In re Marriage of Mechling

2020 IL App (4th) 190749-U
Appellate Court of Illinois·Decided July 6, 2020·No. 4-19-0749·Unpublished

Opinion

NOTICE 2020 IL App (4th) 190749-U This order was filed under Supreme FILED

Court Rule 23 and may not be cited July 6, 2020 NO. 4-19-0749

as precedent by any party except in Carla Bender the limited circumstances allowed 4th District Appellate under Rule 23(e)(1). IN THE APPELLATE COURT Court, IL

OF ILLINOIS

FOURTH DISTRICT

In re MARRIAGE OF ) Appeal from the PEGGY S. MECHLING, ) Circuit Court of Plaintiff-Appellee, ) Macon County and ) No. 16D433 RONALD A. MECHLING, )

Defendant-Appellant. ) Honorable ) James R. Coryell,

) Judge Presiding.

JUSTICE KNECHT delivered the judgment of the court.

Justices Cavanagh and Harris concurred in the judgment.

ORDER

¶1 Held: (1) Defendant did not establish the trial court abused its discretion in awarding $2400 in monthly temporary maintenance to plaintiff.

(2) Defendant did not show the trial court abused its discretion in attributing the line of credit on the marital home to him while giving the marital home to plaintiff.

(3) Defendant did not establish the trial court abused its discretion in distributing more equity to plaintiff, as defendant did not establish the temporary maintenance order was erroneous and defendant owed plaintiff over $70,000 in maintenance payments.

¶2 In January 2017, the trial court ordered defendant, Ronald A. Mechling, to pay plaintiff, Peggy S. Mechling, $2400 per month in temporary maintenance. Ronald made only two months of maintenance payments. In September 2019, the court entered an order distributing the marital property and debts between the parties. Ronald appeals the distribution, arguing the court

abused its discretion by (1) awarding temporary maintenance as, when considering the expenses necessary to run his business, the parties’ income was essentially the same; (2) distributing debt on the marital home to him while giving the marital home to plaintiff; and (3) assigning greater equity to plaintiff. We affirm.

¶3 I. BACKGROUND

¶4 Peggy and Ronald were married in August 1983. Two children were born to the marriage. Both children are emancipated; the younger was a student at the University of Illinois. During the marriage, Peggy worked for the University of Illinois Extension Office. Ronald earned income by owning and renting property. Ronald also earned income by refereeing.

¶5 In October 2016, Peggy petitioned for the dissolution of their marriage. She also sought temporary maintenance.

¶6 A. Hearings on Temporary Maintenance

¶7 On November 28, 2016, before the hearing, Ronald filed his financial affidavit. Until November 2016, Ronald’s 2016 gross income was $5165. In 2015, he earned $7519. Of his monthly income, $475 was earned from the rental properties; $95 was in referee income. His monthly living expenses were $8969. The fair market value of the marital home was $170,000. The “balance due” on the property was $65,000. Ronald provided the total fair market value of the 28 properties owned, including the marital home, as “$887,300.” We have added the numbers, and the actual total is $888,300. Although Ronald listed the balance due on the properties, he did not total the balance due for all properties for the court. We added those numbers and found the amount owed on all property was $370,877. When the marital residence is removed from these calculations, the fair market value for the remaining 27 properties as of November 2016 was $718,300. When the balances due are subtracted, these figures show an

equity value for the rental properties as $411,423. Ronald’s other assets included $37,605 in checking, savings, and money-market accounts, $12,500 worth of vehicles, and $24,000 in a retirement account.

¶8 Peggy filed a section 501(a)(1) (750 ILCS 5/501(a)(1) (West 2016)) affidavit. Peggy was employed as an office support specialist at the University of Illinois Extension Office. Her gross earnings in 2015 were $32,656.93. To help with living expenses, Peggy began a part-time job with a church, earning $10 an hour, working approximately 13.6 hours per week. Peggy asserted defendant managed or rented 29 parcels of real estate and they reported Ronald’s gross income on Schedule E 2015 federal income-tax return as $150,700. Peggy averred, since the filing of the 2015 return, Ronald acquired another parcel of real estate for $12,000 and a truck with a snowblade. Since the separation, Ronald also purchased his father’s pickup truck. Plaintiff asserted her living expenses exceeded her income by $5540.22 each month.

¶9 Peggy reported her gross monthly income as $2959, with her total monthly deductions at $971. Peggy listed her monthly household expenses at $4210. Of that amount, Ronald paid $3550 and Peggy paid $660. The total monthly living expenses were $7173. Ronald paid $4168 of that amount. Peggy also had monthly debt payments of $355. Peggy listed her assets as $7091 in checking, savings, and money-market accounts and $57,225 in retirement benefits. Peggy had a 2008 Ford Escape valued at $4500. Peggy listed the fair market value of the properties managed by Ronald as $718,300; she did not know the balance due for the bulk of those properties. The fair market value of the family home was $170,472; the balance due on the home was $53,420.61.

¶ 10 On January 9, 2017, the trial court held a hearing on the petition for temporary relief. Peggy requested $3223.25 in monthly temporary maintenance. Ronald disputed the

amount, arguing Peggy’s figure was too high as it incorrectly included a health expense and college expenses for their sons, which Ronald maintained should have been subject of proceedings under section 513 of the Illinois Marriage and Dissolution of Marriage Act (Dissolution Act) (750 ILCS 5/513 (West 2016)). The court stated the following before setting temporary maintenance at $2400 per month: “I mean this is what it costs her to live. This is money she expends. Okay. I am going to show that it is heard. I have reviewed the documents. I am going to fix temporary maintenance in the amount of $2,400 per month.”

¶ 11 Ronald filed a motion to reconsider the temporary maintenance award. Ronald argued the $150,000 income for the rental properties was gross income that did not account for expenses necessary to his business. Ronald asserted when his expenses were considered, excluding depreciation, he earned $33,510 in annual income from his real property. Ronald argued, because Peggy’s gross income was more than his, temporary maintenance should not have been ordered.

¶ 12 Peggy argued Ronald had “sole and exclusive possession” of “well over a million dollars in real estate value for which [Peggy’s counsel doesn’t] believe is any mortgage on it.” Peggy stated the temporary maintenance took into consideration the expenses Peggy made for the parties’ son who was a college student. Peggy asserted the financial affidavit does not spell out the reasonable or necessary business expenses.

¶ 13 The court denied the motion, stating the following:

“I am going to show the evidence and the arguments heard.

I remember this case. I looked at the affidavits. He controls a huge amount of property, but according to the information I was supplied, derives minimal income from it; approximately, less than

three percent return on it. So I don’t think that’s really, you know, when you look at the expenses, everything is an expense and he has no income. I think the fact of the matter, he does have a substantial cash flow, and he has control over a lot of properties.”

¶ 14 B. Hearing on Property Distribution

¶ 15 In June 2019, the trial court began the hearing on the property issues. At the same hearing, the court considered two contempt petitions filed by Peggy. In her contempt petitions, Peggy asserted Ronald failed to pay maintenance and failed to deposit money from an insurance check into the designated account.

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