In re the Marriage of: Jill Melisa Sinda, petitioner, Respondent, vs. Richard Joseph Sinda, Appellant.
A19-1291
STATE OF MINNESOTA IN COURT OF APPEALS
Filed August 10, 2020
Bjorkman, Judge
Hennepin County District Court File No. 27-FA-13-5280
Rodney H. Jensen, Mark E. Mullen, Jensen, Mullen, McSweeney & Meyer, PLLP, Bloomington, Minnesota (for respondent)
Edward F. Rooney, Minneapolis, Minnesota; and Becky Toevs Rooney, Minneapolis, Minnesota (for appellant)
Considered and decided by Bratvold, Presiding Judge; Segal, Chief Judge; and Bjorkman, Judge.
S Y L L A B U S
A spousal-maintenance obligee‘s “cohabitation” with another adult constitutes a substantial change in circumstances that justifies modifying maintenance if consideration of the four factors enumerated in
O P I N I O N
BJORKMAN, Judge
Appellant-husband challenges the order reducing his spousal-maintenance obligation, arguing that the district court
FACTS
In April 2014, the 23-year marriage of appellant Richard Sinda and respondent Jill Sinda was dissolved based on a stipulated agreement. For purposes of spousal maintenance, the parties agreed that husband earned $20,000 per month and wife earned $5,286 per month. The parties did not detail their expenses but agreed that, after the sale of the marital home, each party would have monthly expenses of between $6,500 and $6,900, including $2,000 per month for either rent or a mortgage payment. Based on those income and expense figures, the parties agreed that husband would pay wife spousal maintenance of $4,500 per month for 60 months; then maintenance would increase by $300 (to $4,800) per month until husband turns 65, at which point his obligation would terminate.
In February 2018, husband moved to terminate or reduce his spousal-maintenance obligation, asserting that wife‘s circumstances have changed because (1) she is “cohabiting with her longtime partner,” which reduces her need, and (2) her income has increased since the maintenance obligation was established. Wife opposed husband‘s motion, moved for a “cost of living adjustment” to meet her increased expenses, and requested conduct-based attorney fees.
After a hearing in October, the district court granted husband‘s motion, decreasing his spousal-maintenance obligation by $1,270 (to $3,230) per month, retroactive to when husband served the motion. The court based its decision on wife‘s acknowledgement that her housing costs are reduced by that amount because she is cohabiting. The district court denied wife‘s requests for a cost-of-living adjustment and attorney fees.
Husband moved for amended findings, urged the district court to reduce his spousal-maintenance obligation to $900 per month, and requested that the district court award him a credit against future maintenance payments to address the overpayment resulting from retroactive modification. The district court denied the motion in all respects. Husband appeals.
ISSUES
I. Are the district court‘s findings as to wife‘s income clearly erroneous?
II. Are the district court‘s findings regarding wife‘s reasonable monthly expenses sufficient?
III. Did the district court correctly apply the law and make sufficient findings in addressing modification of spousal maintenance based on cohabitation?
IV. Did the district court abuse its discretion by awarding retroactive maintenance modification without ordering a remedy for the overpayment?
ANALYSIS
A district court has broad discretion in its decisions regarding spousal maintenance, and we will not reverse absent a clear abuse of discretion. Melius v. Melius, 765 N.W.2d 411, 414 (Minn. App. 2009). A court abuses its discretion “if it makes findings of fact that are not supported by the record, misapplies the law, or resolves the matter in a manner that is contrary to logic and the facts on record.” Madden v. Madden, 923 N.W.2d 688, 696 (Minn. App. 2019).
A party seeking to modify a spousal-maintenance obligation must demonstrate that a substantial change has occurred in the parties’ circumstances and that the change renders the existing obligation “unreasonable and unfair.”
I. Husband has not demonstrated that errors in the district court‘s findings regarding wife‘s income warrant reversal.
“A district court‘s determination of income for maintenance purposes is a finding of fact and is not set aside unless clearly erroneous.” Melius, 765 N.W.2d at 414 (quotation omitted). Factual findings are clearly erroneous when they are “manifestly contrary to the weight of the evidence or not reasonably supported by the evidence as a whole.” McConnell v. McConnell, 710 N.W.2d 583, 585 (Minn. App. 2006) (quotation omitted).
Husband argues that the district court made clearly erroneous findings regarding wife‘s gross income at the time of the dissolution and at the time of the motion—facts bearing on whether her increased gross income warrants modification of maintenance under
First, the district court found that wife‘s income at the time of the dissolution was $68,802. But the dissolution judgment establishes that wife earned gross income of $5,286 per month, which equals $63,432 per year. Wife does not dispute this $5,370 error in the district court‘s findings.
Second, regarding wife‘s gross income at the time of the motion,1 the district court found that she earned annual income of $76,776, describing the change as an 11.5% increase. Husband asserts that wife‘s annual income was “at least” $78,000. We agree that all of the record evidence, including wife‘s August 2018 deposition testimony, reveals annual earnings of approximately $78,000 per year. The district court‘s lower figure comes from wife‘s 2017 income tax return, which deducted wife‘s 401(k) contribution from her gross income. Consideration of the deduction was error. See
In sum, the district court‘s findings regarding wife‘s gross income at the time of the dissolution and at the time of the motion are clearly erroneous. After accounting for the district court‘s exclusion of bonus payments, the only findings that the record supports are that wife earned $63,432 at the time of the dissolution and approximately $78,000 at the time of the motion. The increase is not 11.5%, as the district court found, but 21%.
These errors require reversal only if they resulted in prejudice.
Husband argues that he was prejudiced by the district court‘s failure to recognize that wife‘s income increased 21%, because that percentage of increase supports a presumption in favor of modification. He points to
Moreover, husband identifies no other basis for determining that the agreed-to maintenance obligation is now unreasonable or unfair. Wife‘s income increased by 21% in the intervening four years. During that same time, husband‘s income increased even more substantially. And the parties’ agreement regarding maintenance unambiguously reflects a commitment to supporting wife at the high marital standard of living. See Peterka v. Peterka, 675 N.W.2d 353, 358 (Minn. App. 2004) (stating that the purpose of a maintenance award is to allow the parties to have “a standard of living that approximates the marital standard
II. The district court made sufficient findings regarding wife‘s reasonable monthly expenses.
In maintenance-modification proceedings, “particularized findings are necessary to show that relevant statutory factors have been considered.” Tuthill v. Tuthill, 399 N.W.2d 230, 232 (Minn. App. 1987). A remand is warranted if “the findings are insufficient to determine that the [district] court addressed the factors expressly mandated by the legislature.” Id. But remand is not appropriate if the findings indicate that the court considered the relevant factors. Id.
Husband argues that remand is required because the district court made insufficient findings regarding wife‘s reasonable monthly expenses. This argument is unavailing. Wife claimed expenses of $9,066 per month; husband countered that a reasonable monthly budget is $4,720. The district court considered both parties’ arguments, but also noted the difficulty in evaluating wife‘s claimed expenses when the baseline the parties stipulated to at the time of the dissolution—that each party will have reasonable expenses of between $6,500 and $6,900, including approximately $2,000 for housing—is so vague. See Maschoff v. Leiding, 696 N.W.2d 834, 840 (Minn. App. 2005) (noting importance of identifying baseline circumstances in stipulated dissolution judgments). Nonetheless, the district court expressly assessed the reasonableness of wife‘s claimed expenses, rejecting as unreasonable wife‘s claim for debt payments of $1,853. The court also found that wife failed to substantiate the “high” amounts she claimed for medical expenses ($500), food and restaurant expenses ($1,000), and clothing ($400). While wife‘s evidentiary shortcomings would not have justified excluding those items from her budget entirely, her unsupported claims combined with the ambiguous baseline amply support the district court‘s finding that wife‘s reasonable expenses remain at the level the parties contemplated in the dissolution judgment.
III. The district court correctly applied the law and made sufficient findings in addressing modification based on cohabitation.
In 2016, the legislature added a new basis for modifying spousal maintenance—an obligee‘s cohabitation with another adult.
(1) whether the obligee would marry the cohabitant but for the maintenance award;
(2) the economic benefit the obligee derives from the cohabitation;
(3) the length of the cohabitation and the likely future duration of the cohabitation; and
(4) the economic impact on the obligee if maintenance is modified and the cohabitation ends.
Husband argues that the district court did not make sufficient findings as to the second factor—the economic benefit that wife derives from the cohabitation. And he contends that cohabitation entitles him to further reduce his maintenance obligation, regardless of whether the cohabitation constitutes a substantial change in circumstances or causes his existing obligation to be unreasonable and unfair. The sufficiency of the district court‘s findings regarding cohabitation depends on what standard applies to a motion to modify maintenance based on cohabitation—an issue that no precedential case has addressed since the legislature enacted
A. The cohabitation statute requires a showing of “cohabitation” and resulting unreasonableness and unfairness.
Statutory interpretation presents a question of law that we review de novo. Muschik v. Conner-Muschik, 920 N.W.2d 215, 221 (Minn. App. 2018). Our goal when interpreting a statute is to ascertain and effectuate the legislature‘s intent.
The cohabitation statute provides: “Spousal maintenance may be modified pursuant to section 518A.39, subdivision 2, based on the cohabitation by the maintenance obligee with another adult following dissolution of the marriage.”
Husband contends that the cohabitation statute supplants the standard two-part modification test because it does not expressly require a district court to consider (1) whether the cohabitation constitutes a substantial change in circumstance or (2) whether that change renders the existing maintenance obligation unreasonable and unfair. He argues that this omission signals the legislature‘s intent that the four factors listed in the cohabitation statute substitute for the standard two-factor test and create a rebuttable presumption in favor of modification, like the circumstances listed in
We begin by noting that the legislature did not omit the two factors set out in
In short, if the legislature had intended for cohabitation to support a presumption in favor of maintenance modification, it would have said so. That it knows how to do so is demonstrated by
Having concluded that the cohabitation statute is an adjunct to and not a substitute for the standard two-part modification test, we consider how the two statutes work together. Our examination of the cohabitation statute as a whole, including the two factors incorporated from
First, by designating cohabitation as a basis for modifying maintenance “pursuant to”
The legislature also ensured that the cohabitation statute applies only to those shared living arrangements that represent a true change in circumstances, limiting its application to cohabitation “following dissolution of the marriage.”
And it ensured that the change is a substantial one. The statute applies only to a long-term cohabitation arrangement.
Second, the determination whether cohabitation renders the existing maintenance obligation unreasonable and unfair turns on the four factors enumerated in the cohabitation statute. Those factors require consideration of the obligee‘s motive in cohabiting rather than marrying, the actual benefit the obligee obtains from cohabitation, the durability of the cohabitation, and the likely effect of a reversal of cohabitation if maintenance is modified.
In sum, a maintenance obligee‘s cohabitation with another adult constitutes a substantial change in circumstances that justifies modifying maintenance if consideration of the four factors enumerated in
The district court correctly followed this framework, finding that wife is in a long-term relationship that is likely to continue for some time, the two have shared a residence for multiple years, and they do not intend to marry regardless of the maintenance award. And the court found that this cohabitation arrangement affords wife an economic benefit of $1,270 per month in the form of reduced housing costs, making it unreasonable and unfair not to reduce husband‘s maintenance obligation accordingly. Husband challenges only this last aspect of the district court‘s findings.
B. The district court made sufficient findings regarding wife‘s economic benefit from cohabitation.
Husband contends the district court made insufficient findings to address the extent of wife‘s economic benefit from cohabitation. He asserts that the court should have found that wife receives a greater economic benefit because her cohabitant can afford to contribute more than $1,270 per month. The district court considered husband‘s argument that wife‘s cohabitant should contribute toward other expenses, such as pet care and insurance premiums, and agreed that “it is reasonable for [wife] to expect him to contribute more financially to the household.” But there is no evidence that he actually does so. Absent such evidence, we discern no error by the district court in declining to
We conclude the district court‘s finding that wife receives an economic benefit of $1,270 per month from cohabitation is sufficient to demonstrate the court addressed that aspect of the cohabitation statute. That finding has ample support in the record, and it supports the court‘s determination that it would be unfair and unreasonable not to reduce husband‘s maintenance obligation by that amount. Accordingly, husband‘s challenge to the $1,270 reduction of his maintenance obligation based on wife‘s cohabitation fails.
IV. The district court did not abuse its discretion by awarding retroactive maintenance modification without ordering a remedy for the overpayment.
A district court may make a modification of spousal maintenance “retroactive only with respect to any period during which the petitioning party has pending a motion for modification.”
The district court modified maintenance in January 2019, making the modification retroactive to March 2018, when husband served his motion. An 11-month overpayment of $1,270 per month results in a total overpayment of $13,970. Wife does not dispute this amount or her obligation to repay it. And the record shows she is making payments to husband, albeit not in the manner or amount than he would like.4
Husband contends the district court erred by declining to order a specific “remedy” to address the overpayment. He is correct that when a retroactive reduction or termination of maintenance results in an overpayment, the obligor “has a right” to recover the overpayment. Peterson v. Lobeck, 421 N.W.2d 367, 368 (Minn. App. 1988) (addressing overpayment after obligee‘s remarriage). But he identifies no authority requiring any particular remedy to effectuate that right. Indeed, when husband requested that the district court order a 20% credit against his modified maintenance obligation ($180 per month) until the overpayment is eliminated, he candidly acknowledged that, while
Husband contends it would be inequitable to require him to submit the arrearage order to a judgment because a maintenance obligee is afforded a “simple” statutory remedy to obtain a judgment for unpaid maintenance. See
D E C I S I O N
Despite flaws in its factual findings, the district court did not abuse its discretion by declining to reduce husband‘s spousal-maintenance obligation based on wife‘s increased income. In determining the amount by which to reduce that obligation based on wife‘s cohabitation, the district court correctly applied the cohabitation statute and made sufficient findings regarding the applicable factors. And the district court did not abuse its discretion by declining to order specific relief regarding the overpayment that resulted from retroactive modification.
Affirmed.
