In Re The Marriage Of: Barbara Templin, App/cross-res. And James Klavano, Res/cross-app. ( 2016 )

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
crs
en
In the Matter of the Marriage of: No. 73415-6-1
BARBARA TEMPLIN, DIVISION ONE
Appellant, UO
PO
and
JAMES KLAVANO, UNPUBLISHED
Respondent. FILED: August 29. 2016
Cox, J. — Barbara Templin appeals the dissolution decree ending her
marriage to James Klavano. The trial court properly exercised its discretion in
admitting Trial Exhibit 301, distributing property, and declining to award Templin
maintenance. But the court failed to apply the proper standards—need and
ability to pay—in denying Templin's request for reasonable attorney fees at trial.
Klavano's cross appeal raises several issues. None of his claims
establishes that the trial court committed reversible error in any respect.
We affirm the decree, except for the denial of Templin's request for
reasonable attorney fees. We remand the question of whether such fees should
be awarded to the trial court for reconsideration with directions that it apply the
proper standards. We award Templin reasonable attorney fees and expenses on
No. 73415-6-1/2
appeal, the amount of which the trial court shall determine on remand.1 We deny
Templin's motion to strike portions of Klavano's cross reply brief.2
Barbara Templin and James Klavano married on May 4, 2003. They had
no children together. Each had a prior marriage. The trial court found that they
separated on July 22, 2013, after this 10 year marriage.
Templin has been a flight attendant for over 30 years. Klavano owned
several businesses before and during this marriage.
Templin petitioned for dissolution of the marriage in July 2013. This case
has been, and continues to be, highly contested. The trial court noted this with
reference to the trial court proceedings in its ruling denying attorney fees.3
Following a nine day bench trial, the trial court prepared and entered its
findings of fact and conclusions of law. Thereafter, the court entered the
dissolution decree. "Exhibit 1" to the decree is a chart that shows, among other
things, the court's distribution of property. The trial court also denied Templin's
request for an award of reasonable attorney fees.
Templin moved for reconsideration of the denial of an award of attorney
fees to her. The trial court denied this motion.4
Templin appeals. Klavano cross appeals.
1 RAP 18.1 (i) and the other Rules of Appellate Procedure.
2 A motion to strike "is typically not necessary to point out evidence and issues a
litigant believes this court should not consider." Engstrom v. Goodman, 166 Wash. App.
905, 909 n.2, 271 P.3d 959 (2012). A party's brief is the appropriate vehicle for pointing
out allegedly extraneous materials. Id. In this case, we considered all that is properly
before us and disregarded all that is not.
3 Clerk's Papers at 2340-41.
4 Id. at 2478-79.
No. 73415-6-1/3
STANDARD OF REVIEW
In dissolution proceedings, the trial court "has broad discretion to make a
just and equitable distribution of property based on the factors enumerated in
RCW 26.09.080."5 Appellate courts generally defer to trial courts on this
question because they are "'in the best position'" to assess the parties' assets
and liabilities "in order to determine what constitutes an equitable outcome."6
We review for abuse of discretion the trial court's decisions on property
disposition, maintenance, and awardability of reasonable attorney fees.7
A trial court abuses its discretion if its "decision is 'manifestly
unreasonable, or exercised on untenable grounds, or for untenable reasons.'"8 A
decision is manifestly unreasonable "if it is outside the range of acceptable
choices, given the facts and the applicable legal standard."9 A decision is based
on untenable grounds "if the factual findings are unsupported by the record."10 A
decision is based on untenable reasons "if it is based on an incorrect standard or
the facts do not meet the requirements of the correct standard."11
5 In re Marriage of Wright. 179 Wash. App. 257, 261, 319 P.3d 45 (2013).
6 In re Marriage of Neumiller. 183 Wash. App. 914, 920, 335 P.3d 1019 (2014)
(quoting In re Marriage of Brewer. 137 Wash. 2d 756, 769, 976 P.2d 102 (1999)).
7 In re Marriage of Wright, 179 Wash. App. at 261; In re Marriage of Kile, 186 Wn.
App. 864, 886, 888, 347 P.3d 894 (2015).
8 State v. Gentry, 183 Wash. 2d 749, 761, 356 P.3d 714 (2015) (internal quotation
marks omitted) (quoting Wilson v. Horslev. 137 Wash. 2d 500, 505, 974 P.2d 316 (1999)).
9 In re Marriage of Littlefield. 133 Wash. 2d 39, 47, 940 P.2d 1362 (1997).
10 Id
11 Id.
No. 73415-6-1/4
We review the trial court's findings of fact for substantial evidence.12
"Substantial evidence exists so long as a rational trier of fact could find the
necessary facts were shown by a preponderance of the evidence."13
We do "not decide the credibility of witnesses or [re]weigh the evidence"
on appeal.14
The trial court's findings of fact and conclusions of law must be "sufficient
to suggest the factual basis for the ultimate conclusions."15 Conclusions of law
are reviewed de novo.16
BASIS OF DECISIONS
Templin first argues that the trial court based its decisions on property
division, maintenance, and attorney fees on Templin's alleged marital
misconduct, not on RCW 26.09.080's controlling factors. Specifically, she argues
that the court abused its discretion "in admitting [Trial] Exhibit 301, and then in
relying on it [for] its property distribution and in denying the wife maintenance and
fees."17 The record does not support this argument.
RCW 26.09.080 governs the trial court's disposition of marital property
and liabilities. When distributing property, courts may not consider "misconduct,"
12 In re Marriage of Chandola. 180 Wash. 2d 632, 642, 327 P.3d 644 (2014).
13 In re Welfare of A.W.. 182 Wash. 2d 689, 711, 344 P.3d 1186 (2015).
14 id
15 In re Marriage of Lawrence. 105 Wash. App. 683, 686, 20 P.3d 972 (2001).
16 Lang Pham v. Corbett, 187 Wash. App. 816, 825, 351 P.3d 214 (2015).
17 Brief of Appellant at 31.
No. 73415-6-1/5
which "'refers to immoral or physically abusive conduct within the marital
relationship . . . .'"18
Here, the trial court admitted Trial Exhibit 301—a copy of Templin's March
2008 journal entry—to assess Templin's credibility. The court expressly ruled
that the exhibit would not be admitted to show fault.19 This was not an abuse of
discretion.
This exhibit is a copy of musings by Templin that she recorded in her
journal during a March 2008 trip to Washington D.C. with Klavano. The
document speaks for itself. We need not decide whether it is evidence of
"misconduct" under the statutes and case law.
What is absolutely clear from this record is that the trial court admitted this
exhibit for a proper purpose, not for the purpose of fault. For example, at the end
of trial, the court reaffirmed that Washington is a "no fault state" and that the
court did not see "any fault." Nothing in this record shows the trial court believed
otherwise.
Templin fails to make any argument, supported by case or other authority,
to challenge this ruling based on admissibility. We assume she has found no
such support.
Templin primarily argues that the trial court improperly used this exhibit.
She relies on a "finding" within the trial court's order denying her motion for
18 In re Marriage of Urbana, 147 Wash. App. 1, 14, 195 P.3d 959 (2008) (quoting Jn
re Marriage of Steadman, 63 Wash. App. 523, 528, 821 P.2d 59 (1991)).
19 Report of Proceedings Vol. 1 (November 17, 2014) at 63-64; Clerk's Papers at
1546.
No. 73415-6-1/6
reconsideration to support her argument. But it is wholly unpersuasive. For
reasons that are unclear to this court, the trial court stated in this order that this
marriage was a "short-term marriage of four years. See Trial Exhibit 301."20
This is patently incorrect. The court's previously entered findings,
conclusions, and decree make clear that the court determined this was a 10 year
marriage, not one of only four years.
We also note that, in any event, the length of a marriage is not a proper
criterion in determining whether fees should be awarded in a dissolution
proceeding. Rather, need and ability to pay are controlling, as the legislature
directs in RCW 26.09.140. In sum, this "finding" in the order on reconsideration
is without force or effect.
There is absolutely no evidence to support the argument that the trial court
used this properly admitted evidence for an improper purpose. Thus, we deny
Templin's request to remand this case with directions that it be reassigned to a
different judge.21
We now turn to consideration of the trial court's application of the statutes
and case law to the duties before it. Those duties include making a just and
equitable division of property and deciding whether maintenance should be
awarded.
20 Clerk's Papers at 2384.
21 Brief of Appellant at 50.
No. 73415-6-1/7
PROPERTY DISPOSITION
Templin argues that the trial court abused its discretion in its property
disposition in several ways. None is persuasive.
Templin broadly asserts that the award to her of less than 10 percent of
the marital estate, given her resources, is an abuse of discretion.22 No property
distribution requires mathematical precision.23 And there is no "10%" rule in the
distribution of property.
To determine whether this award was within the broad scope of the trial
court's discretion, we look to Ovens v. Ovens.24 That is a supreme court case
that neither party discusses. But it is instructive.
There, both parties had been previously married and divorced.25 Marjorie
Ovens was a clerical worker at the time of the marriage, but was not employed
thereafter.26 She owned separate property at the time of the marriage.27
Wallace Ovens was an appliance salesman.28 He, too, had separate
property at the time of the marriage.29 During the marriage, however, he
22 ]d at 32.
23 In re Marriage of Larson, 178 Wash. App. 133, 138, 313 P.3d 1228 (2013).
24 61 Wash. 2d 6, 8-9, 376 P.2d 839 (1962): see also In re Marriage of Soriano, 31
Wash. App. 432, 436, 643 P.2d 450 (1982).
25 Ovens. 61 Wash. 2d at 7.
26 id
27 Id
28 id
29 Id.
7
No. 73415-6-1/8
received from his mother's estate cash distributions, securities, and household
effects of substantial value.30 From this separate property, he purchased a lot on
which the parties later constructed a home.31
During the divorce proceedings that followed, the trial court divided the
marital estate. Marjorie Ovens appealed, arguing that the division of property
was not equal.32
The supreme court affirmed the award.33 The court stated that an
"equitable division of the total property involved does not entail a right to an equal
division" of the parties' separate property.34 The court held that the trial court had
"properly awarded to each of the parties, respectively, their traceable separate
property, and divided the community property equally."35 The division awarded a
greater portion of the total property to the husband because of his inheritance.
But the "fact that the award to each spouse of his or her separate property
resulted in unequal portions was not error."36 "The division was equitable in view
of [the husband's] inheritance."37
30
Id,
31
id
32
id at 8.
33
id at 11.
34
id. at 8.
35
14
36
id. at 8-9.
37
Id. at 9.
8
No. 73415-6-1/9
This case mirrors that one in large measure. Here, both parties had been
previously married. Each came to the marriage with separate property. Klavano
came with substantial separate property. Templin came with substantially less
separate property than Klavano.
This trial court decided what constituted community property and what
constituted traceable separate property. Exhibit 1 to the decree shows this. The
court had to apply the statutory factors to divide a marital estate valued at over
$8.4 million. Of this total, over $1.45 million was community property.
The court awarded 50 percent of the total community property to each
party. It then made certain adjustments to Templin's share of her award. We
discuss these in more detail later in this opinion.
The court further awarded Templin her traceable separate property
totaling $215,933. And the court awarded Klavano his traceable separate
property of over $6.8 million.
As in Ovens, the trial court in this case awarded 50 percent of the
community property to each of the parties. While the court also awarded to
Klavano his traceable separate property, which was substantial, that alone does
not make the disposition of property inequitable. Ovens so holds. The trial
court's property distribution in this case was not manifestly unreasonable.
We turn now to the question whether the court's division of property,
applying the statutory factors, constituted an abuse of discretion.
9
No. 73415-6-1/10
Statutory Factors
Under RCW 26.09.080, courts must equitably distribute the parties'
property and liabilities after considering:
(1) The nature and extent of the community property;
(2) The nature and extent of the separate property;
(3) The duration of the marriage or domestic partnership;
and
(4) The economic circumstances of each spouse or domestic
partner at the time the division of property is to become effective,
including the desirability of awarding the family home or the right to
live therein for reasonable periods to a spouse or domestic partner
with whom the children reside the majority of the time.
The factors listed in the statute "are not exclusive," and "the economic
circumstances of each spouse upon dissolution is of paramount concern."38
The court "is not required to place the parties in precisely equal financial
positions . . . ."39 "A just and equitable division 'does not require mathematical
precision, but rather fairness, based upon a consideration of all the
circumstances of the marriage, both past and present, and an evaluation of the
future needs of [the] parties.'"40
A trial court abuses its discretion "ifthe property division creates a patent
disparity in the parties' economic circumstances."41
38 In re Marriage of Larson, 178 Wash. App. at 138; In re Marriage of Harrington, 85
Wash. App. 613, 633, 935 P.2d 1357 (1997).
39 In re Marriage of Wright, 179 Wash. App. at 262.
40 In re Marriage of Larson, 178 Wash. App. at 138 (quoting In re Marriage of
Crosetto, 82 Wash. App. 545, 556, 918 P.2d 954 (1996)).
41 In re Marriage of Bverley, 183 Wash. App. 677, 685, 334 P.3d 108 (2014).
10
No. 73415-6-1/11
Here, the trial judge considered and applied the statutory factors in its
findings of fact. We consider the challenges to these findings and the
conclusions that follow.
Nature and Extent of the Parties' Community Property
Templin assigns error to portions of the trial court's Finding of Fact 2.8,
dealing with community property. Among other things, she claims that Klavano
undercompensated the marital community. Substantial evidence supports the
court's finding to the contrary.
"If the management of separate assets consumes a more than
insignificant amount of labor or time, then the community estate is entitled to fair
compensation for the labor and effort."42 If a spouse owning and working in a
separate business failed to adequately compensate the community for his or her
work in the business, courts "must determine what portion of the value of [the
separate business] inures to the benefit of the community."43
Here, the trial court made no finding whether the marital community was
unfairly undercompensated by Klavano's low W-2 wages. It found that even if it
"were to find that the marital community was unfairly undercompensated .. ., the
court finds that any such undercompensation was more than made up by
[Klavano's] substantial separate property contributions to the marital
4219 Scott J. Horenstein, Washington Practice: Family and Community
Property Law with Forms § 5:2, at 121 (2d ed. 2015).
43 id
11
No. 73415-6-1/12
community."44 The court also found that Templin did not provide evidence
refuting this.
Substantial evidence supports these findings. First, the trial court
considered expert opinion testimony regarding Klavano's alleged
undercompensation of the marital community. Klavano's expert compared
Klavano's situation with that of a Chief Financial Officer working full time for a
corporation generating substantial sales. But Klavano works less than full time
and his company's sales were far less than the comparator corporation. The
expert further opined that even if this comparison showed undercompensation, it
was outweighed by Klavano's substantial contributions of separate property to
the community.
Second, although Templin's expert testified about Klavano's
compensation, Templin's expert did not give an opinion whether Klavano's salary
was fair or reasonable. Moreover, the expert did not opine to what Klavano
"should have or could have paid himself within the marital community."
The trial court was entitled to judge the credibility of these witnesses and
decide on which evidence to rely. We conclude that its findings are supported by
substantial evidence provided by the expert it chose to believe. We reject the
argument to the contrary.
Templin also argues that the trial court did not include as community
property patents that Klavano developed during the marriage. She specifically
44 Clerk's Papers at 2456.
12
No. 73415-6-1/13
argues that the trial court "should have acknowledged the community interest in
the patents as part of its property division."
Assuming without deciding that the patents are community property,
Klavano testified that they had no value. And Templin produced no evidence
showing any specific value of any patent.
We note that Exhibit 1 to the decree shows that one of Klavano's
businesses, for which the patent was developed, had no value. This suggests
that the trial court determined that the patents had no value for purposes of
distribution. There was no error.
Templin argues that her entitlement to a share in the community property
does not depend on her income contributions to the community. She takes issue
with the trial court's finding stating "[t]here is little evidence that [Templin]
contributed any significant income" to meet the marital community expenses.
But this was not the primary basis of the trial court's decision on the nature
and extent of community property. When we consider the court's decision, as a
whole, we conclude that it explicitly considered the statutory factors. Substantial
evidence supports its findings of fact.
Nature and Extent of the Parties' Separate Property
Templin argues that due to Klavano's "substantial separate property, the
trial court should have at least awarded [Templin] a disproportionate share of the
community property, a portion of [Klavano's] separate property, or both." The
extent of his separate property alone does not support the result Templin seeks.
Moreover, the cases she relies on do not support her argument.
13
No. 73415-6-1/14
For example, in In re Marriage of Pea, the parties were married longer
than Templin and Klavano.45 The wife also had minimal income, education, and
earning ability and had difficulty reading and speaking English.46 That is not the
case for Templin.
In Lynn v. Lynn, the parties were also married longer than Templin and
Klavano and had two young children.47 The wife had an eighth grade education
and custody of the children.48 Again, that is not the case here.
In In re Marriage of Donovan, the parties were married longer than
Templin and Klavano, and the wife spent most of her efforts caring for the
parties' three children.49 Templin is not in the same position.
Parties' Economic Circumstances
Templin argues that the trial court failed to consider her and Klavano's
economic circumstances in its distribution decision. The record shows otherwise.
The court found that Klavano "had substantial separate property" when the
parties married and that Templin "had some separate property." It also found
that both parties were "in relatively good health" and that Klavano is "semi-retired
and no longer receives W-2 wages." Klavano also "liv[es] off the income from his
separate investments, and must use his separate capital to meet his living
45 17 Wash. App. 728, 729, 566 P.2d 212 (1977).
46 id
47 4 Wash. App. 171, 176, 480 P.2d 789 (1971).
48]dat176, 178.
49 25 Wash. App. 691, 692-93, 612 P.2d 387 (1980).
14
No. 73415-6-1/15
expenses .. . and separate financial obligations." Templin does not challenge
these findings of fact. Thus, they are verities on appeal.50
The trial court also found that Templin can continue to work as a flight
attendant and that her alleged back injuries "do not affect her present
employability and prospective earning capacity." More importantly, the trial court
found that Templin "is fully capable of being self-supporting" as a flight attendant
and "has no financial obligations beyond her monthly living expenses and
whatever debts she may have incurred since separation."
Although Templin assigns error to these findings of fact, they demonstrate
that the trial court considered the parties' economic circumstances. Templin also
fails to argue what the court failed to consider and fails to cite authority stating
what else the court should have considered.
Pre-Decree Distributions
Templin argues that a total of $132,959 in pre-decree distributions were
improperly credited to her share of the property division. She claims this is so
because she received and spent these funds prior to entry of the dissolution
decree. We hold that this crediting was not an abuse of discretion.
Templin relies on In re Marriage of White, in which Division Two of this
court stated that trial courts focus on the parties' assets at trial and may not
distribute assets disposed of before trial.51
50 Mueller v. Wells, 185 Wash. 2d 1, 9, 367 P.3d 580 (2016).
51 105 Wash. App. 545, 549, 20 P.3d 481 (2001); see also In re Marriage of
Kaseburg, 126 Wash. App. 546, 556, 108 P.3d 1278 (2005).
15
No. 73415-6-1/16
Here, the judge characterized, in Exhibit 1 to the decree, money that
Templin received during the parties' separation as "pre-decree distributions."
This sum included temporary maintenance and was used to offset the
equalization payment Templin would receive.
Templin's reliance on In re Marriage of White to argue that the trial court
improperly credited these pre-decree distributions to her is misplaced. We say
this in light of In re Marriage of Glorfield.52
There, Gloria Glorfield made a similar argument after the trial court
deducted money she received during the parties' separation from her property
award.53 Her husband, Ben, had paid her maintenance and a sum of money to
purchase a vehicle until the final decree was entered.54 Division Three of this
court affirmed the trial court's distribution, stating "it was [not] manifestly
unreasonable for the [trial] court to deem these sums an advance by [Ben] and
deduct them from the property distributed to [Gloria]."55
Similarly, here the sum the trial court credited to Templin's award was also
an advance prior to the entry of the decree. As the court stated, this was money
Templin received shortly before and after the parties separated as "pre-decree
distributions" to be "used to offset the equalization payment" to her. This sum
52 27 Wash. App. 358, 617 P.2d 1051 (1980).
53 id at 362.
54 id
65 id
16
No. 73415-6-1/17
included temporary maintenance and Klavano's separate property money
towards automobiles that Templin kept for herself.
Under Glorfield's reasoning, the trial court's distribution was not manifestly
unreasonable. White, which neither cites nor discusses Glorfield, does not
require a different result.
Templin assigns error to various portions of the findings relating to the
court's application of the RCW 26.09.080 factors regarding the property
disposition. But she fails to argue all of them. We deem those not argued to
have been abandoned.56
In sum, Templin fails in her burden to show that the trial court abused its
decision in its property distribution.
MAINTENANCE
Templin next argues that the trial court abused its discretion in failing to
award her maintenance. Specifically, Templin claims that back injuries limited
her ability to work as a full time flight attendant. We hold that there was no abuse
of discretion in denying her maintenance.
RCW 26.09.090 governs spousal maintenance. The statute provides that
courts may grant maintenance after considering all relevant factors including, but
not limited to:
(a) The financial resources of the party seeking
maintenance, including separate or community property
apportioned to him or her, and his or her ability to meet his or her
needs independently, including the extent to which a provision for
support of a child living with the party includes a sum for that party;
56 Kinderace LLC v. City of Sammamish, No. 73409-1-1, 2016 WL 3660798, at *1
n.1 (Wash. Ct. App. July 5, 2016).
17
No. 73415-6-1/18
(b) The time necessary to acquire sufficient education or
training to enable the party seeking maintenance to find
employment appropriate to his or her skill, interests, style of life,
and other attendant circumstances;
(c) The standard of living established during the marriage or
domestic partnership;
(d) The duration of the marriage or domestic partnership;
(e) The age, physical and emotional condition, and financial
obligations of the spouse or domestic partner seeking maintenance;
and
(f) The ability of the spouse or domestic partner from whom
maintenance is sought to meet his or her needs and financial
obligations while meeting those of the spouse or domestic partner
seeking maintenance.
When deciding whether to award maintenance, trial courts must also
consider the property distribution.57 Additionally, the parties' standard of living
during marriage and the parties' post-dissolution economic circumstances are
paramount concerns when considering maintenance and property awards.58
Financial need is not a prerequisite to a maintenance award.59 This
means "[a] spouse's 'demonstrated capacity of self-support does not
automatically preclude an award of maintenance.'"60 But "[t]he purpose of
57 In re Marriage of Kile, 186 Wash. App. at 887.
58 In re Marriage of Estes, 84 Wash. App. 586, 593, 929 P.2d 500 (1997).
59 In re Marriage of Wright. 179 Wash. App. at 269.
60 In re Marriage of Morrow. 53 Wash. App. 579, 585, 770 P.2d 197 (1989) (quoting
In re Marriage of Washburn, 101 Wash. 2d 168, 178, 677 P.2d 152 (1984)).
18
No. 73415-6-1/19
spousal maintenance is to support a spouse . . . until [he or] she is able to earn
[his or] her own living or otherwise becomes self-supporting."61
"The only limitation on the amount and duration of maintenance under
RCW 26.09.090 is that the award must be 'just.' Maintenance is 'a flexible tool'
for equalizing the parties' standards of living for an 'appropriate period of time.'"62
Where "'disparity in earning power and potential is great, [courts] must
closely examine the maintenance award to see whether it is equitable'" in light of
the parties' post-dissolution economic situations.63
As the statute and case law make clear, whether an award of
maintenance is required is a discretionary determination to be made by the trial
court.
Here, the trial court considered the statutory factors and acted within its
discretion in declining to award Templin maintenance.
Financial Resources of the Party Seeking Maintenance
Templin argues that the trial court failed to consider her financial
resources and inability to meet her needs independently. The record shows
otherwise.
61
In re Marriage of Luckev, 73 Wash. App. 201, 209, 868 P.2d 189 (1994).
62 In re Marriage of Wright, 179 Wash. App. at 269 (first quoting In re Marriage of
Bulicek, 59 Wash. App. 630, 633, 800 P.2d 394 (1990); then quoting In re Marriage of
Washburn, 101 Wash. 2d at 179).
63 In re Marriage of Mansour, 126 Wash. App. 1, 16, 106 P.3d 768 (2004) (quoting
In re Marriage of Sheffer, 60 Wash. App. 51, 56, 802 P.2d 817(1990)).
19
No. 73415-6-1/20
The trial court found that Templin received both separate and community
property. This is an unchallenged verity on appeal.64 The court further found
that Templin "has the ability to meet her needs independently to a certain extent
but not [to] the level she previously enjoyed during the course of this 10-year
marriage."
Significantly, the court found that Templin continues to work as a flight
attendant and is "fully capable of being self-supporting as she grows closer to
retirement age with a higher hourly wage at [her current employer] and returning
to full-time employment." These findings are amply supported by the evidence in
the record. We reject the contention that the court ignored Templin's financial
resources.
Time Necessary to Enable the Party
Seeking Maintenance to Find Employment
Templin argues that the trial court "ignored the practical realities of
continued work as a flight attendant." She also argues that her "proposed
vocational plan would have allowed her to continue [working as a flight attendant]
while also working towards a career change." These arguments are
unpersuasive.
The trial court found that Templin "needs no additional time to acquire
sufficient education or training" and that "[t]he evidence d[id] not support a late in
life career change."65 Although Templin intends to further her education and start
64 Mueller. 185Wn.2dat9.
65 Clerk's Papers at 2465-66.
20
No. 73415-6-1/21
her own business, the record shows that such a career transition is not required
by Templin's alleged physical limitations as she claims.
Age, Physical and Emotional Condition,
and Financial Obligations of the Party Seeking Maintenance
Templin argues that her age limits her ability to work as a flight attendant
full time. The record shows otherwise.
The trial court found that Templin is 55 years old, is "in good physical and
emotional condition," and had "no financial obligations beyond her monthly living
expenses and whatever debts she may have incurred since separation."66
Templin assigns error to the first part of this finding of fact but does not offer
argument as to her emotional and physical condition, other than her back injury
allegations. We need not further consider this latter point.67
The trial court found that Templin "sought no treatment for any alleged
back injuries after 1993" and that "[h]er earnings after 1993 were not negatively
affected by any alleged back injuries." Although Templin produced a letter from a
doctor she visited in September 2014 due to back pain, this visit occurred over a
year after the parties' separation and two months before trial began.
The trial court also found that "[n]o medical testimony was presented at
trial to support [Templin's] claims of ongoing back issues and that those claims
negatively affected her ability to continue working." The court further found that
although Templin's "income productivity" decreased after the marriage,
66 id at 2466.
67 See Darkenwald v. Emp't Sec. Dep't. 183 Wash. 2d 237, 248, 350 P.3d 647
(2015); RAP 10.3(a)(6).
21
No. 73415-6-1/22
"[wjhether [Klavano] asked [Templin] to decrease her hours or [Templin] chose to
decrease her hours . . . does not lend credibility to an unsupported claim of
physical infirmity that prevents her from working full-time."
Templin does not challenge the trial court's finding that she "sought no
treatment for any alleged back injuries after 1993" and that "[h]er earnings after
1993 were not negatively affected by any alleged back injuries." Thus, these
findings are verities on appeal.68 Further, any testimony presented as to
Templin's back injuries was not based on her medical records. Rather, the
testimony was based on what Templin told the witness and the above-mentioned
letter from a doctor.
We also note that the trial court determined that Templin's claimed
expenses were "inflated" and that "[l]ittle to no evidence was provided to support
the inflated monthly expenses." Templin testified that she used cash to pay for
some of her expenses and did not know if she kept receipts. She also testified
that she did not keep some bills.
The court was entitled to decide that it did not believe Templin based on
her testimony and other evidence in the record. Because this court does "not
decide the credibility of witnesses or [re]weigh the evidence" on appeal, the trial
court's assessment that Templin's expenses were inflated must stand.69
We conclude that substantial evidence supports the court's findings on
this factor.
68 Mueller, 185Wn.2dat9.
69 AW, 182Wn.2dat711.
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No. 73415-6-1/23
Standard of Living Established During the Marriage
Templin assigns error to the trial court's finding of fact as to the parties'
standard of living. There is no error.
The trial court found that the parties "enjoyed an upper middle class
standard of living during [their] marriage." The trial court also found that the
parties' standard of living "d[id] not support [Templin's] excessive claims for an
award of maintenance."
Templin assigns error to this finding of fact, claiming that Klavano's
business assets will provide him with an income that will allow him to enjoy the
same standard of living that the parties enjoyed during their marriage. On the
other hand, Templin claims that her lower income "will provide her nowhere near
the parties' standard of living during the marriage." She also claims that the trial
court's failure to award maintenance leaves Templin "a relative pauper."
Hyperbole aside, we are not persuaded that Templin is assured of the
same standard of living after marriage that she enjoyed during marriage under
the circumstances of this case.
Marriage Duration
As previously stated, the trial court found that the duration of the parties'
marriage was 10 years. Given this, we reject Templin's attempt to use a later
court order to undermine this finding.
The court entered that order almost two months after its findings of fact.
We previously discussed this order in this opinion and why it has no effect on our
analysis.
23
No. 73415-6-1/24
Ability of Spouse from Whom Maintenance Is Sought
To Meet His Needs and Financial Obligations
While Meeting Those of the Spouse Seeking Maintenance
Templin argues that Klavano could pay her maintenance and that the
court "ignored [his] robust financial circumstances." Not so.
The trial court found that Klavano is "semi-retired and no longer receives
W-2 wages." The trial court also found that Klavano "liv[es] off the income from
his separate investments, and must use his separate capital to meet his living
expenses . . . and separate financial obligations." Templin does not challenge
these findings of fact. Thus, they are verities on appeal.70
Ultimately, the trial court found that Templin's reasonable monthly
expenses required that Klavano provide Templin with half of "his retirement
accounts prorated" during the 10 year marriage. This finding of fact shows that
the trial court considered Klavano's ability to meet his financial obligations while
meeting some of Templin's needs.
Templin also assigns error to portions of the findings relating to the court's
application of the RCW 26.09.090 maintenance factors. But she fails to argue all
of them. To the extent not argued, we deem these assignments abandoned.71
In sum, the trial court explicitly considered and properly applied the
statutory maintenance factors. Although the record indicated a disparity in the
parties' earnings, substantial evidence supported the trial court's findings. These
findings, in turn, support the conclusion that no maintenance should be awarded.
70 Mueller, 185Wn.2dat9.
71 Kinderace LLC, 2016 WL 3660798, at *1 n.1.
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No. 73415-6-1/25
The trial court's decision is not manifestly unreasonable.
CROSS APPEAL
Postnuptial Agreement
In his cross appeal, Klavano argues that the trial court erred in concluding
that the parties' postnuptial agreement was unfair and unenforceable. This
argument is without merit.
Postnuptial agreements are agreements spouses enter into during
marriage "to define each spouse's property rights in the event of death or
divorce."72 These agreements are valid ifthe spouse seeking enforcement fully
discloses the amount, character, and value of the property involved.73 The other
spouse must also enter into the agreement fully and voluntarily, on independent
advice, and with full knowledge of his or her rights.74
Here, the parties executed a postnuptial agreement on October 3, 2003,
which focused on the home they were soon to purchase. The face of the
document reflects that it was faxed on October 3, 2003, the date the parties
signed it. It bears at the top ofthe first page the notation "Law Offices."75
Templin testified at trial that she was scared and felt forced to sign the
agreement the same day Klavano presented it to her. She also testified that
72 Black's Law Dictionary 1356 (10th ed. 2014).
73 In re Marriage of Hadlev. 88 Wash. 2d 649, 654, 565 P.2d 790 (1977).
74 id
75 Trial Exhibit 213.
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No. 73415-6-1/26
Klavano did not give her time to have an attorney look at the agreement on her
behalf and that she did not understand the ramifications of the agreement.
In contrast, Klavano testified that Templin "was fine" with the agreement,
"was happy," and could have gone to an attorney of her choice. The trial court
was not required to accept this testimony as credible. It clearly rejected this
evidence, as it was entitled to do.
Because this court does "not decide the credibility of witnesses or
[re]weigh the evidence" on appeal, the evidence we just discussed constitutes
substantial evidence supporting the trial court's finding.76 And that finding
supports the trial court's conclusion that the post-nuptial agreement was invalid.
We note that the agreement states that each party had the opportunity to
consult with counsel. Presumably, this was language inserted into the document
by a lawyer at the "Law Offices" which faxed the document. We doubt this law
office was one representing Templin's interests, given her testimony that she did
not understand the ramifications of the agreement. In our view, this further
supports the trial court's determination that the agreement was unenforceable
under the circumstances of this case.
Klavano claims that the trial court erred because the agreement makes a
fair and reasonable provision for Templin. This argument ignores the basic rule
that an agreement executed under the circumstances of this case is not
enforceable. It simply does not matter whether its provisions are reasonable, an
issue we need not decide.
76 In re Marriage of A.W., 182 Wash. 2d at 711.
26
No. 73415-6-1/27
Community Property
Klavano also argues that the trial court improperly characterized certain
property as community property. He focuses on the court's characterization of
the family home as community property. He makes a similar argument about the
$142,173 down payment made to refinance the loan to acquire the family home.
We reject both claims.
"'[A]ll property acquired during marriage is presumptively community
property, regardless of how title is held.'"77 The party challenging an asset's
community property status bears the burden of rebutting this presumption, which
"'can be overcome only by clear and convincing proof" that the property is
separate property.78 This standard requires "positive evidence, direct or
circumstantial, that makes a proposition highly probable."79
For example, the challenging party may satisfy its burden by
demonstrating that separate funds were used to purchase the property and by
tracing these funds "'with some degree of particularity.'"80 Thus, the property
owner's self-serving testimony regarding the allegedly separate property is not
enough.81
77 In re Marriage of Kile, 186 Wash. App. at 876 (quoting Dean v. Lehman, 143
Wash. 2d 12, 19, 18 P.3d 523 (2001)).
78 ]d (quoting Dean, 143 Wash. 2d at 19-20).
79 In re Marriage of Schwarz. 192 Wash. App. 180, 218, 368 P.3d 173 (2016).
80 id at 189 (quoting Berol v. Berol, 37 Wash. 2d 380, 382, 223 P.2d 1055 (1950)).
81 id at 218; Berol, 37 Wash. 2d at 382.
27
No. 73415-6-1/28
Here, Klavano made the down payment for the parties' residence from
separate funds a few months after the parties' marriage. The trial court
characterized the family home as community property, less Klavano's down
payment from separate funds. Thereafter, the trial court awarded Templin 50
percent of the equity remaining after subtracting the debt against the home.
In 2013, the parties refinanced the home, and Klavano paid a $142,173
down payment to refinance the loan against the home.
Klavano assigns error to the trial court's characterization of the residence
as community property, claiming it is his separate property. This claim has no
merit. The home was acquired during the parties' marriage and thus is
presumptively community property. Moreover, the trial court gave Klavano credit
for traceable separate funds used in the down payment of this presumptively
community asset.
As for Klavano's assertion concerning the characterization of his payment
for refinancing the property in 2013, he also fails to show that the property was
separate. The court made the unchallenged factual finding that Klavano made
gifts to the community from this separate property. The trial court was entitled to
decide that these funds fell within the scope of a gift to the community. The
court's characterization is correct.
Klavano cites In re Marriage of Zahm82 to support his argument, where the
supreme court discusses the "mortgage rule." The supreme court stated that the
82138 Wash. 2d 213, 224, 978 P.2d 498 (1999).
28
No. 73415-6-1/29
mortgage rule "is a legal tool used to characterize property acquired, using both
community and separate funds, over a period of time."83
That case does not alter the proper analysis. Specifically, it does not
overcome the trial court's unchallenged finding that Klavano generally gifted
separate property to the community.
Intransigence
Klavano argues that the trial court abused its discretion in failing to award
him attorney fees he incurred due to alleged intransigence. We hold that he has
failed in his burden to show the court abused its discretion in any respect.
A party's intransigence is an equitable basis for awarding attorney fees.84
Courts grant attorney fee awards for intransigence when a party engages in
"'foot-dragging' and 'obstruction' ... or simply when one party made the trial
unduly difficult and increased legal costs by his or her actions.'"85 Intransigence
may also be shown by "'litigious behavior, bringing excessive motions, or
discovery abuses.'"86
Additionally, courts consider "'the extent to which one spouse's
intransigence caused the [other] spouse ... to require additional legal
83 id
84 In re Marriage of Chandola, 180 Wash. 2d at 656.
85 ]d at 657 (alteration in original) (internal quotation marks omitted) (quoting In
re Marriage of Katare. 175 Wash. 2d 23, 42, 283 P.3d 546 (2012)).
86 In re Matter of Kelly. 170 Wash. App. 722, 740, 287 P.3d 12 (2012) (quoting In re
Marriage of Wallace. 111 Wash. App. 697, 710, 45 P.3d 1131 (2002)).
29
No. 73415-6-1/30
services.'"87 The court can also determine whether one party's conduct
"appealed] to handicap [the other party] in any significant way."88 "'If
intransigence is established, [the court] need not consider the parties'
resources.'"89
But a highly contested dissolution action, without evidence of difficult
conduct, does not justify an award of fees for intransigence.90
Here, Klavano fails to show that the court's decision not to award fees
based on intransigence was an abuse of discretion. His arguments all relate to
discovery disputes. And such disputes are best handled by the trial court. We
will not second guess a trial court in such matters.
We have carefully examined the record and the arguments. We conclude
there was no abuse of discretion in declining to award fees to Klavano based on
intransigence.
ATTORNEY FEES
Trial
Templin argues that the trial court abused its discretion in declining to
award her attorney fees at trial. We agree.
87 In re Marriage of Williams. 84 Wash. App. 263, 272, 927 P.2d 679 (1996)
(quoting In re Marriage of Crosetto, 82 Wash. App. at 563).
88 id at 273.
89 In re Marriage of Larson, 178 Wash. App. at 146 (quoting In re Marriage of
Wallace. 111 Wash. App. at 710).
90 See In re Marriage of Wright, 78 Wash. App. 230, 239, 896 P.2d 735 (1995).
30
No. 73415-6-1/31
"The general rule in Washington is that attorney fees will not be awarded
for costs of litigation unless authorized by contract, statute, or recognized ground
of equity."91 RCW 26.09.140 provides for attorney fees in dissolution
proceedings.
The legislature has made clear that a court may order a party to pay for
other party's reasonable attorney fees for "maintaining or defending any
proceeding under this chapter" after considering the parties' financial
resources.92 And case law makes clear that an award of attorney fees under this
statute "must be based upon a consideration that balances the needs of the
spouse seeking fees against the'" other spouse's ability to pay.93 "A lack of
findings as to either need or ability to pay requires reversal."94
Here, the findings, conclusions, and decree show that the trial court
denied an award of attorney fees to Templin without considering either her need
or Klavano's ability to pay. Moreover, its order denying Templin's motion for
reconsideration regarding attorney fees also lacks such consideration. These
are errors. We must reverse and remand for reconsideration of the fee issue in
accordance with the controlling criteria of RCW 26.09.140.
91 Durland v. San Juan County, 182 Wash. 2d 55, 76, 340 P.3d 191 (2014).
92 RCW 26.09.140.
93 In re Marriage of Urbana, 147 Wash. App. at 16 (emphasis added) (quoting In re
Marriage of Moody, 137 Wash. 2d 979, 994, 976 P.2d 1240 (1999)).
94 In re Marriage of Scanlon, 109 Wash. App. 167, 181, 34 P.3d 877 (2001).
31
No. 73415-6-1/32
Appeal
Both parties request attorney fees on appeal. Templin seeks fees under
RCW 26.09.140, claiming that she has need and that Klavano has the ability to
pay. Klavano argues that Templin's appeal is frivolous in an attempt to avoid the
award of reasonable attorney fees on appeal to her.
Templin's most recent financial declaration demonstrates her need for an
award of reasonable attorney fees on appeal. Klavano's most recent financial
declaration demonstrates his ability to pay Templin's reasonable attorney fees.
Accordingly, we award her reasonable attorney fees on appeal. The amount of
such fees and expenses on appeal shall be determined by the trial court on
remand.95
RAP 18.9(a) provides for attorney fees if a party "files a frivolous appeal."
"An appeal is not frivolous or brought for purposes of delay if it involves
'debatable issues upon which reasonable minds might differ.'"96 "'An appeal that
is affirmed merely because the arguments are rejected is not frivolous.'"97
Based on the above considerations, we deny Klavano any award of
attorney fees on appeal. This appeal is not frivolous.
We affirm the decree of dissolution in all respects, except for the denial of
Templin's request for reasonable attorney fees at trial. We remand for
95 RAP 18.1 (i) and the other Rules of Appellate Procedure.
96 O'Neill v. City of Shoreline, 183 Wash. App. 15, 26, 332 P.3d 1099 (2014)
(internal quotation marks omitted) (quoting Olsen Media v. Energy Sciences, Inc., 32
Wash. App. 579, 588, 648 P.2d 493 (1982)).
97 Enslev v. Mollmann, 155 Wash. App. 744, 760, 230 P.3d 599 (2010) (quoting
Halvorsen v. Ferguson, 46 Wash. App. 708, 723, 735 P.2d 675 (1986)).
32
No. 73415-6-1/33
reconsideration of that question based on the standard under RCW 26.09.140.
We award reasonable attorney fees and expenses on appeal to Templin. The
trial court shall determine the amount of such fees and expenses on remand.
d&*tl.
WE CONCUR:
r^'^oy A^T f