THIS OPINION HAS NO PRECEDENTIAL VALUE.
IT SHOULD NOT BE CITED OR RELIED ON AS PRECEDENT IN ANY PROCEEDING EXCEPT AS
PROVIDED BY RULE 239(d)(2), SCACR.
THE STATE OF SOUTH CAROLINA
In The Court of Appeals
Amber E. Moring, Respondent,
v.
James R. Moring, Appellant.
Appeal From Charleston County
Frances P. Segars-Andrews, Family Court Judge
Unpublished Opinion No. 2004-UP-605
Heard November 10, 2004 Filed December 3, 2004
AFFIRMED IN PART, REVERSED IN PART
AND REMANDED
Stephan Victor Futeral, of Mt. Pleasant, for Appellant.
Susan Trout Kinard, of Mt. Pleasant, for Respondent.
PER CURIAM: In this divorce action, Husband appeals from an order of
the family court asserting the family court erred in (1) apportioning marital
debt, (2) finding certain property to be transmuted into marital property, (3)
determining child care costs for child support purposes, (4) requiring Husband
to pay a percentage of private school tuition, (5) requiring Husband to attend
anger management, (6) determining Wifes income in previous and more recent
years, (7) determining Husbands income, (8) ordering Husband to return an engagement
ring to Wife, (9) awarding Wife $28,000 in attorneys fees, and (10) dismissing
Husbands Rule to Show Cause . We affirm in part, and reverse in part and remand.
FACTUAL/PROCEDURAL BACKGROUND
Husband and Wife were married on May 11, 1996 and have two daughters, Alex
who was four and Mimi who was fifteen months at the time of the final hearing.
They separated in March, 2000, while Wife was pregnant with Mimi. On March
15, 2000, Wife filed this action seeking, among other things, a divorce on the
ground of physical cruelty, custody, child and spousal support, possession of
the marital home, equitable division of marital assets and debts, and attorneys
fees. Husband answered, denying the material allegations, and counterclaimed
seeking custody and attorneys fees.
Following an October 25, 2001 hearing in a bifurcated trial, the family court
granted Wife a divorce on the ground of one year continuous separation, and
incorporated the parties agreement giving Wife custody and providing a partial
agreement regarding Husbands visitation, with the final agreement to be determined
when the hearing reconvened. The Court reconvened on January 10 and 14, 2002,
and thereafter issued its order (1) requiring Husband to pay the parties marital
debt of $9,500 on the Providian credit card debt, (2) finding the Husbands
condominium had been transmuted into marital property and awarding Husband possession
of the home but finding Wife was entitled to fifty percent equity in the home,
(3) finding the engagement ring non-marital and awarding Wife ownership and
possession of it, (4) further setting forth Husbands visitation, (5) determining
retroactive child support and ongoing child support based on previous and current
incomes of the parties, (6) finding the expenses of a nanny to be reasonable
child care expenses for child support determinations, (7) ordering Husband to
pay fifty percent of the cost of private school tuition for the children, and
(8) ordering Husband to pay $28,000 toward Wifes attorneys fees and costs.
STANDARD OF REVIEW
In appeals from the family court, this court has the authority to find the
facts in accordance with its own view of preponderance of the evidence. Rutherford
v. Rutherford, 307 S.C. 199, 204, 414 S.E.2d 157, 160 (1992). This broad
scope of review does not, however, require this court to disregard the findings
of the family court. Stevenson v. Stevenson, 276 S.C. 475, 477, 279
S.E.2d 616, 617 (1981). Neither are we required to ignore the fact that the
trial judge, who saw and heard the witnesses, was in a better position to evaluate
their credibility and assign comparative weight to their testimony. Cherry
v. Thomasson, 276 S.C. 524, 525, 280 S.E.2d 541, 541 (1981).
LAW/ANALYSIS
I. Providian Debt
Husband first contends the family court erred in failing to determine the final
amount he must pay on the Providian bank card debt. He contends, at the temporary
hearing, Wife represented there was a $9,500 balance owed to Providian, he was
ordered to pay $300 per month toward marital debt, and the court failed, in
the final order, to give him credit for $7,200 he had paid toward the debt.
He asks this court to find the balance owed by him on the debt to be $2,300.
The record shows, following a temporary hearing on April 12, 2000, Husband
was ordered to pay $300 toward debts listed on Wifes financial declaration.
This amount apparently was not limited to just the Providian debt, and the order
did not specifically mention a Providian debt. Other than Wifes January 2002
financial declaration submitted at the final hearing, the only other evidence
showing the Providian debt is an unsigned, undated financial declaration of
the Wife during the time of her previous employment, which indicates a Providian
debt balance of $9,500. Because this document is not signed or dated, it is
impossible to determine whether the Providian debt was $9,500 at the time of
the temporary hearing. At any rate, this document shows debt from at least
four other major credit cards with a total balance of $35,900, not including
the Providian balance. By the time of the final hearing, Wifes financial declaration
showed a Providian debt balance of $9,500, but listed only two other major credit
card debts totaling a little over $17,000. Wife testified at the final hearing
that the only marital credit card debt left was the Providian debt. Thus, even
if we were to consider this unsigned, undated document as evidence, it shows
Wife paid down a substantial portion of the credit card debt. Because none
of the proceedings from the temporary hearing are included within the record,
it is impossible to determine which of these various debts were purported to
be marital at the time of the temporary hearing. See Wint v. Wint,
310 S.C. 48, 50, 425 S.E.2d 48, 50 (Ct. App. 1992) (the burden is on the appellant
to furnish a sufficient record on appeal from which this court can make an intelligent
review). In the final order, the family court held it was uncontroverted that
the Providian debt of $9,500 was marital and Wife had been maintaining that
debt, together with the $300 contribution from [Husband] ordered after the
temporary hearing. Given the record before us, based on our review of the totality
of the facts, we find a preponderance of the evidence supports the family courts
determination that Husband should be responsible for the remaining debt owed
on the Providian card.
II. Transmutation of the Condominium
Husband next contends the family court erred in finding his condominium had
been transmuted into marital property because Wife only sought a special equity
in the property, and therefore the family court should not have granted Wife
relief pursuant to the doctrine of transmutation. We disagree.
During Wifes examination of Husband at trial, Husband testified he bought
the condominium in 1984 and he had made every mortgage payment on it except
for one that Wife made from money he had given her. Counsel for Husband sought
clarification during this line of questioning stating:
It has always been their position that the condo is non-marital and they
were not wanting to try to show transmutation. They may be just showing this
for a different purpose, but I want to be clear because it will affect my
questions. And I dont know if they have reversed that position now or not.
Wifes counsel responded as follows:
Were not interested in possession. We have always put forth a claim as
a special equity in the condo for the wifes contribution. There has been
a lot of discovery going back and forth about proof of contribution during
the marriage. And there would be no other reason for those questions and
the resulting responses unless thats what we were doing. And the pleadings
- -
At this point, the court cut counsel off and this line of questioning continued.
Later on during the hearing, when objecting to the relevance of certain questions
by Husbands attorney, Wifes attorney stated, We are seeking a share of the
marital home.
Thereafter, Wife testified that for two years of the marriage, Husband made
little to no income while he was starting up a new business. During this time,
Husband had no other source of income. Wife testified she made at least three
payments herself to the mortgage company during this time. She also stated
that Husband managed to pay the mortgage and other bills from money Wife gave
to him. Wife claimed she used her pre-marital nest egg money of $45,000 and
incurred $40,000 in debt to pay the bills during this time. She further testified
she believed she had earned an interest in that condominium and she was entitled
to share in this home [because she] supported [Husband] during the marriage.
The parties tax returns showed Husband earned business income of $4,934 in
1997 and sustained a net loss of $8,883 in 1998.
Husband cites Calhoun v. Calhoun, 339 S.C. 96, 529 S.E.2d 14 (2000)
in support of his argument that the family court should not have awarded Wife
relief pursuant to the doctrine of transmutation. Husband quotes as follows
from Calhoun: Since the relief sought by petitioner was that of a special
equity, neither the family court nor the Court of Appeals erred in refusing
to grant her relief pursuant to the doctrine of transmutation. Id.
at 107, 529 S.E.2d at 20. However, in Calhoun, the court found that
petitioner limited the issue on appeal by the relief she sought when she only
asked that the market appreciation of the home be included in the marital estate.
The court held [a] family court cannot award relief beyond the scope of the
pleadings. Id. at 107, 529 S.E.2d at 20. Because the petitioner in
Calhoun had only sought a special equity, the family court properly declined
to afford her relief pursuant to the doctrine of transmutation.
Although Wifes counsel did state Wife was seeking a special equity in the
condominium, she also indicated her client was seeking a share of the marital
home. Further, Wife originally sought possession of the marital home in
her complaint, as well as equitable distribution of marital assets. At the
time Wifes counsel used the term special equity, counsel specifically clarified
that they were no longer seeking possession of the home, and began to
argue Wifes allegations in her pleadings, but was cut off by the court. We
decline to find an inadvertent misstatement by Wifes attorney should preclude
Wife from pursuing the relief properly requested in her pleadings.
III. Child Care Costs
Husband next argues the family court erred in allowing $330 per week for child
care costs because the actual cost was only $300, a portion of the cost was
attributable to house cleaning, and the evidence showed reasonable day care
costs were between $173 and $228 per week. We disagree.
The record shows that both of the parties children suffer from rather severe
asthma and allergy problems. Husband admitted that when Alex was young, it
was not recommended that she attend day care because her allergies were so
bad. Wife testified she had a nanny to watch the children and that she did
not enroll the girls in day care because of their health conditions. Wife stated
she paid the nanny $300 a week plus $30 for gasoline expenses for a total of
$330 a week. Husband agreed to employment of the nanny, but merely objected
to Wife getting full credit for the amount paid to the nanny because he believed
the nanny also cleaned the house. Wife admitted the nanny did clean on occasion,
but testified Wife did most of the cleaning, the vacuuming performed by the
nanny was necessary for two asthmatic children, and because the nanny had one
or both children with her the entire day, there was little time for her to clean.
Child support awards are addressed to the sound discretion of the family court
and will not be disturbed on appeal absent an abuse of discretion. Patel
v. Patel, 359 S.C. 515, 531, 599 S.E.2d 114, 122 (2004). The child care
arrangement is the same as it was before the parties separated, and it contemplates
the special health needs of the children. Based on the record before us, we
find a preponderance of the evidence supports the family courts determination
on this issue.
IV. Private School Tuition
Husband next asserts the family court erred in requiring him to pay fifty percent
of the cost of private school tuition for the children. He argues Wife failed
to specifically request this relief. He further asserts there was no agreement
by the parties to send the children to private school and there were no special
circumstances warranting the cost of private school. We agree.
The only evidence of record concerning private school for the children is that,
at the time of trial, Alex was enrolled in First Scotts Kindergarten K-4 program.
Wife testified she believed the tuition for the school is $2,400 a year. She
further stated Alex was attending First Scotts at the time the parties separated
and she intended to send Mimi there as well. Despite the fact that no mention
was made of Husband sharing in these costs, the family court ordered Husband
to be responsible for fifty percent of the cost of private school tuition for
the children, finding [t]he parties had established a course of conduct during
their marriage of having [Alex] enrolled in private kindergarten. . . .
It is clear Wife never requested Husband be required to contribute to private
school tuition in her complaint. Neither is there any indication that the issue
of her entitlement to a contribution for private school tuition was raised at
the hearing such that the issue was tried by consent. See Shirley
v. Shirley, 342 S.C. 324, 340-341, 536 S.E.2d 427, 435 (Ct. App. 2000) (noting
when issues not raised in the pleadings are tried by express or implied consent,
they will be treated as if they had been raised in the pleadings). Husband
was not, as Wife asserts, placed on notice Wife was seeking private school costs
for the children merely because Husband knew Alex was attending a private pre-school
program. Due process requires that a litigant be placed on notice of the issues
which the court is to consider and the rule that family court pleadings are
to be liberally construed may not be stretched so as to permit the judge to
award relief not contemplated by the pleadings. Abbott v. Gore, 304
S.C. 116, 119, 403 S.E.2d 154, 156 (Ct. App. 1991). Accordingly, we find the
family court erred in ordering Husband to contribute to the childrens private
school tuition.
V. Anger Management
Husband argues the family court erred in ruling he was required to attend anger
management because there is insufficient evidence to show he has a problem with
anger. We disagree.
Wife initiated this action seeking a divorce on the grounds of physical cruelty.
At the commencement of the hearing, Wife moved to amend her complaint to seek
a divorce on the ground of one-year continuous separation and the motion was
granted without objection. However, Wife still testified to incidences where
Husband became verbally and physically abusive with her, at times in front of
their daughter. Wife also admitted she had thrown drinks and soup at Husband
and had thrown some of Husbands artwork off the balcony. The guardian ad litem
testified to an incident she witnessed when she escorted Wife to retrieve some
personal property from the marital home and Husbands anger escalated during
the visit. After the incident, the guardian indicated to Wifes attorney she
believed Husband needed anger management counseling. The guardian testified,
while she thought Husband was a nice person, he directed anger at Wife, and
she believed Husband needed anger management to deal with it. The family court
ordered both Husband and Wife to enroll in anger management courses. Based
on the facts before us, we defer to the family court judge who saw and heard
the witnesses, and we find a preponderance of the evidence supports the courts
determination that Husband should attend an anger management course.
VI. Wifes Income
Husband next asserts error in the family courts determination of Wifes income
for purposes of determining retroactive and ongoing child support. Specifically,
he contends the court found Wifes gross monthly income in 2000 to be $2,947
when it was really $4,895 and further found her current gross monthly income
to be $3,410 when she actually earns gross monthly income of $6,712. We disagree.
Wife testified she earned gross income of $35,366 in 2000. While she had reported
a higher gross monthly figure on her financial declaration for the April 2000
temporary hearing, Wife testified she had not earned as much during the rest
of the year because she had gone on bed rest with her pregnancy, making much
less money during that year. She further took a distribution from her IRA that
year in order to purchase her home, making her income appear higher. Her 2000
tax return shows Wife earned wages of $35,366 and took an $18,500 distribution
from her IRA in the year 2000. We find no error in the courts finding on Wifes
gross monthly income for the year 2000.
As to the current income figure, Wifes financial declaration at the final
hearing showed she was earning $1,594 in salary, received income of $1,116 in
the form of a forgivable loan, and earned $700 from other sources per month.
Wife testified she was receiving average commissions of $1,594 a month, received
a forgivable loan from her new employment accounting for $1,116 per month, and
received $700 a month in property management fees. Thus, the evidence supports
the courts finding that Wife had a gross monthly income of $3,410 at the time
of the final hearing. Further, Husband fails to show any basis for his assertion
Wife earned $4,895 a month in addition to the property management income and
forgivable loan.
VII. Husbands Income
Husband next asserts
the family court erred in determining his income from self-employment, arguing
the court overstated gross receipts and failed to deduct a sufficient amount
for ordinary and necessary business expenses. We find the evidence insufficient
to support the courts determination on the gross receipts of the business,
but find sufficient evidence on the issue of expenses.
South Carolina Regulation 114-4720, governing the determination
of child support, provides in pertinent part as follows:
(1) Definition. The guidelines define income as the actual gross income
of the parent, if employed to full capacity, or potential income if unemployed
or underemployed. . . .
(2) Gross Income. Gross income includes income from any source including
salaries, wages, commissions, royalties, bonuses, rents (less allowable business
expenses), dividends, severance pay, pensions, interest, trust income, annuities,
capital gains, social security benefits (but not Supplemental Security Income),
workers compensation benefits, unemployment insurance benefits, disability
insurance benefits, Veterans benefits and alimony, including alimony received
as a result of another marriage and alimony which a party receives as a result
of the current litigation. Unreported case income should also be included
if it can be identified.
* * *
(4) Income From Self-Employment or Operation of a Business. For income from
self-employment, proprietorship of a business, or ownership of a partnership
or closely held corporation, gross income is defined as gross receipts minus
ordinary and necessary expenses required for self-employment or business operation,
including employers share of FICA. However, the court should exclude from
those expenses amounts allowed by the Internal Revenue Service for accelerated
depreciation or investment tax credits for purposes of the guidelines and
add those amounts back in to determine gross income. In general, the court
should carefully review income and expenses from self-employment or operation
of a business to determine actual levels of gross income available to the
parent to satisfy a child support obligation. As may be apparent, this
amount may differ from a determination of business income for tax purposes.
S.C. Reg. 114-4720(A) (emphasis added).
The family court order found Husband earned total commissions of $161,142 in
2000 and $153,506 in 2001. Husbands accounting expert testified Husband earned
gross income of $64,933 in the year 2000 and $68,243 for the year
2001. She determined these figures based on the companys general ledgers,
bank statements, and credit card statements. Husband testified, and the business
tax return shows, Husbands company had gross receipts of $133,969 in 2000.
Wife, on the other hand, testified she suspected Husband was underestimating
his income and that he had, in the past, failed to report all of his income
on his tax return. Further, Husband admitted that at one time, when he was
employed to handle the personal affairs of an elderly woman, he failed to report
all of that income on his income tax return. While Wife contends she put into
evidence Plaintiffs Exhibit # 22, Husbands business bank statements through
the end of 2001 which purportedly show gross receipts for each of those years,
the record does not show this specific exhibit is included. Further, the record
does contain statements from the various business bank accounts, however, these
statements are so disorganized and voluminous that it is impossible to determine
whether there is any support for the family courts finding on gross receipts
of the company. While Wife may very well have provided evidence in support
of the figures used by the family court, this court is unable to verify the
figures through the record before us. The family court was required to determine
gross receipts pursuant to S.C. Reg. 114-4720(A)(4). Given the record before
us, we find it necessary to remand this issue to the family court for redetermination
of the value of Husbands gross receipts during the pertinent years. If needed,
the family court may take additional testimony on the matter. See Widman
v. Widman, 348 S.C. 97, 116, 557 S.E.2d 693, 703 (Ct. App. 2001) (wherein
this court remanded to the family court for a determination of the value of
a share of stock where evidence in the record was insufficient to enable appellate
court to make a determination, and allowed taking of additional testimony by
the family court to resolve the issue).
As to the deductible business expenses, the record supports the family courts
finding that Husband pays many of his personal living expenses out of his business
account and that he is not entitled to some of the expenses he claims. The
record shows Wife successfully challenged many of these expenses. Further,
we agree with the family court that Husband failed to produce credible evidence
on the commingled expenses, and we find he specifically failed to demonstrate
the evidence of record to support the expenses he now contends were wrongly
excluded. Accordingly, we find the court properly excluded certain expenses
pursuant to S.C. Reg. 114-4720(A)(4).
VIII. Engagement Ring
Husband next contends the family court erred in ordering him to transfer the
engagement ring in his possession to Wife because it was non-marital property.
We disagree.
At trial, Husband testified he gave the ring to Wife as an engagement ring.
He claimed he came into possession of the ring when Wife took the ring off
and said you can have the ring. Wife adamantly denied giving the ring to
Husband. She stated that, after their separation, she and Husband were arguing
over money and how much he had paid for the ring. She took the ring off her
finger and asked Husband if that was all he cared about, at which point he took
the ring, smiled, and walked out the door.
The family court found the ring was given to Wife prior to the marriage, it
was non-marital property, and Wife was to have permanent possession and ownership
of the ring. Husband asserts this was error, contending the family court did
not have jurisdiction to apportion the non-marital property. An antenuptial
gift of an engagement ring is the recipients separate property. Frank
v. Frank, 311 S.C. 454, 457, 429 S.E.2d 823, 825 (Ct. App. 1993). Husband
is correct in his assertion that the family court does not have jurisdiction
to apportion non-marital property. S.C. Code Ann. § 20-7-473 (Supp. 2003).
However, family courts have exclusive jurisdiction to hear and determine actions
for divorce . . . and for settlement of all legal and equitable rights of the
parties in the actions in and to the real and personal property of the marriage
. . . . S.C. Code Ann. § 20-7-420(2) (Supp. 2003). Thus, the family court
clearly has jurisdiction to determine what is and is not marital. Here, the
court did not apportion the non-marital property, but merely determined it
was in fact non-marital and belonged to Wife.
[1] Accordingly, we hold the family court properly determined Wife was
entitled to possession and ownership of the ring.
IX. Attorneys Fees
Husband contends the family court erred in awarding Wife $28,000 in attorneys
fees because (1) the court improperly found much of Wifes fees were caused
by Husbands frivolous claim for custody, (2) the fees included $3,600 from
services of an unnecessary second attorney and, (3) the court improperly awarded
fees in part based on Husbands purported obstructive behavior in refusing to
allow Wife to retrieve some of her personal effects. We disagree.
The family court found Wife had incurred attorneys fees and cost of $41,513
and Husband should contribute $28,000 toward the fees and costs. The record
before us is replete with evidence supporting the family courts determination
that Husbands claim to custody was frivolous in that he maintained the claim
for other purposes than obtaining custody of his children. The preponderance
of evidence also supports the courts finding that Husband was obstructive in
that he refused to allow Wife to retrieve items that were clearly non-marital.
As to Husbands assertion regarding a second attorney, the record shows Wifes
attorneys fees affidavit was admitted into evidence without objection. The
record fails to demonstrate Husband ever challenged the use of two attorneys
or raised any objection to the fees during the hearing on his motion to reconsider.
Further, Husband failed to raise any issue concerning attorneys fees in his
motion for reconsideration. As a general rule, an issue may not be raised for
the first time on appeal, but must have been raised to and ruled upon by the
court below to be preserved for appellate review. See Noisette v.
Ismail, 304 S.C. 56, 58, 403 S.E.2d 122, 124 (1991) (holding an issue not
preserved where the trial court did not explicitly rule on an argument and the
appellant failed to make a Rule 59(e), SCRCP motion to alter or amend the judgment
on that ground). Because the family court did not have an opportunity to rule
on this issue, it is not preserved for our review.
We find no error in the award of attorneys fees based on Husbands arguments
and therefore affirm the award of these fees to Wife. [2]
X. Dismissal of Husbands Rule to Show Cause
Husband finally asserts the family court erred in denying his rule to show
cause. He contends the evidence introduced at the hearing on the matter showed
Wife willfully failed to comply with the courts order on visitation. We disagree.
Following issuance of the final order, Husband sought to have Wife held in
contempt based on her failure to comply with the courts order on visitation.
The family court dismissed the rule to show cause, finding, due to confusion
over the court ordered visitation, Wife initially failed to allow some of Husbands
weekday visitations on Tuesday and Thursday during the summer months. However,
Wife thereafter offered substitute visitation to make up for the missed days,
and specifically offered Tuesday and Thursday visitation, but Husband refused,
indicating he would rather take the matter to the court to have Wife held in
contempt.
Contempt results from the willful disobedience of a court order, and before
a court may find a person in contempt, the record must clearly and specifically
reflect the contemptuous conduct. Widman v. Widman, 348 S.C. 97, 119,
557 S.E.2d 693, 705 (Ct. App. 2001). A willful act is one which is done voluntarily
and intentionally with the specific intent to do something the law forbids,
or with the specific intent to fail to do something the law requires to be done;
that is to say, with bad purpose either to disobey or disregard the law.
Id. (citation omitted). A determination of contempt is within the sound
discretion of the trial judge whose decision will not be disturbed unless the
judges finding is without evidentiary support or there is an abuse of discretion.
Id. at 120, 557 S.E.2d at 705.
The record shows there was much confusion over the visitation issue. There
was only a partial agreement in the first part of the bifurcated trial. Wife
testified she did not realize she was in violation of the order, and she thought
the order provided no extended visitation over the summer months. She further
stated she tried to comply, offering Husband additional time with the children,
but Husband refused stating he wished to settle the matter in court. Even Husband
admitted the final order did not encompass what he thought it was supposed to
reflect on visitation. Accordingly, we find no abuse of discretion.
Based on the foregoing, the order below is
ARRIRMED IN PART, REVERSED IN PART AND REMANDED.
HUFF, KITTREDGE, and BEATTY, JJ., concur.