Huntley v. Huntley

61 S.W.3d 329, 2001 Tenn. App. LEXIS 432
CourtCourt of Appeals of Tennessee
DecidedJune 14, 2001
StatusPublished
Cited by85 cases

This text of 61 S.W.3d 329 (Huntley v. Huntley) 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
Huntley v. Huntley, 61 S.W.3d 329, 2001 Tenn. App. LEXIS 432 (Tenn. Ct. App. 2001).

Opinion

OPINION

SWINEY, J.,

delivered the opinion of

the court,

in which GODDARD, P.J., and FRANKS, J., joined.

In this child support modification action, the Trial Court held that a significant variance existed between William Sidney Huntley’s (“Defendant”) child support obligation set by the parties’ Marital Dissolution Agreement (“MDA”) and the amount mandated by the Child Support Guidelines (“Guidelines”). The Trial Court ordered an increase in child support consistent with the Guidelines. Because the Guidelines’ flat percentage amount of child support totaled approximately $6,600 per month, the Trial Court ordered that it be divided between child support payments of $3,100 and payments to a non-educational trust (“Trust”) in the amount of $3,500. Defendant appeals and primarily contends that his child support obligation should not be increased to the Guidelines’ flat percentage amount because that amount exceeds a reasonable amount of child support and because the MDA controls his child support obligation despite any increases in his income. Kristin B. Huntley (“Plaintiff’) also raises issues on appeal, primarily regarding the Trust. We affirm.

Background

These parties were married in 1983 and have one child (“Child”) born in 1987. The parties were divorced in 1995. The MDA was incorporated into the court’s final order. The MDA provided that Defendant was to pay “support and maintenance of the Child [in] the sum of $1,440 per month and the cost of tuition at a mutually agreed upon primary or secondary private institution. ...” Further, the MDA ordered that Defendant was to pay alimony in solido to Plaintiff in the amount of $5,000 per month for a period of five years with the alimony *332 being reduced to $2,000 per month on April 15, 2000, and continuing for another five-year period.

In 1998, Plaintiff filed a Complaint to Modify in which she sought an increase in child support due to an increase in Defendant’s income and the “substantial variance” between Defendant’s child support obligation and the obligation set by the Guidelines. 1 Defendant, in his Answer, contended that the $1,440 per month in child support plus the cost of the Child’s private school tuition, health care costs and other expenses exceeded the Guidelines’ amount. Defendant also contended that Plaintiff was wasting assets of three custodial accounts. 2

Defendant, a stockbroker with Merrill Lynch, is a participant in a deferred compensation plan, the Financial Consultant Capital Accumulation Award Plan (“FCCAAP”), in which Merrill Lynch sets a reserve of 2% of Defendant’s gross production for each year. The cash value of that 2% is converted into Merrill Lynch common stock on the last fiscal day of the plan year. After ten years, Defendant becomes 100% vested in the award, and the award is paid in equivalent shares of common stock or cash, depending upon the award’s value on the vesting date. The award is recorded as income on Defendant’s W-2 in the year Defendant receives the FCCAAP award.

At the time the parties negotiated the MDA in 1995, Plaintiffs CPA expert witness estimated Defendant’s future income, including the forthcoming FCCAAP awards. Plaintiffs CPA was nearly 100% accurate in his projected earnings for Defendant. The record on appeal shows that at the trial of this matter, proof regarding Defendant’s income from his FCCAAP awards for 1998 and 1999 and anticipated FCCAAP award for 2000 was presented.

The parties tried this matter in February and March 2000. The Trial Court issued a Memorandum Opinion in May 2000, and held that an increase in Defendant’s child support obligation was warranted because a significant variance existed between the Guidelines and Defendant’s child support obligation under the MDA. Because Defendant’s income for 1998, 1999, and anticipated income for 2000 fluctuated due to his FCCAAP earnings, the Trial Court, in its Memorandum Opinion, prorated the FCCAAP income from the date of entry of the MDA in 1995 and added the prorated amount to Defendant’s gross income from other sources. 3 The Trial Court then calculated Defendant’s net average income for the years 1998, 1999, and 2000 at $379,440.70. The Trial Court determined that Defendant’s child support obligation, according to the Guidelines, was 21% of Defendant’s net average monthly income, or approximately $6,600.

In determining whether a downward deviation from the Guidelines was warranted, the Trial Court, in its Memorandum Opinion, applied Tenn.Comp.R. & Regs., title, 1240, ch. 2-4-.04(3), and considered the best interest of the Child and the circumstances of the parties. In light of Plaintiffs monthly expenses and the reduction *333 in alimony from $5,000 per month to $2,000 per month starting in April 2000, the Trial Court held that Defendant’s child support obligation should increase to $3,100 per month to afford the Child the same standard of living that he would have enjoyed had his parents not divorced.

As to the remaining $3,500, the Trial Court ordered that a Trust be established for the benefit of the Child to “be used for enhancing [the Child’s] athletic skills, for extra amenities, for post-graduate education and for other opportunities to begin a lucrative career” until the Child turns age 25. 4 The Trial Court found that a trust fund restricted solely for education was not necessary in this instance because sufficient funds already were set aside for that purpose. Defendant was ordered to make monthly payments to the Trust in the amount of $3,500 until the Child turns age 18. The Trial Court further ordered that any funds remaining in the Trust when the Child turns age 25 would revert to Defendant.

In response to Defendant’s contention that he was paying the amount set forth in the Guidelines’ Chart, $1,440 per month in support plus private school tuition and other expenses, the Trial Court held that the MDA did not state clearly that it complied with the Guidelines. Accordingly, the Trial Court held that Defendant’s obligation to pay tuition was a contractual agreement under the MDA, and that the tuition amount was not a child support obligation subject to modification.

After the Trial Court issued its Memorandum Opinion, Defendant filed a Motion to Recuse and to Strike or Otherwise Set Aside Memorandum Opinion and Order. As grounds for his motion, Defendant contended that the Trial Judge’s role as a witness in other, non-related litigation (“other litigation”) impacted the Trial Judge’s decision in this matter. Defendant’s attorney cross-examined the Trial Judge for a period of two days during the trial in the other litigation in May 2000. The Trial Judge rendered his decision in this matter five (5) days later, on May 10, 2000. Defendant further contends that since the trial in this case was concluded on March 3, 2000, he did not anticipate that the Trial Judge’s role as a witness in the other litigation would have any bearing on his decision. The Trial Judge did not recuse himself.

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Cite This Page — Counsel Stack

Bluebook (online)
61 S.W.3d 329, 2001 Tenn. App. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huntley-v-huntley-tennctapp-2001.