In re Marriage of Durchslag

2024 IL App (2d) 220268-U
Appellate Court of Illinois·Decided March 12, 2024·No. 2-22-0268·Unpublished

Opinion

Nos. 2-22-0268 & 2-23-0141 cons.

Order filed March 12, 2024

NOTICE: This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

In re MARRIAGE OF ) Appeal from the Circuit Court TOBY DURCHSLAG, ) of Lake County.

)

Petitioner-Appellee, )

)

and ) No. 10-D-2480 )

SCOTT DURCHSLAG, ) Honorable ) Michael G. Nerheim,

Respondent-Appellant. ) Judge, Presiding.

JUSTICE SCHOSTOK delivered the judgment of the court.

Justices Hutchinson and Birkett concurred in the judgment.

ORDER

¶1 Held: Trial court did not err in (1) denying respondent’s motion to terminate or modify maintenance, or (2) finding respondent in indirect civil contempt and requiring him to pay petitioner’s attorney fees arising from the contempt proceedings.

¶2 Following the entry of judgment in this marital dissolution case and an unsuccessful appeal of the trial court’s award of maintenance, the respondent, Scott Durchslag, moved to terminate or modify that maintenance, arguing that there had been a change of circumstances since the initial award of maintenance. He then stopped paying maintenance, and the petitioner, Toby Durchslag, filed a petition for a rule to show cause. After a lengthy hearing, the trial court denied Scott’s

motion to terminate or modify maintenance and found him in indirect civil contempt of court for ceasing his maintenance payments without leave of court. The trial court later ordered Scott to pay attorney fees incurred in connection with the contempt proceedings. Scott appeals all of these rulings. We affirm.

¶3 I. BACKGROUND

¶4 This marital dissolution case began in 2010. In 2013, the parties entered into a joint parenting agreement under which they shared custody of their two children: MD, born October 16, 2004, and LD, born November 14, 2007. 1 In 2015, the trial court entered a judgment for dissolution of marriage that awarded Toby two-thirds of the $190,000 marital estate. The trial court also found that Toby should receive permanent (now termed “indefinite”) maintenance, based on the following evidence and findings.

¶5 Prior to marriage, Toby had earned a significant annual income ($277,255) in the marketing field. However, she had gone completely deaf during the marriage and, at the time of trial, heard only with the aid of cochlear implants, which greatly limited her chances of future employment. Scott had held a succession of extremely highly-compensated jobs at the helm of various technology companies so that, despite periods of unemployment between each of those jobs, his

1 In September 2018, MD began living full-time with Scott. Based on this fact, Scott’s

August 2020 motion to terminate or modify maintenance also sought a reduction in his child support obligation. The trial court granted that portion of the motion, calculating Scott’s new child support obligation, the amount of overpayment to be set off against his other obligations, and the new amount of child support once MD reached majority on October 16, 2022. The portion of the trial court’s order addressing child support is not before us in this appeal.

average gross annual compensation from 2006 through 2013 was $1.7 million. The family enjoyed a luxurious standard of living that included a $2 million mansion in Lake Bluff overlooking Lake Michigan, frequent international travel involving first-class accommodations, dining out at fine restaurants, maintaining a wine collection valued in the hundreds of thousands of dollars, and private schools for the children. Although Scott was unemployed in 2015 when the dissolution judgment was entered, the trial court found that he remained capable of earning his previous average income of $1.7 million. However, it reserved its ruling on the appropriate amount of maintenance until such time as he found employment.

¶6 Shortly after the entry of the dissolution judgment, Scott was hired as the CEO of Angie’s List with an annual compensation package of $5.2 to $5.9 million, well above his previous $1.7 million average annual compensation. Scott was hired to “turn around” the company, which he did, locating a buyer for it. By December 2017, Scott was once again unemployed, albeit with a “golden parachute” compensation and severance package of cash and stock options valued at $18 million. After a hearing, the trial court set Scott’s maintenance obligation at $42,645.92 per month, a figure that represented 30% of his prior average gross annual income of $1.7 million.

¶7 Scott filed an appeal challenging, among other things, his maintenance obligation. We affirmed, holding that there was nothing inappropriate about the trial court’s use of income averaging as a basis for its maintenance calculations, given Scott’s periodic unemployment and his established earning capacity. In re Marriage of Durchslag, 2019 IL App (2d) 180003-U, ¶ 31. Moreover, Scott himself had proposed that Toby receive 30% of his gross annual income, although he incorrectly calculated the amount of that income. Id. ¶ 32. Scott filed a petition for leave to appeal to the supreme court that was denied.

¶8 In August 2020, Scott filed a motion to terminate or reduce his maintenance obligation. He argued that he had experienced a substantial change in circumstances because he had remained unemployed since leaving Angie’s List and had largely run through his assets. The trial court ordered discovery and briefing. In December 2020, Scott moved to abate his maintenance obligation immediately, alleging that he was on the “verge of bankruptcy.” He then stopped paying any maintenance to Toby and did not resume those payments even after the trial court denied his motion to abate. In January 2021, Toby filed a petition for a rule to show cause why Scott should not be held in contempt for failing to pay maintenance.

¶9 The hearing on Scott’s motion to terminate or reduce maintenance and Toby’s petition for a rule to show cause began on June 1, 2021, and continued for five more days over the course of the next several months. The evidence presented included financial statements, bank statements, credit card bills, certain tax returns, and testimony primarily by the parties. Scott’s tax documents showed that his gross income from 2015 through 2019 was as follows: $668,183 in 2015; $5,308,981 in 2016; $18,313,817 in 2017; $2816 in 2018; and $107,574 in 2019. (Although Scott filed a tax return in 2020, he did not produce it.) Thus, so far as can be determined from his tax records, Scott received a gross income of over $24 million between 2015 and 2019, almost all of that accruing in 2016 and 2017. Scott testified that the compensation and severance package from Angie’s List was primarily in the form of stock in that company, and that although it was valued at about $18 million when he received it, he did not sell it all in 2017 but instead sold some of it off over time, occasionally at a “loss” (compared to its value on the date he received it). Further, he had to pay substantial tax on that package. Scott testified that he received about $2 million in cash and that his sales of Angie’s List stock had netted him $7.6 million over three years. Scott produced limited documentary evidence of these stock sales.

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