Swahn v. Swahn

CourtNebraska Court of Appeals
DecidedMarch 1, 2022
DocketA-21-367
StatusPublished

This text of Swahn v. Swahn (Swahn v. Swahn) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swahn v. Swahn, (Neb. Ct. App. 2022).

Opinion

IN THE NEBRASKA COURT OF APPEALS

MEMORANDUM OPINION AND JUDGMENT ON APPEAL (Memorandum Web Opinion)

SWAHN V. SWAHN

NOTICE: THIS OPINION IS NOT DESIGNATED FOR PERMANENT PUBLICATION AND MAY NOT BE CITED EXCEPT AS PROVIDED BY NEB. CT. R. APP. P. § 2-102(E).

GWYNNE S. SWAHN, NOW KNOWN AS GWYNNE S. GONNERMAN, APPELLANT, V.

CURTIS H. SWAHN, APPELLEE.

Filed March 1, 2022. No. A-21-367.

Appeal from the District Court for Washington County: JOHN E. SAMSON, Judge. Affirmed. Jane F. Langan Mach, of Rembolt Ludtke, L.L.P., for appellant. Edward D. Hotz, of Pansing, Hogan, Ernst & Bachman, L.L.P., for appellee.

MOORE, ARTERBURN, and WELCH, Judges. ARTERBURN, Judge. INTRODUCTION Gwynne S. Swahn, now known as Gwynne S. Gonnerman, appeals from an order of the district court for Washington County which denied her complaint to modify Curtis H. Swahn’s alimony obligations. Based on the reasons that follow, we affirm. BACKGROUND Following trial, a decree of dissolution was entered on December 17, 2010, dissolving the marriage between Curtis and Gwynne. The decree awarded Gwynne the marital residence and awarded Curtis ownership of Ultimate Thermal, Inc., a construction company that specializes in cold storage construction that the parties started together in 1998 and owned together during the course of their marriage. At trial, Gwynne did not request to retain any portion of the company, but the issue of valuation was contested. The decree stated: “Curtis will become the sole owner, shareholder, and operator of Ultimate Thermal, Inc. He will, as such, enjoy its profitability as a

-1- successful enterprise, including his annual salary, generous shareholder advances, and other nice benefits.” The court valued the company at a figure which was between the amounts sought by the parties. The decree noted that Gwynne, at the time of the decree, “has only a temporary part-time job, and will require a period of time either to further her education or to assist her with the transition into the full-time work force.” The court also observed in the decree that “[t]here is clearly a disparity in income or potential income between Gwynne and Curtis.” After noting this disparity, the court ordered Curtis to pay Gwynne $6,500 per month in alimony for 60 consecutive months beginning January 1, 2011, and concluding on December 1, 2015. The court also ordered Curtis to pay Gwynne $5,000 per month in alimony for 60 consecutive months beginning January 1, 2016, and concluding on December 1, 2020. The total amount of alimony ultimately paid by Curtis over a 10-year period was $690,000. Additionally, the court ordered Curtis to pay to Gwynne an equalization payment of $458,434.93 in four annual installments of $114,608.74 plus accrued interest. The first installment was due on July 1, 2011, with the final installment due on July 1, 2014. Curtis made all of the required payments in accordance with the decree. Gwynne did not appeal from the decree entered by the district court. On December 16, 2019, 9 years after the decree was entered, Gwynne filed a complaint to modify the decree of dissolution with respect to alimony. She alleged that there had been a material change of circumstances because Curtis’ income had significantly increased beyond what was contemplated in the decree; Gwynne’s ability to invest in retirement had been severely limited by her income since the decree, and Gwynne’s living expenses had significantly increased since the decree. She requested an order modifying the amount and duration of alimony previously entered in the dissolution decree, for her attorney fees and costs, and for further relief as deemed appropriate by the court. In March 2020, a trial was held on Gwynne’s complaint to modify. The central focus of the evidence presented at trial was Curtis’ financial circumstances, both at the time the decree was entered and at the time of the modification proceedings. However, Gwynne also presented evidence to demonstrate her current financial circumstances. The evidence presented at the modification trial revealed that Ultimate Thermal was worth significantly more now than at the time of the dissolution proceedings. During his testimony at the modification trial, Curtis acknowledged that at the time of the dissolution trial, Ultimate Thermal was “cash poor.” However, at the time of the modification trial, Curtis believed the company to have a value of $2.5 million and noted that it held over $2 million in its bank account. The evidence presented during the modification proceedings also revealed that in line with the increase in Ultimate Thermal’s value, Curtis’ income had increased since the dissolution trial. The evidence showed that Curtis receives most of his income from profits from Ultimate Thermal, rather than wages. According to Curtis’ tax records received at trial, Curtis’ income had increased since 2010. While his income fluctuated from year to year, his tax returns from 2011 to 2019 showed his annual income ranged from $607,800 to $1,610,885. Although he explained that his 2020 tax return was not finished, he believes that his income would be over $1,000,000 for 2020. He also conceded that Ultimate Thermal made a lot more money than he had anticipated in 2010. Curtis conceded that during the dissolution trial, he had testified that there had been an unusually lucrative contract that caused a recent “spike” in his income that he believed was

-2- unlikely to be sustained. He also testified that he “guarantee[d] the spike is over.” At that point, Curtis’ annual income from Ultimate Thermal was approximately $300,000. There was additional testimony from Ultimate Thermal employees with respect to the increase in the company’s value. Ultimate Thermal’s office manager testified that there had been an increase in company revenue from 2011 until 2020. Vincent Wilson, a certified public accountant, who has completed tax returns for Curtis and Ultimate Thermal recalled that there was a significant contract that occurred in 2008 or 2009, around the time of the original dissolution proceedings. That contract was for a project which was significantly larger than Ultimate Thermal’s average contract to that point in time. He also explained that Ultimate Thermal’s gross revenue increased significantly since the entry of the dissolution decree. Although Wilson could not remember what the specific projected income for Ultimate Thermal was in 2020, he did not believe that it was significantly different than the previous few years. Gwynne presented evidence regarding her financial circumstances at the time of the decree as compared to at the time of the modification trial. At the time of the dissolution trial, Gwynne was employed part time at a church working approximately 20 hours per week at the rate of $10 per hour. She explained that her primary responsibility during the marriage was to care for the house so that Curtis could dedicate his time to building and operating Ultimate Thermal. She also had been the primary caretaker for the parties’ children, but they were adults by the time the dissolution proceedings began. At the time of the dissolution trial, Gwynne did not want to be awarded the marital residence, but following trial she had changed her mind. Her wish was communicated to the district court which awarded her the house and the indebtedness thereon. Following the entry of the decree, Gwynne did not work for a couple of years because she testified that she needed to “get healthy.” She was then employed as the executive director of a nonprofit entity for 5 years in which she earned between $40,000 and $45,000 per year. She explained that she did not have a retirement plan at this position. She left that position and began working at another nonprofit as a major gifts officer before getting promoted to be the donor relations manager, close to trial.

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Bluebook (online)
Swahn v. Swahn, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swahn-v-swahn-nebctapp-2022.