Hatloy v. Hatloy

588 S.E.2d 389, 41 Va. App. 667, 2003 Va. App. LEXIS 577
CourtCourt of Appeals of Virginia
DecidedNovember 12, 2003
Docket3306024
StatusPublished
Cited by22 cases

This text of 588 S.E.2d 389 (Hatloy v. Hatloy) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hatloy v. Hatloy, 588 S.E.2d 389, 41 Va. App. 667, 2003 Va. App. LEXIS 577 (Va. Ct. App. 2003).

Opinion

FRANK, Judge.

Georgia M. Hatloy (mother) appeals the trial court’s decision to reduce child support payments owed by Matthew D. Hatloy (father). She argues the court did not impute a proper level of income to father. 1 For the reasons stated, we affirm the trial court.

BACKGROUND

On March 6, 2001, the parties were divorced, and father was ordered to pay $2,308 per month for child support. On *670 January 17, 2002, father filed a Motion for Reduction of Child Support, contending he was involuntarily terminated from his employment at America OnLine (AOL) and had no income, despite his efforts to obtain suitable employment. 2

At the hearing on the motion for reduction of child support, father testified he was terminated from his employment with AOL in November 2001. At the time of his termination, father earned $55,070 per year plus stock options, for an annual salary of $117,425.75. After his termination, he received severance pay and compensation for his unused vacation time. He also cashed in his stock options and received an inheritance of $10,000. Father paid, at most, $2,500 in child support after his termination from AOL.

Father is a high school graduate, but does not have a college degree. Prior to his AOL employment, father had numerous jobs in the “hospitality industry.” At a Ramada Inn, he was a “front-office manager,” earning $8.50 per hour. He also worked as a “bellman, customer service” at a Holiday Inn, earning $5.00 per hour. He once worked at a Home Depot in the customer service department, earning $9.50 per hour.

Upon his termination from AOL, father traveled to a number of states seeking employment in the “high-tech industry.” His quest was futile. Father testified, “And I have a stack of rejection letters from employers in Chicago, St. Louis, Washington. I mean, I really did make an extreme effort and spent about every dollar I had in savings trying to secure future employment.” He indicated, “Right now, the high-tech field is still extremely volatile, and there are no jobs, or the ones that I am competing for they really want a college degree, and usually it is at the masters level.”

At the time of the hearing, father was an employee/partner at Pine Creek Pub, a seasonal recreational resort. He characterized this position as “returning to an industry that I have *671 the training to be successful at.” He claimed the work was “something I have always wanted to do.” He explained his salary would be based on “our profits.”

The pub lost money during the previous summer, consequently, father drew no salary. However, he indicated he soon would begin drawing a salary of $1,000 per month. Father further testified he would begin earning an additional $500 to $600 per month as a “guide” at the resort.

On cross-examination, father admitted he had not sought employment in the “hospitality industry,” other than one unsuccessful effort at a Holiday Inn and the successful effort with Pine Creek Pub. Since he began his relationship with the pub, father had not sought any other employment.

During her argument opposing father’s motion for reduced child support, mother conceded that a material change in circumstances had occurred and that father lost his job “through no fault of his own.” However, mother contended father had not used good faith efforts to find suitable employment, and she asked the trial court to impute to father the amount of his base salary at AOL, i.e., $55,070.

The trial court imputed to father a gross income of $1,600 per month and reduced his monthly child support payment to $921, effective July 1, 2002. This appeal ensued.

ANALYSIS

Mother contends father failed to meet his burden to show “that he was earning as much income as is reasonable under the circumstances” and that the trial court erred in not imputing $55,070 of income to father. Essentially, mother contends he is “voluntarily underemployed.”

“Under familiar principles we view [the] evidence and all reasonable inferences in the light most favorable to the prevailing party below. Where, as here, the court hears the evidence ore terms, its finding is entitled to great weight and will not be disturbed on appeal unless plainly wrong or without evidence to support it.”

*672 Pommerenke v. Pommerenke, 7 Va.App. 241, 244, 372 S.E.2d 630, 631 (1988) (citing Martin v. Pittsylvania County Dep’t of Soc. Servs., 3 Va.App. 15, 20, 348 S.E.2d 13, 16 (1986)).

This case arose after the original divorce and child support order was entered. The standard of proof and burdens in such circumstances are clear.

“Once a child support award has been entered, only a showing of a material change in circumstances will justify modification of the support award. The moving party has the burden of proving a material change by a preponderance of the evidence.” Crabtree v. Crabtree, 17 Va.App. 81, 88, 435 S.E.2d 883, 888 (1993). “[A] party seeking a reduction in support payments has additional burdens: ‘[H]e must make a full and clear disclosure relating to his ability to pay. He must also show that his lack of ability to pay is not due to his own voluntary act or because of his neglect.’ ” Edwards v. Lowry, 232 Va. 110, 112-13, 348 S.E.2d 259, 261 (1986) (emphasis added) (quoting Hammers v. Hammers, 216 Va. 30, 31-32, 216 S.E.2d 20, 21 (1975)). Thus, in order to prove a material change in circumstances that justifies a reduction in support, a parent “must establish that he is not Voluntarily unemployed or voluntarily under employed.’ ” Antonelli v. Antonelli 242 Va. 152, 154, 409 S.E.2d 117, 119 (1991) (quoting Code § 20-108.1(B)(3)).

Virginia Dep’t of Soc. Servs. v. Ewing, 22 Va.App. 466, 470, 470 S.E.2d 608, 610 (1996).

Since mother concedes that a material change occurred in father’s financial circumstances and that he was terminated at AOL through no fault of his own, we must determine whether father met his burden to establish that he was not ‘Voluntarily underemployed.” 3

*673 The trial court found “a lack of effort” by father, who had “[a] lot of cash [pass] through [his] hands” after he was terminated by AOL.

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Cite This Page — Counsel Stack

Bluebook (online)
588 S.E.2d 389, 41 Va. App. 667, 2003 Va. App. LEXIS 577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hatloy-v-hatloy-vactapp-2003.