FOR PUBLICATION
Text Box
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
GEORGE R. LIVARCHIK JAMES E. RICE
Livarchik & Farahmand Rice & Kapitan
Chesterton, Indiana Highland, Indiana
IN THE
COURT OF APPEALS OF INDIANA
IN RE: The Matter of the Paternity of E.M.P. )
)
DARREN BEAVERS, )
)
Appellant-Petitioner, )
)
vs. ) No. 45A04-9908-JV-346
)
EVA ESKEW, )
)
Appellee-Respondent. )
APPEAL FROM THE LAKE SUPERIOR COURT
The Honorable Mary Beth Bonaventura, Judge
Cause No. 45D06-9301-JP-123
January 13, 2000
OPINION - FOR PUBLICATION
SHARPNACK, Chief Judge
Darren Beavers (Father) appeals from the trial courts order modifying his child support
obligation. Father raises the following issues, which we restate as:
whether the trial court erred in finding that Father was voluntarily underemployed and
in calculating his child support obligation based upon his potential income;
whether the trial court erred in ordering Father to pay Mothers attorney fees;
and
whether the trial court erred in failing to reduce Fathers gross weekly wages
by the actual amount of court ordered support for his two subsequent children.
We affirm in part, reverse in part, and remand to the trial court.
The facts most favorable to the judgment follow. On April 20, 1992,
E.P. was born out-of-wedlock to Eva Eskew (Mother). On January 14, 1994,
a paternity order was entered which established that Beavers was the father of
E.P. Father was ordered to pay $45.00 per week in child support.
Sometime after E.P.s birth, Father had two subsequent children with his wife.
However, this marriage ended in divorce in 1997. Fathers ex-wife was awarded
custody of the children, and Father was ordered to pay $165.00 per week
in child support.
Then, on June 8, 1998, Mother filed a petition for modification seeking an
increase in the amount of support previously ordered for E.P. and requesting attorney
fees. At the time Mother filed the petition for modification, Father was
employed as a garbage collector. As a garbage collector, Father earned $34,707.78
in gross wages in 1996. In 1997, he earned $36,027.69. Fathers
earnings again increased in 1998, earning a gross salary of $46,680.00 for the
year. However, on June 1, 1999, just eight days before the evidentiary
hearing on Mothers petition for modification was held, Father quit his job as
a garbage collector and began working for GTE. His rate of pay
at the time of the hearing was $12.10 per hour, which equates to
$484.00 in gross weekly wages, or $25,168.00 yearly. Father testified that he
changed jobs, with a resulting significant decrease in pay, due to his bad
knees, health concerns resulting from previous injuries incurred during his employment as a
garbage collector, and to receive better benefits. With regard to Mother, it
was uncontested that she has two subsequent born children who reside with her
and that she has gross weekly wages of $600.00 per week, or $31,200.00
per year.
The trial court found that Father was voluntarily underemployed and therefore based its
support order on his 1998 wages. However, because Father has two subsequent
children, the trial court reduced the amount of his weekly wages, which the
support order was based on, by .903, the appropriate factor established by the
Child Support Guidelines for two children. Accordingly, Father was ordered to pay
$115.80 per week in child support for E.P. The trial court also
ordered Father to pay Mothers attorney fees in the amount of $800.00.
Modification of a child support order requires a showing of changed circumstances so
substantial and continuing as to make the terms unreasonable. Ind. Code §
31-16-8-1(1); see also Ind. Child Support Guideline 4 ([t]he provisions of a child
support order may be modified only if there is a substantial and continuing
change of circumstances). In reviewing a determination of whether child support should
be modified, we will reverse the decision only for an abuse of discretion.
Elliott v. Elliott, 634 N.E.2d 1345, 1348 (Ind. Ct. App. 1994), rehg
denied. We review the evidence most favorable to the judgment without reweighing
the evidence or reassessing the credibility of the witnesses. Id. An
abuse of discretion occurs when the decision is clearly against the logic and
effect of the facts and circumstances before the court, including any reasonable inferences
therefrom. Id.
I.
As his first assignment of error, Father alleges that the trial court erred
in finding that he was voluntarily underemployed and in calculating his child support
obligation based upon his potential income. In Indiana, when a parent becomes
voluntarily unemployed or underemployed, the trial court must calculate support based upon a
determination of potential income. Ind. Child Support Guideline 3(A); In re. Paternity
of Buehler, 576 N.E.2d 1354, 1355 (Ind. Ct. App. 1991). The amount
of potential income to be used is determined by considering the obligors potential
and probable earnings level based on the obligors work history, occupational qualifications, prevailing
job opportunities, and earnings levels in the community. Id. The purposes
behind determining potential income are to discourage a parent from taking a lower
paying job to avoid the payment of significant support and to fairly allocate
the support obligation when one parent remarries, and because of the income of
the new spouse, chooses not to be employed. Child Supp. G. 3,
cmt. 2c; see also, Buehler, 576 N.E.2d at 1355-1356. However, child support
orders cannot be used to force parents to work to their full economic
potential or make their career decisions based strictly upon the size of potential
paychecks. Buehler, 576 N.E.2d at 1356.
Father argues that because he has legitimate reasons for changing to a lower
paying job and because there is no evidence he changed jobs to evade
a child support obligation, the trial court erred in finding him underemployed.
Appellants Brief, p. 22. Citing numerous decisions from this court, Father asserts
that [n]o known Indiana decision has found a parent is voluntarily unemployed or
underemployed where the evidence shows some other legitimate reason to leave employment or
take a lower paying position. Appellants Brief, p. 14; Reply Brief, p.
1. Although the majority of the cases cited by Father are factually
distinguishable, we do find support for Fathers position in Elliott and Ullery.
Elliott v. Elliott, 634 N.E.2d 1345 (Ind. Ct. App. 1994), rehg denied; Ullery
v. Ullery, 605 N.E.2d 214 (Ind. Ct. App. 1992), trans. denied.
In Elliott, the father was fired from his job as a truck driver
without good cause. Elliott, 634 N.E.2d at 1347. After a successful
hearing seeking unemployment benefits, the father did not seek reemployment with his original
employer because his former manager was no longer friendly with him. Id.
at 1349. After four months of unemployment, he found another job making
$80.00 less per week. Id. In addressing the mothers contention that
the father could be earning more than he was currently, we noted that
not only did the mother not present evidence that such higher earning positions
were available, but that a parent may have legitimate reasons to leave his
employment or to take a lower paying job. Id. Although we
affirmed the child support order on other grounds, we held that it would
be erroneous to find the father to be voluntarily underemployed. Id.
In Ullery, the most factually analogous case that Father cites, the father quit
his job after the mother filed a petition to modify child support, assertedly
because his employer was not treating him fairly. Ullery, 605 N.E.2d at
215. He denied that he quit as a result of the filing
of the petition or that he had chosen not to be gainfully employed
and not to pay his support. Id. The trial court denied
the mothers petition to increase child support, noting that the father was unemployed.
Id. On appeal, we held that the record supported the trial
courts determination that the father was not voluntarily underemployed or that his current
decline in income was purposely brought about to reduce his support payments, and
therefore, we could not conclude that the trial courts refusal to increase his
payments was an abuse of discretion. Id. at 216.
Here, Father testified that he had been pursuing this job change for three
years. As a garbage collector, Father lifted twenty to twenty-four tons of
garbage for six to seven and a half hours a day. Being
tired after work and wanting only to go to sleep, Father testified that
he did not want this to continue for the next forty years.
Additionally, Father testified that he had bad knees, as well as other health
concerns resulting from previous injuries incurred during his employment as a garbage collector.
Father also indicated that his new job had better benefits and that
he would gradually make more money the longer he was on the job.
All of these facts, taken together, indicate that Fathers decline in income
was not purposely brought about to reduce his support payments. See id.
at 215. Further, it appears that Father has legitimate reasons for quitting
his job and taking a reduction in pay. See Elliott, 634 N.E.2d
at 1347. Keeping in mind that child support orders cannot be used
to force parents to work to their full economic potential or make their
career decisions based strictly upon the size of potential paychecks, we hold that
there was no basis for a determination that Father was voluntarily underemployed for
the purpose of determining his child support obligation. See Buehler, 576
N.E.2d at 1356.
II.
Father next contends that the trial court erred in ordering him to pay
Mothers attorney fees. The trial court has broad discretion in assessing attorney
fees, and we review an award of attorney fees for an abuse of
discretion. Collier v. Collier, 696 N.E.2d 47, 53 (Ind. Ct. App. 1998),
revd in part on other grounds, 702 N.E.2d 351 (Ind. 1998). Accordingly,
reversal is warranted only when the trial courts award is clearly against the
logic and effect of the facts and circumstances before the court. Id.
In assessing attorney's fees, the trial court may consider factors such
as the resources of the parties, their relative earning ability, and the ability
to engage in gainful employment. Id. However, the trial court is
not required to give the reasons for its determination. Id.
Disregarding the erroneous imputation of potential income to Father, the record here shows
that Mother actually earns slightly more money than Father does. Given the
closeness of Father's and Mother's current incomes and respective earning abilities, it was
an abuse of discretion to order Father to pay Mother's attorney fees.
See In re. Paternity of A.J.R., 702 N.E.2d 355, 364 (Ind. Ct. App.
1998) (holding that the trial court abused its discretion in ordering Father to
pay Mothers attorney fees where parties current income was nearly identical and Father
had two subsequent children to support).
III.
Finally, Father argues that the trial court erred in failing to reduce his
gross weekly wages by the actual amount of court ordered support for his
two subsequent children. The Indiana Child Support Guidelines provide that the trial
court should make an adjustment, using the appropriate percentage factor, to the weekly
gross income of parents who have children living in their households who were
born subsequent to the prior support order. Child Supp. G. 3(A)(4) and
cmt. 3. After determining the weekly gross income, the trial court is
to make certain specified reductions in order to arrive at the weekly adjusted
income. Child Supp. G. 3(C). The weekly adjusted income is the
amount on which the child support is based. Id. These reductions
include the amount of court ordered child support for children born prior to
the child for whom the current support order is being established. Child
Supp. G. 3(C)(1). This emphasis on prior born children means that no
deduction is allowed for the support ordered as a result of the second
or subsequent marriage when a petition to modify the support of a child
from a prior marriage is filed with the trial court. Child Supp.
G. 3(C), cmt. 1. Likewise, [i]f a child is born out of
wedlock before the children of the marriage, no deduction for the children of
the marriage is allowed when establishing or modifying the support of the child
born out of wedlock. Id.
Here, Fathers two subsequent born children do not reside with him; they live
with his ex-wife. Therefore, according to the Child Support Guidelines, Father was
not entitled to an adjustment of his weekly gross income. See Child
Supp. G. 3(A)(4). Nor was Father entitled to a deduction for his
two subsequent born children in arriving at his weekly adjusted income because E.P.
was a child born out of wedlock before the marriage. See Child
Supp. G. 3, cmt. 1. Nevertheless, the trial court chose to reduce
Fathers weekly gross income by .903, the appropriate factor for two children.
Despite being giving a reduction that he was not entitled to according to
the Child Support Guidelines, Father complains because the trial court did not reduce
his weekly gross income by $165.00, the actual amount that he had been
ordered to pay for the support of his two subsequent children. He
asks this court to address the logical inconsistency in the way the child
support guidelines treat subsequent born children when the first child seeks a support
modification. Appellants Brief, p. 25. Father points out that, according to
the Guidelines, he would get a deduction, determined by a percentage factor, if
his subsequent children lived in his home but that if those same subsequent
born children do not reside in his home then he is not entitled
to a deduction. He argues that:
[s]ince dad gets no percentage factor or other deduction when his subsequent children
leave his household as part of a divorce, his gross weekly wage is
higher. Thus, the first child receives more support than it would if
dads subsequent children reside in his household. However, dad still has a
duty to support subsequent children whether they reside in or out of his
home.
Appellants Brief, pp. 25-26. Father, citing to Haverstock, contends that this inconsistent
treatment is contrary to Indiana case law. Haverstock v. Haverstock, 599 N.E.2d
617, 619-620 (Ind. Ct. App. 1992) (stating that [p]arents have the same duty
to support later children as they do earlier children, and this Court will
not prefer first children over subsequent children for purposes of child support); Appellants
Brief, p. 6. However, we need not address this purported inconsistency in
the Child Support Guidelines regarding subsequent children who do or do not live
with the parent because Father did in fact receive a reduction for his
subsequent children, even though they do not live with him.
See footnote
Father goes on to argue that when the first born child seeks a
modification of the prior support order, the actual amount of the court ordered
support for his subsequent children who do not reside with him should be
deducted from his gross weekly income when determining the income upon which to
base the support order for the first born child. In allowing Father
a reduction for his subsequent children, based on the percentage factor rather than
the actual amount of support ordered for those children, the trial court stated:
The commentary talks about living with, but, I think the overriding policy is
that there should be a recognition. But it should not be used
to diminish the ability of the first child to live on a level
that it would have lived on if the parties had lived together.
So, . . . Im finding my interpretation of the Guidelines. That
the clear intent was that there should be some recognition of other children
that may be born after a first child, but also, that . .
. subsequent children should not be - - the obligation should not be
allowed to water the ability of the first child to live as it
would have lived, but for the fact there were - - father kept
procreating, the mother kept procreating, not [sic] custodial parents kept procreating. And
I think the logic is clear there should be a credit. . .
. I do not think it is appropriate to subtract the full support
order out. Otherwise, every time you make a child, you come to
Court and you lower her child support because you decide to keep making
children. Pretty soon she will be at the level of zero.
Record, pp. 163-164. We find this reasoning to be sound. Further,
it is consistent with the commentary in the Child Support Guidelines which notes
that [e]stablishment of a support order in a second marriage should not constitute
a change in circumstance in the first marriage which would lead to modification
of the support order from the prior marriage. Child Supp. G. 3(C),
cmt. 1;
see also Ind. Code § 31-16-6-1 (requiring trial courts to consider
the standard of living the child would have enjoyed if the family had
remained intact when fashioning child support orders). Accordingly, we find no error
with the trial courts refusal to allow Father a deduction for the full
amount of child support that he is required to pay for his two
subsequent born children.
For the foregoing reasons, we reverse the trial court findings that Father was
voluntarily underemployed and the order to pay Mothers attorney fees. However, we
affirm the trial courts refusal to allow Father a deduction for the full
amount of child support that he is required to pay for his two
subsequent born children. We remand for further proceedings consistent with this opinion.
Affirmed in part, reversed in part, and remanded.
Riley, J., and Kirsch, J. concur.
Footnote:
Mother does not raise as an error the granting of this reduction
to Father for his two subsequent born children who do not reside with
him. Instead, she contends only that Father is not entitled to a
dollar for dollar reduction for the amount of child support he actually pays
for his subsequent born children and that the trial courts method of reducing
Fathers gross weekly wages by the percentage factor should be affirmed. Therefore,
we need not address the propriety of the trial court allowing Father this
reduction that he was not entitled to according to the Child Support Guidelines.
See Child Supp. G. 3(A)(4); Child Supp. G. 3, cmt. 1.