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Gallo v. Gallo
1 CA-CV 20-0642-FC
| Ariz. Ct. App. | Nov 16, 2021
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Background

  • Parties married in 2012 and have two minor children; they entered the collaborative-law process and executed two Rule 69 agreements (one with parenting-time terms; one addressing finances, including alleged debt to Mother's parents).
  • After domestic incidents and an order of protection, Mother sought and briefly obtained a temporary sole-custody order; after hearings the court vacated that order and repeatedly modified parenting-time restrictions tied to concerns about Father’s pain-medication use.
  • The court-appointed pain-medication expert and subsequent hearings led the court to lift driving restrictions, permit unsupervised and then expanded parenting time for Father, but also imposed medication-related conditions.
  • At trial the parties disputed Father’s income (Mother’s expert projected very high income from vacation rentals; Father claimed much lower income and drained savings) and whether funds from Mother’s parents were a loan or gift.
  • The superior court found credibility issues (criticizing Mother’s credibility), awarded joint legal decision-making with Mother having final authority subject to limits, equal parenting time, child support of $1,077/month, and declined to treat alleged parental-loan funds as proven debt.
  • Both parties appealed (Mother challenging parenting time, debt division, and child support; Father cross-appealing child-support inclusions). The appellate court affirmed all orders.

Issues

Issue Plaintiff's Argument (Mother) Defendant's Argument (Father) Held
Enforce Rule 69 parenting-time terms Court had approved the parties’ Rule 69 parenting-time agreement; it was binding and should have been enforced Court retained authority under A.R.S. §25-317 and had discretion to modify parenting time in children’s best interests Court retained discretion; no express approval made, so refusal to enforce the agreement was not error
Enforce Rule 69 debt provision Second Rule 69 required equal responsibility for alleged $160,000 parental loan; court should enforce it Payment characterization was disputed; terms vague; funds may have been gifts Court reasonably found insufficient evidence of a loan; credibility finding supported treating funds as not established debt
Father’s income for child support Mother: expert shows very high rental-derived income; court should adopt higher figure Father: income far lower (claimed ~$50k or less); expert projections speculative Court acted within discretion in adopting a middle-ground annual income ($77,160) after explaining its reasoning
Inclusion of insurance and childcare in worksheet Mother testified to $581/mo insurance and $700/mo childcare; these are proper Guideline inputs Father: no evidence supported including those amounts Court permissibly relied on Mother’s uncontradicted testimony; inclusion was supported by the record

Key Cases Cited

  • Engstrom v. McCarthy, 243 Ariz. 469 (App. 2018) (court may reject a Rule 69 agreement if not reasonable as to custody and parenting time)
  • DeLuna v. Petitto, 247 Ariz. 420 (App. 2019) (appellate review accepts trial court’s factual findings unless clearly erroneous)
  • McNutt v. McNutt, 203 Ariz. 28 (App. 2002) (apply same rules of construction to Child Support Guidelines as statutes)
  • Emmons v. Superior Ct., 192 Ariz. 509 (App. 1998) (contract principles govern non-custody terms of Rule 69 agreements)
  • Cummings v. Cummings, 182 Ariz. 383 (App. 1994) (purpose of Child Support Guidelines; consider parents’ ability to pay)
  • Sherman v. Sherman, 241 Ariz. 110 (App. 2016) (gross income for support is actual cash-like benefits available for expenditures; trial court has discretion determining income)
  • In re Marriage of Robinson, 201 Ariz. 328 (App. 2001) (standard of review for child support orders)
Read the full case

Case Details

Case Name: Gallo v. Gallo
Court Name: Court of Appeals of Arizona
Date Published: Nov 16, 2021
Docket Number: 1 CA-CV 20-0642-FC
Court Abbreviation: Ariz. Ct. App.