Witt v. Witt

CourtNebraska Court of Appeals
DecidedDecember 13, 2022
DocketA-21-370
StatusPublished

This text of Witt v. Witt (Witt v. Witt) 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
Witt v. Witt, (Neb. Ct. App. 2022).

Opinion

IN THE NEBRASKA COURT OF APPEALS

MEMORANDUM OPINION AND JUDGMENT ON APPEAL (Memorandum Web Opinion)

WITT V. WITT

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).

KARI L. WITT, APPELLEE, V.

BRAD WITT, APPELLANT.

Filed December 13, 2022. No. A-21-370.

Appeal from the District Court for Sarpy County: MICHAEL A. SMITH, Judge. Affirmed. Bradley E. Marsicek, of Cordell Law, L.L.P., for appellant. Jeffrey A. Wagner and Benjamin L. Bramblett, of Wagner, Meehan & Watson, L.L.P., for appellee.

PIRTLE, Chief Judge, and BISHOP and WELCH, Judges. PIRTLE, Chief Judge. INTRODUCTION Brad Witt appeals from a decree and an order amending decree of the district court for Sarpy County dissolving his marriage to Kari L. Witt. Based on the reasons that follow, we affirm. BACKGROUND Brad and Kari were married in 1997 and they had two children, one of whom was a minor at the time of the divorce. Custody is not an issue on appeal. Both parties were employed throughout the marriage. At the time the parties married, Kari was employed as an apartment manager and Brad was in the U.S. Air Force. Kari obtained a real estate license in 2003 and began working as a realtor. Brad retired from the Air Force in 2002 and worked at several different jobs before obtaining a real estate license in 2012. At that point, Brad began working at the same real estate agency as Kari. Kari served as a mentor and trainer for Brad early on in his real estate career.

-1- In 2013, the parties both started working at Keller Williams, a real estate brokerage firm. After working there for several years as individual agents, they formed Advantage Team P.C., a business they owned jointly and to which their commissions were paid. Kari primarily did seller’s listings and Brad did the buyer’s side of transactions. Brad and Kari left Keller Williams in 2018 and moved to eXp Realty, an Internet-based real estate brokerage firm. The parties separated in January 2019. Kari filed a complaint for dissolution of marriage in February 2019. The court entered a temporary order in March, awarding the parties temporary joint legal and physical custody and ordering that no child support would be paid by either party. It also ordered that Kari would be responsible for paying the business expenses, with the parties equally sharing the profits from the sources of income known as Keller Williams, RTS Title, eXp, and the Advantage Team, with the revenues and expenses to be reconciled on a monthly basis, and the appropriate payments made to each party thereafter. The court further ordered that the parties would share all client leads for the Advantage Team and provide an accounting for the same on a monthly basis of all leads received and contacted. Finally, it ordered Kari to restore Brad’s access to the Advantage Team’s business software and services. In June 2019, the court entered a supplemental temporary order after the parties raised concerns with how the temporary order was being carried out. In the order, the court clarified that with respect to the parties’ income sources, each month there was to be an accounting for all funds earned and that accounting was to be shared with the attorneys for both parties. The business expenses for each month were to be accounted for and shared with the attorneys for both parties. After the gross income and business expenses were accounted for, any net profit remaining was to be split evenly between the parties. Basically, the amended temporary order required both parties to provide a monthly accounting of all funds earned and all business expenses. Kari subsequently filed a motion to amend and review the temporary order, claiming that Brad was not sending accountings to her attorney as required by the temporary orders. The court denied Kari’s motion. In November 2019, Brad filed an application for contempt and a request for an order to show cause alleging that Kari had violated the temporary order and should be found in contempt, and that the temporary order should be modified. An order to show cause was issued in December. The contempt allegation was continued until trial and ultimately decided against Brad. In May 2020, Brad filed a motion to compel asking for an order compelling payment of spousal support and disclosure of the financial information as required in the temporary order. Brad further filed a motion for temporary child support and attorney fees based on Kari’s failure to comply with the temporary orders. Brad’s motions were denied. Similarly, in May 2020, Kari filed a motion asking the court to vacate or, in the alternative, amend the financial provisions in the temporary order. Her motion was also denied. Trial was held in October 2020. Brad explained how profit share was earned at Keller Williams and how he and Kari structured the Advantage Team to maximize their profit share. He testified that the amount of profit share an individual agent earned was dependent upon his or her level. A higher level agent profits off of his or her own sales as well as the sales of the agents at the levels below. Brad and Kari structured the Advantage Team with Kari at a level below Brad. They put Kari’s name on all sales transactions, resulting in Kari getting paid at her level and Brad also getting paid for Kari’s

-2- sales because he was a level above her. When either of them recruited a new agent, that individual was put on the level below Kari, resulting in increased profit share for both Kari and Brad. Brad and Kari both received ongoing revenue from Keller Williams even though they were no longer affiliated with it. They received a profit share based on the sales of the agents they recruited to work there, as well as a percentage of the local office’s income. Brad testified that while the case was pending, he and Kari’s individual profit share amounts were deposited into a joint bank account each month and the parties then equally divided the total amount. Brad wanted the Keller Williams profit share to continue being split in the same way. Kari also testified that Brad was receiving half of the parties’ profit share from Keller Williams each month. Brad also explained that eXp has revenue sharing, instead of profit sharing, but he and Kari set up the business the same way at eXp as they did at Keller Williams. They continued to process all sales in Kari’s name, regardless of who the primary agent was as a way to maximize their revenue share. Brad testified that he was still earning revenue share from those agents in his “downline” even though the Advantage Team was no longer operating as an entity. Brad stated that while the case was pending, the parties had been equally dividing the eXp revenue share earned by both parties. Brad wanted to continue equally dividing the revenue share in the future. Kari also testified that Brad had been receiving half of the parties’ revenue share every month. A 2019 “1099 Report” from eXp was entered into evidence showing Kari and Brad’s individual sales and the revenue share earned on each sale. Kari earned about $24,000 in revenue share and Brad earned $2,268. Brad testified that in addition to receiving an equal share of the parties’ profit share from Keller Williams and revenue share from eXp while the case was pending, he was receiving income from commission sales and his military retirement. His military retirement income was $1,250 per month. The parties also received eXp stock during the marriage, which was held by Brad, Kari, and the Advantage Team. The eXp stock was either awarded for meeting benchmarks or it could be purchased at a discount with commissions. Kari was awarded more stock than Brad as a result of the structure they set up to process all sales of homes in Kari’s name.

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Witt v. Witt, Counsel Stack Legal Research, https://law.counselstack.com/opinion/witt-v-witt-nebctapp-2022.