In re Marriage of Wilcox

553 P.3d 614, 3 Wash. 3d 507
Washington Supreme Court·Decided August 8, 2024·No. 102,401-1·Published·Cited by 17 cases

Opinion

FILE THIS OPINION WAS FILED FOR RECORD AT 8 A.M. ON

AUGUST 8, 2024

IN CLERK’S OFFICE SUPREME COURT, STATE OF WASHINGTON AUGUST 8, 2024 ERIN L. LENNON SUPREME COURT CLERK

IN THE SUPREME COURT OF THE STATE OF WASHINGTON

IN RE THE MARRIAGE OF: No. 102401-1 MARINA P. WILCOX, En Banc Respondent,

and Filed: August 8, 2024 MATTHEW EMERY WILCOX, Petitioner.

WHITENER, J. — This is the second appeal in this matter. Matthew Wilcox seeks review of an unpublished court of appeals decision that affirmed the trial court’s spousal maintenance award of $4,000 per month for 11 years to Marina Palomarez (formerly known as Wilcox). The question presented is whether a trial court abuses its wide discretion when it awards spousal maintenance in an amount and duration that exceeds the requesting spouse’s needs.

We hold that while a trial court must consider a requesting spouse’s need for support before awarding maintenance, among the other statutory factors listed in RCW 26.09.090, a finding of need is not a prerequisite to a maintenance award.

Here, the trial court did not abuse its wide discretion in awarding Palomarez

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maintenance payments in the amount of $4,000 per month for a period of 11 years because the trial court considered the particular circumstances of this case and all of the statutory factors set forth in RCW 26.09.090. Accordingly, we affirm the Court of Appeals.

FACTS

I. FACTUAL BACKGROUND Palomarez and Wilcox married in October 1994, separated in July 2015, and obtained a dissolution decree in May 2019. Clerk’s Papers (CP) at 83, 733, 736. The parties’ agreed and the court categorized their more than 20 year marriage as a “‘long-term’ marriage.” CP at 736-37.

Wilcox has a bachelor of science degree in psychology with a minor in business from Washington State University. CP at 182, 192. Palomarez graduated from Sunnyside High School and attended Heritage College for one year but did not acquire any degrees. CP at 334.

During the marriage, the parties purchased a family home in Yakima. CP at 738, 740. At the time of separation, the mortgage debt was approximately $34,000 and was paid off during this divorce action in June 2018. CP at 396.

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During the marriage, the parties lived a secure, middle-class lifestyle. CP at 750, 855. They dined out two to three times a week and took a vacation once a year. CP at 360-61. Together they raised two children, now adults, and the children are not at issue in this matter. CP at 737.

A. Palomarez’s Employment History Between 1994 and 1997, Palomarez worked as a receptionist for various employers. CP at 335-36. In 1997, she worked part-time for a dentist but was fired during her second pregnancy. CP at 336. Shortly thereafter, the parties agreed that she would not return to work and would stay home to raise their two children. CP at 336-37; Ex. 53.18, at 3.

In 2004, Palomarez returned to work but worked only on a part-time basis until 2007. CP at 337; Ex. 53.18 at 3. Her net income in 2004 was $1,900; in 2005, $8,842; in 2006, $8,718; and in 2007, $10,485. Ex. 53.18, at 3. From 2009 to 2017, Palomarez worked as a receptionist for another pediatric dentist until she was terminated during the pendency of this divorce action. CP at 337. Palomarez worked various other receptionist-type jobs for several employers, and as of October 2020, she worked in the customer service call center for Costco. CP at 337-38, 764.

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On average between 2011 and 2017, Palomarez earned just $30,000 per year.

CP at 738; Ex. 53.18. According to her financial declaration filed in October 2021, she makes $2,840 per month (exclusive of spousal maintenance payments), while her expenses totaled $2,719 per month. CP at 764-65.

Palomarez is bilingual in English and Spanish. CP at 405-06. She explored becoming a court reporter but had been informed by a recruiter that demand was low. CP at 362. At the time of the trial she had not exerted efforts in leveraging her bilingual skills in finding employment because she was in the middle of a divorce. CP at 406.

B. Wilcox’s Employment History Wilcox worked at Graham Packaging from 1994 to 2008. CP at 184-85. He was employed as the production manager and earned approximately $75,000 per year, which included benefits and a modest bonus. CP at 737.

In 2008, the parties sought to purchase Knotts Power Sports, which is located in Yakima, for $400,000. CP at 743-44. However, the lending market tightened up at this time, and, as a result, the parties could not secure conventional financing to purchase the business. CP at 744. The parties financed the purchase through a $300,000 loan from Kathryn Hosack, Wilcox’s mother, and a $100,000 loan from

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the owner-seller. CP at 745. The parties purchased the business to provide Wilcox with employment and a dependable salary. CP at 744-45. By January 2019, the parties owed Hosack $250,000 at 5 percent interest, and the $100,000 loan from the owner-seller was repaid. CP at 747.

The business is now known as Premier Power Sports. CP at 746. Wilcox has managed it since its purchase and testified at trial that he planned to work for an additional 15 to 20 years. CP at 185, 746-747.

During the first six years of operation, the business “struggled immensely.”

CP at 186. Premier Power Sports reported $2,586 in losses in 2009; and reported net income of $29,095 in 2010; $16,329 in 2011; $49,617 in 2012; $75,787 in 2013; and $52,917 in 2014. Exs. 14-20.

In 2014, the parties converted Premier Power Sports from a limited liability company to an S corporation. CP at 221. In 2015, the year that the parties separated, the business saw substantial gains. In 2015, it reported ordinary business income of $158,761; in 2016, $192,760; and in 2017, $167,390. Exs. 22, 24, 26; CP at 780. During these years, and despite these increases in reported ordinary business income, Wilcox’s salary as the manager increased only nominally. During all financial years, Wilcox reported income from Premier Power Sports only in the amount of $34,000

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to $40,000 per year, regardless of the actual net income of the business. The corporation, at the direction of Wilcox, retained a substantial portion of its earnings. CP at 743, 750, 780; Exs. 20-26.

The income from Premier Power Sports paid some of Wilcox’s personal expenses and approximately $4,000 per year for community expenses. CP at 747. The business paid for a Dodge Ram pickup truck that Wilcox uses, vehicle insurance, gasoline, and cell phone bills. CP at 196, 198-202, 560-61. After the parties separated, the business paid spousal maintenance Wilcox owed Palomarez, as well as his attorney fees and expert witness fees. CP at 209-10, 322. He also bartered with other service providers for car repairs and dental care. CP at 203-04, 674. II. PROCEDURAL HISTORY In August 2015, Palomarez filed a divorce petition. CP at 3. Wilcox paid $2,500 in temporary spousal maintenance and some child support until their youngest child attended college. CP at 406; Ex. 5.

At trial, each party hired an expert witness to testify about the value of Premier Power Sports. Palomarez’s expert appraised the business at $522,000, and Wilcox’s expert appraised it at $335,000. CP at 228, 462. The trial court awarded the business to Wilcox (valued at $500,000 but encumbered by $250,000 in debt), and awarded

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