In re Pratt
| Decision Date | 12 August 2014 |
| Docket Number | No. 1–13–0465.,1–13–0465. |
| Citation | 17 N.E.3d 678 |
| Parties | In re MARRIAGE OF, Sharon PRATT, Petitioner–Appellee, and Murray PRATT, Respondent–Appellant. |
| Court | United States Appellate Court of Illinois |
Paul J. Bargiel, P.C., of Chicago (Paul J. Bargiel, of counsel), and M. Scott Gordon & Associates, of Skokie (M. Scott Gordon and Dayna L. Perlut, of counsel), for appellant.
Joel Ostrow, of Bannockburn, for appellee.
¶ 1 Respondent, Murray Pratt, appeals the order of the circuit court modifying his child support payments to $4,697 per month and awarding petitioner, Sharon Pratt, attorney fees in the amount of $25,000. On appeal, Murray contends the trial court erred in modifying his child support payments because (1) it made errors in calculating Murray's income for support purposes; and (2) it failed to consider Sharon's obligation to support the children as well as the financial impact of her new husband living in her household. Murray also contends that the trial court's award of attorney fees to Sharon was an abuse of discretion because she failed to prove her inability to pay for such fees. For the following reasons, we affirm.
¶ 3 The trial court entered its order modifying child support payments pursuant to the judgment for dissolution of marriage on February 10, 2012. Sharon filed her motion to reconsider on March 9, 2012, and the trial court entered its amended order on July 16, 2012. On August 15, 2012, Murray filed a motion to vacate or reconsider the amended order which the trial court denied on January 15, 2013. On January 10, 2013, the trial court entered its order awarding attorney fees to Sharon. Murray filed his notice of appeal on February 6, 2013. Accordingly, this court has jurisdiction pursuant to Illinois Supreme Court Rules 301 and 303 governing appeals from final judgments entered below. Ill. S.Ct. R. 301 (eff. Feb. 1, 1994); R. 303 ( ).
¶ 5 The parties were married on August 13, 1988. They had four children during the marriage: Kevin, born October 10, 1991; Brian, born November 9, 1993; Melissa, born November 13, 1996; and Heather, born September 11, 1998. The trial court entered a judgment for the dissolution of marriage on February 2, 2007, into which the parties' marital settlement agreement (MSA) was incorporated. The MSA provided that Murray would pay unallocated maintenance and family support in the amount of $4,400 per month for 48 months, after which time Sharon's right to receive unallocated maintenance and family support would terminate. Additionally, Murray would pay Sharon 50% of the gross of any bonus he received minus withholding for Medicare. The MSA further provided that “[a]ll unallocated maintenance and family support payments shall terminate earlier and immediately in the event of SHARON's death, remarriage, or co-habitation on a continuing resident conjugal basis and upon MURRAY's death.” The MSA also contained a provision stating that “[a]ll restricted stock and stock options awarded to Murray or Sharon as an award of his/her share of the marital estate * * * shall not be deemed income for child support purposes.”
¶ 6 The parties agreed that Kevin, who has special needs, would live with Murray and the other three children would live primarily with Sharon and stay with Murray one-third of the time. The MSA set forth the amount of support which was based, in part, on Murray's anticipated gross income from his employment at Kraft Foods Incorporated (Kraft) of $172,478 (which includes base pay plus bonus), and Sharon's earned income from self-employment in 2006 of $23,618. The parties also agreed to distribute property as follows: Murray received all benefits of his employment with Kraft, his checking account at Glenview State Bank, his nonmarital retirement assets and 50% of his marital retirement assets including (1) 67.5% of his 401(k) plan at Kraft; (2) 100% of his Vanguard individual retirement account (IRA); (3) the remainder of his Kraft defined benefit pension plan after Sharon received 50% of the marital portion; (4) 40% of the Altria stock options; (5) 40% of the Kraft restricted stock options; (6) his 2005 Toyota Sienna; and (7) the residence at 2508 Violet Boulevard in Glenview, Illinois.
¶ 7 Sharon received Glenview State Bank checking and money market accounts, and her non-marital retirement assets and 50% of her marital retirement assets including (1) 100% of her IBM 401(k); (2) 100% of her IBM retirement plan; (3) 100% of her Vanguard IRA account; (4) 32.5% of Murray's 401(k) thrift plan; (5) 50% of Murray's accrued benefits in the Kraft defined benefit pension; (6) 60% of the net proceeds resulting from Murray's exercise of Altria and Kraft stock options; (7) the 1998 Toyota Sienna; (8) the residence at 1417 Plymouth Lane in Glenview, Illinois; and (9) hotel and airline mileage. Furthermore, since Sharon received 60% of the equity in the parties' real estate and automobiles, the MSA provided that she “shall pay to Murray the sum of $137,154.98 within sixty (60) days of the entry of the Judgment for Dissolution of Marriage.” In order to pay this sum, Sharon directed Murray to sell her share of the restricted stock and stock options, which amounted to $207,000. As a result of selling those shares, Murray's income increased in 2007, which put him in a higher tax bracket.
¶ 8 Each party agreed to take responsibility for his or her own debts and obligations from the time of their separation on July 22, 2005. Each party also waived the right to seek contribution for attorney fees and costs under sections 503(j) and 508(a) of the Illinois Marriage and Dissolution of Marriage Act (Act) (750 ILCS 5/503(j), 508(a) (West 2010)).
¶ 9 On May 19, 2010, Sharon filed a motion to modify the judgment for dissolution of marriage and for other relief. In her motion, Sharon requested that the trial court (1) set guideline child support; (2) modify Murray's obligation to require him to pay all of the minor children's uninsured health-related expenses; (3) modify the judgment to require Murray to pay all of the curricular and extracurricular expenses, summer-related expenses, cell phone bills and other expenses; and (4) provide any other relief deemed appropriate. Sharon also acknowledged that she has been cohabitating with Kevin Count since March 1, 2010. They subsequently married and he resides with Sharon and her minor children at the 1417 Plymouth Lane residence in Glenview.
¶ 10 In November 2011, the trial court conducted a hearing and entered an order on February 10, 2012, modifying the judgment. The parties filed cross-motions to reconsider. The trial court granted the motions to reconsider and at the hearing focused on Murray's income in 2011. In its amended order of July 16, 2012, the trial court noted that the language of the parties' MSA “obviates any need to show a substantial change of circumstances before the child support aspects of the Judgment may be modified.” The MSA provided that upon termination of maintenance, “Murray shall pay to Sharon child support pursuant to the guidelines set forth in” the Act. Nevertheless, the trial court found that a substantial change in circumstances existed due to “Sharon's cohabitation and remarriage, changes in the parties' earnings since the MSA, and significant increases in the children's expenses as they have grown up.”
¶ 11 At the hearing, the trial court found that Murray's base salary for 2011 was $153,735 and he received bonus income of $20,887. It also found that Murray received dividends from his nonretirement Vanguard holdings and unvested restricted stock from Kraft in the amount of $918 for the first quarter of 2011. The trial court then multiplied the amount by four to estimate the total for the year ($3,672). It further found that Murray took a one-time IRA distribution of $5,000 in the first quarter of 2011 and “contributed heavily to his retirement accounts since the divorce.” The trial court noted that as of July 1, 2010, his financial disclosure statement showed more than $1 million on deposit in retirement funds. Murray also “converted a substantial portion of a traditional IRA into a Roth IRA in 2010, even though doing so increased his income taxes by more than $70,000.” Finally, the trial court found that certain restricted stock vested in 2011 and Murray exercised five sets of stock options that were awarded in prior years, all of which resulted in income to him.
¶ 12 Sharon's employment since the divorce “has been off and on” and as of November 2011, Sharon worked a temporary job with Wells Fargo at $24 per hour. However, Sharon was training for a full-time, commission-based sales position. Her new husband was working to develop his optical business, which he financed with the help of Sharon, who took a six-figure withdrawal from her equity line leaving her around $16,000. This business had not yet turned a profit at the time of the hearing.
¶ 13 Sharon also testified that although her new husband now resides with her and the children, her expenses in the home have not increased as a result since Count contributes to food expenses and pays for his own car, clothes, grooming, and insurance. She stated that thus far she has paid for all of Brian's tuition, books, fees, lunches, cell phone, football and camp expenses, and other sports activities. She has also paid Melissa's tuition, books, fees, and fees and costs associated with extracurricular activities including dance, theater, and baseball. Although Murray contributes to Heather's soccer expenses, Sharon has paid for her volleyball activities. Sharon also testified that she pays for all car insurance, gas to and from school, and parking. She stated that in 2011 the children's educational expenses totaled more than $6,100 and Murray has reimbursed $500 to $600 of that amount. Melissa is also in need of orthodontic work.
¶ 14 After all...
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