IN THE INTEREST OF THE CHILDREN OF KNIGHT
317 P.3d 210
| Okla. Civ. App. | 2013Background
- Paternity action filed March 12, 2010 seeking child support for their 12-year-old daughter.
- Trial on remaining issues held November 4, 2011; journal entry issued February 29, 2012 with extensive findings.
- Trial court imputed Father's income based on four-year average; gross monthly incomes were deemed $16,500.52 (Father) and $1,953.00 (Mother).
- Court determined total child support under Guidelines and ordered Father to pay $1,221.08 monthly plus $102.35 medical; arrearage=$47,622.12.
- On appeal, court modified income calculations to deduct ordinary and necessary expenses for self-employment and rental properties, and deduct ranch corpus from net sale proceeds.
- Resulting modified order: Mother awarded $1,259.91 monthly child support and arrearage reduced to $45,526.83.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Deduction of business expenses from self-employment income | Knight argues expenses reduce gross self-employment income. | Lincoln contends some deductions were improper or excessive. | Trial court error corrected; deductions for ordinary and necessary expenses approved. |
| Treatment of capital gains from sale of ranch | Knight asserts capital gains should be included as income. | Lincoln argued gains should not be counted or should be net of corpus. | Capital gains included as income; corpus deducted from net sale proceeds $154,500. |
| Imputation of income vs. current earnings | Knight contends imputation was appropriate given underemployment evidence. | Lincoln disputes specific imputation amounts but concedes underemployment possibility. | No abuse of discretion; imputation sustained with modified figures. |
| Arrearage calculation | Knight seeks arrearage reflecting revised income; no set-off for caregiving deemed necessary. | Lincoln disputes some amounts and offsets. | Arrearage modified to $45,526.83; standard visitation upholding. |
Key Cases Cited
- Merritt v. Merritt, 73 P.3d 878 (Okla. 2003) (equitable review of child support orders)
- Guymer v. Guymer, 245 P.3d 638 (Okla. Civ. App. 2011) (review of discretionary determinations in equity cases)
- Bond v. Bond, 916 P.2d 272 (Okla. Civ. App. 1996) (judgments in equity—broad discretion in journal entries)
- Mueggenborg v. Walling, 836 P.2d 112 (Okla. 1992) (exceptional deference to trial court on witness credibility)
- Field v. Goat, 173 P.3d 364 (Okla. 1918) (homestead proceeds and public policy regarding exemptions)
- Eisner v. Macomber, 252 U.S. 189 (U.S. 1920) (capital gains as income; gain vs. corpus distinction)