Marriage of McCarden and Johnson

CourtCalifornia Court of Appeal
DecidedMay 9, 2023
DocketB310047A
StatusUnpublished

This text of Marriage of McCarden and Johnson (Marriage of McCarden and Johnson) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of McCarden and Johnson, (Cal. Ct. App. 2023).

Opinion

Filed 5/9/23 Marriage of McCarden and Johnson Opinion following rehearing NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

In re Marriage of McCARDEN and B310047 JOHNSON. (Los Angeles County Super. Ct. No. SD034570)

KHRISTA M. McCARDEN,

Appellant,

v.

ALTON TIMOTHY JOHNSON,

Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Lawrence P. Riff, Judge. Affirmed. Law Offices of Lisa R. McCall, Lisa R. McCall, Erica M. Baca; Khrista M. McCarden, in pro. per., for Appellant. Alton Johnson, in pro. per., for Respondent. —————————— Khrista M. McCarden appeals from a family law judgment, challenging the judgment’s (1) real property division, (2) personal property valuation, (3) child support orders, and (4) reimbursement orders. We affirm the judgment. BACKGROUND We take the facts from the trial court’s statement of decision on reserved issues. Khrista and Alton Timothy Johnson were married in December 2012 and separated 34 months later in September 2015.1 Their daughter was born in August 2015. A. Accounts and Income During the marriage the parties maintained six bank accounts: Khrista’s Citibank account ending in 2250 (Khrista’s 2250 account); Alton’s Chase Bank account ending in 9346 (the 9346 account); Alton’s Chase Bank account ending in 1057 (Alton’s 1057 account); a Chase Bank account ending in 0539 owned by California Coastal Assets II, an LLC whose sole member was Alton (California Coastal Assets II 0539 account); a jointly owned Chase Bank ending in 2532 (joint account 2532); and

1 We will refer to the parties by first name for clarity, not out of familiarity or disrespect.

2 a jointly owned Ally Bank account ending in 047 2 (joint Ally account 047). Khrista was a law professor whose salary was paid in well- documented increments. She deposited her salary into the 9346 account. Khrista periodically updated her income and expense declaration, reflecting an income from 2016 to 2018 of around $12,250 per month. Alton was in the business of making speculative real estate transactions, buying residential properties, and renovating and selling them in short turnaround times. As part of this business, Alton moved money around via various entities and through various bank accounts, sometimes refinancing properties at the eleventh hour to stave off an impending foreclosure. He derived his income from the withdrawal and redirection of equity from his properties. The trial court characterized this as a “ ‘living- near-the-edge’ business existence.” Alton periodically updated his income and expense declaration, reflecting an income of around $2,000 per month from 2016 to 2018. B. Real Property Before the marriage, Alton separately owned real property at four locations. During the marriage he sold three of these properties and used the proceeds to buy property on Tuna Canyon Road in Malibu. 1. Hillview Alton acquired property at 4356 Hillview Drive in Malibu in March 2012 (Hillview). The original mortgage was a $737,047

2 Another LLC, California Coastal Assets (not to be confused with California Coastal Assets II), was Alton’s nominal employer.

3 30-year fixed mortgage, with a monthly mortgage payment of $3,465.87 and a monthly impounded mortgage total of $5,232.21 as of the date of marriage. Hillview was rented out during part of the marriage. Alton sold Hillview in November 2014 for $1.7 million, depositing the net proceeds of $888,000 into the California Coastal Assets II 0539 account. Alton later transferred these proceeds into joint account 2532. 2. Ocean View 1 Johnson acquired property at 26608 Ocean View Drive in Malibu in November 2012 (Ocean View 1). During the marriage, mortgage payments on Ocean View 1 were made from the 9346 account. The property sold nine months into the marriage, in August 2013, and the $432,000 in proceeds were deposited into Alton’s 1057 account. 3. Ocean View 2 Alton acquired property at 26616 Ocean View Drive in Malibu in November 2012 for $450,000, with a $275,000 mortgage (Ocean View 2). He refinanced the property, increasing the original trust deed by $50,000, and took out a second trust deed for about $100,000, bringing the total mortgages to $425,000. In September 2014, Alton transferred Ocean View 2 to California Coastal Assets II, LLC. During marriage, mortgage payments were made on Ocean View 2 from the 9346 account. In December 2014, Alton used part of the $888,000 in proceeds from the Hillview sale to pay off the Ocean View 2 mortgage.

4 In January 2015, California Coastal Assets II sold Ocean View 2, receiving $849,000 in sale proceeds that were put into the California Coastal Assets II 0539 account. The parties’ tax returns showed a $199,808 increase in cost basis for Hillview, $148,471.10 for Ocean View 1, and $314,253 for Ocean View 2, which Khrista testified reflected capital improvements made with community funds. However, the trial court expressly discredited this testimony. 4. Swenson Some time before the marriage, Alton bought what the parties refer to as the “Swenson” property (Swenson). During the marriage, Alton paid down $109,836 of the principal on the Swenson mortgage from the 9346 account. 5. Tuna Canyon In 2015, Alton transferred $500,000 and $350,000 from the California Coastal Assets II 0539 account to the joint Ally account 047, funds that had resulted from the Hillview and Ocean View 2 sales, respectively. In August 2015 (during the marriage), Alton used newly transferred funds in the joint Ally account 047 to make a $497,668 down payment on Tuna Canyon, taking out a $1 million mortgage. The joint Ally account 047 thereafter had a $356,196 balance. In November 2018, Alton sold Tuna Canyon, without Khrista’s knowledge, for $2.1 million, yielding proceeds of $192,674.64. Alton transferred the proceeds to an account owned by his mother, along with $100,000 from the joint Ally account 047, also without Khrista’s knowledge.

5 C. Engagement Ring Alton bought Khrista an engagement ring. He testified the ring originally appraised for $62,000, but to obtain an $80,000 insurance policy, Alton persuaded the jeweler to appraise the ring for $80,750. The court characterized Alton’s maneuvering with respect to the ring as “potential insurance fraud” and “strong-arming.” When Khrista became pregnant, her fingers swelled to the point that she could not wear the ring, so Alton took it for safekeeping. Khrista never saw it again. D. Child Support During divorce proceedings, the Los Angeles County Child Support Services Department (CSSD) opened a case to calculate child support. On May 17, 2016, the CSSD filed a notice regarding payment of support, and on January 31, 2018, filed a stipulation and order on child support, reserving retroactive jurisdiction. E. Trial On October 23, 2015, Khrista petitioned for dissolution and Alton petitioned for legal separation. The cases were consolidated, and Alton’s petition was deemed to be his response to the dissolution case. The parties thereafter engaged in almost five years of what the court characterized as “grossly disproportionate” litigation in a “ceaseless conflict” over which the parties were “plainly . . . impoverishing themselves.” As pertinent here, Khrista contended: (1) Tuna Canyon was community property; (2) the engagement ring was worth $100,000; (3) Alton breached his fiduciary duty by transferring funds to his mother; and (4) Khrista was entitled to retroactive child support, which could be determined only by CSSD.

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