Roberts v. Roberts , 25 Neb. Ct. App. 192 ( 2017 )


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    ROBERTS v. ROBERTS
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    25 Neb. App. 192
    K eith M. Roberts, appellant and
    cross-appellee, v.
    Diana S. Roberts,
    appellee and cross-appellant.
    ___ N.W.2d ___
    Filed October 24, 2017.   No. A-16-1104.
    1.	 Modification of Decree: Child Support: Appeal and Error.
    Modification of a dissolution decree is a matter entrusted to the discre-
    tion of the trial court, whose order is reviewed de novo on the record,
    and which will be affirmed absent an abuse of discretion by the trial
    court. The same standard applies to the modification of child support.
    2.	 Modification of Decree: Attorney Fees: Appeal and Error. In an
    action for modification of a marital dissolution decree, the award of
    attorney fees is discretionary with the trial court, is reviewed de novo
    on the record, and will be affirmed in the absence of an abuse of
    discretion.
    3.	 Child Support. The primary concern in determining child support is
    the best interests of the children.
    4.	 Child Support: Rules of the Supreme Court. The main principle
    behind the Nebraska Child Support Guidelines is to recognize the equal
    duty of both parents to contribute to the support of their children in pro-
    portion to their respective incomes.
    5.	 ____: ____. In general, child support payments should be set according
    to the Nebraska Child Support Guidelines, which compute the presump-
    tive share of each parent’s child support obligation.
    6.	 Actions: Equity: Child Support: Rules of the Supreme Court. The
    Nebraska Supreme Court has favored a flexible approach to deter-
    mining a parent’s income for child support proceedings because such
    actions are, despite the Nebraska Child Support Guidelines, equitable
    in nature.
    7.	 Child Support. While a court calculating child support is permitted
    to add in-kind benefits derived from an employer to a party’s income,
    inclusion of such benefits is not required.
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    8.	 Alimony: Child Support. Alimony is not an item of income in calculat-
    ing child support.
    9.	 Alimony: Child Support: Rules of the Supreme Court. The language
    in Neb. Ct. R. § 4-213 of the Nebraska Child Support Guidelines clearly
    provides that child support obligations are to be calculated prior to the
    calculation of alimony.
    10.	 Child Support. The use of earning capacity in calculating child sup-
    port is useful when it appears that the parent is capable of earning more
    income than is presently being earned.
    11.	 Modification of Decree: Child Support: Proof. A party can modify
    a prior child support order by showing that there has been a material
    change in circumstances since the entry of the court’s prior order.
    12.	 Child Support: Rules of the Supreme Court. Generally, parties’ child
    support obligations should be set according to the provisions set forth in
    the Nebraska Child Support Guidelines.
    13.	 ____: ____. A court may deviate from the Nebraska Child Support
    Guidelines, but only if it specifically finds that a deviation is warranted
    based on the evidence.
    14.	 ____: ____. Without a clearly articulated justification, any deviation
    from the Nebraska Child Support Guidelines is an abuse of discretion.
    15.	 Equity: Modification of Decree: Child Support: Time. Absent equi-
    ties to the contrary, the general rule is that the modification of a child
    support order should be applied retroactively to the first day of the
    month following the filing day of the application for modification.
    16.	 Child Custody: Time. A child and custodial parent should not be penal-
    ized, if it can be avoided, by the delay inherent in our legal system.
    17.	 Modification of Decree: Time: Appeal and Error. The initial deter-
    mination regarding the retroactive application of a modification order
    is entrusted to the discretion of the trial court and will be affirmed on
    appeal absent an abuse of discretion.
    18.	 Child Support: Time. There are circumstances to take into consider-
    ation wherein a noncustodial parent may not have the ability to pay
    retroactive support in addition to meeting current support obligations.
    19.	 Divorce: Attorney Fees: Costs. Customarily in dissolution cases, attor-
    ney fees and costs are awarded only to prevailing parties or assessed
    against those who file frivolous suits.
    Appeal from the District Court for Douglas County: M arlon
    A. Polk, Judge. Affirmed in part, and in part reversed and
    remanded for further proceedings.
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    ROBERTS v. ROBERTS
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    25 Neb. App. 192
    Donald A. Roberts and Justin A. Roberts, of Lustgarten &
    Roberts, P.C., L.L.O., for appellant.
    Lindsay Belmont and Angela Dunne, of Koenig Dunne, P.C.,
    L.L.O., for appellee.
    Inbody, Pirtle, and R iedmann, Judges.
    R iedmann, Judge.
    I. INTRODUCTION
    Keith M. Roberts appeals from an order entered by the
    district court for Douglas County that modified his child sup-
    port obligation to Diana S. Roberts following the dissolution
    of the parties’ marriage. Diana cross-appeals from the same
    order. For the reasons that follow, we affirm in part and in part
    reverse, and remand.
    II. BACKGROUND
    Keith and Diana were married on April 6, 1991. They had
    two children together, born in 2002 and 2005. A decree of dis-
    solution was entered by the district court in August 2014. At the
    time of the parties’ divorce, Keith was employed as the “resi-
    dent agent in charge for Homeland Security Investigation” in
    Omaha, Nebraska, and his total monthly income was $12,281.
    Diana was unemployed, and the parties stipulated to an annual
    earning capacity in the amount of $20,000, which resulted in
    an imputed monthly income of $1,666.67.
    Under the terms of the dissolution decree, Keith was ordered
    to pay $1,866 per month in child support for two minor chil-
    dren and $1,311 per month when only one child remained a
    minor. The decree also ordered Keith to pay $3,000 per month
    in alimony to Diana for a period of 84 months.
    The parties were awarded joint legal custody of their chil-
    dren, and Diana was awarded primary physical custody, with
    Keith to have parenting time pursuant to the terms of the par-
    ties’ parenting plan. The parenting plan provided that Keith
    was to have custody of the children every Tuesday from 3 to
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    8 p.m. and on alternating weekends, commencing Friday after
    school and concluding Sunday evening. The parenting plan
    provided that during the summer, Keith was to have custody
    each Tuesday afternoon through Thursday morning and alter-
    nating weekends. Keith and Diana were both ordered to pay
    “for their own clothing, utilities, food, travel expenses, and
    living expenses for the minor children when they are in his or
    her [custody].”
    Following entry of the dissolution decree, Keith retired from
    his employment and began a new position as a personal serv­
    ice contractor for the U.S. Department of State on or around
    September 27, 2015. Subsequent to his retirement from federal
    government employment, Keith made a claim for a portion of
    his federal retirement benefit. Diana made a claim for a portion
    of this benefit as Keith’s former spouse. Diana was to receive
    a monthly payment of $2,999.72 out of Keith’s monthly gross
    annuity of $8,743, from which the cost of her survivor benefit
    was then deducted. Diana testified that she was to receive
    a monthly payment of $2,337.52. Both parties were also to
    receive a retroactive payment for annuity benefits prior to the
    commencement of their monthly payments. Keith testified that
    he received a lump-sum payment of approximately $8,000 and
    Diana was to receive a payment of $9,116.33.
    Keith’s new position working with the Department of State
    required him to relocate to Ankara, Turkey, which he did in
    November 2015. Keith testified that he usually returns to the
    United States at least twice per year while escorting foreign
    dignitaries, although he does not get to choose when those
    occasions occur. He stated that his trips to the United States
    typically last “approximately a month.” Keith testified that he
    has been able to visit his two children by taking vacation while
    he was in the United States on business. For him to return to
    the United States from Turkey to visit them, Keith estimated
    that it would cost approximately $3,000 per week, and the
    expenses related to activities with the children would be an
    additional $1,000.
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    As a personal service contractor, Keith has a current sal-
    ary paid by the Department of State. His annual base salary is
    $136,833. Keith testified that he also receives a cost-of-living
    allowance (COLA) and post differential pay while living in
    Turkey but not when he returns to the United States on travel.
    Keith is eligible to receive “danger pay,” which would replace
    his post differential pay. Although he testified that he had
    received an email alerting him to the possibility of receiving
    danger pay in the future due to changes in security, he had not
    yet received any danger pay; nor did he know if or when it
    would be implemented.
    In Turkey, Keith resides in an apartment that is rented
    and paid for by “[t]he embassy.” Keith testified that he does
    not receive a housing allowance or a living quarters allow-
    ance and that he does not know how much his rent costs the
    government.
    Diana filed her second amended complaint for modification
    in January 2016, alleging that a material change in circum-
    stances existed warranting a change in child support. In sup-
    port of her motion, she stated that Keith had retired from his
    federal government employment, begun receiving retirement
    pay, and accepted a position in Turkey for which he received
    income and that Keith’s gross monthly income had increased
    such that, in applying the Nebraska Child Support Guidelines,
    there was an increase in child support greater than 10 percent.
    Diana alleged that while living abroad, Keith had not exer-
    cised his parenting time, and that as a result, her expenses
    for caring for the parties’ children had increased. Diana also
    requested an award of attorney fees.
    Trial was held in May 2016. Diana testified at trial, and
    Keith’s deposition was offered into evidence in lieu of live
    testimony because he was out of the country. The district court
    entered its order of modification in November 2016, find-
    ing that a substantial and material change in circumstances
    had occurred since entry of the dissolution decree due to “a
    change in the parties’ incomes and [Keith’s] relocation to
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    Turkey that justifies an increase in [Keith’s] child support
    obligation to [Diana].” The court adopted Keith’s proposed
    calculations of child support, which resulted in a payment of
    $1,935 per month for two children and $1,411 for one child.
    The court then included an additional support worksheet pur-
    suant to Neb. Ct. R. § 4-203(C) (rev. 2011) of the Nebraska
    Child Support Guidelines for incomes greater than $15,000
    monthly. Pursuant to those calculations, the court increased
    Keith’s child support obligation to $2,022 per month for two
    children and $1,498 for one child.
    The district court determined that an upward deviation from
    the guidelines was “in the best interests of the minor children.”
    Accordingly, the court ordered Keith to pay child support in
    the amount of $2,500 per month for two children, which was
    an upward deviation of $478, and $1,851 per month for one
    child, which was an upward deviation of $353. The court
    ordered that each party was to pay his or her own attorney fees.
    Keith now appeals, and Diana cross-appeals.
    III. ASSIGNMENTS OF ERROR
    Keith assigns, restated, that the district court erred in grant-
    ing Diana’s second amended complaint for modification of
    child support. On cross-appeal, Diana assigns, restated, that
    the district court abused its discretion in (1) adopting Keith’s
    child support calculation and thereby erring in calculating the
    parties’ respective incomes, (2) denying her request to retro-
    actively modify the award, and (3) failing to award her attor-
    ney fees.
    IV. STANDARD OF REVIEW
    [1] Modification of a dissolution decree is a matter entrusted
    to the discretion of the trial court, whose order is reviewed de
    novo on the record, and which will be affirmed absent an abuse
    of discretion by the trial court. Johnson v. Johnson, 
    290 Neb. 838
    , 
    862 N.W.2d 740
     (2015). The same standard applies to the
    modification of child support. 
    Id.
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    [2] In an action for modification of a marital dissolution
    decree, the award of attorney fees is discretionary with the trial
    court, is reviewed de novo on the record, and will be affirmed
    in the absence of an abuse of discretion. Garza v. Garza, 
    288 Neb. 213
    , 
    846 N.W.2d 626
     (2014).
    V. ANALYSIS
    1. Calculation of Parties’ Incomes
    Diana argues that the district court abused its discretion
    in adopting Keith’s proposed child support calculations and
    thereby erred in calculating each party’s respective income.
    She claims that the district court did not include all of Keith’s
    sources of income and improperly attributed income to her that
    should not be considered for purposes of child support.
    (a) Keith’s Income
    Diana claims that the district court erred in not including
    all of Keith’s sources of income. Specifically, she alleges that
    the court should have included Keith’s housing allowance as
    well as his danger pay in the place of Keith’s post differen-
    tial pay.
    [3-5] The primary concern in determining child support is
    the best interests of the children. See Gangwish v. Gangwish,
    
    267 Neb. 901
    , 
    678 N.W.2d 503
     (2004). The main principle
    behind the Nebraska Child Support Guidelines is to rec-
    ognize the equal duty of both parents to contribute to the
    support of their children in proportion to their respective
    incomes. Gangwish v. Gangwish, 
    supra.
     In general, child
    support payments should be set according to the Nebraska
    Child Support Guidelines, which compute the presumptive
    share of each parent’s child support obligation. Gangwish v.
    Gangwish, 
    supra.
    [6,7] Pursuant to Neb. Ct. R. § 4-204 (rev. 2015) of the
    Nebraska Child Support Guidelines, a court is to consider
    the total monthly income of both parties, which is defined as
    “income of both parties derived from all sources, except all
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    means-tested public assistance benefits which includes any
    earned income tax credit and payments received for children
    of prior marriages.” The Nebraska Supreme Court has favored
    a flexible approach to determining a parent’s income for child
    support proceedings because such actions are, despite the
    guidelines, equitable in nature. Gangwish v. Gangwish, 
    supra.
    While a court is permitted to add “‘in-kind’” benefits derived
    from an employer to a party’s income, inclusion of such ben-
    efits is not required. 
    Id. at 911
    , 
    678 N.W.2d at 514
    .
    Here, Diana argues that Keith’s income should have included
    an annual housing allowance of $28,400. Diana derived this
    number from the Department of State’s website that lists
    housing allowances for various locations, including Ankara.
    According to those listings, the housing allowance for employ-
    ees living without family in Ankara is $28,400 per year. Diana
    argues that because Keith is not required to pay his own rent
    and in-kind benefits may be included as income, the district
    court abused its discretion in failing to attribute this amount
    to Keith.
    However, Keith testified that he does not personally receive
    a housing allowance and that “the embassy rents my apartment
    and pays for it.” He stated that he does not know what the
    actual cost of his apartment is to the government. Keith testi-
    fied that he is not familiar with the listings from which Diana
    arrived at the amount of $28,400 per year. Furthermore, while
    in-kind benefits such as a housing allowance are permitted to
    be considered in the determination of income, their inclusion is
    not required; whether or not to include such benefits is left to
    the discretion of the trial court. Given this discretion, Keith’s
    testimony that he does not receive a housing allowance, and
    the lack of evidence as to the value of Keith’s housing, we
    find that the district court did not err in excluding the housing
    allowance as part of Keith’s income.
    Next, Diana claims that the district court should have
    included danger pay in its determination of Keith’s income
    in the place of post differential pay. She argues that Keith
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    received an email on the day of his deposition regarding events
    in southern Turkey that increased the danger of living in the
    country and triggered additional danger pay in the amount of
    $1,710 per month. Diana asserts that the district court erred in
    not including this amount as part of Keith’s income.
    While Keith did testify to the receipt of an email alerting
    him to the possibility of receiving danger pay in the future, as
    of the date of his deposition he had not received any danger
    pay and did not know if or when danger pay would be imple-
    mented in the future. Keith testified that he had no control
    over whether danger pay was granted. We find no evidence
    in the record that Keith did in fact receive danger pay at any
    point. Instead, the record supports the fact that Keith received
    post differential pay, which was properly included in the
    calculation of his income. Therefore, we find no error in the
    district court’s exclusion of danger pay in the determination of
    Keith’s income.
    Diana also argues that the district court erred in its calcu-
    lations determining Keith’s retirement annuity and COLA.
    She claims that the amount of monthly income attributed to
    Keith’s retirement annuity should be $6,405 rather than $5,744
    and that Keith’s COLA should be $352 rather than $293.
    We disagree.
    Diana claims that Keith’s retirement annuity should have
    been calculated as $6,405 per month. She arrives at this num-
    ber by subtracting the amount that she receives from the annu-
    ity—$2,337.85—from Keith’s total monthly annuity, which is
    $8,743. However, as stated in the letters from the U.S. Office of
    Personnel Management, the total amount of the monthly pay-
    ment to Diana from the annuity is $2,999.72. Diana receives
    less than that full amount because her portion of her survi-
    vor benefit is withheld, resulting in a net payment to her of
    $2,337.85. Subtracting the full amount taken out of Keith’s
    annuity on behalf of Diana results in a net amount of $5,744
    that Keith receives each month. This is the same amount used
    by the district court. We find no error in this calculation.
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    Diana also claims that the district court should have attrib-
    uted Keith’s monthly income from his COLA as $352, rather
    than $293. She argues that this amount should be attributed to
    all 12 months of the year because Keith’s return to the United
    States for 2 months each year (for which he does not receive
    COLA) is speculative.
    Keith testified that he receives his COLA only when he is in
    Turkey. He testified that he usually returns to the United States
    at least twice a year while escorting foreign dignitaries and
    that his trips have typically lasted approximately 1 month each.
    During those periods, he receives no COLA. The district court
    relied on this testimony in finding that Keith receives COLA
    pay for 10 months of the year at the rate of $352 per month.
    Dividing that amount evenly across the 12 months in a year,
    the court reached the amount of $293 per month in COLA pay.
    We find no error in this calculation. The district court relied
    upon Keith’s testimony that he typically returns to the United
    States for a total of approximately 2 months each year, during
    which he does not receive his COLA. The court then appropri-
    ately divided the COLA that he does receive evenly to reach
    the amount of $293 per month. Accordingly, we find no error
    in the district court’s calculation of Keith’s income.
    (b) Diana’s Income
    Diana argues that the district court erred in calculating her
    total monthly income. She claims that her income should not
    have included her alimony or earning capacity and should
    have consisted solely of the amount she receives from Keith’s
    retirement annuity. For the reasons that follow, we agree that
    the district court erred by including alimony when calculating
    Diana’s income.
    [8,9] In the original decree, Diana was awarded monthly
    alimony of $3,000 for 84 months. The district court included
    this amount in its calculation of Diana’s total monthly income.
    However, alimony is not an item of income in calculating
    child support. See Gallner v. Hoffman, 
    264 Neb. 995
    , 653
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    N.W.2d 838 (2002). Neb. Ct. R. § 4-213 of the Nebraska Child
    Support Guidelines states that the “guidelines intend that
    spousal support be determined from income available to the
    parties after child support has been established.” (Emphasis
    supplied.) In Gallner v. Hoffman, the court stated that this
    language provided clearly that “child support obligations are
    to be calculated prior to the calculation of alimony.” 
    264 Neb. at 1003
    , 
    653 N.W.2d at 845
    . It logically follows that
    if child support is calculated before alimony, such alimony
    should be excluded when calculating income in a modifica-
    tion proceeding.
    Accordingly, we find that the district court erred as a matter
    of law by including alimony in its calculation of Diana’s total
    monthly income and that Diana’s monthly income should be
    reduced by $3,000.
    Diana also claims that the district court abused its discre-
    tion by including her earning capacity in the calculation of
    her income. She argues that because Keith retired subsequent
    to the entry of the dissolution decree and she now receives a
    portion of his retirement annuity, that amount should replace
    her imputed earning capacity of $1,666 per month. Diana
    asserts that it is unjust to add her earning capacity on top of
    the amount that she is actually receiving as income through
    the annuity.
    [10] Section 4-204 of the Nebraska Child Support Guidelines
    states that “earning capacity may be considered in lieu of a
    parent’s actual, present income and may include factors such
    as work history, education, occupational skills, and job oppor-
    tunities.” The Nebraska Supreme Court has held that the use of
    earning capacity in calculating child support is useful when it
    appears that the parent is capable of earning more income than
    is presently being earned. Freeman v. Groskopf, 
    286 Neb. 713
    ,
    
    838 N.W.2d 300
     (2013).
    In the parties’ dissolution decree, they stipulated to an
    earning capacity of $20,000 per year for Diana, which results
    in $1,666 per month. In the modification action, the district
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    court adopted the same figure as Diana’s imputed earn-
    ing capacity.
    Diana testified that at the time of trial, she was 53 years old
    and had no physical barriers to obtaining employment. She
    was last employed in 1992, and she had received an associ-
    ate’s degree in fashion merchandising. Diana testified that she
    assumed she could presently earn minimum wage based on
    her extended time out of the workforce and that she had not
    actively pursued employment following entry of the dissolu-
    tion decree.
    We find nothing in the record to suggest that Diana’s earn-
    ing capacity has changed in any way since she and Keith
    divorced. While Diana is correct that Keith has since retired
    from the position he held at the time, we find nothing to indi-
    cate that she is incapable of earning an income. Therefore,
    we find no abuse of discretion in the district court’s inclu-
    sion of her imputed earning capacity in the calculation of
    her income.
    Because the court erroneously included alimony when cal-
    culating Diana’s income, we reverse the district court’s order
    and remand the cause for recalculation of child support to
    exclude Diana’s monthly alimony.
    2. Deviation
    Keith argues that the district court erred in granting Diana’s
    second amended complaint for modification of child support.
    He claims that there was not sufficient evidence presented to
    deviate upward from the amounts set forth in the child sup-
    port guidelines and that the court did not specify its reasons
    or set forth its calculations to justify its upward deviation.
    Furthermore, Keith argues that it was error to impose an
    upward deviation based upon Diana’s speculative evidence of
    increased expenses caused by his failure to exercise his parent-
    ing time. For the reasons that follow, we agree that the district
    court failed to sufficiently state its reasons in granting the
    upward deviation.
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    [11-14] A party can modify a prior child support order by
    showing that there has been a material change in circumstances
    since the entry of the court’s prior order. Gress v. Gress, 
    274 Neb. 686
    , 
    743 N.W.2d 67
     (2007). Generally, parties’ child sup-
    port obligations should be set according to the provisions set
    forth in the Nebraska Child Support Guidelines. Gress v. Gress,
    supra. A court may deviate from the guidelines, but only if it
    specifically finds that a deviation is warranted based on the
    evidence. Gress v. Gress, supra. Without a clearly articulated
    justification, any deviation from the guidelines is an abuse of
    discretion. Gress v. Gress, supra.
    Section 4-203 of the Nebraska Child Support Guidelines
    articulates the instances in which deviations are permitted.
    Relevant here are § 4-203(C) and (E), which provide, respec-
    tively, that deviations are permissible when the total net
    income exceeds $15,000 monthly and that they are permissible
    when application of the guidelines in an individual case would
    be unjust or inappropriate. Section 4-203 of the guidelines
    further states that “[i]n the event of a deviation, the reason for
    the deviation shall be contained in the findings portion of the
    decree or order, or worksheet 5 should be completed by the
    court and filed in the court file.”
    Here, the district court adopted Keith’s child support calcu-
    lations, which resulted in a payment by Keith of $1,935 per
    month for two children. As part of those calculations, the dis-
    trict court found that the parties’ combined monthly net income
    was $16,275.63. The court then attached an additional work-
    sheet to its order, pursuant to § 4-203(C) of the guidelines, for
    incomes over $15,000 monthly. Pursuant to those calculations,
    the court raised Keith’s child support contribution from $1,935
    to $2,022 per month. However, the court ultimately ordered
    Keith to pay $2,500 per month for two children, which it stated
    constituted an upward deviation of $478.
    In its order, the district court stated that it found that an
    upward deviation was in the children’s best interests, but it
    did not specifically explain its reasoning for such a finding.
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    In finding that a substantial and material change in circum-
    stances existed, the court referenced the change in the parties’
    incomes and Keith’s relocation to Turkey as justification for
    an increase in his child support obligation, but the court did
    not explain its reasoning in finding that an upward deviation
    beyond what was provided for under the guidelines was nec-
    essary. Furthermore, the court did not attach worksheet 5, the
    deviations worksheet, to its order.
    In adopting Keith’s child support calculations, the district
    court included Diana’s alimony as part of her income. Using
    this figure, the court found that the parties’ combined monthly
    net income was $16,275.63. However, as discussed above, the
    inclusion of alimony was in error, and Diana’s total income
    should be reduced by $3,000. Using the correct amount for
    Diana’s income leads to a combined monthly net income of
    $13,275.63, which is less than the $15,000 net income for
    which § 4-203(C) permits a deviation. Because we find that
    the parties’ monthly net income is not greater than $15,000,
    we find that the district court’s increase of Keith’s child sup-
    port under the additional § 4-203(C) worksheet was an abuse
    of discretion.
    Furthermore, the district court did not clearly articulate its
    reasoning for the additional upward deviation of $478. The
    order simply stated that the court found such a deviation was
    in the children’s best interests. The court did not specifically
    explain why it found that an upward deviation was justified;
    nor did it set forth its reasoning for granting the deviation in
    the amount that it did. Pursuant to § 4-203 of the guidelines, a
    court must either state its reason for the deviation in its find-
    ings or complete and file worksheet 5. Here, the district court
    did neither. Therefore, we find that the district court abused
    its discretion in granting the deviation. We reverse the district
    court’s order establishing the parties’ child support obligations
    and remand the cause for recalculation. If, after calculat-
    ing the parties’ child support obligations using the corrected
    income, the district court finds that a deviation is justified, it
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    shall specifically state its reason for such a finding in its order
    or complete and file worksheet 5.
    3. R etroactivity of Modification
    Diana argues that the district court abused its discretion
    in denying her request to retroactively modify the change in
    Keith’s child support obligation. She claims that because she
    filed her initial complaint seeking to modify the dissolution
    decree on August 31, 2015, the modification should have been
    ordered retroactive to September 1, which was the first day
    of the month following the filing of her application. Diana
    asserts that denying such a retroactive award has the effect of
    penalizing her and the children for the length of time that was
    required to resolve the matter. She further argues that there was
    no evidence that such retroactive application would unduly cre-
    ate financial hardship for Keith. We agree.
    [15-18] The Nebraska Supreme Court has held that absent
    equities to the contrary, the general rule is that the modifica-
    tion of a child support order should be applied retroactively
    to the first day of the month following the filing day of the
    application for modification. Riggs v. Riggs, 
    261 Neb. 344
    ,
    
    622 N.W.2d 861
     (2001). The child and custodial parent should
    not be penalized, if it can be avoided, by the delay inherent in
    our legal system. 
    Id.
     The initial determination regarding the
    retroactive application of a modification order is entrusted to
    the discretion of the trial court and will be affirmed on appeal
    absent an abuse of discretion. 
    Id.
     However, there are circum-
    stances to take into consideration wherein the noncustodial
    parent may not have the ability to pay retroactive support in
    addition to meeting current support obligations. See 
    id.
    In this case, Diana filed her initial application seeking
    modification on August 31, 2015, and the order of modification
    was entered more than 1 year later, on November 15, 2016.
    In the order of modification, the district court denied Diana’s
    request to retroactively modify the award. However, the court
    did not state any reason for its denial. Furthermore, we note
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    that the record indicates that a retroactive award would not
    create financial hardship for Keith. In particular, we note his
    testimony that he received a lump-sum payment of approxi-
    mately $8,000 from his retirement annuity. Given the rule set
    out in Riggs v. Riggs, 
    261 Neb. at 356
    , 
    622 N.W.2d at 870
    , and
    the apparent absence of any “equities to the contrary” in the
    record, we find that the district court abused its discretion in
    denying Diana’s request to order the child support modification
    retroactive to September 1, 2015.
    4. Attorney Fees
    Diana claims that the district court abused its discretion
    in denying her request for attorney fees. She argues that the
    record shows that Keith is a high-wage earner and has the abil-
    ity to pay both his attorney fees and hers. Diana claims that
    she has incurred over $20,000 in attorney fees litigating this
    modification action and does not have the ability to pay those
    fees. She also argues that Keith took actions that contributed
    to her high legal expenses, such as failing to timely respond to
    discovery requests and filing an action related to custody that
    he later dismissed. Therefore, Diana asserts that an award of
    attorney fees is appropriate. We disagree.
    [19] Customarily in dissolution cases, attorney fees and
    costs are awarded only to prevailing parties or assessed against
    those who file frivolous suits. Noonan v. Noonan, 
    261 Neb. 552
    , 
    624 N.W.2d 314
     (2001). In an action for modification
    of a dissolution decree, the award of attorney fees is left to
    the discretion of the trial court and, on appeal, is reviewed
    de novo on the record and will be affirmed absent an abuse
    of discretion. Garza v. Garza, 
    288 Neb. 213
    , 
    846 N.W.2d 626
     (2014).
    In this case, we note that Diana did prevail in obtaining
    an increase in child support in the trial court. However, the
    trial court did not award Diana attorney fees and ordered
    both parties to pay their own legal expenses. Furthermore, the
    fact that Keith may be considered a high-wage earner does
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    not in and of itself justify ordering him to pay both parties’
    legal expenses. Therefore, we find that the district court did
    not abuse its discretion in denying Diana’s request for attor-
    ney fees.
    VI. CONCLUSION
    Based on our review of the record, we find that the district
    court erred in including alimony in its calculation of Diana’s
    income and that the court abused its discretion in granting an
    upward deviation from the child support guidelines without
    explanation and in failing to order retroactive modified sup-
    port. We find no abuse of discretion in the court’s denial of
    attorney fees. Therefore, we affirm in part and in part reverse,
    and remand the cause for further proceedings consistent with
    this opinion.
    A ffirmed in part, and in part reversed and
    remanded for further proceedings.
    

Document Info

Docket Number: A-16-1104

Citation Numbers: 25 Neb. Ct. App. 192

Filed Date: 10/24/2017

Precedential Status: Precedential

Modified Date: 4/17/2021