Martha Elaine Weaver Carter v. David Ray Carter

Court of Appeals of Tennessee·Decided December 28, 2012·No. M2012-00342-COA-R3-CV·Published

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE

October 26, 2012 Session

MARTHA ELAINE WEAVER CARTER v. DAVID RAY CARTER

Appeal from the Circuit Court for Davidson County No. 05D849 Amanda Jane McClendon, Judge

No. M2012-00342-COA-R3-CV - Filed December 28, 2012

In this post-divorce appeal regarding child support, we have concluded that the trial court erred in requiring mother to establish a trust account for gifts to the parties’ minor child. In all other respects, we affirm the decision of the trial court.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Reversed in Part, Affirmed in Part

A NDY D. B ENNETT, J., delivered the opinion of the Court, in which R ICHARD H. D INKINS, J., joined. F RANK G. C LEMENT, J R., J., not participating.

Tyree B. Harris, IV and Katherine A. Brown, Nashville, Tennessee, for the appellant, Martha Elaine Weaver Carter.

James H. Drescher, Brentwood, Tennessee, for the appellee, David Ray Carter.

OPINION

F ACTUAL AND P ROCEDURAL B ACKGROUND

Martha Elaine Weaver Carter (“Mother”) and David Ray Carter (“Father”) were divorced in October 2006. One child was born of the marriage. Under the permanent parenting plan incorporated in the final divorce decree, father was obligated to pay $966 per month in child support. In addition, Father was to pay one-half of the child’s tuition at a specified private school.

In July 2009, Mother filed a petition to modify child support based on an increase in Father’s income. Mother filed an amended petition in November 2009 in which she alleged the following:

That there have been material changes of circumstances affecting the private education of the minor child in that at the time of the entry of the Final Decree of Divorce, the [maternal grandmother] was essentially underwriting [Mother’s] portion of the tuition. At the present time, however, [the maternal grandmother] is 80 years of age and is no longer contributing in any way to the tuition of the minor child.

Mother went on to assert that, with his increased income, Father was “fully capable of underwriting the total amount of the tuition associated with the continued attendance of the minor child at CPA.” Mother also alleged that, since the final decree was entered, the private school had initiated a compulsory uniform policy and that the original parenting plan “inadvertently failed to deal with attendant issues such as the cost of books, fees and meal plan, all of which are uniquely associated with the private education of the minor child.” Based upon the parties’ “disproportionate” incomes, Mother requested that Father pay all of these expenses.

The parties engaged in discovery. In November 2010, the court entered an order to compel discovery in which the court incorporated a number of agreements announced by the parties, including the following:

That in response to the Father’s Request for Production of Documents #12, and Motion to Compel, the Mother has previously provided documents reflecting all out-of-pocket expenses related to incidental private school expenses for uniforms, books and school-related extra-curricular activities for the 2009-2010 school year and shall provide such additional out-of-pocket expenses for the 2010-2011 school year that she requests [the] Court to consider, and the Father may secure tuition-related expenses directly from the private school. The parties have agreed that this is an appropriate case for the parties’ child to attend private school and based on the parties’ respective incomes, the Court shall prorate private-school related tuition, fees, costs of books, uniforms and school-related extracurricular activities.

(Emphasis added). The parties stipulated that Mother was not seeking an upward deviation for “extraordinary extra-curricular activities.”

The hearing

The trial court held a hearing on Mother’s petition to modify child support on June 13, 2011. Mother testified that, at the time when the parties agreed on the permanent parenting plan, the child’s maternal grandmother was paying half of the private school tuition. The

statement in Mother’s amended petition to modify child support that the maternal grandmother was no longer going to pay half of the tuition was based on statements made by the maternal grandmother to Mother. Mother acknowledged that the grandmother changed her mind and had continued to pay half of the tuition.

When Mother’s counsel began to ask questions regarding expenses associated with the child’s private schooling, counsel for Father objected and the trial court ruled that such evidence was not relevant based upon the language of the permanent parenting plan, which referenced only tuition. Mother’s counsel then made an offer of proof regarding Mother’s expenses associated with the child’s private schooling.

Mother also testified about money received by her and/or the child from the maternal grandmother. Since the divorce, the maternal grandmother had continued to give the child gifts of money, which Mother put into an account. During her direct testimony, Mother could not recall the maternal grandmother giving Mother gifts since the divorce. On crossexamination , Mother testified that she had received money from her father’s estate in 2007. Grandmother made annual gifts to the child in the amount of $10,000 or $11,000. Mother placed this money into an interest-bearing account for the child’s benefit, but the child’s name did not appear on the account. Mother admitted that she also put some of her own money into the same account. When questioned by the court, Mother acknowledged that, when the maternal grandmother gave Mother checks in the amount of $11,000 to cover payments on a life insurance policy, amounts in excess of the $7,500 policy payment were gifts to Mother.

Court’s initial order

The court entered its order on August 31, 2011, granting in part and denying in part Mother’s petition to modify child support. The court denied Mother’s request to require Father to pay school-related expenses other than tuition. As a basis for this decision, the court stated:

As a matter of law, the parties entered into a binding agreement which agreement was incorporated into their Final Decree of Divorce. The parties’ agreement clearly provides for the respective rights and responsibilities of the parties and said agreement is contractual and may not now be amended.

Since it was undisputed that the maternal grandmother had continued to pay half of the child’s tuition from the time of the divorce until the present, the court denied Mother’s request to increase Father’s obligation with regard to tuition.

In light of the annual gift of $3,500 ($11,000 minus the $7,500 insurance payment)

received by Mother from the maternal grandmother, the court increased Mother’s income by $313.98 per month. The court granted Mother’s request to increase Father’s monthly child support obligation. Father’s monthly child support was increased to $1,565, based upon a four-year average income for 2007 through 2010, and the new child support figure was made retroactive to July 2009, resulting in a back child support award of $14,376.

Included in the court’s order are the following provisions concerning gifts to the child:

[Mother] shall create a separate trust account for the use and benefit of the minor child in the amount of $66,000.00 representing the six annual gifts in the amount of $11,000.00 received by the said minor child from her maternal grandmother which trust account will remain in full force and effect until the 21st birthday of the said minor child and from which, absent an Order of the Court, the only withdrawals which may be made from this account are to pay any state and/or federal income taxes which may become due and owing by virtue of the activity in said account.

The court also awarded Mother her attorney fees in connection with the petition to modify child support.

Post-trial motions and orders

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