Karl Jude Hensgens v. Alanna Wingate Hensgens

CourtLouisiana Court of Appeal
DecidedDecember 18, 2019
DocketCA-0019-0485
StatusUnknown

This text of Karl Jude Hensgens v. Alanna Wingate Hensgens (Karl Jude Hensgens v. Alanna Wingate Hensgens) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karl Jude Hensgens v. Alanna Wingate Hensgens, (La. Ct. App. 2019).

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

CA 19-485

KARL JUDE HENSGENS

VERSUS

ALANNA WINGATE HENSGENS

**********

APPEAL FROM THE FIFTEENTH JUDICIAL DISTRICT COURT PARISH OF ACADIA, NO. 2017-10204-M HONORABLE CHARLES G. FITZGERALD, DISTRICT JUDGE

JOHN E. CONERY JUDGE

Court composed of John D. Saunders, Shannon J. Gremillion, and John E. Conery, Judges.

AFFIRMED. Jack Derrick Miller (A Professional Law Corporation) 415 North Parkerson Avenue Crowley, Louisiana 70527 (337) 788-0768 COUNSEL FOR PLAINTIFF/APPELLANT: Karl Jude Hensgens

Helen Popich Harris Helen Popich Harris (APLC) 321 West Main Street, Suite 2-D Lafayette, Louisiana 70501 (337) 291-6092 COUNSEL FOR DEFENDANT/APPELLEE: Alanna Wingate Hensgens CONERY, Judge.

Following the parties’ divorce, Defendant sought interim spousal support as

well as child support for the couple’s three minor children. Plaintiff cited a downturn

in his farming operation in reporting a period of negative income for calculation of

support. The trial court rejected that evidence after finding that Plaintiff’s

accounting methodology was inconsistent with La.R.S. 9:315(C)(3)(c). The trial

court instead relied upon the Defendant’s expert in accounting to shape orders of

both child and interim spousal support. Plaintiff appeals both awards.

FACTS AND PROCEDURAL HISTORY

The parties, Karl and Alanna Hensgens, were married in 2006. The couple

have three daughters. Karl filed a petition for divorce on March 7, 2017, which was

granted by a July 18, 2018 judgment of divorce. The judgment terminated the

community retroactive to the filing of the petition.

The trial court thereafter considered ancillary matters, 1 including Alanna’s

request for child support and interim spousal support. During a two-day hearing, the

parties presented expert testimony regarding Karl’s income as a rice and crawfish

farmer in support of their positions regarding issues of support. Karl relied on

calculations reflecting a negative income balance over a period of several years due

to difficulties experienced in that industry, including the 2016 flood event. He

explained that he had no more liquid assets and referenced a lawsuit pending against

the couple due to failure to repay farming loans.

Alanna on the other hand presented expert testimony drawn, in part, from the

couple’s income tax returns and which reported funds available for support. As

1 The trial court named Alanna the domiciliary parent. Custody issues are not at issue in this proceeding. discussed in more detail below, the parties differed on issues related to accounting

methodology as well as whether sources of income were recurring and whether

certain expenses were business related for purposes of calculating support.

The trial court ultimately rejected Karl’s assertion that he had negative income

as estimated by his expert through use of an accounting method that relied on

income/expenses related to the crop year. Citing La.R.S. 9:315(C)(3)(c), the trial

court instead favored Alanna’s expert’s use of cash basis accounting and explained

that choice in extensive written reasons. As a result, the trial court ordered Karl to

pay $2,897.70 per month in child support, a figure that included agreed upon sums

for private school tuition, associated fees, and costs. The trial court further ordered

Karl to pay Alanna interim spousal support of $3,085.00 per month.

Karl appeals, asserting that the trial court erred in:

1. Failing to average the farm income over a period of time, while basing his opinion upon the farm income of a single, extremely atypical year.

2. Failing to reduce Karl’s income by one-half of the farm income for the 2017 crop year, which belonged to Alanna.

3. Failing to reduce Karl’s income by one-half of the government payments for the 2017 crop year, which belonged to Alanna.

4. Failing to exclude, as income, the sale of farm equipment and while including it failed to consider that one-half of the proceeds belonged to Alanna.

5. Failing to reduce Karl’s income and/or deviate from the child support guidelines relative to the debt owed to the Bank of Commerce as set forth in the lawsuit marked as exhibit K-3.

6. Failing to attribute one-half of the revenue from crop sales, government payments and the sale of farm equipment to Alanna.

2 LAW AND DISCUSSION

Child Support

Karl advances numerous arguments regarding the trial court’s calculation of

farming income for purposes of assessing support obligations. Karl testified that the

crawfish and rice farming operation has been sustained each year by farm loans and

by government farming assistance.2 He explained, however, that the operation “got

behind” and “was barely getting by” before the August 2016 flood “wiped out

everything.” He explained that the flooding affected both rice and crawfish crops.

After the Hensgens allegedly failed to pay several of their farm loans, the

lender, Bank of Commerce, filed suit against the couple in July 2018. The Bank’s

petition cited a balance due on promissory notes from March 2015 ($415,800), April

2016 ($486,750), and from August 2016 ($50,065). This difficult financial situation,

Karl suggests, undermines the trial court’s determinations regarding his income for

purposes of support.

In assessing Karl’s gross income, the trial court extensively referenced La.R.S.

9:315(C)(3)(c), which provides:

(3) “Gross income” means:

....

(c) Gross receipts minus ordinary and necessary expenses required to produce income, for purposes of income from self- employment, rent, royalties, proprietorship of a business, or joint ownership or a partnership or closely held corporation. “Ordinary and necessary expenses” shall not include amounts allowable by the

2 While there was not extensive testimony regarding the government assistance, Karl explained the connection between the loans and assistance as follows:

[W]hen you sell your crop it will not pay back the loan and that’s why you have a government payment. It’s supposed to offset that doesn’t come until after you sell your crop is the bad part. So you don’t know if the government payment added with your price of the rice is going to pay off the loan because it goes off the average selling point.

3 Internal Revenue Service for the accelerated component of depreciation expenses or investment tax credits or any other business expenses determined by the court to be inappropriate for determining gross income for purposes of calculating child support.

Id. (emphasis added).

This statute, the trial court determined, was consistent with the accounting

method relied upon by Alanna’s expert in accounting, Chris Rainey, C.P.A. Mr.

Rainey, who employed a cash method of accounting, reviewed, in part, the Hensgens’

tax returns for 2016 and 2017 for insight into the farm business’s “gross receipts

minus ordinary and necessary expenses required to produce income” for those years.

With those income/expense figures provided by the returns, Mr. Rainey explained

that he made “adjustments” to the return as required by La.R.S. 9:315(C)(3)(c).

Mr. Rainey distinguished the cash basis method from the accrual based

accounting method advanced by Karl’s expert, Steven Soileau, C.P.A. Cash basis,

Mr. Rainey explained, accounts for income when it is received and not earned,

whereas the accrual basis accounts for when it is earned and not received. The cash

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Karl Jude Hensgens v. Alanna Wingate Hensgens, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karl-jude-hensgens-v-alanna-wingate-hensgens-lactapp-2019.