Jacqueline M. Nielsen v. Alan H. Nielsen

CourtCourt of Appeals of Virginia
DecidedJuly 27, 2021
Docket0010214
StatusPublished

This text of Jacqueline M. Nielsen v. Alan H. Nielsen (Jacqueline M. Nielsen v. Alan H. Nielsen) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacqueline M. Nielsen v. Alan H. Nielsen, (Va. Ct. App. 2021).

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Petty, Athey and Senior Judge Frank PUBLISHED

Argued by videoconference

JACQUELINE M. NIELSEN OPINION BY v. Record No. 0010-21-4 JUDGE WILLIAM G. PETTY JULY 27, 2021 ALAN H. NIELSEN

FROM THE CIRCUIT COURT OF LOUDOUN COUNTY Stephen E. Sincavage, Judge

Lawrence D. Diehl (Barnes & Diehl, P.C., on brief), for appellant.

John H. Kitzmann (Hope F. Rosen; Davidson & Kitzmann, PLC; ShounBach, on brief), for appellee.

Appellant argues on appeal that the trial court should not have found a material change of

circumstances and should not have decreased spousal support after appellee’s prior decision to

accept a separation package from his previous employer. We conclude the trial court did not err

in finding a material change in circumstances and did not abuse its discretion in determining the

modified spousal support amount.

I. BACKGROUND

“When reviewing a trial court’s decision on appeal, we view the evidence in the light

most favorable to the prevailing party, granting it the benefit of any reasonable inferences.”

Congdon v. Congdon, 40 Va. App. 255, 258 (2003).

Jacqueline M. Nielsen (wife) and Alan H. Nielsen (husband) were married in 1987. In

2016, the parties signed a separation agreement. At the time of the divorce decree in 2017, the

trial court awarded wife $10,000 per month in spousal support until November 1, 2027,

consistent with the separation agreement. During the relevant years of 2016 and 2017, husband worked for AOL as Vice President of Corporate Services, a title he had held for about ten years.1

His duties included design, construction, and management of leased real estate globally. The

real estate operations included security, card access administration, corporate travel, data center

management, food service for the organization, mailing and shipping, and maintaining printers

for sixty-five offices globally. Husband’s base salary at AOL was $250,000, and, with bonuses

and stock, his total earnings were $712,000 in 2016 and $364,000 in 2017. Husband’s earnings

for 2018 were $557,000.

AOL was purchased by Verizon, and during 2018 Verizon began bringing some of

AOL’s operations under Verizon to manage them directly. Husband became an employee of

Verizon in fall 2018. His job title was changed to Director of Facility Operations. As part of the

change, husband was no longer responsible for global operations. He was no longer responsible

for food service and mailing and printing functions. He was no longer responsible for corporate

travel functions. Husband testified that, except for some specific security and active construction

projects, all his other functions and staff were realigned into the Verizon business units.

Husband’s staff decreased from twenty-five employees to four employees.

In September 2018, Verizon offered its employees a voluntary separation package.

Husband testified that it was clear to him that his position was being eliminated, as he had seen

similar positions eliminated during the company’s realignment.2 Husband felt there was no

future for his position with Verizon based on his significantly diminished responsibilities.

Husband’s employment with Verizon ended in December 2018. His separation payment was

paid in 2019 and totaled $825,000.

1 The parties and trial court referred to husband’s employers as “AOL,” “Verizon,” and “CPG.” We will refer to them the same way. For the sake of clarity, we do not include Verizon’s temporary joining of AOL and another subsidiary in an entity called “Oath.” 2 Husband acknowledged that he was not told by Verizon that he would be terminated. -2- Husband continued to make spousal support payments as he looked for new employment.

Husband “leveraged [his] network” and spoke to recruiters. He spoke with thirty or forty

companies and had a dozen interviews but received no offers. After ten months, husband took a

short-term consulting engagement with CPG for a project in Canada. When that project ended in

January 2020, CPG asked husband to consult on a construction project in Washington State.

When that project was successfully completed, CPG offered husband a full-time position with

CPG effective May 2020. Husband had this job at the time of the hearing on modification of

spousal support. His salary was $250,000 with a potential bonus of $50,000.

Husband filed a motion to modify spousal support in December 2019.3 At the September

30, 2020 hearing, the trial court received testimony and exhibits from the parties. Wife argued

that there was no material change of circumstances because husband had left Verizon voluntarily

and he had sufficient assets to pay the initial support award. The trial court found a material

change of circumstances, found husband’s departure from Verizon was not voluntary, and found

that based on the parties’ needs, income, and assets the spousal support amount should be

reduced to $6,000 per month.

Wife now appeals the trial court’s decision. Wife’s assignments of error can be distilled

to three issues—whether the trial court erred in finding a material change in circumstances,

whether the trial court erred in finding husband’s departure from Verizon was not voluntary, and

whether the trial court abused its discretion in reducing wife’s spousal support.

II. ANALYSIS

Code § 20-109(B) authorizes a trial court to consider a modification of an award of

spousal support. “The moving party in a petition for modification of support is required to prove

3 Husband filed an amended motion for modification in April 2020, adding an allegation that wife was in a relationship analogous to marriage. The trial court did not find sufficient evidence of such a relationship. That decision is not before us in this appeal. -3- both a material change in circumstances and that this change warrants a modification of

support.” Dailey v. Dailey, 59 Va. App. 734, 742-43 (2012) (quoting Moreno v. Moreno, 24

Va. App. 190, 195 (1997)). The trial court then has broad discretion in deciding whether the

spousal support award should be modified and, if so, by how much. Broadhead v. Broadhead, 51

Va. App. 170, 180 (2008).

A. Material Change of Circumstances4

Wife argues that because husband voluntarily left his employment in 2018 and because

he had sufficient assets from which he could have paid spousal support, it was error for the trial

court to find a material change in circumstances. Wife argues that husband “took the risk by

changing employment and this decision does not constitute a material change in circumstances to

even get to stage two where the current financial status of the parties has to be addressed.”

Wife’s argument conflates the two steps in the trial court’s consideration.

Before a court may consider a party’s motion to modify a support obligation, it must find

a material change of circumstances. Barrs v. Barrs, 45 Va. App. 500, 506 (2005); Driscoll v.

Hunter, 59 Va. App. 22, 33 (2011) (“A material change in circumstances, by itself, does not

require the alteration of a spousal support award. Instead, the party seeking modification must

show, in addition to a material change in circumstances, that the change ‘warrants a modification

of support.’” (quoting Moreno, 24 Va. App. at 195)). “The material change in circumstances

must have occurred after the most recent judicial review of the award,” Barrs, 45 Va. App. at

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