In Re The Marriage Of: Kain Kirkendoll, V Kristin Kirkendoll

CourtCourt of Appeals of Washington
DecidedOctober 4, 2016
Docket47832-3
StatusUnpublished

This text of In Re The Marriage Of: Kain Kirkendoll, V Kristin Kirkendoll (In Re The Marriage Of: Kain Kirkendoll, V Kristin Kirkendoll) 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: Kain Kirkendoll, V Kristin Kirkendoll, (Wash. Ct. App. 2016).

Opinion

Filed Washington State Court of Appeals Division Two

October 4, 2016

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II In re the Marriage of No. 47832-3-II

KAIN KLAUDE KIRKENDOLL,

Petitioner,

and

KRISTIN ALENE KIRKENDOLL, UNPUBLISHED OPINION

Respondent.

JOHANSON, J. — Kain Kirkendoll appeals the trial court’s parenting plan, property

distribution, and maintenance order in the dissolution of his marriage to Kristin Peterson, formerly

known as Kristin Kirkendoll. We conclude that the trial court did not commit error nor did it abuse

its discretion. Accordingly, we affirm.

FACTS

I. BACKGROUND

Kirkendoll and Peterson were married in 1987 and had one minor child at the time of their

dissolution. In 2014, after 27 years of marriage, Kirkendoll filed a dissolution petition. No. 47832-3-II

II. FATHER’S RESIDENTIAL TIME

The residential schedule of the parties’ minor daughter, K.K.,1 was an issue at trial. Under

the temporary parenting plan, K.K. lived with Kirkendoll from Sunday morning through Monday

evening and again on Tuesdays after she left school until 7:00 PM. At trial, Kirkendoll requested

additional residential time of one extra weeknight and additional time in the summer. The trial

court spoke in camera with 14-year-old K.K., without counsel or the parties, about her residential

schedule preferences. K.K. explained her preferences and concerns regarding the time spent with

her father. The trial court acknowledged K.K.’s concerns but suggested to her that it was important

to maintain a relationship with her father.

III. WASHINGTON HOME CENTER INC.

In the 1990s, first Peterson, then Kirkendoll, began work as sales managers at Washington

Home Center Inc. (WHC), a company that sold manufactured homes. In 2007, Peterson and

Kirkendoll purchased WHC for approximately $1.2 million. The vast majority of the purchase

price reflected inventory cost, but it also included outdoor and indoor equipment and $66,000 of

goodwill value. Shortly thereafter, when the housing market dropped, Peterson took a job at an

athletic club.

At trial in June 2015, Kirkendoll’s expert witness, Devon Brown, certified public

accountant, provided an opinion as to WHC’s current value. Brown opined that WHC was worth

approximately $100,000, all of which represented the business’s goodwill because the equity

balance was a deficit. Brown calculated WHC’s worth by using the business’s tax returns from

1 We use the child’s initials to provide some confidentiality.

2 No. 47832-3-II

2009 to 2013, the terms of purchase, published data from the manufactured homes industry, and

her own observation of the inventory.

On cross-examination, however, Brown admitted that the business appeared to be making

a significant turnaround and that based on the 2014 numbers, the business’s adjusted net income

would be “significantly higher.” 1 Report of Proceedings at 47. Brown conceded that there was

no reason to believe that the business could not return to prerecession levels of sales.

IV. TRIAL COURT RULING

The trial court ruled that K.K. would reside primarily with her mother, but it ordered

visitation with her father every other Sunday. And the trial court left additional visitation open to

agreement between K.K. and Kirkendoll.

The most contested aspect of the trial was the valuation of the family business. Most

significantly, the trial court relied on Brown’s testimony concerning the valuation of WHC. The

trial court’s findings acknowledged that Brown had initially valued the business at $100,000 but

later conceded that her valuation, which was based on the financial information that Kirkendoll

provided, relied primarily on a five-year span that was the worst such period for home sales “since

the Great Depression.” Clerk’s Papers (CP) at 178. The trial court then discussed the business’s

marked improvement within the year or two before the dissolution and noted that the business

appeared to be generating a greater profit than it had in years past and appeared to be poised to

continue that trend. In light of these facts, the trial court interpreted Brown’s response to similar

lines of questioning as “support[ing] a valuation in the $200,000 range.” CP at 178.

The trial court adopted Peterson’s exhibit 22 “with respect to the division of property and

liabilities,” including an award to Kirkendoll of the family home and WHC. CP at 179.

3 No. 47832-3-II

Importantly, exhibit 22 did not include an exact valuation of WHC but gave a wide range of

$100,000 to $1.2 million to represent the business’s value. Using this range, the trial court

calculated the total award of assets to Kirkendoll at $293,966 to $1,393,966 and awarded to

Peterson $274,104. Additionally, relying largely on Kirkendoll’s 2014 tax return, the trial court

found that his income that year was $149,293, for a total gross monthly income of $12,439. It

found that Peterson’s income was $3,866 monthly.

Based principally on these numbers, the trial court found that Peterson had demonstrated a

need for spousal maintenance. The trial court reasoned that because it awarded Kirkendoll the

family home and business, the only way to compensate Peterson was to award maintenance. It

ordered Kirkendoll to pay $3,000 per month to Peterson and stated in its findings that such an

award was based both on Peterson’s need as well as a method to reach a fair and equitable

distribution of the assets and liabilities. The trial court was aware that the award was high but

noted that even with the award, Peterson’s income was still less than Kirkendoll’s, and the trial

court believed the award to be fair in light of the uncertain nature of the business. Kirkendoll

appeals, challenging several of the trial court’s findings and rulings.

ANALYSIS

I. PARENTING PLAN—RESIDENTIAL PLACEMENT

Kirkendoll argues that the trial court abused its discretion when it ordered only one day of

visitation every two weeks. He contends that the parenting plan was “restrictive by any definition.”

Br. of Appellant at 17. We disagree that the trial court abused its discretion.

4 No. 47832-3-II

A. LEGAL PRINCIPLES

Generally, we review a trial court’s decisions about parenting plan provisions for an abuse

of discretion. In re Custody of Halls, 126 Wn. App. 599, 606, 109 P.3d 15 (2005). A trial court

abuses its discretion if the decision rests on unreasonable or untenable grounds. Halls, 126 Wn.

App. at 606. We are reluctant to disturb child placement dispositions because it is the trial court

that hears evidence and observes witnesses. In re Parenting & Support of C.T., 193 Wn. App.

427, 442, 378 P.3d 183 (2016). Decisions regarding residential provisions must be made in the

best interest of the child after considering the factors set forth in RCW 26.09.187(3). In re

Parentage of J.H., 112 Wn. App. 486, 492-93, 49 P.3d 154 (2002).

B. RESIDENTIAL TIME—LIMITATIONS

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