In re the Marriage of: Angelica Bradley and Michael Ryan Bradley

CourtCourt of Appeals of Washington
DecidedJune 16, 2022
Docket38279-6
StatusUnpublished

This text of In re the Marriage of: Angelica Bradley and Michael Ryan Bradley (In re the Marriage of: Angelica Bradley and Michael Ryan Bradley) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Marriage of: Angelica Bradley and Michael Ryan Bradley, (Wash. Ct. App. 2022).

Opinion

FILED JUNE 16, 2022 In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

In the Matter of the Marriage of: ) No. 38279-6-III ) ANGELICA BRADLEY, ) ) Respondent, ) ) UNPUBLISHED OPINION and ) ) MICHAEL BRADLEY, ) ) Appellant. )

LAWRENCE-BERREY, J. — Michael Bradley appeals the trial court’s maintenance

award. He argues the court misread three large transactions in his bank statements and

assumed he had stolen a large amount of money from community property. While we

agree the trial court misread the three large transactions, substantial evidence still

supports the trial court’s finding that Mr. Bradley had sufficient undisclosed income to

pay the maintenance award. Although we affirm the trial court’s maintenance award, we

deny Ms. Bradley’s request for attorney fees on appeal. No. 38279-6-III In re Marriage of Bradley

FACTS

Angelica and Michael Bradley were married on May 15, 2018; they separated on

March 6, 2020. They had no children. A trial was held to determine the division of debts

and assets, requests for spousal support, an equalization payment, and attorney fees.

Ms. Bradley’s home and car

Ms. Bradley worked as a language specialist for Spokane School District 81. She

had been married previously. In her prior divorce, her husband had agreed to pay her

mortgage until she remarried. He also agreed to pay her car loan.

When Mr. and Ms. Bradley married in 2018, she owned her car outright. At Mr.

Bradley’s urging, Ms. Bradley bought a new car, taking out a loan to buy it. At the time

of trial, the balance of the loan was $15,415.71.

Mr. and Ms. Bradley refinanced Ms. Bradley’s home when they married and took

over mortgage payments from Ms. Bradley’s former husband. At the time of trial, the

mortgage balance was $228,662.11. They also took out a $45,000.00 home equity line of

credit (HELOC) on the home, which Mr. Bradley used at least in part to build an addition

to the house for his home office. At the time of trial, the balance on the HELOC was

$44,999.00.

2 No. 38279-6-III In re Marriage of Bradley

Mr. Bradley’s businesses

When the parties married, Mr. Bradley owned, in whole or in part, a number of

companies: Beacon Builders, Zeus-Batcave II, Six Minutes, LLC, Spokane Construction

Rentals Company, and Scout Property Management. During the marriage, Mr. Bradley

formed the company Flawless Walls with two partners. He formed Big Pine

Development with partners on April 8, 2020, one month after Ms. Bradley filed for

divorce.

The companies were all related. Beacon Builders was a general contractor. Zeus-

Batcave II was a real estate holding company; Beacon Builders leased its building from

Zeus-Batcave II. Mr. Bradley formed Scout Property Management with his business

partners with the intention of managing apartment buildings; they closed the business

after one year. Mr. Bradley formed Six Minutes with a partner with the intention of

patenting a better wall construction method. Mr. Bradley formed Spokane Construction

Rentals with the intention of using the company to buy tools and rent them to his other

companies. Flawless Walls manufactured wall assemblies for contractors including

Beacon Builders. Big Pine Development was registered as a construction company, but at

the time of trial it was not making or spending money.

3 No. 38279-6-III In re Marriage of Bradley

Ms. Bradley was not involved in Mr. Bradley’s businesses. While he deposited his

paycheck from Beacon Builders into their joint bank account, he did not deposit other

income from the companies into that account. He had $50,000 in Internal Revenue

Service tax debt from 2018 relating to his businesses; that debt was incurred before the

marriage.

Trial

Ms. Bradley argued she should be put back in the position she was before the

marriage: a paid-off car, no mortgage payments, substantial equity in her home, and no

HELOC. She requested Mr. Bradley pay her mortgage, car loan, HELOC, attorney fees,

and spousal maintenance.

Mr. Bradley testified the Beacon Builders’ bank account had been seized by the

Department of Labor and Industries for unpaid taxes and the company was not allowed to

have employees. He stated he was at that time an employee of Flawless Walls and his

take-home pay was between $800 and $900 per week. Mr. Bradley did not own a vehicle,

but drove a truck owned by Flawless Walls. He testified he was good at construction but

bad at business, and that he let his business partners handle all the businesses, including

starting Big Pine Development without Mr. Bradley’s knowledge. He testified that

Beacon Builders was hundreds of thousands of dollars in debt and that he had two to

4 No. 38279-6-III In re Marriage of Bradley

three hundred thousand dollars of negative equity in Flawless Walls. He introduced

Exhibit R-101, consisting of bank statements for Beacon Builders, Flawless Walls, and

his own personal bank account, “for [the] purpose of demonstrating that there’s a

difference between gross receipts and net profit.” Report of Proceedings (RP) at 131.

There had been a breach of contract action against Beacon Builders in which the

plaintiffs sued the owners and their spouses in their individual capacities. As a result,

judgment was entered against Mr. and Ms. Bradley for $132,000. Mr. Bradley stated he

planned to declare bankruptcy to stave off future lawsuits from his business dealings. Mr.

Bradley argued Ms. Bradley should be responsible for paying the judgment from the

lawsuits because she “didn’t get off the boat” when she knew it was sinking. RP at 86.

Mr. Bradley proposed they sell the house, pay off the judgment from the lawsuit,

and split the remaining $120,000. He argued Ms. Bradley would “walk[ ] away with no

lawsuit, no debt, no bankruptcy, no problems, and $60,000 in her pocket to make a down

payment on a house.” RP at 89. He argued the HELOC should be paid off with the

proceeds from the house sale.

Mr. Bradley called Todd Carlson to testify on the value of Mr. Bradley’s

businesses. Mr. Carlson prepared a report valuing all the businesses. He testified that

because the businesses carried debt, the businesses did not have significant value except

5 No. 38279-6-III In re Marriage of Bradley

Zeus-Batcave II because of the real estate it owned. He testified that Zeus-Batcave II had

a net worth of $210,917, and Mr. Bradley’s ownership interest was worth $52,729. Mr.

Carlson’s report valued Beacon Builders at negative $502,000 and the remaining

businesses at zero dollars.

Mr. Carlson also testified that owners of small business almost always pay their

owners a salary below market value for income tax reasons. Owners then typically pay

themselves through distributions from the company, which are not subject to Social

Security and Medicare taxes. He testified that between salary and shareholder

distributions from Beacon Builders, Mr. Bradley had been paid between $85,000 to

$90,000 in 2017 and 2018, but that in 2019, he did not receive any salary and drew out

$38,667 as a distribution.

Court’s ruling

At the outset of its ruling, the trial court noted it had taken time after the parties

presented their evidence to review all of the evidence. It found that Ms. Bradley’s house

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