In Re the Marriage of Smith

225 Cal. App. 3d 469, 274 Cal. Rptr. 911, 90 Cal. Daily Op. Serv. 8492, 1990 Cal. App. LEXIS 1398
CourtCalifornia Court of Appeal
DecidedNovember 20, 1990
DocketA042136
StatusPublished
Cited by212 cases

This text of 225 Cal. App. 3d 469 (In Re the Marriage of Smith) is published on Counsel Stack Legal Research, covering California Court of Appeal 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 Smith, 225 Cal. App. 3d 469, 274 Cal. Rptr. 911, 90 Cal. Daily Op. Serv. 8492, 1990 Cal. App. LEXIS 1398 (Cal. Ct. App. 1990).

Opinions

Opinion

KING, J.

In this case we hold that before a motion for upward modification of spousal support can be considered the moving party must prove that the prior order, when made, was insufficient to meet his or her reasonable needs as measured by the applicable guidelines set forth in Civil Code section 4801, subdivision (a), or that the reasonable cost of satisfying those needs has increased. If this is shown, the moving party must then prove the obligor’s ability to pay increased spousal support.

We also hold that the marital standard of living is to be weighed under the circumstances of the case along with all other applicable factors contained in Civil Code section 4801, subdivision (a), in reaching a fair and reasonable result on the issue of spousal support. We hold that the marital standard of living is intended by the Legislature to mean the general station in life enjoyed by the parties during their marriage. The Legislature did not intend it to be a precise mathematical calculation, but rather a general reference point for the trial court in deciding this issue.

The trial court possesses broad discretion in determining the issue of spousal support but must exercise discretion weighing all of the applicable guidelines of section 4801, subdivision (a). Having done so, the trial court may fix spousal support at an amount greater than, equal to or less than what the supported spouse may require to maintain the marital standard of living, in order to achieve a just and reasonable result under the facts and circumstances of the case.

I. Introduction

Patricia C. Smith (Pat) appeals, and William D. Smith (Bill)1 cross-appeals, from an order modifying monthly spousal support by almost [476]*476doubling it from $1,700 to $3,300. Pat contends the court was mandated to increase monthly support to $7,317 to enable her to live at the standard of living established during the marriage. Bill contends support should not have been increased at all because (1) there was no showing of a material change of circumstances since the prior order and (2) there was no showing that the prior order when made did not meet Pat’s needs consistent with the marital standard of living. We affirm.

II. Facts and Proceedings

A. Dissolution and Initial Support Orders in 1977.

Bill and Pat married in 1961 and had three children, all of whom are now adults. They separated in March 1976, and the marriage was dissolved with a marital settlement agreement in March 1977.

Bill is an actuary by profession and is a partner in a major actuarial firm. He earned a healthy income before separation. In 1974, he earned a salary of $63,333 plus a bonus of $38,000; in 1975 a salary of $78,000 plus a $30,350 bonus; in 1976 a salary of $78,000 plus a $10,500 bonus.

To earn this income, however, Bill worked excessive hours. In 1974, he worked 2,000 billable hours, in 1975 he logged 1,831 billable hours, and in 1976 he put in 1,635 billable hours. In addition to billable hours, he had to spend at least 800 hours each year on administrative matters. Thus, for example, in 1974 Bill worked 2,800 hours, or (excluding a modest amount of vacation and holidays) nearly 60 hours a week.

In addition, it is undisputed that the family was living beyond its reasonable means. Bill’s salary was the sole source of family income. In 1971, the parties sold their home in Berkeley for $28,000 and bought a very large home in Piedmont for $112,000. Bill testified that the new home “was vastly more than a wage earner in my position should have tackled.” At one point they incurred some $50,000 in extraordinary home maintenance expenses. [477]*477The house “remained in a fairly constant state of dilapidation as we couldn’t afford to restore it.”

Bill further testified that in addition to the excessive housing expense, family expenditures “were out of control.” Pat’s spending habits in 1975 and 1976 were such that “money was just flowing through the family coffers.” For example, during an 11-month period in 1975, Pat spent some $10,000 on her own clothing.

The 1977 marital settlement agreement provided Bill would pay monthly family support of $1,200 plus the mortgage on the Piedmont home until it was sold. The home was sold later that year for $325,000, from which Pat received $113,000. Pat and the two remaining minor children moved to Hawaii, where she bought a house for $135,000. In 1978, by stipulation, monthly family support was increased to $2,300.

B. Stipulated Modification in 1982.

Support was modified once more in June 1982, again by stipulation. By this time all three children were adults and attending college for which Bill was expending considerable sums. Bill was working fewer hours. In 1981, he billed 1,493 hours, earning a salary of $90,000 with no bonus. At the time of the stipulation he had a monthly income of $8,120. (Ultimately, for the full year 1982 he billed 1,350 hours, earning a salary of $110,000 with a bonus of $46,525.) Pat, in contrast, had no earned income. She obtained a real estate license in 1980 and tried for two years to sell real estate, but earned no money whatsoever. Pursuant to the stipulation the court ordered Bill to pay monthly spousal support of $1,700, plus monthly payments of $560 to Pat’s creditors for 21 months.

C. 1987 Modification From Which This Appeal Is Taken.

The present dispute arose in 1987, when Pat again requested modification of monthly spousal support. By this time Bill’s income had increased substantially, and since his children had completed college he no longer had that expense. In 1986, he billed 1,256 hours, earning a salary of $156,000 with a bonus of $36,775. In 1987, his salary was $155,000 with a bonus of approximately $47,000. His 1988 income was expected to be comparable. He had remarried in 1984, and his wife earned a yearly income of approximately $55,000.

Pat, in contrast, was unemployable. She was 59 years old, with back problems and an apparent reading disability. She had sold her house in Hawaii in 1986 and returned to California, where she wanted to buy anoth[478]*478er house. From the sale of the Hawaii house she had received $165,000, of which she had $120,000 left. At the time of the 1982 modification, when she had been living in Hawaii, her monthly housing expense was $1,079, and she had no medical or dental expenses other than monthly health insurance payments of $45. In a November 1987 income and expense declaration, in which she “projected" the expenses she contended she required to live in a manner comparable to her marital standard of living, she estimated a monthly housing expense of $1,930 and, since she no longer had health insurance, monthly medical and dental expenses of $500. She also estimated increases from 1982 in her monthly clothing, entertainment and vacation expenses totalling $1,250.

Pat initially sought an increase in monthly spousal support to $9,918. She later asserted she would require monthly support of $7,317 in order to produce an after-tax income equivalent to the total monthly expenses of $5,510 she projected in her November 1987 income and expense declaration.

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Cite This Page — Counsel Stack

Bluebook (online)
225 Cal. App. 3d 469, 274 Cal. Rptr. 911, 90 Cal. Daily Op. Serv. 8492, 1990 Cal. App. LEXIS 1398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-smith-calctapp-1990.