Tuckosh v. Tuckosh, Unpublished Decision (3-15-2002)

CourtOhio Court of Appeals
DecidedMarch 15, 2002
DocketCase No. 00 526 CA.
StatusUnpublished

This text of Tuckosh v. Tuckosh, Unpublished Decision (3-15-2002) (Tuckosh v. Tuckosh, Unpublished Decision (3-15-2002)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tuckosh v. Tuckosh, Unpublished Decision (3-15-2002), (Ohio Ct. App. 2002).

Opinion

OPINION
Lawrence and Carol Tuckosh filed cross-appeals from the decision of the Harrison County Common Pleas Court entered in their divorce action. Both parties assign multiple issues for our review including income levels, the amount, length and nonmodifiability of spousal support, the amount of child support, the valuation of the family business, the manner of property distribution, an award of attorney fees, the transportation of the children for visitation purposes, health care expenses, and the amount of the temporary support orders. For the following reasons, some issues are affirmed, some are remanded, and some must be reserved due to the remand.

STATEMENT OF FACTS
The parties were married in July 1991; one child was born in May 1994, and one was born in March 1996. Soon after the marriage commenced, Mr. Tuckosh and a partner opened Cadiz Tool and Machine. In creating the equal partnership, the partner brought with him mortgaged land and a building and Mr. Tuckosh brought in his skills as a machinist. In September 1996, he bought his partner's one-half interest by paying him approximately $120,000 in cash installments. (Tr. 59, 61). Mr. Tuckosh then incorporated the company in April 1996 and became the sole shareholder.

In April 1998, the parties signed a $48,000 mortgage on their marital residence. At the same time, the company received a Small Business Association loan for more than $400,000. In June or July 1998, Mr. Tuckosh moved out of the marital residence. He filed a complaint for divorce in November 1998.

In January 1999, the court ordered Mr. Tuckosh to pay $250 per child per month in temporary child support and $250 per month in temporary spousal support. In September 1999, Mrs. Tuckosh moved to the Cleveland area and began college full-time with the intent of receiving a degree in physical therapy.

Divorce hearings were held before a magistrate on three dates: July 15, 1999, January 4 and 18, 2000. For some reason, an entry was filed whereby the magistrate, all regular visiting judges, and the presiding judge recused themselves from the case. In July 2000, a new judge was appointed to decide the case.

In August 2000, the parties agreed to submit the case to the new judge who would review the transcripts and make credibility determinations solely therefrom. On October 31, 2000, the court filed its decision. Mrs. Tuckosh was designated the residential parent. Mr. Tuckosh was informed that he was responsible for transportation of the children for purposes of his visitation.

The court found that Mr. Tuckosh annually earns approximately $30,000 in salary and $15,000 in perks. The court found that Mrs. Tuckosh had no income and was not expected to generate income within the foreseeable future due to her responsibility for two young children and her full-time college status.

In valuing the company, the court noted that both parties presented expert witnesses whose valuations were widely divergent: the expert of Mr. Tuckosh opined that the company had a negative liquidation value while the expert of Mrs. Tuckosh opined that the liquidation value was $260,000 and that, regardless, the company was worth $345,000. (Tr. 314, 368-369, 389). The court also noted that both relied on inaccurate or unreliable information about the company. The court decided that the company's value relates to anticipated earnings rather that simply a liquidation value of assets minus liabilities. The court then determined that the fair market value of the company is $240,000. The court based its decision on the $120,000 price that Mr. Tuckosh paid his partner and pointed out that the price was arrived at by the two people who were the most knowledgeable about the company's circumstances.

Besides the company, the court stated that the marital property included the marital residence valued at $65,000 but encumbered by a $48,000 mortgage, $5,000 in proceeds from a cattle sale, a $3,500 federal income tax refund check from 1998, and a 1990 Lincoln Towncar with 175,000 miles on it. The court awarded the aforementioned assets equally, except it awarded the car to Mrs. Tuckosh. The value of the company was ordered to be paid to Mrs. Tuckosh in annual installments of $12,000 without interest.

As for multiple credit card balances, the court ordered that Mr. Tuckosh pay this debt and hold Mrs. Tuckosh harmless therefor. The court reasoned that much of the debt was for the company or for his personal expenses and that the rest constituted necessary living expenditures for Mrs. Tuckosh and the children.

The court ordered Mr. Tuckosh to pay $424.54 per child per month in child support. The court also awarded Mrs. Tuckosh $900 per month in spousal support for five years. Finally, Mr. Tuckosh was ordered to pay $5,000 in attorney fees for Mrs. Tuckosh.

Mr. Tuckosh appealed first, becoming the appellant and cross-appellee. Mrs. Tuckosh then appealed, becoming the appellee and cross-appellant. Mr. Tuckosh sets forth six assignments of error. Mrs. Tuckosh sets forth seven assignments of error, many of which contain multiple issues. To facilitate our analysis, we have divided the major topics into headings and subdivided the headings according to the relevant assignments of error.

PROPERTY DIVISION
Mr. Tuckosh's fourth assignment of error alleges:

"THE TRIAL COURT COMMITTED PREJUDICIAL ERROR WHEN IT RULED THAT THE VALUE OF CADIZ TOOL AND MACHINE WAS $240,000 AND AWARDED 1/2 OF THAT VALUE AS MARITAL PROPERTY TO CAROL TUCKOSH."

Mr. Tuckosh focuses on his accountant's testimony that the net assets minus the net liabilities equal negative $66,245. Hence, he concludes that the company is worth less than nothing. He notes that many creditors are threatening to sue him and that he has worked out payment plans with them. He states that the company owes the IRS back taxes. He also points out that the court's judgment entry stated that in order to value the company, the court used the $120,000 purchase price that he paid his partner for his one-half interest. However, the court mistakenly stated that the sale took place in April 1998. The sale actually took place in September 1995.1 Mr. Tuckosh concludes that the value was erroneous because the court believed that the sale was more recent than it actually was.

Before addressing these arguments, we should first set forth Mrs. Tuckosh's seventh assignment of error which provides:

"THE TRIAL COURT'S UNREASONABLE MARITAL PROPERTY DISTRIBUTION (AMOUNT AND METHOD) IS CONTRARY TO LAW AND/OR AN ABUSE OF DISCRETION."

Mrs. Tuckosh first argues that the court should have given more weight to the testimony of her expert who opined that the company was worth $345,000. She then states that the $120,000 paid to buy out the partner's half is not an accurate figure with which to value the business because Mr. Tuckosh also assumed debt for which the partner would have been liable. She states that there was $57,500 in debt at the time of the purchase so the actual purchase of half was $167,500 and the company is worth twice that amount. We note that her expert testified that the assumption of the partner's debt was $28,750 (half of $57,500). (Tr. 298). Mrs. Tuckosh next states that she has no objection to using the 1995 purchase price of $120,000 to establish the value, but she argues that the partner's release from debt must be considered. She urges that debt assumption is the equivalent of paying cash.

Hence, we have Mr. Tuckosh arguing that the court overvalued the company and Mrs. Tuckosh arguing that the court undervalued it. Initially, we note that the report of Mrs.

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Bluebook (online)
Tuckosh v. Tuckosh, Unpublished Decision (3-15-2002), Counsel Stack Legal Research, https://law.counselstack.com/opinion/tuckosh-v-tuckosh-unpublished-decision-3-15-2002-ohioctapp-2002.