In re the Marriage of Towne

Court of Appeals of Iowa·Decided July 21, 2021·No. 20-0829·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 20-0829

Filed July 21, 2021

IN RE THE MARRIAGE OF ANGELA JO TOWNE AND LARRY DEAN TOWNE

Upon the Petition of ANGELA JO TOWNE, Petitioner-Appellee/Cross-Appellant,

And Concerning LARRY DEAN TOWNE, Respondent-Appellant/Cross-Appellee.

Appeal from the Iowa District Court for O’Brien County, Nancy L.

Whittenburg, Judge.

The husband appeals and the wife cross-appeals from the economic terms of the decree dissolving their marriage. AFFIRMED AS MODIFIED ON APPEAL AND REMANDED; AFFIRMED ON CROSS-APPEAL.

Matthew G. Sease and Kylie E. Crawford (until withdrawal) of Sease and Wadding, Des Moines, and Randall G. Sease, Hartley, for appellant.

Andrew B. Howie of Shindler, Anderson, Goplerud & Weese, P.C., West Des Moines, for appellee.

Heard by Bower, C.J., Tabor, Greer and Ahlers, JJ., and Vogel, SJ.* *Senior judge assigned by order pursuant to Iowa Code section 602.9206 (2021).

AHLERS, Judge.

After entry of a decree dissolving their marriage of twenty-eight years, Larry Towne appeals and Angela Towne cross-appeals. Larry challenges the property division and spousal support provisions of the decree, as well as the district court’s refusal to order Angela to pay his trial attorney fees. He also requests appellate attorney fees. On her cross-appeal, Angela also challenges the property division and spousal support provisions of the decree and requests appellate attorney fees. I. Background Larry and Angela married in 1991. They moved to Hartley soon thereafter, where they started a family. By the time of their dissolution-of-marriage trial in 2020, Larry was sixty years old, Angela was fifty-eight years old, and they had three boys who were twenty-seven, twenty-five, and twenty-two years old. The two older boys had graduated college and were self-supporting. The youngest was scheduled to graduate with an undergraduate degree a little more than one year after trial.

From nearly the beginning of the marriage through the time of trial, Larry has been self-employed in the construction field. Larry is a high school graduate. He did not pursue education after high school except for attending taxidermy school. His construction business has not grown substantially throughout the marriage, in part because of the nature of the business in a small town and in part because Larry has not shown much interest in causing it to grow.

Angela was a registered nurse at the time of the marriage. She continued her educational pursuits during the marriage after the boys were born, allowing her

to obtain a bachelor’s degree in nursing in 2002 and a master’s degree, making her a nurse practitioner, in 2007.

The record establishes that Angela was the primary breadwinner for the family throughout the marriage, with Larry enjoying a less hectic work schedule that allowed him time to engage in his hobbies of hunting, fishing, and golfing, in which he partook with the boys. Nine years of the parties’ joint tax returns show significant disparity in the parties’ incomes. Larry’s income came from his business, which generated income in a range from a low of a loss of $5671.00 in 2018 to a high of $15,579.00 in 2017, with an average over eight of those years of $6818.00.1 Angela’s income, on the other hand, grew substantially commensurate with her educational achievements. During the same nine-year period, Angela’s income ranged from a low of $82,331.00 in 2010 to a high of $114,321.00 in 2014, with income in excess of $100,000.00 in every year starting in 2013.

Of significance to the case, Larry was diagnosed with cancer in 2017. He had various forms of treatment, including surgery. As a result of complications with the surgery, Larry suffered nerve damage to his right hand. His medical treatment and the recovery afterward contributed to a reduction in Larry’s already modest income. Although contested at trial, the record establishes Larry continues to suffer complications from the aftermath of the surgery and the nerve damage to his hand that limits his ability to do certain things. As a result, he has qualified for and is receiving Social Security disability benefits.

1The $6818.00 figure comes from an average of Larry’s income taken from the 2010 to 2017 tax returns. We did not include the loss from 2018 because, as will be discussed, it was an anomalistic year due to Larry’s health problems.

Other details about the parties and the case will be addressed in the following discussion of the issues raised by the parties. II. Trial Outcome The parties could not reach an agreement regarding property division or spousal support and submitted their dispute to the district court at trial. As relevant to this appeal, the district court resolved the property dispute by valuing the parties’ assets and debts and distributing them as shown by this recapitulation statement:

Description of Asset/Debt Angela Larry House Divided upon sale Divided upon sale 2019 Ford F-150 $40,317.00 2003 Ford F-150 $500.00 IPERS Divided by QDRO Divided by QDRO TIAA-CREF $4,578.00 Roth IRA $37,037.00 Rollover IRA $34,206.00 401(k) $125,525.00 Boat, motor, and trailer $22,795.00 Older boat $2,000.00 Tools $3,000.00 Guns and bows $2,000.00 Mower, blower, trimmer $1,500.00 Golf cart $100.00 Furniture $7,763.00 $7,763.00 Jewelry $0.00 $0.00 House Mortgage Divided upon sale Divided upon sale 2019 Ford F-150 loan ($28,578.00)

Wife’s student loans ($49,693.00)

Youngest child student loans ($26,107.00)

Middle child student loans ($32,843.00)

Oldest child student loans ($34,422.00)

Cabela’s credit card ($8,397.00) ($8,397.00)

Boat loan ($21,188.00)

Scheels credit card ($1,786.00)

Snider’s Auto debt ($1,700.00)

Total Prior to Equalization $69,386.00 $6,587.00 Equalization Payment ($31,399.50) $31,399.50 Net Distribution $37,986.50 $37,986.50

As noted, due to the disparity of the division of assets and debts, the district court ordered Angela to pay Larry $31,400.00 to equalize their respective share of the marital net worth.2 As for spousal support, the district court imputed income to Larry of $45,500.00.3 Based on that imputed income, Angela was ordered to pay Larry traditional spousal support of $750.00 per month until Larry reached the age of sixty-seven, at which point the spousal support payment would decrease to $500.00 per month. The spousal support was ordered to cease upon the death of either party or Larry’s remarriage.

The district court made each party responsible for that party’s own trial attorney fees and equally divided the court costs. Larry appeals, and Angela cross-appeals. III. Issues Presented Larry makes five claims: (1) it was inequitable to treat the children’s student loan debt as marital property that decreased Angela’s comparative net worth and thus reduced the equalization payment owed to Larry; (2) the district court erred in

2 Due to rounding, our recapitulation statement does not exactly mirror the district court’s, but any difference is negligible. 3 This figure was not based on any historical data, as there is no evidence in the

record that Larry ever earned this much in a year. Instead, the district court assumed Larry could generate work of forty hours per week every week of the year and multiplied those hours by Larry’s hourly billing rate. The court then reduced that gross revenue figure by an overhead percentage calculated from Larry’s testimony about his expected gross revenue and net profit in 2019.

valuing the parties’ jewelry at zero; (3) Larry was awarded insufficient spousal support; (4) Larry should have been awarded trial attorney fees; and (5) Larry should be awarded appellate attorney fees.

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