of Thorstad —

2019 COA 13, 434 P.3d 165
CourtColorado Court of Appeals
DecidedJanuary 24, 2019
Docket17CA2293, Marriage
StatusPublished
Cited by5 cases

This text of 2019 COA 13 (of Thorstad —) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
of Thorstad —, 2019 COA 13, 434 P.3d 165 (Colo. Ct. App. 2019).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY January 24, 2019

2019COA13

No. 17CA2293, Marriage of Thorstad — Family Law — Uniform Dissolution of Marriage Act — Post-dissolution — Modification and Termination of Provisions for Maintenance, Support, and Property Disposition

A division of the court of appeals addresses the issue of how

trial courts should apply section 14-10-122(2)(a), (b), and (c),

C.R.S. 2018, when deciding whether to modify a payor spouse’s

maintenance obligation because he or she has decided to retire

from employment. These subsections establish a rebuttable

presumption that a decision to retire was made in good faith when

certain conditions are met.

The division then concludes that, absent a court’s decision to

reserve jurisdiction, the parties’ stipulation in a separation

agreement to apply a different standard, or a statute enunciating a

different standard, a court must apply section 14-10-122(1)(a) when deciding whether to grant a payor’s motion to modify or to

terminate maintenance. When a motion to modify or terminate

maintenance is based on a payor’s decision to retire, the court must

therefore decide, considering the factors discussed in section

14-10-114, C.R.S. 2018, whether circumstances have changed in

such a sufficient and continuing way as to render the maintenance

order unfair.

In other words, the payor’s good faith decision to retire is a

factor in the analysis, but it does not automatically require the

court to grant the motion to modify or to terminate a maintenance

obligation.

So, the division reverses the trial court’s order because it

misapplied subsections 122(2)(a), (b), and (c), and the division

remands the case to the trial court for further proceedings. COLORADO COURT OF APPEALS 2019COA13

Court of Appeals No. 17CA2293 Jefferson County District Court No. 01DR2710 Honorable Dennis J. Hall, Judge

In re the Marriage of

Ronald L. Thorstad,

Appellee,

and

Randie J. Thorstad, n/k/a Randie J. Randell,

Appellant.

ORDER REVERSED AND CASE REMANDED WITH DIRECTIONS

Division IV Opinion by CHIEF JUDGE BERNARD Hawthorne and Tow, JJ., concur

Announced January 24, 2019

Elizabeth Henson, Attorney Mediator P.C., Elizabeth Henson, Greenwood Village, Colorado, for Appellee

Schaffner Law LLC, Jennifer A. Schaffner, Denver, Colorado, for Appellant I. Introduction

¶1 Colorado statutes establish how courts set, modify, and

terminate maintenance orders. The decision to modify or to

terminate a maintenance order is often governed by the effect of

changed circumstances on the payor spouse’s ability to pay.

¶2 More specifically, section 14-10-122(1)(a), C.R.S. 2018, states

that, subject to certain enumerated exceptions, “the provisions of

any decree respecting maintenance may be modified . . . only upon

a showing of changed circumstances so substantial and continuing

as to make the terms unfair.” When deciding whether changes have

been sufficiently substantial and continuing as to render a

maintenance order unfair, “the court is required to examine all

circumstances pertinent to awarding maintenance” under section

14-10-114, C.R.S. 2018. In re Marriage of Nelson, 2012 COA 205,

¶ 26.

¶3 This case examines the statutory structure that courts apply

when dealing with the effect of one potential substantial and

continuing changed circumstance upon a maintenance order: a

payor’s decision to retire. We recognize that, in some cases, there

could be an ulterior motive behind this decision: to reduce or to

1 eliminate the obligation to pay maintenance by reducing or

eliminating the payor’s income. The law gives a name to such an

ulterior motive: “voluntary underemployment or unemployment.”

¶4 Courts frown on voluntary underemployment and

unemployment because these stratagems constitute an attempt to

avoid paying maintenance. They may counter such stratagems by,

for example, considering “whether [a payor] spouse is voluntarily

underemployed in determining whether reduced income is a

substantial and continuing circumstance that would justify

modification or termination of his [or her] maintenance obligation.”

In re Marriage of Swing, 194 P.3d 498, 500 (Colo. App. 2008); see

also In re Marriage of Barnthouse, 765 P.2d 610, 613 (Colo. App.

1988)(“[W]e find no error in the court’s [finding] that the

father . . . was voluntarily earning less than he was capable of

earning. Therefore, there is no merit to the father’s contention that

the . . . maintenance award[] [was] erroneous.”).

¶5 There is also the prospect that a payor’s decision to retire was

not the product of an ulterior motive, but was, instead, a product of

good faith. See § 14-10-114(8)(c)(V)(B) (“[A] party shall not be

deemed ‘underemployed if . . . [t]he employment is a good faith

2 career choice . . . .”); cf. § 14-10-115(5)(b)(III)(B), C.R.S. 2018 (“[A]

parent shall not be deemed ‘underemployed’ if . . . [t]he employment

is a good faith career choice that is not intended to deprive a child

of support and does not unreasonably reduce the support available

to a child . . . .”). In those situations, the decision to retire may

nonetheless pose a dilemma for the payor — which we shall call the

“payor’s dilemma” — prompting him or her to worry, “If I decide to

retire, thus reducing my income, will a court view my retirement as

voluntary underemployment or unemployment when deciding

whether to grant my motion to modify or to terminate my

maintenance obligation?” This dilemma may be especially

problematic when decisions to retire are irrevocable.

¶6 Swing addressed this concern. The division first recognized

the payor’s dilemma: “Unless the effect of retirement on

maintenance has been addressed in the parties’ separation

agreement, a spouse contemplating retirement who is either paying

or receiving maintenance faces considerable uncertainty.” Swing,

194 P.3d at 500. The uncertainty is generated, on the one hand, by

the reduction in income that almost “irrevocably” accompanies

retirement, and, on the other hand, by the lack of Colorado law

3 “assur[ing] that maintenance will be modified based on the retiree’s

lower wage income.” Id.

¶7 To ameliorate the payor’s dilemma, the division surveyed

decisions from other states, and it discovered a majority rule:

“[R]educed income due to a spouse’s objectively reasonable decision

to retire, made in good faith and not with the intention of depriving

the other spouse of support, should be recognized as a basis for

modifying maintenance.” Id. at 501. The division then concluded

that a court should not find a payor to be voluntarily

underemployed if the payor’s decision to retire (1) “was made in

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Cite This Page — Counsel Stack

Bluebook (online)
2019 COA 13, 434 P.3d 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/of-thorstad-coloctapp-2019.