Perez v. Hogan

534 So. 2d 478, 1988 La. App. LEXIS 2492, 1988 WL 127034
CourtLouisiana Court of Appeal
DecidedNovember 16, 1988
DocketNo. 88-CA-301
StatusPublished
Cited by3 cases

This text of 534 So. 2d 478 (Perez v. Hogan) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perez v. Hogan, 534 So. 2d 478, 1988 La. App. LEXIS 2492, 1988 WL 127034 (La. Ct. App. 1988).

Opinion

CHEHARDY, Chief Judge.

Maurine Perez Hogan appeals the district court’s denial of her rules to increase alimony and child support. William J. Hogan Sr., her divorced husband, answers the appeal, asserting the district court erred in denying his rule to decrease alimony and child support and also in finding Maurine Hogan entitled to past-due child support in the amount of $7,000.

The parties were divorced on October 7, 1981, following a seventeen-year marriage in which they lived an affluent lifestyle. In the judgment of divorce, Maurine Hogan was awarded custody of their three minor children (Terri, Billy and Tammi) and William Hogan was ordered to pay Maurine Hogan alimony in the amount of $1,691.33 per month and child support in the amount of $1,800 per month. In addition, Mr. Hogan was ordered to pay all reasonable medical bills and all schooling expenses for the children, “for a period not to expire in less than 12 years from the date of the judgment, except in the event of substantial financial reverses incurred by the Defendant during said period, regardless of the fact that during said 12 year period, all of said minor children will have reached majority.”

Immediately after rendition of the divorce decree, the parties executed a property settlement agreement under which William Hogan Sr. bound himself as follows:

“The parties further acknowledge and declare that one of the prime considerations given in considering the division and settlement of the community previously existing between them was that they were able to partition the communi[480]*480ty amicably and amicably agree upon appropriate alimony and child support payments to be made by appearer, William J. Hogan, Sr., unto Maurine Perez, the divorced wife of William J. Hogan, Sr. As a result thereof, the said William, J. Hogan, Sr. does further hereby bind and obligate himself not to seek a reduction in the monthly alimony payments due Maurine Perez * * * in the amount of $1,691.33 for a period not to expire in less than twenty (20) years from this date nor to seek a reduction in the monthly child support payment due Maurine Perez * * * in the amount of $1,800.00 for a period not to expire in less than twelve (12) years from this date, except in the event of substantial financial reverses” (Emphasis added.)

Approximately two years later the parties engaged in litigation over the amount of child support due Mrs. Hogan because Mr. Hogan filed a rule to reduce after he was awarded custody of Billy pursuant to a juvenile court order that found Billy to be a child in need of supervision. The district court reduced child support from $1,800 to $1,300 per month. Upon appeal by Mrs. Hogan to this court, we reversed that ruling and reinstated the $1,800 amount. Hogan v. Hogan, 465 So.2d 73 (La.App. 5 Cir.1985).

On July 11, 1985, Mrs. Hogan commenced the litigation that has resulted in this appeal. She sought to accumulate the $500-per-month reduction in child support payments by Mr. Hogan over the 14-month period between the filing of his rule to reduce and the rendition of the judgment reversing the reduction.

The parties’ respective rules to increase and to decrease the support amount arise from Mrs. Hogan’s claim that hers and the children’s expenses have increased, requiring her to liquidate her investments in order to maintain her style of living.

Mr. Hogan, on the other hand, claims not only that his business interests have suffered substantial financial reverses resulting from a downturn in the economy of the New Orleans area over the past few years, but also that Mrs. Hogan’s living expenses have decreased because she sold the former matrimonial domicile and now lives in an apartment, thereby drastically reducing her household maintenance expenses. In addition, he asserts, her expenses for care of the children have decreased because Terri and Billy are now majors.

Mrs. Hogan points out, on the other hand, that despite Mr. Hogan’s claim of substantial financial reverse, he and his present wife continue to live an affluent lifestyle, with an expensive new home and high-priced automobiles; in addition, he is able to give gifts to his children that are far beyond the scope of his obligations under the child support judgment (e.g., a gift of $12,000 to the elder daughter on her. 21st birthday; a $15,000 automobile to the son).

The parties’ testimony at trial of the rules was heard on three separate occasions. Mrs. Hogan’s testimony focused on the investments she had liquidated, but was imprecise and confused as to how much income and capital she actually has in addition to her alimony. In fact, substantial omissions from her financial statement had to be corrected in court by her attorney. Her testimony as to her living expenses was not clear.

To support his claim of substantial financial reverses, Mr. Hogan presented financial statements on which the values of his stock and property holdings were shown in what he called “deep discount” versions, with values dramatically decreased from previous statements.

His Spring 1984 and 1985 statements showed his personal net worth as between $1,500,000 and $2,000,000. (He and his present wife are separate in property.) His March 1986 statement shows his worth as $1,856,840. Mr. Hogan, however, claims these statements are the “most optimistic” view of the value of his holdings.

He claims the deep discounted versions are more representative of actual property values in the commercially-depressed Greater New Orleans area. These statements show his net worth to be $229,000 and $326,242. He claims his 1985 joint tax return with his present wife shows a net [481]*481loss of $285,171, in contrast to returns from 1982, 1983 and 1984 showing incomes ranging from $187,077 to $281,303.

Considering the evidence, we conclude the trial court did not abuse its discretion in denying the claims for increase and reduction of support. Regarding child support we conclude that, while Mr. Hogan is bound by the agreement to pay the items stated therein despite the majority of the two older children, the fact that they are now majors means he is not bound to support them beyond the scope of the agreement.

Accordingly, Mrs. Hogan is not entitled to seek an increase on behalf of the major children. As for Tammi, the only child still a minor, Mrs. Hogan made insufficient showing that her needs had increased beyond what they were when the in globo award was set.

Similarly, regarding alimony Mrs. Hogan made insufficient showing that her personal expenses had increased to the extent necessary to justify an increase.

As for Mr. Hogan’s demand for decreases, we conclude he failed to adequately prove his claim of substantial financial reverses. Rather, as Mrs. Hogan argues, the evidence establishes Mr. Hogan’s affluent and comfortable lifestyle has not diminished. He drew up his own so-called “bad news” financial statements, which were unaudited, using his own estimates of the decreases in the value of his investments and properties. We do not hold these are necessarily false nor do we impugn Mr. Hogan’s business acumen; under the circumstances, nonetheless, without supporting testimony by a neutral third party or expert, these statements can only appear self-serving and, thus, less credible.

The final issue is the accumulation of past-due child support. Mr. Hogan contends the award of $7,000 should be reversed, arguing Mrs.

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Related

Morrison v. Morrison
781 P.2d 745 (Court of Appeals of Kansas, 1989)
Hogan v. Hogan
549 So. 2d 267 (Supreme Court of Louisiana, 1989)
Perez v. Hogan
536 So. 2d 1226 (Supreme Court of Louisiana, 1989)

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Bluebook (online)
534 So. 2d 478, 1988 La. App. LEXIS 2492, 1988 WL 127034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perez-v-hogan-lactapp-1988.