Dahl v. Dahl

• Decision Date: 27 June 2007
• Docket Number: No. 24301.,24301.
• Citation: 2007 SD 64,736 N.W.2d 803
• Parties: Lana E. DAHL, Plaintiff and Appellant, v. Wade A. DAHL, Defendant and Appellee.
• Court: South Dakota Supreme Court

736 N.W.2d 803

2007 SD 64

Lana E. DAHL, Plaintiff and Appellant, v. Wade A. DAHL, Defendant and Appellee.

No. 24301.

Supreme Court of South Dakota.

Considered on Briefs April 23, 2007.

Decided June 27, 2007.

Al Arendt, Pierre, South Dakota, Attorney for plaintiff and appellant.

Mark A. Moreno of Schmidt, Schroyer, Moreno, Lee & Bachand, P.C., Pierre, South Dakota, Attorneys for defendant and appellee.

KONENKAMP, Justice.

[¶ 1.] In this child support action, a parent contends that the child support referee and circuit court erred in denying her motion for modification. We reverse and remand.

Background

[¶ 2.] Lana E. Dahl and Wade A. Dahl were married in 1983. They had two children during the marriage: a son, born June 8, 1988, and a daughter, born August 1, 1990. Lana sued Wade for divorce. In resolving their differences, the parties entered into a Property Settlement Agreement (Agreement), dated July 26, 2004. Each was represented by counsel. A judgment and decree of divorce incorporated the Agreement.

[¶ 3.] The Agreement divided the parties' property and debts. Each agreed not to seek spousal support from the other. Lana received primary physical custody of their daughter, and Wade received primary physical custody of their son. They would "share joint legal custody of their minor children." In addressing child support, the parties entered into an arrangement that would later give rise to the present dispute: "In recognition of the parties' mutual obligations for child support, and their respective incomes, the parties shall not pay any child support owed by one to the other." The Agreement recited that each "does release absolutely and forever all right and claim of alimony, support, medical payments, maintenance or otherwise in consideration of the cash obligations and transfer of property as herein above set forth." They also agreed that each "shall not make application for payment of alimony, medical payments or other periodic payments."

[¶ 4.] In May 2006, their son graduated from high school and in June turned eighteen. Shortly afterwards, Lana petitioned for modification of the parties' child support obligations. She requested that Wade be ordered to pay support for their daughter. The matter was heard by a child support referee, with both parties appearing telephonically. Lana asserted that a change in circumstances existed because their son turned eighteen and graduated from high school. She contended that the Agreement only relieved each parent of their obligation to pay child support to the other based on the parties' "mutual obligation of support" for their minor children. Because Wade no longer had a support obligation for their son, Lana argued that there was no "mutual obligation of support."

[¶ 5.] Wade responded that the issue of child support was settled with the executed Agreement. When they agreed not to seek support from each other, they were both fully aware that their son would turn eighteen three years before their daughter. Moreover, according to Wade, he "gave up legitimate property and support interests in exchange for [Lana's] right to seek support in the future for [their daughter], and ... since [she] could financially support [their daughter], [Lana] should be required to live up to her end of the Agreement."

[¶ 6.] The Referee noted that the parties were represented by "competent counsel" when they executed their Agreement. He found that the language of the Agreement "does appear to take into account the argument and perception that the parties were making a settlement that called for no support to be paid now or in the future." Further, he observed that the Agreement stated that the parties gave up the right to seek "payment of alimony, support, medical payments or otherwise," in consideration of the property transfers and cash obligations.

[¶ 7.] The Referee also took into consideration the policy reasons why child support agreements are always subject to modification. He concluded, however, that the policy concerns were not present here because Lana had sufficient income to support their daughter and in light of the language of the parties' Agreement. Moreover, the Referee recognized that Lana was aware that their daughter would be fifteen when their son turned eighteen and "could have easily" included language in the Agreement that "it was her intent to come back and seek support for" their daughter. Based on the language of the Agreement and the current financial circumstances of the parties, the Referee denied Lana's request for modification of child support.

[¶ 8.] Lana filed an objection to the Referee's report in circuit court. A hearing was held, and the court upheld the Referee's report and recommendation. Lana now appeals to this Court, arguing that the circuit court erred when it (1) failed to issue findings of fact and conclusions of law; and (2) affirmed the Referee's decision not to award child support.

Standard of Review

[¶ 9.] Findings of fact of a child support referee are reviewed under the clearly erroneous standard of review. Mathis v. Mathis, 2000 SD 59, ¶ 7, 609 N.W.2d 773, 774 (quoting Hendricksen v. Harris, 1999 SD 130, ¶ 7, 600 N.W.2d 180, 181 (citing Permann v. Dept. of Labor, Unemployment Ins. Div., 411 N.W.2d 113, 116 (S.D.1987); Janke v. Janke, 467 N.W.2d 494, 496-97 (S.D.1991))). Questions of law, however, are reviewed de novo. Id. (citations omitted). "When the circuit court has adopted a child support referee's findings and conclusions, we apply the clearly erroneous standard of review to the findings and give no deference to conclusions of law." In re Loomis, 1998 SD 113, ¶ 6, 587 N.W.2d 427, 429 (citing Wolff v. Weber, 1997 SD 52, ¶ 7, 563 N.W.2d 136, 138 (citing Whalen v. Whalen, 490 N.W.2d 276, 280 (S.D.1992)); Janke, 467 N.W.2d at 497).

Analysis and Decision

1. Findings of Fact and Conclusions of Law

[¶ 10.] Lana first contends that the circuit court was required to issue findings of fact and conclusions of law in support of its decision to affirm the Referee's report and recommended order. According to Lana, because the Referee's report does not contain anything "denominated as findings or conclusions," the circuit court was required, under SDCL 15-6-52(a), to issue findings and conclusions.

[¶ 11.] Although the Referee's report does not contain sections entitled "Findings of Fact" and "Conclusions of Law," a review of the report reveals that the Referee made factual findings and legal conclusions. The report discusses the claims of the parties, the pertinent background information, the issues presented, and the arguments made. Thereafter, the report states that the Referee considered the terms of the Agreement, possible policy concerns, and the parties' circumstances. Also, the report contains the Referee's legal ruling based on the findings. In sum, the report contains findings of fact and conclusions of law, even if it did not entitle them so.

[¶ 12.] Clearly, SDCL 25-7A-22 permits a court to "adopt" a referee's report after holding a hearing on and reviewing a party's objection to the report. "The findings of a referee, to the extent that the court adopts them, shall be considered as the findings of the court." SDCL 15-6-52(a). Circuit courts are not required to issue separate findings of fact and conclusions of law after adopting a referee's report. Because the report here contains factual findings and legal conclusions, it was not error for the court to adopt the Referee's report and recommended order without issuing separate findings and conclusions.

2. Mutual Agreement to Seek No Support

[¶ 13.] From Lana's perspective, the Referee's report, adopted by the court, forecloses her from any future child support modifications. She argues that the court had the authority to modify the Agreement and was required to establish Wade's obligation to pay support for their daughter. She also contests the rationale used by the Referee in which he denied her request for modification because she makes enough money to pay for her daughter's support herself. She also challenges the Referee's conclusion that support is not warranted because Wade gave up property and support interests in making the Agreement.

[¶ 14.] Wade did not dispute that the son's change in status was a substantial change in circumstances.^* SDCL 25-7A-22(1). He contends, however, that Lana still had the burden of showing that a modification was called for under the circumstances, a burden she did not meet. Wade relies on the language of the parties' Agreement. Its terms, Wade asserts, clearly express the parties' intent that each parent would not seek child support for the child in his or her primary care. He believes there is no violation here of public policy by enforcing the terms of the Agreement, as the Agreement is always subject to future modification if called for under the circumstances.

[¶ 15.] In our analysis, we start with the proposition that parents have a statutory duty to support their children. Vander Woude v. Vander Woude, 501 N.W.2d 361, 363 (S.D.1993) (citing SDCL 25-5-18.1; SDCL 25-7-6.1); see also Kost v. Kost, 515 N.W.2d 209, 214 (S.D.1994). Circuit courts retain jurisdiction to modify a divorce agreement as it relates to the "custody, care, and education of the children of the marriage as may seem necessary or proper[.]" SDCL 25-4-45; Thomas v. Hauge, 2002 SD 12, ¶¶ 9-10, 639 N.W.2d 520, 522-23 (per curiam); see also Jacobson v. Jacobson, 2000 SD 60, ¶ 12, 611 N.W.2d 210, 213-14 (citing Jameson v. Jameson (Jameson II), 306 N.W.2d 240, 242 (S.D.1981); State ex rel. Larsgaard v. Larsgaard, 298 N.W.2d 381, 383 (S.D. 1980)).

[¶ 16.] While the original Agreement provided that neither parent would pay support to the other, this Agreement was expressly premised on a "mutual obligation of support." Wade no longer has an obligation to support their son, a condition which, as Wade agreed, constitutes a substantial change in...