Marriage of Willner
OPINION
Affirmed.
Gila Willner appeals from a judgment on two reserved issues in this marital dissolution action involving her former husband, Ayal Willner. Gila1 contends the court abused its discretion by awarding her permanent spousal support of $5,000 per month and in denying her request for attorney fees and accounting costs. We conclude the court did not abuse its discretion and affirm the judgment.
FACTS
After a 29-year marriage, the parties separated in December 2017. Ayal filed a petition for dissolution of marriage in May 2018. Gila, who was 59 years old at the time of trial, was primarily a stay-at-home mother during the marriage but also managed the parties’ four rental properties. She has a college degree and an MBA degree. Ayal, who was 61 at the time of trial, is a practicing physician with his own medical practice. The parties have two adult children. Prior to trial, the parties agreed that Ayal would pay temporary spousal support to Gila in the amount of $16,500 per month.
Trial began in August 2023. The parties agreed to have their divorce proceedings heard by a temporary private judge through JAMS. The parties entered into stipulations resolving all contested issues except for the determination of permanent spousal support and Gila‘s request for a contributive share of attorney and accounting fees and costs. They agreed that the marital standard of living was upper middle class.
Ayal was awarded: (1) his portion of community retirement accounts, totaling $1,545,930; (2) stocks, bonds, and other securities, totaling $108,137; (3) real estate equity valued at $5,226,249, which included his office building for his medical practice, one-half the equity of the Laguna Beach rental which the parties agreed to sell (Fairview Street rental), one-half the equity of the Hawaii rental (which was ordered sold), and one-half equity of the Laguna Beach rental property the parties sold in June 2017 (Coast Highway rental); (4) his medical practice valued at $690,000; (5) life insurance policies valued at $195,842; and (6) a $450,000 equalization payment on the Newport Beach family residence.
Gila was awarded: (1) the Newport Beach vacation rental, which generated approximately $12,000 in monthly income; (2) her portion of community retirement accounts, totaling $1,545,930; (3) cash accounts totaling $180,368; (4) stocks, bonds, and other securities totaling $108,137; (5) real estate equity valued at $7,900,950, which included the family residence she was awarded, one-half the equity of the Fairview Street rental, one-half the equity of the Hawaii rental property, and one-half the equity of the Coast Highway rental property; (6) life insurance policies worth $129,041; and (7) compensation for her management of the rentals for the period after the parties separated, which was valued at $575,000.
Aside from the community assets, Gila had $1,849,040 in separate property accounts, bringing her total assets to $10,604,298. Gila‘s separate property had been used to pay Ayal an equalization payment but
Gila sought spousal support in an amount similar to the temporary spousal support she was receiving of $16,500 a month. Gila incurred approximately $341,964 in attorney fees and costs and $269,283.03 in accounting fees. She sought a contribution from Ayal of $100,000 towards her attorney fees and costs and $165,000 towards her accounting fees.
In July 2024, the trial court issued its written tentative decision on the remaining issues of permanent spousal support and attorney fees and costs and accounting fees, awarding Gila $5,000 per month in permanent spousal support and denying her request for a contribution of attorney fees and costs and accounting fees. Gila requested a statement of decision and proposed findings.
On August 25, 2024, the trial court issued its statement of decision. The court, in considering the factors set forth in Family Code2
The trial court found Gila had developed skills in property management and other related areas which were transferable to other forms of employment; it concluded that permanent spousal support in the amount of $5,000 per month was appropriate based on Gila‘s available resources, anticipated rental income, and ability to generate future income.
Regarding attorney and accounting fees, the court ordered each party to bear their own attorney fees and costs and accounting fees. The court
DISCUSSION
I.
PERMANENT SPOUSAL SUPPORT
Gila argues the trial court abused its discretion in imputing earning capacity without a finding or evidence of opportunity to work and failed to properly weigh the mandatory
A. Legal Standard
“‘Permanent spousal support “is governed by the statutory scheme set forth in
“‘“In making its spousal support order, the trial court possesses broad discretion so as to fairly exercise the weighing process contemplated by
“‘“In balancing the applicable statutory factors, the trial court has discretion to determine the appropriate weight to accord to each. [Citation.] But the ‘court may not be arbitrary; it must exercise its discretion along legal lines, taking into consideration the applicable circumstances of the parties set forth in [the statute], especially reasonable needs and their financial abilities.’ [Citation.] Furthermore, the court does not have discretion to ignore any relevant circumstance enumerated in the statute. To the contrary, the trial judge must both recognize and apply each applicable statutory factor in setting spousal support.”’” (Ciprari, supra, 32 Cal.App.5th at p. 108.)
The marital standard of living is the first of the
A spouse‘s separate estate and the reasonable income potential therefrom may be grounds for withholding or limiting spousal support. (
B. Analysis
We address each of Gila‘s arguments regarding earning capacity and application of the
1. Earning Capacity
“The Family Code does not define earning capacity, but its meaning has been established through case law. [Citation.] ‘“Earning capacity is composed of . . . the ability to work, including such factors as age, occupation, skills, education, health, background, work experience and qualifications . . . and . . . an opportunity to work . . . .”’” (In re Marriage of McHugh (2014) 231 Cal.App.4th 1238, 1246.) “The ‘opportunity to work’ exists when there is substantial evidence of a reasonable ‘likelihood that a party could, with reasonable effort, apply his or her education, skills and training to produce income.’” (In re Marriage of Smith (2001) 90 Cal.App.4th 74, 82.) “‘“When the ability to work or the opportunity to work is lacking, earning capacity is absent and application of the standard is inappropriate. When the payor is unwilling to pay and the other two factors are present, the court may apply the earnings capacity standard to deter the shirking of one’s family obligations.”’” (McHugh, supra, at p. 1246.)
Gila‘s expert witness testified that the reasonable compensation for her services managing the six rental units between January 1, 2018, and June 30, 2023, was either $1,167,000 or $1,573,000, depending on which of the two analyses the expert used. Although the court stated it was “unclear how much [Gila] could or should earn as no testimony [w]as adduced,” Gila‘s “work . . . does have value as indicated in the agreed $92,000 yearly of reasonable compensation when all six . . . properties were managed” post-separation. The court found that, although Gila‘s “marketable skills . . . were initially impaired by” raising two children, she now has time to devote to paid work, and her MBA degree would be “useful in the success of the real estate ventures.” The court also found that Ayal had “been paying support for over 6 years and [Gila had] done nothing to plan for her future other than to live off of the proceeds of all the properties she wanted to sell and expected spousal support.”
We conclude the trial court‘s finding that Gila had the ability and opportunity to work was supported by substantial evidence. The court made explicit factual findings regarding Gila‘s earning capacity. While
As to opportunity to work, there was substantial evidence that the court acted within its discretion in finding that Gila could, with reasonable effort, apply her skills, education, and experience in property management to produce income. Although the court acknowledged there was no testimony regarding how much Gila could earn or what income could be imputed to her, we reasonably interpret the court‘s findings as imputing a salary of $92,000 per year based on the parties’ agreement that her property management services were worth that amount. Further, the court could reasonably conclude, based on her testimony, that Gila was actually working in property management by managing the parties’ rental properties.
We recognize that there was an absence of evidence in terms of whether jobs were available in the relevant labor market. The court, however, had sufficient evidence to find that spousal support in the amount of $5,000 per month was equitable when considering all of the
Gila also argues the trial court made various errors in its statement of decision, including the amount of interest she would receive on her investment income, failure to consider investment returns on the assets Ayal was awarded, and improperly equating taxable rental receipts with non-taxable spousal support. However, by failing to object and asking the court to clarify any alleged ambiguities in the statement of decision, Gila waived these issues on appeal. (Arceneaux, supra, 51 Cal.3d at pp. 1133–1134 [“[I]f a party does not bring such deficiencies [in a statement of decision] to the trial court‘s attention, that party waives the right to claim on appeal that the statement was deficient in these regards, and hence the appellate court will imply findings to support the judgment”].)
Accordingly, we conclude the trial court properly considered Gila‘s earning capacity as one of the enumerated
2. Section 4320 Factors
Gila also argues the trial court did not properly weigh the mandatory
Our own review of the statement of decision reveals the trial court explicitly considered the
In particular, the trial court focused on the fact that a key goal of awarding spousal support is that “the supported party shall be[come] self-supporting within a reasonable period of time.” (
The trial court also properly considered Gila‘s separate property, as well as her share of community property assets, when determining the appropriate amount of spousal support. (
Once a court considers
Giving deference to the lower court‘s factual findings and consideration of the
II.
ATTORNEY FEES AND ACCOUNTING COSTS
Gila argues the trial court abused its discretion by declining her request for needs-based attorney fees and costs and accounting fees pursuant to
A. Legal Standard
The purpose of need-based attorney fees under
We review an attorney fees award under
B. Analysis
In its statement of decision, the trial court considered the statutory basis for an award of fees under
The court further considered the parties’ ability to pay and concluded that Ayal did not have the ability to pay Gila‘s fees: “Absent the equal division of the community estate[,] including the equalization payment from [Gila] . . ., [Ayal] does not have the ability to make a contributive share of [Gila]’s fees in the amount requested and to make such an award would be unjust under the circumstances.” The court acknowledged that Ayal had a regular monthly income but noted that Gila had greater access to liquid assets, including her separate property, to pay her attorney fees and
When considered in the light most favorable to the trial court‘s decision, the record demonstrates the court explicitly considered the parties’ respective circumstances and reasonably declined to award Gila any attorney fees and costs or accounting fees.
DISPOSITION
The judgment is affirmed. Ayal is entitled to recover his costs on appeal.
SCHWARM, J.*
WE CONCUR:
GOODING, ACTING P. J.
SCOTT, J.
*Judge of the Orange County Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.