In rе the Marriage of Bonnie Y. MOYLAN, Respondent, v. Gerald G. MOYLAN, petitioner, Appellant.
No. C2-84-2177.
Supreme Court of Minnesota.
April 11, 1986.
384 N.W.2d 859
Finally, it is for the court to determine as a matter of law whether these types of general policy statements found in Mid America‘s employment manual rise to the level of meeting contractual requirements for an offer. See Cederstrand, 263 Minn. at 532, 117 N.W.2d at 221 and Degen, 260 Minn. at 428, 110 N.W.2d at 866. Here, they do not.
Accordingly, we reverse the court of appeals and remand to the trial court for entry of judgment.
Richard D. Goff, St. Paul, for respondent.
AMDAHL, Chief Justice.
The main issue in this case is whether the child support guidelines contained in
Gerald and Bonnie Moylan‘s marriage was dissolved in 1975. Pursuant to the parties’ stipulation, the judgment and decree of dissolution awarded Bonnie custody of the three Moylan children, ages 15, 13, and 5. Gerald was to pay child supрort in the amount of $75 per month per child until each was to become emancipated. Gerald was also required to maintain, among other things, health insurance for each child and a life insurance policy on himself adequate to cover all child support obligations to become due.
On January 5, 1984, Bonnie filed a motion for: (1) modification of child support to 25% of Gerald‘s net income or $500 per month, whichever is greater; (2) cost-of-living adjustments in the child support order; (3) control of monies held in trust for their youngest child; and (4) attorney fees. She claimed her monthly budgeted expenses totaled $1,348.63, and that her income amountеd to only $950 per month. Gerald opposed the motion. On April 19, 1984, the trial court granted Bonnie‘s motion concerning cost-of-living increases but denied her other three motions. Specifically, it found that although Gerald‘s income had more than doubled since entry of the judgment and decree of dissolution, there was insufficient evidence of any increased expenses incurred by Bonnie as well as to the amount of her income. The court did give her permission to reintroduce her motion at a later time. It further held her motion for control of the amounts held in trust for the youngest child to be withоut merit and it denied her claim for attorney fees.
On August 13, 1984, Bonnie filed another motion to modify child support and she submitted a new affidavit with a new budget. The monthly expenses Bonnie claimed totaled $2,117 in contrast to the $1,348.63 claim of the January motion. The trial court found that in 1983 Gerald had a net income of $45,290.15 and concluded that this amount constituted a substantial increase in income as contemplated by the triggering provision of
The Court of Appeals affirmed, holding: (1) the application of the guidelines to the child support modification order was proper; (2) although express findings regarding the needs of the child would have been helpful, they were unnecessary in this case because those needs were adequately shown in the record; (3) there was no abuse of discretion in refusing to credit Gerald‘s child support payments with the fair rental value of the home and the cost of health insurance for the child; and (4) the denial of attorney fees was proper. Moylan v. Moylan, 368 N.W.2d 353 (Minn. App.1985). We granted Gerald Moylan‘s petition for further review and now affirm in part and reverse in part the decision of the Court of Appeals.
1. In considering the questions presented in this appeal, we note that the 1986 Minnesota Legislature recently enacted major revisions in the marriage dissolution laws,
518.551 MAINTENANCE AND SUPPORT PAYMENTS MADE TO WELFARE AGENCIES.
Subdivision 1. Payment to public agency.
The court shall direct that all payments ordered for maintenance and support be made to the public agency responsible for child support enforcement so long as the obligee is receiving or has applied for public assistance. Amounts received by the public agency responsible for child support enforcement greater than the amount granted to the obligee shall be remitted to the obligee.
* * * * * *
Subd. 5. Notice to public authority; guidelines. The petitioner shall notify the рublic authority of all proceedings for dissolution, legal separation, determination of parentage or for the custody of a child, if either party is receiving aid to families with dependent children or applies for it subsequent to the commencement of the proceeding. After receipt of the notice, the court shall set child support by multiplying the obligor‘s net income by the percentage indicated by the following guidelines:
* * * * [guidelines table omitted]
(a) The child support payment guidelines take into consideration the following criteria:
(1) all earnings, income, and resources of the obligor including real and personal property;
(2) the basic living needs of the obligor;
(3) the financial needs of the child or children to be supported; and
(4) the amount of the aid to families with dependent children grant for the child or children.
The title3 to the 1983 act, the legislative history,4 and the wording of the statute inarguably lead to the conclusion that the support guidelines were originally drafted only to provide for support settings in
However, as the court of appeals recognized in Halper v. Halper, 348 N.W.2d 360 (Minn.App.1984), Kreidler v. Kreidler, 348 N.W.2d 780 (Minn.App.1984), and in subsequent cases, see, e.g., Lee v. Ystebo, 353 N.W.2d 264, 265 (Minn.App.1984); Bakke v. Bakke, 351 N.W.2d 387, 388 (Minn.App.1984), the addition of subdivision 5 to
Subd. 5. Deviation from guidelines. The court may order the noncustodial parent to pay support in an amount below the appropriate amount determined from the guidelines in section 518.551, subdivision 5 for use in public assistance cases, only after considering the factors in subdivision 4 of this section and making express findings of fact as to the reason for the lower order. An order for support in an amount below the guidelines must include findings of fact regаrding the financial resources and needs of the child.
Subdivision 5 of
Section 518.17, subd. 5, requires that where the court setting the amount of child support deviates from the guidelines and orders that child support be set at an amount below the guidelines amount, it must make express findings on the reasons for the lower court order after having considered the factors in
The findings should take into account “all relevant factors including“:
(a) The financial resources and needs of the child;
(b) The financial resources and needs of the custodial parent;
(d) The physical and emotional condition of the child, and his educational needs; and
(e) The financial resources and needs of the noncustodial parent.
(1) all earnings, income, and resources of the obligor including real and personal property;
(2) the basic living needs of the obligor;
(3) the financial needs of the child or children to be supported; and
(4) the amount of the aid to families with dependеnt children grant for the child or children.
Turning now to the main issues in this case, we hold that child support guidelines must also be considered by the courts in all child support modification proceedings. We have determined that
Since a court in a modification proceeding can make an order which it could make in the original proceedings and since the original support orders take into consideration the amount of support determined by the application of subdivision 5 of section 518.551, it follows that in modification proceedings the court must consider subdivision 5.
It is well established that the decision to modify a child support order lies in the broad and sound discretion of the trial court, and an appellate court will reverse for an abuse of that discretion only where it finds a “clearly erroneous conclusion that is against logic and the facts on record.” Rutten v. Rutten, 347 N.W.2d 47, 50 (Minn.1984); see also Wiese v. Wiese, 295 N.W.2d 371, 372 (Minn.1980). This discretion, however, must be exercised within the limits set out by the legislature. Subdivision 2 of
Modification. The terms of a decree respecting maintenance or support may be modified upon a showing of one or more of the following: (1) substantially increased or decreased earnings of a party; (2) substantially increased or decreased need of a party; (3) receipt of assistance under sections 256.72 to 256.87; or (4) a change in the cost-of-living for either party as measured by the federal bureau of statistics, any of which makes the terms unreasonable and unfair. On a motion for modification of support, the court shall take into consideration the needs of the children and the financial circumstances of each party‘s spouse, if any. * * *
The statute requires a two-step analysis: (1) Do any of the four factors in
2. The record in this case is unclear as to the findings and reasoning of the trial court. Its modification order states only that Gerald experienced a substantial increase in income, one of the factors required under
While our review would have bеen facilitated by the presence of complete findings regarding the needs of the minor child, we do not deem remand to be necessary. The record before the trial court contained affidavits of both parties. The parties’ opinions regarding the needs of the child were adequately set forth in those affidavits. Although findings are of great assistance on review, this court recognized in Giencke v. Haglund, 364 N.W.2d 433 (Minn.Ct.App.1985) that they are “not absolutely necessary where a court modifies a judgment of dissolution under
Minn.Stat. § 518.64, subd. 2 .” Id. at 435. What is absolutely necessary is that the record be complete enough to facilitate proper review of the trial court‘s determination. It is here.
Moylan v. Moylan, 368 N.W.2d at 356. We disagree. While the record may support a trial court‘s decision, it is nevertheless inadequate if that record fails to reveal that the trial court actually considered the appropriate factors. While we would agree that there are occasions where an appellate court can find support for a trial court‘s decision by an independent review of the record, see Bowman v. Brooklyn Pet Hospital, 311 Minn. 526, 247 N.W.2d 424 (1976), such action is improper where, as here, it is unclear whethеr the trial court considered factors expressly mandated by the legislature. See Heaton v. Heaton, 329 N.W.2d 553, 554 (Minn.1983) (record must reflect that trial court did consider the needs of the child). Accordingly, we reverse the Court of Appeals on this issue and remand the case to the trial court for reconsideration and express findings on the factors listed in
Appellant raises two more issues which merit attention in providing the trial court with guidance on remand. He argues that since the original decree was based upon a stipulation by the parties, the court should be reluctant to modify any award based upon thаt stipulation. In marriage dissolution cases, “when a stipulation fixing the respective rights and obligations of the parties is central to the award, the trial court should view it as an important element because it represents the parties’ voluntary acquiescence in an equitable settlement.” Claybaugh v. Claybaugh, 312 N.W.2d 447, 449 (Minn.1981); see also Ramsay v. Ramsay, 305 Minn. 321, 323-24, 233 N.W.2d 729, 731 (1975). When the stipulation includes child support, however, it is afforded less weight. “Child support requirements, relating as they do to the non-bargainable interest of the children, are less subject to restraint by stipulation.” Kaiser v. Kaiser, 290 Minn. 173, 180, 186 N.W.2d 678, 683 (1971). In Kaiser, this court held that merely showing an increase in the noncustodial parent‘s income, without any evidence of a change in circumstances for the custodial parent and child, was insufficient grounds on which to alter the parties’ stipulation. Id. at 182, 186 N.W.2d at 684. We have stressed that the welfare of the child takes precedence even if the case involves a stipulation. Petersen v. Petersen, 296 Minn. 147, 148, 206 N.W.2d 658, 659 (1973).
3. Finally, appellant argues that the trial court should take into consideration, in determining a child support award or modification, ordered noncash payments to the custodial parent. These noncash payments would include such things as insurаnce coverage for the children and the fair rental value of the family home, where the custodial parent and children are awarded occupancy. The Court of Appeals held that the trial court did not abuse its discretion in refusing to reduce the support award. Moylan, 368 N.W.2d at 357.
Because we are remanding this case on other grounds, we need not decide the issue. We note, however, that such noncash contributions can be considered in some cases to be in the nature of child support. See Kerr v. Kerr, 309 Minn. 124, 127, 243 N.W.2d 313, 315 (1976). Homestead occupancy by the custodial parent is a factor to be considered because it is not listed as a factor the legislature considered in formulating the child support guidelines. See
Dependent health insurance coverage, however, is not a factor that needs to be considered because the legislature included that in the formula it devised under the child support guidelines. See
Affirmed in part, reversed in part, and remanded.
YETKA, Justice (concurring specially).
I concur specially in the result of the majority opinion, but I deem it neсessary to explore more fully the implications of applying the child support guidelines not involving public assistance.
Upon in-depth study, it is apparent to me why the author of the legislation advised the senate that the law applied only to welfare cases.
1. Could the legislature pass a statute requiring married parents to provide a minimum dollar support for their children beyond adequate food, clothing, medical care? I think not. It would be considered a gross invasion of the privacy of the family that I predict would be quickly stricken down as being unconstitutional. See, e.g., Wisсonsin v. Yoder, 406 U.S. 205, 92 S.Ct. 1526, 32 L.Ed.2d 15 (1972). This is because some families, even with great financial resources, might want to raise their children in a spartan atmosphere in order to impress upon their children the value of money and the sacrifice and effort required to raise it. Other parents might be extremely generous, granting their children material privileges few other children will ever see or experience in their lifetimes. Such is life. Our courts, in interpreting our constitution and our laws, do not mandate equality in lifestyle; they only mandate that all citizens have an equal opportunity before the law. Ross v. Moffit, 417 U.S. 600, 94 S.Ct. 2437, 41 L.Ed.2d 341 (1973); see also Harris v. McRae, 448 U.S. 297, 100 S.Ct. 2671, 65 L.Ed.2d 784 (1980). If, therefore, the legislature cannot impose dollar amounts on married parents in supporting their children, how can it do so with regard to separated, unmarried or divorced parents? I submit that the legislature cannot except when the parents are either unable or refuse to support their children adequately and thereby impose a burden on the taxpayers. Then, and only then, is there a reason for the state to intrude into the custodial support of children. Thus, I believe that the original intent of the legislature was to apply the guidelines only to welfarе cases. I believe, however, that the majority opinion is realistic when it finds that the guidelines should be considered in all custodial support cases. Since the guidelines are applied to welfare cases, a court will quite naturally refer to them in other child support cases as well. Moreover, the 1984 amendments to the statute do indicate, at least to some degree, that the legislature intends that the courts take the guidelines into consideration in non-welfare cases. Thus, I concur that the guidelines apply to all cases.
2. Can the legislature mandate that a trial judge apply the guidelines to the income of a non-custodial parent without regard to the income of the custodial parent and without regard to other non-cash support of the non-custodial parent? For the reasons that I have outlined in paragraph 1, I believe the obvious answer is no. It would be a violation of the separation of powers doctrine for the legislature to deny a trial court its inherent authority to determine, on the facts of each case, what the support shall be.
3. Let us take a closer look at the guidelines.
The scale ranges from 14% of the monthly net income for one child of the obligor if the obligor‘s income is from $401 to $500 per month to a high of 25% for one child if the obligor‘s income is from $1,001 to $6,000 per month. Thus, if an obligor has a net monthly income of $6,000 per month or more or approximately $72,000 per year net income—not an uncommon situation for professional people—the guidelines set a requirement of $1,500 per month for that child or $18,000 per annum. Many would consider that figure without some quаlifications as not only unreasonable, but also a flagrant abuse of legislative authority. I submit that is why the majority opinion has interpreted and limited the statute.
Without such limitations, these questions would immediately arise:
a. If the non-custodial parent is the obligor and must pay $18,000 per year, what would be the requirements of the custodial parent? If the custodial parent had individual wealth and income of his or her own, would he or she also have to contribute $18,000 per year to a single child, making a total of $36,000 per year? I see no reason why such an obligation couldn‘t be imposed under the implications of the guidelines.
b. Would the custodial parent be legally obligated to expend all of the money on behalf of the child? Would the child have a legal right to require an accounting? What would be the social and economic effect of a child receiving support at the $18,000 per annum level when it reaches the age of emancipation?
c. If a duty to account existed, would children of married parents have the equal right to demand that their parents account to them for all money expended on their behalf? If not, would there be a violation of thе equal protection clause of the federal or state constitution?
4. As it must be readily apparent, in order for the guidelines to be constitutional, they must be only what the name implies: guidelines for the courts to consult as a reference. They cannot be mandatory, but must be carefully and judiciously applied to the facts of each case. Undoubtedly, one of the objectives of the guidelines is to force separated or divorced parents to support their children more adequately and to relieve the taxpayers of that duty. That is a legitimate and laudable goal, but other remedies are, or should be, available to mitigate the state intrusion into the lives of its citizens entailed by this act.
5. I, therefore, interpret the majority opinion as applying the guidelines set forth in the statute in this manner:
a. While the guidelines apply to all custodial cases, they are only guidelines and are not mandatory.
b. Each parent can be an obligor towards his or her children.
d. The order for support should be drawn in suсh a way that the custodial parent not incur legal liability for an accounting to the child or children being supported.
e. The court should, in every case, draft findings and reasons for its support order.
KELLEY, Justice (concurring specially).
I join in the special concurrence of Justice YETKA.