. 4 Wife and Mr. Leroy each purchased life insurance policies, naming each as the other’s beneficiary in order to protect their respective interests in the Hickory Valley Home. -2- Husband provided the following numbers: “[Wife’s] gross income has increased dramatically in recent years; 2011 – $1,038; 2012 – $99,573; 2013 – $187,000[;] and 2015 – $249,232.” As to his request for a change in custody, Husband stated that, on or about April 1, 2017, the parties’ youngest daughter had begun living with him on a full- time basis.5 After the parties’ daughter had moved in with him, Husband filed a Motion to Terminate Child Support and Set Child Support. On August 29, 2017, the trial court entered an order terminating Husband’s child support obligation and reserving all issues related to Wife’s child support obligation until the final hearing.

Husband and Wife attended a judicial settlement conference on January 8, 2018, during which Wife’s counsel contended that Husband had failed to properly request a modification of his alimony obligation and, thus, could only seek a termination of his alimony obligation. Accordingly, Husband, on February 21, 2018, filed a Second Amended Petition, wherein he clarified that he was requesting either the termination of his alimony obligation or, in the alternative, a reduction of the obligation based upon the proof at trial.

On September 17, 2018, after a three-day trial, the trial court entered its Memorandum and Order, denying Husband’s petition. With regard to Husband’s assertion that Wife and Mr. Leroy cohabitated together, the trial court concluded that, while the parties’ MDA provides that cohabitation automatically terminates alimony, the MDA failed to define what cohabitation meant. Additionally, the trial court found that, while Wife and Mr. Leroy had dinner together more often than not, traveled and attended social events together, celebrated some holidays and special occasions together, and professed their love for one another, it was undisputed that they spent only one to two nights per week together and that

at all times until the Leroys married in December 2017, Mr. Leroy maintained his own home . . . . Mr. Leroy’s driver’s license, voter’s registration and tax returns all reflected his Allen Place address. Mr. Leroy did not keep clothing, toiletries, medications or other personal items at [Wife’s] home. Mr. Leroy had a key to [Wife’s] home, but was not permitted unfettered access. The only clothing Mr. Leroy kept at Hickory Valley were some slippers and a t-shirt.

As to Husband’s assertion that there had been a substantial and material change in circumstance based on Wife’s increase in income, the trial court disagreed, noting that it was foreseeable—even expected—that Wife would attempt to generate income through her business following the parties’ divorce.

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Bluebook (online)
Deborah Lynn Mathews v. Douglas Clay Mathews, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deborah-lynn-mathews-v-douglas-clay-mathews-tennctapp-2019.