441 P.3d 831
Wyo.2019Background
- Parents (unmarried) disputed custody and child support for two children; bench trial set for one day with time split equally.
- Father filed a confidential financial affidavit shortly before trial listing inconsistent income figures (monthly $12,525 and $9,491; net $7,030) and attached partial tax returns for 2014–2015 that showed income only on Schedule E line items (rental/pass-through income); no W-2s, Schedule K-1s, or business income/expense documentation were produced.
- Father testified he had multiple business interests (Laramie Valley Contracting, Arsenio Lemus Holdings, Opportunity Knocks), owned ~50 rental units, and described some entities as pass-throughs, but did not supply supporting records.
- GAL and Mother urged the court to delay child support determination and require complete financial disclosures (including 2016 return, W-2s, K-1s, income/expense statements, depreciation detail); Mother asked the court to impute very high income to Father.
- District court found Father’s affidavit and returns “totally incomplete,” nonetheless calculated child support by treating tax-return amounts as rental income, combining an unexplained $7,030 monthly wage figure with averaged net rental income to reach a $15,577 monthly net and a $2,588 presumptive monthly support obligation.
- On appeal, Father challenged the income calculation and alleged due process violations from trial time limits; Mother sought appellate attorney fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court abused discretion in calculating child support income | Lemus: Court misinterpreted conflicting financial evidence and lacked basis to fix $7,030 wage and rental deductions; court should have ordered complete financial disclosures before ruling | Martinez: (Respondent) urged imputation of higher income; district court was entitled to use evidence before it | Court reversed and remanded — district court abused discretion by deciding child support without sufficient, consistent financial documentation and by not ordering the disclosures requested; Father bears burden to prove business expense deductions on remand |
| Whether time limits denied Father's due process/right to present and cross-examine witnesses | Lemus: Time constraints prevented meaningful testimony and cross-examination, violating due process and family association rights | Martinez: Trial scheduling was within court’s discretion; Father did not object or request more time at trial | Court treated custody time-limit claim as waived (no timely objection or offer of proof) and found any time-limit challenge moot as to support (remanded); custody claim lacked specificity so no relief granted |
| Whether appellee is entitled to appellate attorney fees under W.R.A.P. 10.05(b) | Martinez: Appeal lacked reasonable cause; seeks fees | Lemus: Appeal was reasonable given procedural/record problems | Court denied fees because appeal was reasonable (case reversed and remanded) |
Key Cases Cited
- Bagley v. Bagley, 311 P.3d 141 (Wyo. 2013) (reversed an arbitrary income finding and required net income be determined per statutory definitions and documented deductions)
- Verheydt v. Verheydt, 295 P.3d 1245 (Wyo. 2013) (§ 20-2-308 financial affidavit requirements are mandatory; waiver if party fails to comply or agrees to resolution without affidavit)
- Long v. Long, 413 P.3d 117 (Wyo. 2018) (refusal to consider noncompliance with § 20-2-308 where party failed to provide affidavit and other evidence existed)
- Egan v. Egan, 244 P.3d 1045 (Wyo. 2010) (parents’ net monthly income is starting point for presumptive child support under statute)
- Houston v. Smith, 882 P.2d 240 (Wyo. 1994) (distinguishes federal tax depreciation from deductible business expense for child support calculations)
- Watson v. Watson, 60 P.3d 124 (Wyo. 2002) (party seeking business expense deductions bears burden to prove they are reasonable and unreimbursed)
