And Sonya M. Shaw. Walter L. Shaw v. Shaw (In re Shaw)

Decision Date15 September 2015
Docket NumberB251897
PartiesIn re Marriage of WALTER L. SHAW, JR. and SONYA M. SHAW. WALTER L. SHAW, JR., Respondent, v. SONYA M. SHAW, Appellant.
CourtCalifornia Court of Appeals Court of Appeals

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

(Los Angeles County Super. Ct. No. BD539356)

APPEAL from an order of the Superior Court of Los Angeles County, Stephen M. Moloney, Judge. Affirmed.

Honey Kessler Amado and Kristin L. Smith for Appellant.

Law Offices of Gregory R. Ellis, Gregory R. Ellis, and Natasha A. Bhushan for Respondent.

On October 25, 2012, the trial court entered a stipulated judgment of dissolution of the marriage of appellant Sonya M. Shaw and respondent Walter L. Shaw, Jr.1 On December 20, 2012, the court entered a stipulated order modifying, among other things, the division of property made in the parties' stipulated judgment. Thereafter, Sonya filed a request for order to set aside the December 20, 2012 stipulated modification of the judgment, which the court denied. On appeal, Sonya argues the order denying her set aside request was erroneous on three grounds. First, she contends the court either lacked subject matter jurisdiction to enter the December 20, 2012 stipulated modification or that it acted in excess of its jurisdiction when it did so and that the modification accordingly is void or voidable. Second, Sonya contends the trial court applied the incorrect legal standard in denying her request for order to set aside. Finally, Sonya contends the court abused its discretion by failing to award her attorney's fees and costs under Family Code section 271.

We conclude that the trial court had subject matter jurisdiction to enter the stipulated modification of the judgment. We do not address Sonya's contention that the court acted in excess of its jurisdiction when it modified the judgment because she has failed to preserve that issue for appeal. We do address her remaining contentions, those concerning her requests for set aside and attorney's fees and costs. We conclude that the court did not abuse its discretion by denying either request and accordingly affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Sonya and Walter were married on May 19, 1990 and separated nearly 21 years later. They have one child, Stephan, who is an adult.2 During their marriage, Walter hosted a nationally syndicated radio program. Sonya was the show's co-creator and executive producer for fifteen years but received no compensation. She relied on Walteras her sole source of income. Walter filed a petition for dissolution on February 9, 2011, and Sonya responded on March 21, 2011.

I. The Stipulation for Temporary Spousal Support and Attorney's Fees

In May 2011, the parties stipulated to temporary spousal support and attorney's fees. Among other things, the stipulation provided that, from May 15, 2011 until further order of the court, Walter would pay Sonya spousal support of $9,078 per month. Walter was to deduct from this payment the full cost of Sonya's car insurance and approximately $6,273.50 to cover half of the monthly expenses for the parties' shared residence on Kanan Road in Agoura Hills (the Kanan Residence). The stipulation also provided that Walter would pay $15,000 toward Sonya's attorney's fees and costs, without prejudice to any further allocation of attorney's fees and costs in the matter.

II. The Marital Settlement Agreement and Stipulated Judgment

The parties signed a marital settlement agreement on July 24, 2012 and submitted it to the court as a stipulated judgment of dissolution on July 25, 2012. The court signed and entered the stipulated judgment on October 25, 2012, incorporating the marital settlement agreement.

The relevant terms of the stipulated judgment are as follows. From his separate property, Walter would pay Sonya a tax-free equalization payment of $267,500 on August 1, 2012, or upon the sale of the Kanan Residence, whichever occurred first. The parties would split the proceeds of the sale of the Kanan Residence after an offset of Walter's $150,000 separate property contribution. The parties would continue to reside in the Kanan Residence pending its sale and share equally in the monthly household expenses until August 1, 2012. If the Kanan Residence was not sold by August 1, 2012, Walter would pay the full $267,500 equalization payment and Sonya would move out within seven days, after which time Walter would pay 100 percent of the household expenses.

Further, like the parties' May 2011 stipulation for temporary spousal support, the stipulated judgment provided that, commencing May 15, 2011, Walter would pay Sonya support of $9,078 per month, less one-half of the monthly expenses for the KananResidence (approximately $6,273.50), resulting in an approximate monthly payment to Sonya of $2,804.50.3 However, unlike the stipulation for temporary spousal support, the stipulated judgment also provided that Walter would pay Sonya 20 percent of any income he earned over $25,000 per month as long as Sonya resided at the Kanan Residence or until August 1, 2012. Additionally, Walter would cease paying spousal support on August 1, 2012, or upon the sale of the Kanan Residence, whichever occurred first.

The stipulated judgment also provided that the parties would each receive a one-half share of the community funds in their bank and retirement accounts. The parties' retirements accounts had a combined value of approximately $600,000. Further, the judgment provided that if Sonya settled any community debts, credit cards, or liabilities incurred during marriage in her name, Walter would reimburse her for one-half of the settled balance. The parties also were each awarded specified items of personal property.

III. The Informal Side Agreement Altering the Timing Provisions of the Stipulated Judgment

Before they signed the settlement agreement and stipulated judgment on July 24, 2012, Sonya and Walter informally agreed, through counsel, to alter some of its timing provisions (the informal side agreement). In letters exchanged by their counsel on July 13 and 18, 2012, Sonya agreed that, due to unspecified tax consequences, Walter would not have to pay her the $267,500 equalization payment until after sale of the Kanan Residence. In return, Walter agreed that Sonya could continue to reside at the Kanan Residence beyond the August 1, 2012 deadline and that he would continue to make monthly support payments until she received the equalization payment or the house was sold, whichever occurred first.

IV. Walter's Motion to Modify Spousal Support and the Stipulated Modification of the Judgment

As of October 29, 2012 the Kanan Residence had not sold. On that date, four days after entry of the stipulated judgment, Walter filed a request for order to reduce hisspousal support from $9,078 to $5,982 per month based on an alleged reduction in his monthly income from $25,000 to $16,666.4 This proposed reduced spousal support payment would not cover Sonya's share of the monthly household expenses ($6,273.50) that Walter was entitled to deduct. Walter accordingly requested that Sonya be responsible for the difference between $6,273.50 and $5,982.00 and that any portion of Sonya's household obligations that Walter paid above and beyond $5,982.00 be deducted from the equalization payment.

Two days later, on October 31, 2012, Sonya's counsel filed a notice of withdrawal as attorney of record. While Sonya was unrepresented by counsel, she and Walter negotiated a stipulation to modify the October 25, 2012 stipulated judgment in order to resolve the issues raised by Walter's request to reduce spousal support.

The stipulation, which the parties signed on December 20, 2012, modified the judgment in several crucial ways. First, rather than making a tax-free equalization payment of $267,500 from his own property, Walter would make an equalization payment of $270,000 from the parties' retirement accounts. However, $50,000 of that would go directly to Walter's accountant for purposes of paying the federal and state taxes resulting from the withdrawal of funds from the retirement accounts, which became Sonya's sole responsibility. Sonya would receive the remaining $220,000 on December 21, 2012. Any additional taxes owed would be withheld from Sonya's share of the proceeds from the eventual sale of the Kanan Residence. Second, rather than an equal division of the parties' retirement accounts, as provided in the October 25, 2012 stipulated judgment, the stipulated modification awarded all monies remaining in those accounts to Walter as his sole and separate property. Third, Sonya waived any further right to spousal support, any distributions Walter owed her for monthly compensationover $25,000, and all spousal support arrears. Fourth, whereas under the October 25, 2012 stipulated judgment Walter was required to reimburse Sonya for one-half of any community debts and obligations she settled, under the stipulated modification Sonya became solely responsible for those debts and obligations. Fifth, Sonya agreed to be solely responsible for financing the remainder of Stephan's college education. Sixth, Sonya agreed to vacate the Kanan Residence on or before January 31, 2013, and Walter was given sole authority to accept offers on the Kanan Residence. Finally, the stipulated modification altered the division of numerous items of personal property.

The stipulated modification further stated, "[e]ach party has carefully read this Stipulation and Order and is completely aware, not only of its contents, but also of its legal effect," and "[t]he parties represent that they are fully informed of their rights and obligations and that th...

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