997 N.E.2d 73
Ind. Ct. App.2013Background
- Marriage in 1991 produced four children; dissolution petition filed around 1999.
- Settlement approved in 2001 required James to pay $835 weekly in child support and share education expenses by percentage.
- 2009–2010 amendments to Indiana child support guidelines changed high-income calculations; guidelines effective 2010.
- 2010 mediation produced an increase in support from about $962.68/week to $3,000/week retroactive to January 2010; James paid a catch-up of $72,761.43.
- 2011 Carrie opened Your Hometown Animal Hospital; 2012 James filed petition to modify alleging Carrie used child support to subsidize her business.
- 2012 trial court granted modification to $132,302 annual total ($2,544.27/week), ordered accounting under I.C. §31-16-9-6, and injunctive relief; Carrie appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Accounting of future child support expenditures | Carrie misused funds; evidence shows impropriety | No misappropriation; basic needs met; accounting not necessary | Accounting not supported by evidence; need for new order remanded |
| Modification of child support based on misappropriation | Misuse constitutes substantial, continuing change justifying reduction | Misappropriation not proven; modification improper | Modification reversed; remand for new order consistent with guidelines |
Key Cases Cited
- Olive v. Olive, 650 N.E.2d 766 (Ind. Ct. App. 1995) (accounting of support expenditures not routinely required when basic needs are met)
- Kovenock v. Mallus, 660 N.E.2d 638 (Ind. Ct. App. 1996) (accounting requires evidence of impropriety and impact on basic needs)
- In re K.H., 838 N.E.2d 477 (Ind. Ct. App. 2005) (attorney statements cannot substitute for evidence; findings must be based on record)
- Mertz v. Mertz, 971 N.E.2d 189 (Ind. Ct. App. 2012) (two-tiered standard of review for findings of fact and conclusions of law)