Marriage of Quan CA4/2

California Court of Appeal·Decided August 10, 2016·No. E064202·Unpublished

Opinion

Filed 8/10/16 Marriage of Quan CA4/2

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOURTH APPELLATE DISTRICT DIVISION TWO

In re Marriage of BENJAMIN HOA AND DORCAS SUN QUAN.

BENJAMIN HOA QUAN, E064202

Appellant, (Super.Ct.No. FAMSS1205174)

v.

OPINION

DORCAS SUN QUAN,

Respondent.

APPEAL from the Superior Court of San Bernardino County. Arthur Harrison, Judge. Affirmed.

Benjamin Hoa Quan, in pro. per., for Appellant.

Dorcas Sun Quan, in pro. per., for Respondent.

Benjamin Hoa Quan (Husband) appeals a postjudgment order of the superior court refusing to modify or terminate an equalization award of $10,000 and modifying a monthly spousal support award from $1,000 to $750 following dissolution of his marriage to Dorcas Sun Quan (Wife).1 (Fam. Code, §§ 2550, 2601, 4320, 4330.) Husband requests relief on the ground his assets and monthly income, as disclosed in his financial declaration and an expert report ordered by the superior court under Evidence Code section 730, were too low to support the awards.

We affirm.

I

FACTUAL BACKGROUND

On February 10, 2014, the San Bernardino County Superior Court held a hearing concerning the dissolution of the Quans’ 23 and one-half years’ marriage. The superior court granted a decree of dissolution, awarded two marital businesses to Husband, and ordered him to make an equalization payment of $10,000 to Wife. The superior court also ordered spousal support in the amount of $1,000 a month beginning April 1, 2014. The superior court entered judgment terminating the marriage on January 7, 2015.

Before judgment issued, Husband sought modification of both the equalization award and the spousal support award in the superior court. On June 5, 2014, the superior court confirmed its findings at the February 10, 2014 hearing and ordered “[a]ll existing 1 The parties represent themselves on appeal.

orders shall remain in full force and effect.” However, the superior court indicated it “may reconsider orders if and after a[n] E[vidence] C[ode section] 730 financial evaluation has been completed.” Evidence Code section 730 permits the court “on its own motion or on motion of any party” to “appoint one or more experts to investigate, to render a report as may be ordered by the court, and to testify as an expert at the trial of the action relative to the fact or matter as to which the expert evidence is or may be required.” On September 3, 2014, the superior court appointed an expert to prepare a financial report and ordered Husband “to report alleged addition[al] income from petitioner to evaluator.”

On January 16, 2014, the appointed expert, CPA Forensics Plus, LLP, submitted to the parties a draft valuation and cash flow report “to determine the separate/community value of the businesses known as Benco Insurance and Mission Realty and the current cash flow.” “Benco is a small insurance business and Mission Realty is a property management/real estate business.” Husband was the sole proprietor of both businesses. At the time of valuation, Husband was the only employee of the businesses. However, Wife testified she worked at the businesses until 2010. On value and cash flow, the report concluded: “The annual current cash flow for Benco Insurance is $17,407 and the current monthly cash flow for Benco Insurance is $1,451. The value of Benco Insurance at 12/31/2014 is $41,449. [¶] The annual current cash flow for Mission Realty is $4,181 and the current monthly cash flow for Mission Realty is $348. The value of Mission Realty [at] 12/31/2014 is $6,893.”

The parties contested whether Benco Insurance began operation before or after their marriage. Husband represented to CPA Forensics Plus, LLC, that he started the business before the marriage. Wife testified: “We were married in 1983 and . . . in 1983 Benco Insurance had not been started. At that time Benjamin Quan worked with Farmers’ Insurance. . . . [¶] I think Benco Insurance was begun around 1990.”

On July 29, 2015, Husband filed an income and expense declaration. The declaration states Husband has $4,000 in bank accounts, $300 in personal property, and a $3,000 average monthly income from Mission Realty and Benco Insurance. The declaration also states Husband has $2,390 in total monthly expenses and owes $7,619 in debts and installment payments.

On July 31, 2015, the superior court held a hearing to consider Husband’s request to modify the equalization and support awards. Husband relied on the expert financial report and his own declaration. Wife presented evidence Husband’s income and expense declaration omitted assets. She testified Husband owns a commercial building and has proceeds from the sale of real estate that he deposited in a business account. Other evidence at the hearing confirmed Wife’s testimony. Husband admitted to owning a commercial building and testified he had purchased it for approximately $78,000 twenty

years earlier.2 The expert financial report states “deposits in accounts [of Benco Insurance] were higher than reported income (Exhibit 9). Limited detail was provided for deposits but we were able to identify some large deposits as proceeds from sales of real estate (personal) and transfers from personal bank account.” Wife directed the court’s attention to the exhibit mentioned in the report. She testified: “[E]xhibit 9 in the [expert report] . . . is very clear. In 2012 from January to December the total amount that Mr. Quan input into his Benco Insurance Services account, $105,832. In 2013 he submitted over $71,000. I can explain it for him. Yes, we sold properties because the total amount for the sale of the house—the properties did not exceed $100,000. So in here it says for at least $70,000 is unidentified deposits.”3 After hearing evidence and argument, the superior court confirmed its judgment with respect to the division of the marital property. The court directed that “the business has to remain Mr. Quan’s” and found “[$]10,000 is appropriate” as an equalization

2 Husband and Wife contest the value on the property. Husband contends it is worth $18,000 and Wife contends it is worth about $93,000. In either event, it is an asset not disclosed on Husband’s income and expense report.

3 Exhibit 9 is not part of the record of appeal, though it was submitted separately into evidence at the July 31, 2015 hearing. Consequently, we have only the summary of its contents in the expert financial report and in Wife’s testimony. At the hearing, Husband attempted to explain the deposits as representing rent money his real estate company received from renters for payment to property owners, not his own assets. However, this testimony concerned exhibit 12 to the expert financial report (also not in the record on appeal) and exhibit 9 concerned funds in the account of Husband’s insurance business, not his real estate business.

payment to Wife. The superior court found “[t]he sole proprietorship was conducted— actually commenced during marriage. The building of the business is a community asset and the Court has information before it today that when you tally both businesses it’s in excess of [$]40,000. Some of that has been subsequent to separation and the Court will leave the equalization payment at [$]10,000.”

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