Marriage of Patton CA2/4

CourtCalifornia Court of Appeal
DecidedAugust 29, 2024
DocketB329509
StatusUnpublished

This text of Marriage of Patton CA2/4 (Marriage of Patton CA2/4) 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 Patton CA2/4, (Cal. Ct. App. 2024).

Opinion

Filed 8/29/24 Marriage of Patton CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOUR

IN RE MARRIAGE OF B329509 & B329509R PATTON. (Los Angeles County TARYN ZIGTERMAN, Super. Ct. No. 18STFL06463)

Plaintiff and Appellant,

v.

JONATHAN PATTON,

Defendant and Respondent.

APPEAL from orders of the Superior Court of Los Angeles County, Michael R. Powell, Judge. Dismissed in part, affirmed in part, reversed in part, and remanded. John L. Dodd & Associates and John L. Dodd, for Plaintiff and Appellant. No appearance for Respondent. Appellant Taryn Zigterman appeals from postjudgment orders denying (1) her request for child support arrearages based on her former husband Jonathan Patton’s receipt of proceeds from the exercise and sale of stock options and (2) her request for attorney fees. Taryn1 contends the trial court erred in determining the stock options were income for purposes of child support at the time of vesting, instead of only at exercise and sale. She also argues the trial court abused its discretion in denying her request for fees based on the disparity in the parties’ income. We affirm the trial court’s order denying Taryn’s request for child support arrearages, but we reverse the order denying her attorney fees and remand for further proceedings regarding her request. We dismiss Taryn’s separate appeal from an order solely overruling her objections to the order denying her request for fees.

FACTUAL AND PROCEDURAL BACKGROUND A. Stipulated Dissolution Judgment The parties married in October 2016. They had one child together born that same year. Prior to the parties’ marriage, Jonathan began working for H Code Media, Inc., a private digital media company. As a recruitment and retention tool, Jonathan was granted 15,000,000 stock options in March 2016. The stock options vested at a rate of 25 percent per year in September 2017, 2018, 2019, and 2020.

1 “‘As is customary in family law cases, we will refer to the parties by their given names for purposes of clarity and not out of disrespect.’” (In re Marriage of Falcone & Fyke (2008) 164 Cal.App.4th 814, 817, fn. 1.)

2 The parties separated in April 2018. In May 2018, Taryn filed a petition for dissolution of marriage. She simultaneously requested a domestic violence restraining order against Jonathan. Jonathan filed his response to the dissolution petition in July 2018. Shortly after that, the trial court issued a three- year restraining order against Jonathan. In September 2019, the parties entered into a stipulated judgment of dissolution. Pursuant to the judgment, Jonathan was to pay Taryn $1,732 per month in child support. The stipulated judgment stated Jonathan was to pay bonus child support based on performance-based commissions he received on a quarterly basis. During the case, the parties had stipulated he usually received such commissions in February, May, August, and November. Regarding the H Code stock options, the stipulated judgment awarded all interest in the options to Jonathan as his separate property.

B. Postjudgment Modifications In April 2020, the parties entered into a stipulation and order regarding modification of child support. The parties added an Ostler-Smith2 provision to calculate “Bonus/Commission Support.” The parties acknowledged Jonathan received “bonuses and commissions” quarterly and specified he was to pay bonus child support on the same day he received a commission. Lastly, the parties agreed, “All support obligations are deemed current.”

2 An Ostler-Smith provision is “‘an additional award, over and above guideline support, expressed as a fraction or percentage of any discretionary bonus actually received.’ [Citations.] Its purpose is to capture fluctuations in the supporting spouse’s income that are not included in the flat rate amount of support.” (In re Marriage of Minkin (2017) 11 Cal.App.5th 939, 949.)

3 In June 2021, the parents entered into another stipulation and order (the June 2021 Stipulation) regarding “guideline child support.” Jonathan was to pay Taryn $1,240 per month and additional support based upon his receipt of “bonus/commission/other income over his base . . . .” Once again, the parties acknowledged Jonathan received bonuses and commissions quarterly. He was to make the quarterly payments beginning in May 2021, and continuing every three months thereafter. A separate paragraph in the June 2021 Stipulation concerned stock options. The parties agreed, “Should [Jonathan’s] income be converted into stock options, he shall disclose this information to [Taryn] immediately and provide all documents evidencing or relating to the same. The parties shall then meet and confer to determine the additional child support that would be due based on the receipt of said stock options.” The next paragraph read, “All support obligations are deemed current, with the exception of any overpayments by [Jonathan], subject to proof.”

C. Taryn’s Request for Order Seeking Child Support Arrearages and Attorney Fees In Fall 2021, H Code sold a majority stake to a private equity firm. Jonathan exercised his stock options and sold the shares. In September 2021, he received $2,359,875.23 in proceeds from the sale. In September 2022, Taryn filed a request for order (RFO) seeking child support arrearages for 2021 and 2022. Taryn also requested arrearages based upon Jonathan’s February and May 2022 quarterly commissions, reimbursement for federal and state

4 tax refunds, modification of child support based on Jonathan’s earning capacity of $450,000 per year, and modification of responsibility for add-on expenses. Jonathan filed his own RFO seeking to modify the parties’ parenting plan and requesting co- parenting counseling. In her RFO, Taryn argued all proceeds from the sale of the H Code stock constituted bonus income attributable to Jonathan’s employment. She utilized the Ostler-Smith provision in the June 2021 Stipulation to calculate the related amount of child support owed. Taryn sought arrearages in the amount of $106,902 from the exercise and sale of the H Code stock options, plus $10,690 in interest. Jonathan’s position was “the stock options were income available for support when they vested in 2020, not when they were sold, and the parties stipulated in June 2021 that [his] support obligations were current.” He relied on In re Marriage of Macilwaine (2018) 26 Cal.App.5th 514 (Macilwaine), as support for his claim. Additionally, Taryn requested attorney fees and sanctions pursuant to Family Code sections 2030 and 2713 and the June 2021 Stipulation. Taryn initially requested $24,110 for fees. Later in a reply declaration, Taryn asserted she was increasing her request for fees based on sections 2030, 3557, and 271. Taryn’s counsel filed declarations requesting $57,936 for fees relating to financial issues and $13,740 for fees relating to custody issues.

3 All further undesignated statutory references are to the Family Code.

5 D. The Trial Court’s Orders On December 16 and 20, 2022, the trial court held a hearing on Taryn’s RFO. At the December 20 hearing, the court indicated it was denying the request for child support arrearages.4 In arguing for attorney fees, Taryn contended fees were mandatory under section 2030 because of the vast disparity in the parties’ needs and ability to pay. The court took the request for fees under submission.

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