Jacqueline M. Nielsen v. Alan H. Nielsen

Court of Appeals of Virginia·Decided July 27, 2021·No. 0010214·Published

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.

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.

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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