In the Matter of the Marriage of: Kimberly Anne Bartlett & Douglas Alan Bartlett

CourtCourt of Appeals of Washington
DecidedNovember 9, 2021
Docket36751-7
StatusUnpublished

This text of In the Matter of the Marriage of: Kimberly Anne Bartlett & Douglas Alan Bartlett (In the Matter of the Marriage of: Kimberly Anne Bartlett & Douglas Alan Bartlett) 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 the Matter of the Marriage of: Kimberly Anne Bartlett & Douglas Alan Bartlett, (Wash. Ct. App. 2021).

Opinion

FILED NOVEMBER 9, 2021 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 re the Matter of the Marriage of ) ) No. 36751-7-III cons. with KIMBERLY ANNE BARTLETT, ) No. 36810-6-III ) Respondent, ) ) UNPUBLISHED OPINION and ) ) DOUGLAS ALAN BARTLETT, ) ) Appellant. ) )

FEARING, J. — Douglas Bartlett appeals the property division, a spousal

maintenance order, and a child support order entered in his marital dissolution action.

Because the dissolution court did not abuse its discretion in its rulings, we affirm the

court.

FACTS

Douglas Bartlett and Kimberly Bartlett began cohabitating in 2003. The couple

bore a son in 2004 and a daughter in 2006. Douglas and Kimberly intermarried on July No. 36751-7-III cons. w/36810-6-III In re Marriage of Bartlett

1, 2006 in Spokane. Kimberly, a trained beautician, quit her job as a hair designer on the

birth of the son in 2004.

In 2003, Douglas Bartlett formed Bartlett, LLC, a business that purchases and sells

used automobiles. Bartlett, LLC held title to Douglas and Kimberly Bartlett’s vehicles,

motor homes, and boats, among other personal property. Kimberly did not know of

ownership of these assets in the limited liability company until she separated from

Douglas in 2017.

Beginning in 2013, the Bartlett family lived on S. Dishman-Mica Rd. outside of

Spokane. The two also owned an adjacent, five-acre lot on Dishman-Mica Rd. At trial,

Douglas and Kimberly agreed that the value of the family home was $475,000 and the

value of the neighboring property was $145,000. Bartlett, LLC owned and leased to

renters an earlier family home at 9908 E. Holman Rd.

In 2016, Douglas Bartlett refinanced the family residence. At that time, Douglas

told Kimberly the refinancing sum was $140,000. After separating from Douglas,

Kimberly learned that he refinanced the residence for $400,000, which increased the

house payment from $1,800 to $2,500 per month. At the time of trial, the couple owed

$385,153 on the family home.

In 2016, the Internal Revenue Service (IRS) imposed a $58,721.16 tax lien on the

Dishman-Mica Road family residence for taxes. At trial, Douglas Bartlett expressed no

concern about this lien and protested that he would retire the lien.

2 No. 36751-7-III cons. w/36810-6-III In re Marriage of Bartlett

After separation from Douglas in 2017, Kimberly Bartlett worked part-time as an

assistant cook for Spokane Valley’s Central Valley School District, a hairdresser, and a

house cleaner. At trial, Kimberly averred that she could earn $1,841 per month, although

she earned less than that amount then. She estimated that monthly expenses for her and

the two children totaled $6,420.

The parties disputed the value of the ongoing business, Bartlett, LLC. Douglas

Bartlett hired CPA Steven Kessler, and Kimberly retained the services of CPA Scott

Martin. Kessler valued Bartlett, LLC at $1,089,000. Martin valued the business at

$1,334,412.

During his testimony at trial, accountant Steven Kessler mentioned two

shareholder loans owed to Bartlett, LLC. Kessler valued the loans at $97,250 and

$78,730 respectively. Kessler refused to count the loan values in the valuation of

Bartlett, LLC:

[O]ne asset this business had was a shareholder loan receivable of $175,000 [the rough value of the two loans combined]. . . . So when I do a net tangible asset, I treat that as zero because the reality is no shareholder is ever going to repay it and so I make it a zero.

Report of Proceedings (RP) at 398-99 (emphasis added).

During trial, the parties also disputed the amount of Douglas Bartlett’s income.

Douglas and Kimberly Bartlett’s 2016 tax return reported an adjusted gross income of

3 No. 36751-7-III cons. w/36810-6-III In re Marriage of Bartlett

$278,037. Their 2015 joint tax return listed an adjusted gross income of $321,823. All

of the income came from Douglas’ work in the used car field.

In a November 6, 2018 financial declaration, Douglas Bartlett estimated his gross

annual income to be $157,000, or about $13,000 per month. At trial, Kimberly’s expert,

Scott Martin, estimated Douglas’ 2017 gross income to be $137,722. Douglas’ expert

Steven Kessler, instead of testifying to Douglas’ income, estimated the “market rate

compensation” for Douglas’ services at $135,000. RP at 419.

From September 2017 to April 2018, Douglas Bartlett wired international bank

transfers in the total sum of $1,500,000. In 2017 and 2018, Douglas took petty cash

draws from Bartlett, LLC in the tens of thousands of dollars.

Steven Fitch, a former employee of Douglas Bartlett, testified at trial that Douglas

started Spokane County Biodiesel, a company for which Fitch served as the chief

financial officer. According to Fitch, Douglas sold the business in 2012 for $900,000.

PROCEDURE

On November 1, 2017, Kimberly Bartlett filed a petition for dissolution. The

matter proceeded to a trial beginning in December 2018.

At the conclusion of the trial, the dissolution court awarded the family home,

located on S. Dishman-Mica Rd., to Kimberly Bartlett. The court awarded the other two

parcels of real property, on S. Dishman-Mica Rd. and E. Holman Rd., to Douglas

Bartlett. The court awarded a multitude of vehicles, some furniture, and the Washington

4 No. 36751-7-III cons. w/36810-6-III In re Marriage of Bartlett

Trust Bank and Banner Bank accounts to Douglas. The dissolution court awarded two

vehicles, a mountain bike, and $15,000 in other property, to Kimberly.

In its oral ruling, the dissolution court accepted Kimberly Bartlett expert’s

valuation of Bartlett, LLC at $1,334,412. In its later written findings of fact and

conclusions of law, however, the court adopted Douglas Bartlett expert’s valuation of the

limited liability company at $1,089,000. The trial court characterized the ownership

interest in the limited liability company as Douglas’ separate property and awarded the

entire interest in the business to Douglas. The dissolution court ordered Douglas to pay

all community debts, including the mortgage and the IRS tax lien on the family home.

In its oral ruling, the dissolution court commented on the equitable nature of its

division of property:

[T]he Court finds a number of properties, and even though they were listed as part of the LLC, the Court did pierce the veil so to speak to a limited degree in ascertaining whether these were really community or separate assets. Perhaps a better way of phrasing is that the distribution decisions of the Court are fair regardless of characterization.

RP at 533 (emphasis added).

The dissolution court imputed $1,841 of gross monthly income to Kimberly

Bartlett on the assumption that she could earn that amount by working full-time. The

court rejected Douglas Bartlett’s estimate of gross monthly income of $13,000 per month

and instead imputed his income at $18,000. The court explained:

5 No. 36751-7-III cons. w/36810-6-III In re Marriage of Bartlett

It is very difficult to ascertain the Respondent’s income because he controls the income history he draws from the LLC. He has a unique business, and he really dictates what his salary is and it can vary widely. The Court finds Respondent has the ability to generate significant income.

Clerk’s Papers (CP) at 331.

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