Terra Lynn Thompson v. Justin Claude Thompson

CourtCourt of Appeals of Tennessee
DecidedMay 29, 2026
DocketM2025-01226-COA-R3-CV
StatusPublished
AuthorJudge Jeffrey Usman

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

Bluebook
Terra Lynn Thompson v. Justin Claude Thompson, (Tenn. Ct. App. 2026).

Opinion

05/29/2026 IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE May 5, 2026 Session

TERRA LYNN THOMPSON v. JUSTIN CLAUDE THOMPSON

Appeal from the Circuit Court for Williamson County No. 24-CV-21 Joseph A. Woodruff, Judge ___________________________________

No. M2025-01226-COA-R3-CV ___________________________________

Husband and Wife divorced. In ruling upon contested matters, the trial court awarded Wife transitional alimony and alimony in futuro as well as attorney’s fees. Husband appealed. He argues the trial court’s award of alimony was error because the court miscalculated his income, because it errantly excluded certain evidence, and because it awarded the wrong type of alimony. He also argues that Wife’s attorney’s fees affidavit was insufficient to support an award of attorney’s fees. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed

JEFFREY USMAN, J., delivered the opinion of the court, in which ANDY D. BENNETT and CARMA DENNIS MCGEE, JJ., joined.

Perry A. Craft, Nashville, Tennessee, for the appellant, Justin Claude Thompson.

Jessica N. Borne and Aubrey M. Malchow, Franklin, Tennessee, for the appellee, Terra Lynn Thompson.

OPINION

I.

After more than 16 years of marriage, Terra Thompson (Wife) filed for divorce from Justin Thompson (Husband). At that time, their three minor children were ages 14, 12, and 10, respectively. Wife spent the majority of the marriage caring for the children as a stay- at-home parent. Husband had worked as a business manager for a masonry company for approximately eight years. Although Wife found employment at two jobs around the time the parties separated, Husband continued to earn a significantly higher income than Wife. Their differing financial outlooks presented a major source of discord during the divorce proceedings.

Husband’s income, which consisted of a base salary plus an annual bonus calculated at the end of the year, had grown substantially in his eight years with the masonry company. He presented evidence that his base salary for the five years prior to Wife’s divorce filing increased each year, growing from $97,040.80 to $137,379.51. He also presented evidence showing that his annual bonuses for those years were $80,000, $85,000, $95,000, $100,000, and $250,000, respectively. He reported the bonuses as part of his income on his tax returns.

For purposes of the divorce, however, Husband took the position that his annual bonuses should not be included in the calculation of his income. He did not produce documentary evidence of his compensation for 2024, the year Wife filed for divorce, and he testified at trial that he had not filed his taxes as of the usual deadline for that year. Unlike years past, Husband did not deposit his 2024 bonus into the parties’ joint bank account. Instead, he placed the $250,000 bonus he received in a separate account and did not inform Wife of the amount until after she filed a motion to compel. He later admitted at trial that he would have to recognize this amount on his tax return for the year and testified that his total “income was just under $400,000” in 2024. However, he stated that he “never considered that [the bonus] was [Wife’s] business” after she filed for divorce. He claimed that he did not “think [he] failed any disclosure” requirements and had not thought depositing the bonus into his separate account was “an issue.” Husband argued that the court should find that his monthly gross income, for purposes of child support and alimony, was $12,000.58.

On the first day of the parties’ divorce trial, Husband surprised Wife and her attorney by testifying that the ownership of his business had changed the week prior to trial and that he did not expect to get a bonus moving forward. He proffered as evidence of the change in ownership and new payment structure an unsigned letter that he described as “a proposed term sheet for [his] employment” with the company’s purchaser. The letter, which was dated “April 11, 2025,” the Friday before the trial, stated that Husband’s employment with the purchaser was “contemplated to begin on or around April 11, 2025 (the ‘Transaction Date’).” It stated that Husband would receive an annual base salary of $150,000 and that, “[c]ommencing in the 2025 plan year, [Husband would] be eligible for a target bonus equal to 20% of [his] annual base compensation.” According to the language in the letter itself, the letter constituted “a legally binding agreement between the parties hereto regarding the principal terms of [Husband’s] employment, which will be evidenced by a definitive agreement to be entered on or before the Transaction Date.” It also stated, however, “that if definitive agreements are not entered into between the parties, this Term Sheet shall continue in full force and effect.” Neither of the letter’s signature lines for Husband or for the company’s purchaser were signed. -2- Wife’s attorney objected to the letter as unauthenticated and hearsay; additionally, she argued that Husband had failed to supplement his discovery responses to include the letter or provide any hint that his pay structure may change. Wife’s counsel noted for the court that Husband’s response to Wife’s interrogatory about his bonuses stated only that he “may receive a year end bonus determined by [the] company owner alone.” Wife claimed to have received no information about any potential change in company ownership in discovery. Husband’s attorney had supplemented discovery responses as recently as the night before the trial, but the unsigned letter was not included in that supplementation. Husband’s attorney explained that he had seen the letter Husband was presenting for the first time on the morning of the trial.

The trial court excluded the letter from evidence and stated that it would give Husband’s testimony about the alleged change in ownership and payment structure – to which Wife did not object – “what [the court] consider[ed] to be the weight that it deserves.” Husband testified that the change in ownership was “in the early processes.” He was still “unclear” about the name of the new business. Still, he testified that he had been offered employment at a base salary of $150,000 plus a potential bonus of up to 20% of his salary and that he understood this to be a “take it or leave it” offer. He conceded that he did not, at that time, have a contract of employment with the purchaser. According to Husband, he had not received the letter at issue until Monday, April 14, 2025, two days before the trial, and that, as of the Wednesday trial date, there had been no follow-up.

Husband also testified, however, that he “understood that [the company’s owner and the purchaser] discussed opportunities” for a sale as early as “in the first quarter” of 2024. He stated that, around the time he received his 2024 bonus in December of that year, the company’s owner had explained to him the possibility of a sale and change in bonus structure. Husband understood the deal to have closed on April 11, 2025. He asserted that he believed the business “was only entertaining ideas” until then and that he had only “learned the closing date probably within a few days before [April] 11th,” when he “overheard discussions between [the company’s] in-house accountant and the company owner . . . either early in the week last week or the week before that.” The trial court determined that “Husband was certainly on inquiry notice to the very least as early as December of 2024 that the compensation information that he had disclosed in discovery needed to be supplemented,” but he “did not supplement it” or “even inform his own attorney of this information.”

After a delay, the trial continued approximately one month later.

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Bluebook (online)
Terra Lynn Thompson v. Justin Claude Thompson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terra-lynn-thompson-v-justin-claude-thompson-tennctapp-2026.