Diener v. Diener

• Decision Date: 10 September 2004
• Docket Number: No. 20030330-CA.,20030330-CA.
• Citation: 98 P.3d 1178,2004 UT App 314
• Parties: Tiffany Jacobs DIENER, Petitioner and Appellee, v. Erich Ross DIENER, Respondent and Appellant.
• Court: Utah Court of Appeals

98 P.3d 1178

2004 UT App 314

Tiffany Jacobs DIENER, Petitioner and Appellee, v. Erich Ross DIENER, Respondent and Appellant.

No. 20030330-CA.

Court of Appeals of Utah.

September 10, 2004.

Rehearing Denied October 26, 2004.

Brian M. Barnard and James L. Harris Jr., Salt Lake City, for Appellant.

John W. Call, Nygaard Coke & Vincent, Salt Lake City, for Appellee.

Before Judges DAVIS, GREENWOOD, and THORNE.

OPINION

THORNE, Judge:

¶ 1 Erich Ross Diener appeals from the trial court's denial of his motion to modify his child support obligation. We affirm in part and remand for additional findings.

BACKGROUND

¶ 2 On April 17, 1998, Erich Ross Diener (Father) and Tiffany Jacobs Diener (Mother) were divorced through a stipulated decree. Mother was granted physical custody of the sole child born to the couple. Although Father's income was approximately $1,700.00 per month, and Mother's was approximately $1,200.00 per month, Father agreed to pay child support in the amount of $400.00 per month, an amount that exceeded the amount required under the Utah Child Support Guidelines (the Guidelines). See Utah Code Ann. § 78-45-7.14 (2002).¹

¶ 3 In December 2001, Father filed a petition with the trial court seeking to modify the amount of his child support obligation pursuant to Utah Code sections 78-45-7.2(6) and (7).² Father argued first that modification was justified because he had experienced substantial material changes in his circumstances following the divorce. He also argued that the amount he had agreed to pay was outside of the acceptable deviation range permitted by statute and that therefore the trial court was duty-bound to modify the child support order. On March 25, 2003, after a hearing on Father's petition, the trial court issued its findings of fact and conclusions of law denying Father's attempt to modify his child support obligation. Father now appeals.

ISSUES AND STANDARD OF REVIEW

¶ 4 Father argues that the trial court erred in denying the petition to modify his child support obligation.

"In reviewing child ... support proceedings, we accord substantial deference to the trial court's findings and give it considerable latitude in fashioning the appropriate relief." We will not disturb the district court's actions unless the court exceeded the limits of its permitted discretion. However, we review the district court's decision for correctness to the extent it involves questions of statutory interpretation.

Ball v. Peterson, 912 P.2d 1006, 1009 (Utah Ct.App.1996) (alteration in original) (quoting Woodward v. Woodward, 709 P.2d 393, 394 (Utah 1985)); see also Boyce v. Goble, 2000 UT App 237, ¶ 9, 8 P.3d 1042 ("`"`The determination of the trial court that there [has or has not] been a substantial change of circumstances ... is presumed valid,'" and we review the ruling under an abuse of discretion standard.'" (alterations in original) (citations omitted)).

ANALYSIS

I. The Trial Court's Reliance on the Previous Agreement Between the Parties

¶ 5 Although the trial court held that Father's acceptance of the earlier stipulation provided an appropriate basis for denying his petition, and that granting Father's petition "would provide [him] with benefits of the bargain without requiring its corresponding obligations," the trial court's reasoning was incorrect. While the trial court is certainly empowered to consider the circumstances surrounding an existing stipulation when considering a petition to modify a child support obligation,

"the law was intended to give the courts power to disregard the stipulations or agreement of the parties in the first instance and enter judgment for such alimony or child support as appears reasonable, and to thereafter modify such judgments when change of circumstances justifies it, regardless of attempts of the parties to control the matter by contract."

Naylor v. Naylor, 700 P.2d 707, 709-10 (Utah 1985) (emphasis omitted) (quoting Callister v. Callister, 1 Utah 2d 34, 261 P.2d 944, 948-49 (1953)). The supreme court reaffirmed this view in Despain v. Despain, where it stated that child support "is always open to the Court's power of modification (even though set by stipulation), upon a proper showing of a change of circumstances." 627 P.2d 526, 528 (Utah 1981). Consequently. when presented with a petition to modify a child support order, the trial court may not simply rely upon a prior stipulation entered into by the parties and accepted by the court. Rather, the court must apply Utah Code section 78-45-7.2, which allows modifications if a party is able to demonstrate that a substantial material change in circumstances has occurred between the entry of the divorce decree containing the support order and the filing of the modification petition. Accordingly, we must conclude that the parties' prior stipulation concerning Father's child support obligation, standing alone, provides an insufficient basis to deny Father's petition.

II. Substantial Change in Circumstances

¶ 6 Father argues that the trial court erred in finding that his financial circumstances had not changed substantially enough to justify modifying the child support order. We disagree.

¶ 7 Once a court has determined the proper amount of child support, and orders a party to pay that amount, either party may petition the court for an order modifying the amount. See Utah Code Ann. § 78-45-7.2(7)(a) (2002). However, "`[t]o succeed on a petition to modify ..., the moving party must first show that a substantial material change of circumstance has occurred "`since the entry of the decree and [second, that the change was] not contemplated in the decree itself.'"'" Boyce v. Goble, 2000 UT App 237, ¶ 14, 8 P.3d 1042 (citations omitted). Moreover, Utah law makes clear that the "party seeking modification ... has the burden of showing a substantial change in circumstances. It is insufficient to show that there has been some change, without a showing that such change was substantial." Hagan v. Hagan, 810 P.2d 478, 483 (Utah Ct.App.1991) (citation omitted). Several factors have been identified as bearing on the issue of modifying a child support order, including:

"(i) material changes in custody;

(ii) material changes to the relative wealth or assets of the parties;

(iii) material changes of 30% or more in the income of a parent;

(iv) material changes in the ability of a parent to earn;

(v) material changes in the medical needs of the child; and

(vi) material changes in the legal responsibilities of either parent for the support of others."

Boyce, 2000 UT App 237 at ¶ 13 n. 5, 8 P.3d 1042 (quoting Utah Code Ann. § 78-45-7.2(7)(b) (Supp.1999)); see also Utah Code Ann. § 78-45-7.2 (2002). Finally, when explaining the outcome of a modification petition, the court "`"must make findings on all material issues, and its failure to delineate what circumstances have changed and why these changes support the modification made [to] the prior divorce decree constitutes reversible error unless the facts in the record are clear, uncontroverted and only support the judgment."'" Williamson v. Williamson, 1999 UT App 219, ¶ 9, 983 P.2d 1103 (quoting Muir v. Muir, 841 P.2d 736, 739 (Utah Ct.App.1992) (other citations omitted)). The findings articulated by the trial court "should be more than cursory statements; they must `"be sufficiently detailed and include enough subsidiary facts to disclose the steps by which the ultimate conclusion on each factual issue was reached."'" Id. (citations omitted).

¶ 8 Father argues that the trial court erred in finding that he had not suffered a substantial material change in circumstances because "[h]is ability to earn has been substantially altered, and his earnings have been significantly decreased." Because Father's argument rests solely on his income claim, his argument turns on whether he has shown a threshold change in income of greater than 30%. See Utah Code Ann. § 78-45-7.2(7)(b)(iii) (2002). The trial court found that when the divorce decree was entered Father was making $1,700 per month. The court then examined Father's subsequent employment history—which included a period that Father was making over $50,000 per year—and found that during the pendency of Father's petition to modify he was earning $1,277 per month from his part-time job and his monthly National Guard wage.³ Substantial evidence was introduced at trial supporting these findings and we do not disturb them on appeal. Examining these figures, simple arithmetic shows that Father's present income level is 75.1% of his income when the decree was entered. Although a 25% drop in income is certainly a change, it does not satisfy the threshold requirement of section 78-45-7.2(7)(b)(iii). Thus, as a matter of law, the changes presented in Father's petition do not qualify as a material substantial change, and they are insufficient to trigger further consideration of Father's modification petition pursuant to section 78-45-7.2(6). In the absence of any other substantive argument, we conclude that the trial court acted within its discretion in denying Father's change of circumstances claim.

III. Section 78-45-7.2(6)

¶ 9 Father also argues that the trial court erred in denying his petition for relief pursuant to Utah Code section 78-45-7.2(6) (2002), because under the facts established by the trial court, the court was required to modify the existing support order. To determine the validity of Father's argument, we must first examine the requirements of section 78-45-7.2(6).

¶ 10 Section 78-45-7.2(6) states:

(a) If a child support order has not been issued or modified within the previous three years, a parent ... may petition the court to adjust the amount of a child support order.

(b) Upon receiving a petition under Subsection (6)(a), the court shall, taking into account the best interests of the child, determine whether there is a difference between the amount ordered and the amount that would be required under the

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