P.J.W. VS. E.B.W. (FM-18-0298-12, SOMERSET COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided November 16, 2020·No. A-5308-18T3·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-5308-18T3

P.J.W.,

Plaintiff-Respondent/

Cross-Appellant,

v. E.B.W.,

Defendant-Appellant/ Cross-Respondent.

Argued September 22, 2020 – Decided November 16, 2020 Before Judges Gilson, Moynihan, and Gummer.

On appeal from the Superior Court of New Jersey, Chancery Division, Family Part, Somerset County, Docket No. FM-18-0298-12.

Richard S. Diamond argued the cause for appellant (Diamond & Diamond, P.A., attorneys; Richard S.

Diamond, Lynn Matits Gianforte, and Samuel J. Berse, on the briefs).

Andrew M. Shaw argued the cause for respondent.

PER CURIAM

This appeal involves disputes concerning alimony, child support, and attorney's fees that arose after the parties were divorced. Defendant, the former wife, appeals from a June 28, 2019 order that reduced the former husband's alimony obligations due to a change of employment and a related reduction in his compensation. 1 Plaintiff cross-appeals from the same order, contending that his child-support obligation should have ended when their unemancipated child came to live with him and that he was entitled to reimbursement for child support paid while the child was living with him. He also challenges the denial of his request for attorney's fees.

The order being appealed was entered after a plenary hearing. Having reviewed the extensive record and applicable law, we discern no error in the decisions concerning alimony and attorney's fees. We reverse the provision of the order concerning child support because the family court failed to set forth its findings of fact and conclusions of law on that issue. Accordingly, we remand that issue.

1 We use initials in the caption to protect the privacy of the litigants and preserve the confidentiality of certain records because we discuss some of their financial circumstances. See R. 1:38-3(d).

A-5308-18T3

I.

The parties were married in 1993 and, twenty years later, in 2013 they divorced. They have two children: a son who is emancipated and a daughter who was born in January 2001 and is currently attending college.

Plaintiff filed for divorce in 2011. After two years of litigation, the parties negotiated and entered into a Support and Equitable Distribution Agreement (the Support Agreement), which was incorporated into their final judgment of divorce. Under the Support Agreement, plaintiff agreed to pay defendant permanent alimony "consisting of 25% of husband's total gross compensation up to a total of [$]1,250,000.00 per annum."

At the time of the divorce, plaintiff was a senior executive at Barclays Bank (Barclays). His total gross compensation in the last four years of the marriage averaged over $910,000. Plaintiff received various forms of compensation, some of which were fixed and some of which were discretionary or based on his performance. The parties agreed that plaintiff would pay twenty- five percent of his fixed compensation of $420,000 (that was $105,000) in bi- monthly payments of $4375. Plaintiff was also obligated to pay defendant twenty-five percent of his remaining gross compensation within five business days of his receipt of such additional compensation. The Support Agreement

A-5308-18T3

also provided that either party could seek to modify the alimony if there was a "material change" in his or her financial circumstances.

In addition, the Support Agreement required plaintiff to pay defendant child support. Like alimony, plaintiff paid child support in fixed and variable amounts. The Support Agreement provided that when their son started college, plaintiff would make a monthly payment of $880 based on his fixed income of $420,000. Plaintiff was also required to make additional child-support payments of four percent of his gross compensation above $420,000. Additionally, plaintiff was responsible for paying 72.5% of the children's various expenses, including extracurricular and college expenses.

Plaintiff has a master's degree in computer science and has held a variety of positions dealing with computer technology applied to finance. In 2008, plaintiff became a senior executive at Barclays, where he was responsible for managing the bank's electronic trading. In 2013, he held the position of Managing Director of Capital Markets Technology for Barclays.

In the five years following the parties' divorce (2013 to 2017), plaintiff's annual income from Barclays ranged between just over $714,000 to just over $973,000. Accordingly, his annual income from Barclays averaged over

A-5308-18T3

$850,000 per year. Through 2016, plaintiff paid defendant alimony in the amount of twenty-five percent of his gross compensation.

In October 2017, plaintiff was notified that he was being fired from Barclays effective January 5, 2018. Plaintiff began to search for a new job and in February 2018 accepted a position as Director of Software Engineering for AlphaPoint, a start-up blockchain company. His base annual salary at AlphaPoint was $200,000, with the potential for bonuses.

In April 2018, plaintiff moved to reduce his alimony and child support based on his decreased income. The family court found that plaintiff had made a prima facie showing of a change of circumstances, authorized the parties to conduct discovery, and scheduled the matter for a plenary hearing.

Thereafter, both parties engaged in discovery and retained employment experts. The plenary hearing began in March 2019.

Meanwhile, plaintiff reinitiated his search for employment. In April 2019, plaintiff left AlphaPoint and accepted the position of Capital Markets Technology Manager with Wells Fargo Bank. Plaintiff's annual salary at Wells Fargo is $265,000, and he has the potential for bonuses and stock options. Plaintiff continued to work for Wells Fargo through June 2019, when the family court issued the order on appeal.

A-5308-18T3

After plaintiff took the position with Wells Fargo, the family court allowed the parties to engage in supplemental discovery. Each employment expert submitted an additional report addressing plaintiff's employment at Wells Fargo.

As already noted, the plenary hearing began in March 2019 and was conducted on five days between March and June 2019. The family court heard testimony from both parties and their employment experts. Plaintiff's expert was Dr. Daniel Wolstein, and defendant's expert was Dr. David Stein.

Plaintiff testified that he conducted his post-Barclays employment searches in two phases: (1) October 2017 into February 2018; and (2) December 2018 into April 2019. He explained that he used recruiters, his professional network, and directly applied to positions posted on the internet. Between October 2017 and February 2018, he applied for over thirty positions and received three offers with salaries ranging between $120,000 to $200,000.

Plaintiff accepted the position at AlphaPoint in February 2018. He testified that AlphaPoint offered $40,000 more than other companies with which he had interviewed, and he believed that the position would allow him to get back into software development.

A-5308-18T3

In December 2018, plaintiff reinitiated his search for employment and applied for over 100 potential positions. He was offered two: a position at Wells Fargo and a position at Amazon. He accepted the position at Wells Fargo because it had a higher base salary of $265,000 and the potential for bonuses and stock options.

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P.J.W. VS. E.B.W. (FM-18-0298-12, SOMERSET COUNTY AND STATEWIDE), (N.J. Ct. App. 2020).

P.J.W. VS. E.B.W. (FM-18-0298-12, SOMERSET COUNTY AND STATEWIDE) (P.J.W. VS. E.B.W. (FM-18-0298-12, SOMERSET COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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