Justin Alexander Marx v. Tara Johnie Shelby

CourtCourt of Appeals of Washington
DecidedApril 9, 2018
Docket75755-5
StatusUnpublished

This text of Justin Alexander Marx v. Tara Johnie Shelby (Justin Alexander Marx v. Tara Johnie Shelby) 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
Justin Alexander Marx v. Tara Johnie Shelby, (Wash. Ct. App. 2018).

Opinion

- fILE0 'COURT OF APPEALS DIV I STATE OF WASHINGTON

2018 APR -9 AM 851 Ni THE COURT OF APPEALS OF THE STATE OF WASHINGTON the Matter of the Marriage of ) ) N.75755-5-1 S',TIN ALEXANDER MARX, ) ) DIVISION ONE Respondent, ) ) UNPUBLISHED OPINION , and ) ) RA JOHNIE SHELBY, ) 1 ) FILED: April 9, 2018 i I 1 A ellant. 1 ) I i ! ! ! ! TRICKEY, A.C.J.— The trial court divided JuStin Marx and Tara Shelby's assets and i 1 d4bis in their dissolution of marriage proceeding. The trial court declined to award Shelby i 1 6intenance. Shelby appeals, arguing that the trial court's findings were not Supported ! ! ! sUbstantial evidence, the trial court's property division was not equitable, and the trial .1 , 1 Uri erred when it declined to award her maintenance. Finding no error, we affirrri.

FACTS ! In 1995, Shelby and Marx began dating while going to school in New York. In

2 01; Shelby moved to Seattle to attend Bastyr University. Marx was enrolled in a joint . , ! JOris Doctor(JD) and Master of Business Administration program at American University , 1 , i Washington, D.C., and transferred to Seattle University School of Law as a visiting JD ! , ! 1 , dent. Eventually, Marx and Shelby began living together in Seattle. 1 1 In 2002, Shelby received her degree in Spirituality, health, and medicine from

r, and began naturopathic medicine and midwifery programs. in 2003, Marx left to

dy abroad for a semester at City University of i-iong Kong. While Shelby was visiting I f

76755-5-1/ 2

',they became engaged. In May 2003, Marx graduated from law school but Could

secure a legal job.

Marx and Shelby married in 2004. After the wedding, Marx accepted a job with his

fa !ler doing marketing for Marx Companies, the family business located in New Jersey.

rx worked for Marx Companies remotely and wOrked toward starting the lbusiness on

West • Coast. i•

, In 2005, Shelby became seriously ill because of an enlarged spleen. In May 2006,

S lby had her spleen removed.

In 2008, Shelby graduated from Bastyr with degrees in naturopathy and midwifery.

r total student debt was $284,691. After taking her boards, Shelby began working at

0 e Sky Wellness as a receptionist and naturopaih. By April 2009, Shelby had opened

CiWn naturopathic practice, Shelby Naturopathy.

' In February 2010, Shelby became ill when he and Marx were traveling in Belize.

e Was diagnosed with aeromonas hydrophila, a bacterial infection. She elected to start

t king Remicade, a chemotherapy drug, to treat the infection. She continues to receive

Rornicade treatment every eight weeks and is unable to work for 24 to 48 hours while

overing from treatment.

In 2011, Shelly began to obtain funding to start a nonprofit integrative health care

ility called "Village."1 Marx and Shelby did not use community resources to fund

age. Although she had an initial financing goal of $1 million, Shelby was only able to

ei $365,000 from donors. She opened Village in November 2011.

In February 2012, Village's board voted to shut it down after it was not as

eport of Proceedings(RP)(May 23, 2016) at 361-62. 2 75755-5-I / 3

sc;Cessful as anticipated, and Shelby stopped seeing patients. Shelby spent, March 2012

ing Village.

After Village closed, Marx opened bank accounts in his own name. Marx began

ositing his paychecks into his personal U.S.' Bank account and paying rent and

h sehold expenses from it. He consolidated several of his and Shelby's outstanding

d ts into a single promissory note from Provident'Bank. 1 In July 2012, Shelby reopened Shelby Naturopathy and operated as ,One Sky

Ilness Associates. While building her practice between 2013 and 2014, Shelby hoped

Open Village as a for-profit corporation. Shelby needed Marx's personal guarantee , , . i (the lease she wanted, but Marx refused to agree to it. I, oT , I I , 1 I Marx and Shelby agreed that she would pursue a scaled-down version of Village, I Shelby found a lease that did not require a personal guarantee. U.S. Bank offered , S Oiy a loan of $192,000 to fund Village if she could provide $77,000.! U.S. ,Bank

ritually denied her loan application. Marx convinced Shelby not to sign the lease.

elby remained at Shelby Naturopathy.

Marx's role in Marx Companies expanded over the years. In 2015, his reasonable

pensation was $135,000 and his sustainable income totaled $270,000.2 In 2015,

S elby's income was $102,044. Her reasonable compensation was $77,000 and her

tamable income was $120,000.

In February 2015, Marx moved out of the parties' shared home over concerns

a out Shelby's health and her continued goal of opening Village. In March 2015, Shelby 1 1,

I n ,expert at trial testified that he calculated the parties' "reasonable compensation" by looking 'the median compensation of professionals in similar fields. 5 RP (May 23, 2016, PM)'at 462- 6 1 476-77. He described "sustainable income" as "guaranteed payments and personal benefits." 5 P(May 23, 2016, PM)at 464. 3 . 75755-5-1/4 , . to d Marx that she was going to continue with her efforts to expand her practice and Open

Vi lege, had retained legal counsel, and had possibly secured venture capital I finacg. In, i l Pril 2015, Marx petitioned for dissolution of the parties' marriage. In August 2015, ., Shelby paid for a website for Village.

In August 2016, the trial court entered findings of fact and conclusions of law and

ed a final divorce order. The parties had approximately $95,000 in liquid assets, out

hich they paid $30,000 in federal income taxes at the time of dissolution. The trial

ri Characterized Shelby Naturopathy as commu'nity property valued at $219,000., The

court characterized Marx's 6 percent interest in Marx Companies as separate

operty valued at $580,000. The trial court awarded Shelby Naturopathy to Shelby and arded Marx his interest in Marx Companies.

The trial court divided the parties' community debt between them. The trial court

lined to award Shelby maintenance. Although the trial court found that Shelby had

ducted duplicative discovery and forced both parties to bear increased costs, it

o eted Marx to pay $24,000 of Shelby's attorney fees.

Shelby appeals.

ANALYSIS

Substantial Evidence

, Shelby argues that several of the trial court's findings of fact were not supported , substantial evidence. Because each of the trial court's challenged findings offact were , L s pported by substantial evidence, we disagree.

"On appeal, a trial court's findings of fact will be upheld if supported by Substantial

dence." In re Marriaae of Bernard, 165 Wh.2d 895, 903, 204 P.30:1 907 (2009).

4 N 75755-5-I /5

ubstantial evidence is evidence sufficient to persuade a fair-minded person of the itruth

ofihe declared premise." In re Marriage of Hall, 103 Wn.2d 236, 246, 692 F.2d 175 I

First, Shelby argues that the trial court's finding that Marx's interest in Marx

C mPanies was "'illusory" is not supported by substantial evidence.3 Specifically, Shelby

C Ims that Marx's interest is a salable asset that the trial court should have considered

In valuation of his separate property.

The trial court's challenged finding reads, '"[Marx's] interest in Marx Companies

a value of $580,000, although practically the value is illusory because all [Marx]

Ives from the business is an annual income tha l t his father controls."

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