Boyd v. Crocker
2017 Ark. App. 108
| Ark. Ct. App. | 2017Background
- Jason Boyd, a self-employed farmer, admitted paternity of child G.B.; Craighead County Circuit Court awarded custody to Candace Crocker and set child support. Boyd only appealed the child-support order.
- Boyd claimed monthly income of $3,500 based on his affidavit; Crocker presented bank records, tax returns, and lifestyle evidence showing much larger deposits and expenditures.
- Boyd's personal checking-account deposits totaled about $139,294.70 in 2013 and $116,141.44 in 2014; he conceded depositing large sums and not paying taxes on them, but his tax returns reported significant losses.
- The circuit court found Boyd's 2012–2013 tax returns unreliable and that 2014 returns were unavailable; it therefore considered the net-worth method but concluded it lacked sufficient evidence to compute beginning and ending net worth.
- The court relied on Boyd's bank-deposit history and lifestyle, imputed monthly income of $11,105, and set child support at $1,606 per month. Boyd appealed only the income-calculation methodology.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court erred in applying the net-worth method for a self-employed payor | Boyd: Court failed to establish beginning and ending net worth as required by Tucker before applying net-worth factors; methodology was legally incorrect | Crocker/OCSE: Tax returns were unreliable; court properly considered net-worth factors and, lacking sufficient net-worth evidence, reasonably used bank deposits and lifestyle to impute income | Affirmed — court may use bank records and lifestyle where tax returns are unreliable and net-worth cannot be calculated; imputation to $11,105/month was not clearly erroneous |
| Whether the court failed to give proper weight to evidence of farm losses and loans that would reduce Boyd's net worth | Boyd: Testimony about farm losses and crop loans should have decreased imputed income | Crocker/OCSE: Court was entitled to weigh credibility and found Boyd's testimony inconsistent with bank records and lifestyle | Affirmed — appellate court defers to trial court’s credibility and weight determinations; no reversible error shown |
Key Cases Cited
- Tucker v. Office of Child Support Enforcement, 368 Ark. 481, 247 S.W.3d 485 (2007) (describing use of net-worth method when tax returns are unreliable and listing factors to consider)
- Holland v. United States, 348 U.S. 121 (1954) (source of the net-worth method for reconstructing income)
- Colley v. Colley, 450 S.W.3d 274 (Ark. App. 2014) (discussing Tucker's requirement to establish beginning and ending net worth)
- Montgomery v. Bolton, 349 Ark. 460, 79 S.W.3d 354 (2002) (broad definition of income for child-support purposes)