Freeman v. Freeman, Unpublished Decision (12-10-1999)

CourtOhio Court of Appeals
DecidedDecember 10, 1999
DocketCourt of Appeals No. L-98-1354. Trial Court No. DR96-0678.
StatusUnpublished

This text of Freeman v. Freeman, Unpublished Decision (12-10-1999) (Freeman v. Freeman, Unpublished Decision (12-10-1999)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freeman v. Freeman, Unpublished Decision (12-10-1999), (Ohio Ct. App. 1999).

Opinion

DECISION AND JUDGMENT ENTRY

This is an appeal from the Lucas County Court of Common Pleas, Domestic Relations Division, that granted the parties a divorce and ordered spousal support, child support, and the division of marital property. For the following reasons, we affirm the judgment of the trial court.

Appellant, Parker C. Freeman, sets forth the following assignments of error:

"I. THE TRIAL COURT ABUSED ITS DISCRETION WHEN IT FOUND THE BUSINESS, ADVANCED TECHNOLOGY RESOURCES, INC., TO BE MARITAL PROPERTY SUBJECT TO DIVISION.

"II. THE TRIAL COURT ABUSED ITS DISCRETION WHEN IT FOUND THE VALUE OF ADVANCED TECHNOLOGY RESOURCES, INC., TO BE $35,615.00 WITHOUT SUFFICIENT EVIDENCE TO ESTABLISH SAID VALUE.

"III. THE TRIAL COURT ABUSED ITS DISCRETION BY NOT INSTRUCTING THE PARTIES TO SUBMIT EXPERT OPINION EVIDENCE AS TO THE VALUE OF ADVANCED TECHNOLOGY RESOURCES, INC.

"IV. THE TRIAL COURT ABUSED ITS DISCRETION IN ITS DISTRIBUTION OF THE MARITAL ASSETS BETWEEN THE PARTIES IN THAT THE DISTRIBUTION WAS NEITHER EQUAL, NOR EQUITABLE.

"V. THE TRIAL COURT ABUSED ITS DISCRETION BY REQUIRING APPELLANT TO PAY APPELLEE'S ATTORNEY FEES.

"VI. THE TRIAL COURT ERRED BY REFUSING TO MODIFY THE PORTION OF ITS TEMPORARY ORDER PERTAINING TO THE PAYMENT OF MONTHLY EXPENSES. THESE UNMODIFIED PAYMENTS REPRESENT AN ABUSE OF DISCRETION ON THE PART OF THE TRIAL COURT."

The facts that are relevant to the issues raised on appeal are as follows. The parties were married in 1971 and had two children, Colin M. Freeman, born September 4, 1984, a minor, and Randall C. Freeman, an adult. Appellee, Elizabeth O. Freeman, filed for divorce on May 9, 1996.

The trial court entered a temporary order on July 2, 1996. Appellee was designated the residential parent and legal custodian of Colin. Additionally, appellant, Parker C. Freeman, was ordered to pay child support in the amount of $1,115.67 per month, plus 2 percent poundage, and spousal support in the amount of $1,500 per month, plus 2 percent poundage. The trial court further allocated the parties' monthly expenses. Several interim motions were filed by the parties. Then, on June 27, 1997, new counsel entered an appearance on appellant's behalf and filed a motion for modification of the trial court's July 2, 1996 temporary order concerning support payments.

Trial was held on July 18, 1997. Eventually, on June 24, 1998, the trial court entered its decision. The trial court noted that certain stipulations were read into the record, concerning, in part, allocation of certain marital property, including the values therefor. Additionally, with respect to Colin, the parties stipulated that appellee would be designated residential parent. The trial court found the stipulations to be fair and reasonable.

The parties submitted to the trial court for determination the following matters: (1) the incomes of the parties; (2) appellee's entitlement to spousal support, if any, and the amount and duration of support; (3) distribution of marital assets, including a determination of the value of appellant's interest in Advanced Technology Resources, Incorporated; (4) appellee's entitlement to an award of attorney's fees; (5) appellee's entitlement to reimbursement for certain expenses paid by her that were alleged to have been appellant's responsibility; (6) the amount of any arrearage owed appellant pursuant to the temporary support order; (7) the effect, if any, of appellant's June 17, 1997 motion seeking a modification of temporary support; and (8) appellant's interest, if any, in appellee's personal injury claim. The trial court determined the matters presented and, on September 4, 1998, the final judgment entry of divorce was filed.

Appellant's first, second, and third assignments of error each involve the trial court's findings concerning Advanced Technology Resources, Inc. ("ATR, Inc.") and, therefore, will be considered together. Appellant asserts that he was engaged in ATR, Inc. for a short period, between January and March 1995, while between other employment. However, as a condition of his subsequent employment with Blue Cross/Blue Shield of Michigan ("BC/BS of Michigan"), appellant asserts that he was required to sign off any interest he may have had in any other business, i.e., ATR, Inc. As such, appellant argues that the trial court abused its discretion in finding that ATR, Inc. was marital property subject to division. Appellant also argues that the trial court abused its discretion by choosing an amount between the parties' conflicting testimony as to value. As such, appellant argues that the trial court had insufficient evidence upon which to rely for its valuation. Finally, appellant argues that the trial court abused its discretion by not instructing the parties to submit expert opinion evidence as to the value of the business.

At trial, with respect to ATR, Inc., the following testimony and evidence was adduced. Appellant formed ATR, Inc. with Beth Lutz on or about January 1995 and did consulting work. ATR, Inc. was a "Subchapter-S" corporation. Appellant testified that he and Lutz were the original stockholders, each having a fifty percent interest. Appellant was the president. Appellant stated that he still had interest in the company:

"Q. When did you transfer sale or otherwise dispose of your interest in this company?

"A. I have not yet today.

"Q. Are you aware or just let me ask you this, were you in the room or present when your attorney represented to me you disclaimed having any interest in this business that you no longer have ownership in?

"A. I never said that. I may have said I had no operating income from this business.

"Q. So, whatever income this company generated, and whatever the value of this company is, you still have an interest in it?

"A. Yes, I do."

Appellant further testified that he expected to dissolve the business in 1997.

On appellant's federal tax return for 1995, he reported income from ATR, Inc. in the amount of $9,212. On his federal tax return for 1996, appellant reported income from ATR, Inc. in the amount of $8,620. Appellant testified that although he reported on his 1995 tax return that he had $9,212 income from ATR, Inc., he did not actually receive that amount in cash. Appellant explained that after he began working at BC/BS of Michigan, Lutz was responsible for all the billable hours because he had signed an ethics statement and non-compete agreement with BC/BS of Michigan that stated he could do no outside work. Appellant stated, in part:

"* * * As such, the majority of the income coming into there, or the billings coming in, were hers and at the end of that year, we took a look at the respective incomes and to be personally up front, we had another employee at the same time that we had also that year, we were picking up, I believe, it was 10 or 15 an hour profit on him, so that was the total amount of income for the corporation for that year at which I took some amount out, I'm not exactly sure, I think it was $4,000 or $5,000 in cash, the rest stayed in there * * *."

Appellant accounted for the discrepancy in what he actually received and what he reported on his return by stating that it was due to the manner in which the business was structured. The "K-1" indicated that each had a fifty percent interest, so that is what he reported; however, Lutz did the majority of the work and, therefore, received most of the income. Appellant further stated that Lutz paid him for the taxes he owed on the money he reported but did not receive. Appellant testified that the same arrangement was done on his 1996 taxes; however, he actually only received about $800 in 1996 from ATR, Inc.

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Freeman v. Freeman, Unpublished Decision (12-10-1999), Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-freeman-unpublished-decision-12-10-1999-ohioctapp-1999.