Franklin v. Franklin

213 S.W.3d 218, 2007 Mo. App. LEXIS 200, 2007 WL 328016
CourtMissouri Court of Appeals
DecidedFebruary 6, 2007
DocketED 87422
StatusPublished
Cited by8 cases

This text of 213 S.W.3d 218 (Franklin v. Franklin) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin v. Franklin, 213 S.W.3d 218, 2007 Mo. App. LEXIS 200, 2007 WL 328016 (Mo. Ct. App. 2007).

Opinion

ROBERT G. DOWD, JR., Judge.

Glen Franklin (Husband) appeals from the Judgment of Dissolution of Marriage to Renee Franklin (Wife). On appeal, Husband argues the trial court erred in awarding Wife (1) $650 per month for child support, (2) $55,000 in reimbursement because Husband squandered the marital residence, (3) retroactive child support, and (4) $5,800 relating to summer camp, tuition, tax penalties, and attorney’s fees. We affirm as modified. 1

Husband and Wife were married on September 5, 1987. The parties separated August of 1999. One child (Child) was born of the marriage on July 9, 1992.

In December of 1984, prior to meeting Husband, Wife purchased the residence located at 290 Amberjaek Drive, Ballwin, Missouri, which later became the marital residence. In 1986, Husband and Wife met. At that time, Husband and Wife purchased a business together from a sole proprietor and renamed it Franklin Graphics & Lettering (Franklin Graphics). Husband and Wife jointly signed for the loan in the amount of $40,000 to purchase Franklin Graphics. The former owner was to retake possession of the business if the loan was not paid off.

Wife worked a full-time job with Johnson & Johnson and also worked about 40 hours a week on evenings and weekends at Franklin Graphics. In 1990, Wife gave up her position with Johnson & Johnson to work full-time at Franklin Graphics. Wife worked at Franklin Graphics from 1990 to 1994. Wife was responsible for writing up orders, ordering goods, and ensuring that the appropriate paperwork reached the accountant, who was employed separately by Franklin Graphics. Husband acted as CEO and President of Franklin Graphics. Husband traveled frequently and was responsible for attracting new business. Husband recommended new pieces of equipment for the business and was also in charge of hiring and filing employees for Franklin Graphics.

In 1992, Husband and Wife used the marital residence as collateral for a $80,000 loan from the Small Business Administration (SBA). This loan was used to purchase additional equipment and as a line of credit for Franklin Graphics. Wife testified that she was initially against the idea of taking the loan from the SBA and was against the idea of using the house as collateral for the loan. Eventually, however, Wife agreed to borrow the money from the SBA and to use the marital residence as collateral.

In 1994, Franklin Graphics began to encounter serious financial difficulties. Due to these financial difficulties, Husband and Wife filed for bankruptcy multiple times from 1995 to 2002. Sometime around the end of 1994 or beginning of 1995, Wife ceased to work for Franklin Graphics.

Husband, Wife, and Child lived together in the marital residence until August of 1999, when Wife and Child moved out of the marital residence due to physical abuse by Husband. Wife testified that she wanted to remain in and keep the house, but Husband refused to move out. Wife made her last mortgage payment on August 9, 1999 and moved out of the house on August 28,1999.

*222 Wife and Child eventually settled into an apartment, where they were residing at the time of trial. When Wife and Child moved into the apartment, Child was attending Cathedral School and was in second grade. Wife testified she paid for Child’s tuition from kindergarten through second grade, and a portion of third grade, and by agreement of the parties, Husband was responsible for the tuition from third through sixth grade. Wife testified that there were several occasions when Husband failed to pay the full tuition, and as a result, Child did not receive his report card. On those occasions, Wife made up the deficit. Wife testified she was never reimbursed for these amounts which totaled $1,000,

In 2002, after several failed attempts at settlement negotiations with the SBA, the SBA foreclosed on the marital residence. At the time, Husband was residing by himself in the marital residence. Wife testified she did not find out about the foreclosure proceedings until 2003 when she attempted to purchase a car.

Husband remained in the marital residence for a year after the foreclosure proceedings, and eviction proceedings were filed. In 2003, Wife received a subpoena at her apartment requesting that she vacate the marital residence. Because Wife no longer resided at the marital residence, she attempted to explain that she could not vacate the property. Wife testified that the attorney serving the subpoena replied, “See you in court.” Wife had to hire an attorney to defend the suit, and incurred attorneys’ fees and costs of $1,500 in connection with the eviction proceedings.

On August 11, 2003, Wife filed her Petition for Dissolution of Marriage, together with her Statement of Income and Expenses and Statement of Property. At the time of filing her original petition, Wife stated her income was $1,647.60 per bi-weekly pay period (or $39,542.40 per year) and had expenses averaging $4,050 per month. She received no child support from Husband, and had to borrow money from her parents to pay her bills. Husband filed his Answer and Counter-Petition for Dissolution of Marriage on September 22, 2003, together with his Statement of Income and Expenses. In his original Statement of Income and Expenses, Husband alleged that his income was $4,287 per month ($51,444 per year). In December of 2003, Husband filed a First Amended Statement of Income and Expenses, alleging that his income was $3,322 per month (or $39,864 per year).

In May of 2004, Wife received $500 from Husband as part of Child’s summer camp expense for 2003. Wife filed her Amended Petition, reflecting the $500 credit. On May 14, 2004, she also filed her Amended Statement of Income and Expenses, reflecting her change in income to $2,096.16 per bi-weekly pay period (or $54,500.16 per year).

At trial, Wife retained Donnell Reid, a former commercial loan officer, as an expert to determine Husband’s income. In his role as commercial loan officer, Mr. Reid had reviewed many financial statements and banking records for small businesses for the purpose of approving loans. Mr. Reid analyzed the financial statements produced by Husband, to determine Husband’s income, and assess the value of the business. According to the financial statements and tax returns provided by Husband, Husband’s average income for the years 2000, 2001, and 2002 was $33,000. Mr. Reid, however, also reviewed numerous cancelled checks and bank statements and noticed a pattern of spending with Husband writing business checks for personal expenses. He also noticed a pattern of writing a large number of checks with the notation of “C.O.D.” at the bottom. *223 Mr. Reid asked Wife about this, and she informed him it was Husband’s pattern to issue checks for cash and those for even amounts were used for personal reasons, and those for specific amounts were for business reasons.

In arriving at Husband’s income, Mr. Reid examined checks paid by Franklin Graphics for Husband’s personal expenses such as, rent and utilities for his home, his son’s school tuition, the purchase of a new car, groceries and escrow payments for the purchase of his new home. He also added the checks made payable to cash which he believed were for personal use, which, in the case of small businesses, becomes part of income.

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Bluebook (online)
213 S.W.3d 218, 2007 Mo. App. LEXIS 200, 2007 WL 328016, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-v-franklin-moctapp-2007.