496 S.W.3d 547
Mo. Ct. App.2016Background
- Father (Charles Franklin) and Mother (Sandy Metzger) divorced in 2009; Father adopted Mother's two daughters. Child support originally $700/month, reduced to $350/month in 2012 after one child emancipated and Mother relocated to Illinois.
- In 2014 Mother moved to increase support (including share of college costs for Katlynn); Father moved to decrease support after losing a 13-year job at Nordyne when it relocated to Mexico.
- Father received a severance (~$32,938) and enrolled in a Trade Adjustment Assistance (TAA) retraining program, receiving $320/week in TRA (unemployment-like) benefits while attending school full time (would be ineligible for TRA if employed). He expects future earnings ≈ $18–$19/hr (~$39,520/year).
- At the March 20, 2015 hearing the trial court denied Mother’s motion to increase college-cost contribution, denied Father’s motion to reduce support, rejected both parties’ Form 14s, and imputed Father’s gross annual income at $55,514 (including salary, severance, and TRA) to set support at $479/month starting June 1, 2015.
- Father appealed, arguing (1) imputed income was too high and not supported by opportunity to earn, (2) trial court failed to consider/formally find statutory factors under § 452.340, and (3) TRA benefits should be excluded from gross income.
- The appellate court affirmed inclusion of TRA benefits in gross income, reversed the imputation of $55,514 as unsupported (finding it an anomalous year), and remanded for recalculation; the § 452.340/finding issue was denied as moot on remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether TRA benefits are includable in "gross income" for Form 14 | Franklin: TRA benefits are public-assistance-type and excluded from gross income | Metzger/Trial court: TRA functions like unemployment and is includable | Held: TRA benefits are includable as unemployment-like income; Point 3 denied |
| Whether imputing $55,514/year to Father was proper | Franklin: Imputed amount is anomalous (inflated by severance/temporary TRA) and not reflective of past or future earning capacity | Metzger/Trial court: Court used all income received during the 12 months before hearing to determine probable earnings | Held: Reversed — $55,514 is not supported as Father’s "probable" earnings; imputation was an abuse of discretion; Point 1 granted |
| Whether trial court failed to consider statutory factors and make findings under § 452.340 | Franklin: Court failed to apply/record findings on statutory factors | Metzger/Trial court: Court made sufficient factual conclusions in light of no specific findings requested | Held: Denied as moot on appeal because reversal/remand on imputed income requires further proceedings |
Key Cases Cited
- In re Marriage of Adams, 414 S.W.3d 29 (Mo. App.) (standard of appellate review for court-tried cases)
- Lokeman v. Flattery, 146 S.W.3d 422 (Mo. App.) (child support awards are within trial court discretion)
- In re Marriage of McDaniel, 419 S.W.3d 828 (Mo. App.) (support award review standards)
- In re Marriage of Miller, 467 S.W.3d 300 (Mo. App.) (credibility and findings procedure)
- In re Marriage of Geske, 421 S.W.3d 490 (Mo. App.) (requirement to request specific findings under Rule 73.01(c))
- Cross v. Cross, 318 S.W.3d 187 (Mo. App.) (trial court may rely on any appropriate time period to determine probable earnings)
- Pearcy v. Pearcy, 193 S.W.3d 844 (Mo. App.) (one-year anomaly should not be sole basis for Form 14 income)
- In re Marriage of Spence, 943 S.W.2d 373 (Mo. App.) (using typical rather than anomalous income for support calculations)
- Buchholz v. Buchholz, 166 S.W.3d 146 (Mo. App.) (parent must have capacity to earn income imputed)
- Smotherson v. Div. of Employment Sec., 265 S.W.3d 359 (Mo. App.) (TRA benefits treated as supplement/extension of unemployment benefits)
- Creps v. Idaho Dept. of Labor, 238 P.3d 1284 (Idaho 2010) (TRA benefits function as an extension of state unemployment compensation)
- Honderick v. Honderick, 984 S.W.2d 205 (Mo. App.) (unemployment compensation is included in gross income for support calculations)