Francis E. SHOUP v. Heidi S. SHOUP.
Record No. 0098-00-4.
Court of Appeals of Virginia, Richmond.
Dec. 27, 2001.
556 S.E.2d 783
Valerie Szabo (Valerie Szabo, P.L.L.C., on brief), Arlington, for appellee.
Present: FITZPATRICK, C.J., BENTON, ELDER, BRAY, ANNUNZIATA, BUMGARDNER, FRANK, HUMPHREYS, CLEMENTS and AGEE, JJ.
ANNUNZIATA, Judge.
This matter comes before the Court on a rehearing en banc from a decision of a divided panel rendered February 27, 2001. The panel affirmed the trial court‘s ruling that a provision of the parties’ child support agreement, which had been incorporated into the final decree of divorce, was void and unenforceable. The provision that the trial court declined to enforce provided for modification of child support upon emancipation of each of the parties’ children, according to a standard set
I.
Background
The parties were divorced by a final decree of divorce entered by the Fairfax County Circuit Court on September 1, 1994. At the time of the divorce, the parties had three minor children: Allison Elliot Shoup, born November 30, 1977; Francis Elliot Shoup, IV, born June 8, 1979; and Kyle A.M. Shoup, born June 20, 1985. The final divorce decree incorporated the parties’ June 27, 1994 Custody, Support and Property Settlement Agreement.1 In accordance with the parties’
The oldest child, Allison, graduated from high school in June, 1995 and turned eighteen years of age on November 30, 1995. Beginning in October, 1995, the father unilaterally reduced the amount of support by approximately one-third to $1,452 per month. He continued making payments for child-care costs, although the mother, beginning in October, 1995 incurred none. In May, 1997, the parties’ second child, Elliot, graduated from high school and turned eighteen one month later. The father again unilaterally reduced the amount of support by another one-third to $764 per month. Although
On April 13, 1999 the mother filed a petition for a rule to show cause against the father for failing to pay $2,177 per month in child support. The matter was heard on June 24, 1999. In its letter opinion dated October 30, 1999, the trial court found the father to be in contempt of court and found that he was in arrears in his support payments from October, 1995 through May, 1999 because a support order may not be retroactively modified by the parties or without court approval.2 Based on the parties’ agreement as incorporated into the final decree, the trial court also awarded father a credit for his payments of child-care expenses that had not been incurred by the mother. The trial court entered an order dated December 7, 1999 finding the father in contempt and entered judgment against the father in the principal sum of $33,838.20, with interest at the judgment rate. It also awarded mother her attorney‘s fees.
II.
Analysis
Father raised the following issues for determination en banc: (1) whether the final decree which incorporated the
Divorce and its incidents are matters rooted in and reflective of a state‘s public policy. The state is “directly interested in determining the status of its own citizens, and to this end can and does establish and enforce its own policy in relation to marriage and divorce....” Heflinger v. Heflinger, 136 Va. 289, 308, 118 S.E. 316, 322 (1923). Consistent with this interest, the General Assembly enacted a statutory basis for the grant of divorce in the Commonwealth. Jackson v. Jackson, 211 Va. 718, 719, 180 S.E.2d 500, 500 (1971);
A substantial body of law has been developed explicating the principles that govern the court‘s jurisdiction to enter child support awards, as well as those that govern the parties’ right to reach agreement on the issue. In resolving the issues in the case before us, it is important to understand how the principles that govern the court‘s jurisdiction to enter child support awards impact the parties’ right to reach agreement on the issue. While the two sets of principles often intersect, on certain questions, the principles of one are independent from and unrelated to the function and dictate of the other.
Where the court‘s jurisdiction to set support has been invoked, either in the absence of an agreement or where the parties seek to have their agreement of child support reviewed and considered by the court in the course of its determination of a proper award, the court has been granted
The best interest of the child or children is the paramount and guiding principle in setting child support, whether it be adopting the presumptive amount, calculating an alternate sum after the presumptive amount has been rebutted, ordering the amount agreed upon between the parents, or approving, ratifying and incorporating, in whole or in part, the child support provisions of a contract.
Watkinson v. Henley, 13 Va.App. 151, 158-59, 409 S.E.2d 470, 474 (1991).
In addition, the trial court must base an award for child support on contemporaneous events. Keyser v. Keyser, 2 Va.App. 459, 345 S.E.2d 12 (1986). It may not award support prospectively, Solomond v. Ball, 22 Va.App. 385, 470 S.E.2d 157 (1996), including upon the emancipation of one of many children. See Johnson v. Johnson, 1 Va.App. 330, 333, 338 S.E.2d 353, 355 (1986) (where trial court awarded unitary support to children, in order to reduce payments to the remaining children upon the emancipation of the oldest child, the husband must “apply to the court for a modification of the decree upon a change of condition“). It may not modify an award retroactively.
A review of the relevant cases makes clear that these legal principles define the court‘s jurisdiction and power, and circumscribe the court‘s exercise of its discretion in setting child support. They do not necessarily govern the effect, scope, or validity of an agreement that the court has incorporated into its decree and upon which it has based its child support award. Indeed, the parties’ well-established and broad right to reach legally binding and enforceable agree-
Our cases applying
Neither the Virginia Code nor our case law imposes any additional restrictions on the parents’ ability, in the context of divorce, to mutually determine the support of their children. Indeed, under certain circumstances, the right to reach agreement regarding support is more extensive than the court‘s power to decree support absent an agreement. See, e.g., Moreno v. Moreno, 24 Va.App. 227, 232, 481 S.E.2d 482, 485 (1997) (holding that where a trial court bases its child support order on the parties’ agreement, it need not “determin[e] the precise presumptive amount of support,” although such a determination is required absent an agreement); Spagnolo v. Spagnolo, 20 Va.App. 736, 743, 460 S.E.2d 616, 619 (1995) (noting that contracts between parents to continue support for children past the age of majority will be enforced), although the court lacks jurisdiction to order such support in the absence of such an agreement (citing Eaton v. Eaton, 215 Va. 824, 827, 213 S.E.2d 789, 792 (1975)) No case law exists which precludes the court from incorporating within its decree any provision from the parties’ agreement found to be consistent with the best interest of the child, and not void as against the public policy as enunciated in Kelley and its progeny. See
In this case, the agreement as incorporated into the divorce decree does not purport to circumvent the court‘s jurisdiction to enforce support, modify support, or intervene upon petition of either party. Cf. Kelley, 248 Va. at 298, 449 S.E.2d at 56 (finding agreement void because it attempted to preclude the trial court from exercising its power to decree child support where wife agreed “never to file a petition in any court” requesting child support and stipulated that she would reimburse husband for all sums paid to him if a court ordered him to pay such support). Rather, either party may at any time invoke the court‘s jurisdiction to determine child support consistent with the best interests of that child.5 Nor does the agreement purport to “contract away” the children‘s right to support from either parent. Id. (finding contract void because “the children‘s rights to receive support from both parents were substantially abridged“). Under the agreement, the minor children‘s rights to support remain intact and fully viable. Furthermore, while a court may not make an award prospectively, nothing in our case law invalidates a decretal provision reflecting the parties’ agreement to address and make future modifications of support as circumstances change. See, e.g., Schmidt v. Schmidt, 6 Va.App. 501, 502, 370 S.E.2d 311, 312 (1988) (enforcing a provision of separation agreement under which child support payments decreased by $100 per month when custodial parent sold the marital residence and further decreased by $100 per month when each child graduated from high school); Tiffany v. Tiffany, 1 Va.App. 11, 332 S.E.2d 796 (1985) (upholding property settlement agreement entitling husband to reduce support payments the month preceding the date that each child turned eighteen).
[W]e are aware of neither holding nor statute that requires a trial court to hear evidence on the matter of child support where the parties have agreed to the amount of support and do not seek the court‘s determination of the matter.... [T]he resources of both the court and the parties would be wasted by requiring a trial judge to sua sponte require parties to litigate a settled matter.
Moreno, 24 Va.App. at 233, 481 S.E.2d at 485-86.
In sum, we find that the parties’ agreement is fully consistent with Virginia law governing the scope, effect, and validity of such agreements. Its incorporation into the final decree of divorce necessarily rested on a finding that the provisions were consistent with the best interest of the child. See Watkinson, 13 Va.App. at 158, 409 S.E.2d at 474; Scott, 12 Va.App. at 1248, 408 S.E.2d at 582.6 Paragraph 5(d) of the incorporated agreement provides for a reduction in support upon the emancipation of each of the parties’ minor children. Paragraph 5(e) provides that, upon a change in circumstances,
We turn finally to mother‘s contention that the trial court erred in giving father a credit for child-care costs because he did not request such a credit at trial. For the reasons that follow, we disagree.
A trial court is authorized to consider child-care expenses and include in a child support award an appropriate amount reflecting those costs. See
Finally, the incorporated agreement provides that:
[A]ny costs, including but not limited to counsel fees, court costs, investigation fees and travel expenses, incurred by a party in the successful enforcement of any of the ... provisions of this Agreement ... shall be borne by the defaulting party. Any such costs incurred by a party in the successful defense to any action for enforcement of any of the ... provisions of this Agreement shall be borne by the party seeking to enforce compliance.
Because the trial court has yet to determine whether father has defaulted in his child support obligation or has successfully defended this enforcement action, we remand to the trial court for reconsideration of its award of attorney‘s fees in accordance with its decision and the terms of the agreement. We also remand for consideration of an award of court costs and attorney‘s fees on appeal, consistent with its decision and the terms of the agreement.
Affirmed in part, reversed in part and remanded.
AGEE, Judge, with whom FRANK, Judge, joins, concurring.
While I generally agree with the foundational analysis of the majority‘s opinion and the end result in this case, I write separately to express the basis for the validity of “self-executing” child support agreements and the appropriate review of the incorporated agreement in this case.
The public policy issue arising in this case is whether a divorce decree‘s incorporated terms regarding child support are valid where those terms include an agreed upon change in child support payments upon the occurrence of certain future events without further action of the court. This type of provision has been termed “self-executing” although that is not a term used in the Code or referenced widely in case law.7
Clearly,
“When the legislature has spoken plainly courts may not change or amend legislative enactments under the guise of construing them. The province of construction lies wholly within the domain of ambiguity. ... That which is plain needs no interpretation. Winston v. City of Richmond, 196 Va. 403, 407-08, 83 S.E.2d 728, 731 (1954).”
A child support agreement presented to a court under
Thus, a court may incorporate the parties’ agreement as to child support into its decree, and the terms will be enforceable upon an initial finding that the agreement is in the child‘s best interest. This is true even when the terms provide for future changes in child support, without further court action, provided (1) the court approves of the future changes when it incorporates the terms into its decree and (2) the court‘s continuing authority under
A court‘s ratification of an incorporated agreement‘s child support terms carries the express or implied imprimatur that the court has found those terms in the best interest of the children. See generally Scott v. Scott, 12 Va.App. 1245, 408 S.E.2d 579 (1991). As the en banc majority correctly concludes, such a finding that the agreed child support is in the children‘s best interests can be made under a “self-executing”
In the context of a “self-executing” child support award, like any other award of child support, a court must first determine that the future adjustments are in the child(ren)‘s best interests. Such a determination requires that both the event(s) triggering adjustment, and the terms of adjustment, are clear and definitive. See id. It should be self-evident that a court cannot determine that a future self-executing adjustment to child support is in a child‘s best interests if the triggering events or the terms of adjustment cannot be determined.
Accordingly, I concur with the majority, in reasoning and result, to affirm the trial court‘s decision to credit father for the adjustments in child-care expense payments. No further court intervention is required for the parties to adjust the child-care expense reimbursement, which is based on clear and definitive modification terms (actual expenditures divided on a pro rata share of verified annual incomes). While this adjustment provision is plainly self-executing, the salient reason it meets muster is that a court does not employ guesswork to decide if this method of future adjustment is in the best interests of the children when entering the decree, which incorporates the agreement.
The same judgment, however, cannot be given on future changes in child support payments under the Shoup decree and incorporated agreement. Although the majority reads the decree to provide “for a reduction in support upon the emancipation of the parties’ minor children,” I do not find definitive direction in the decree and its incorporated agreement as to how a revised amount is to be calculated “immediately without the need of any implementing action.”
While the decree provides “[father] is ordered to pay [mother] child support in accordance with all the terms, provisions
[Father] shall pay the amount of $2,177.00 per month, as and for child support, to [mother]. Child support shall continue until a minor child dies, marries, becomes emancipated, or reaches the age of eighteen years, whichever occurs first, or until further order of the court[.]
(Emphasis added.) Neither the decree nor the incorporated agreement definitively establishes the adjustment to the initial child support amount as each child turns eighteen years of age. However, the decree is clear that the initial set amount of $2,177 is in effect only until the first child reaches the age of eighteen unless there is a prior order changing it. There was none.
There are no specific adjustment terms in the decree and its incorporated agreement directing a self-executing adjustment to the child support amount. Instead, one must intuit that the reference in the decree to pay child support “in accordance with all the terms... of their property settlement agreement” is an enforceable link to some part of that agreement. Father posits that link to this portion of the agreement:
[5]e. If there is any change in circumstances, the parties shall follow the child support guidelines contained in § 20-108.2 of the Code of Virginia or its successor statute and any other relevant Virginia statutes and case law for determination of child support.
(Emphasis added.)
The agreement does not provide that the child support guidelines then in effect fix the terms of modification, but instead requires the parties to follow the guidelines plus “other relevant Virginia statutes and case law for determination of child support.” Under the language of the incorporated agreement, further judicial intervention would be required to definitely determine how other “relevant Virginia statutes and case law” would alter the guideline amount. Clearly, such
More importantly, a court asked to incorporate such a provision could not determine, on the date it entered its decree incorporating the agreement, what the future child support terms would be upon one of the Shoup children attaining age eighteen. Thus, no finding could be made that such unknown terms were in the best interests of the remaining unemancipated children.9 If the child(ren)‘s best interests cannot be ascertained, then the portion of the decree setting out an unknown future child support adjustment would not be susceptible to self-adjustment by the parties without further action of the court.
The plain terms of the decree required the monthly payment of $2,177 until a child attained the age of eighteen. The decree is silent as to what amount then would be due. It is clear, though, that the decree does not set $2,177 as the amount of continuing monthly child support due from father for the remaining unemancipated children.
Upon a Shoup child reaching age eighteen, the decree and incorporated agreement are manifestly not self-executing.10 In plain terms, neither party knew what the appropriate amount of child support for the remaining unemancipated child(ren) was to be under § 5(e) of the agreement.
However, the trial court determined an arrearage, and found father in contempt, based on the $2,177 monthly amount, but without any finding as to what child support amount was in the best interests of the remaining unemancipated children and required by the decree and incorporated
As a general rule, “before a person may be held in contempt for violating a court order, the order must be in definite terms as to the duties thereby imposed upon him and the command must be expressed rather than implied.” Winn v. Winn, 218 Va. 8, 10, 235 S.E.2d 307, 309 (1977) (citation omitted).
Accordingly, I concur in the result reached by the majority to reverse the trial court‘s finding of contempt as to father and to remand the issue of any child support arrearage to the trial court for a determination of the appropriate child support amount. To do so, the trial court needs to determine the child support guidelines in effect as each child attained age eighteen and how “other relevant Virginia statutes and case law” affects, if at all, the appropriate child support amount for the remaining unemancipated child(ren). Only after such a determination is made can it be further determined if an arrearage or overage exists as finally adjusted for the child-care expenses. In view of the necessity to remand to the trial court, I would also reverse the trial court‘s award of attorney‘s fees and remand to the trial court for reconsideration on that issue as well. Whether any attorney‘s fees are due, and to and from whom under the terms of the agreement, is dependent on the ultimate determination as to the child support payment arrearage or overage, if any.
Notes
5. SUPPORT AND MAINTENANCE OF THE CHILDREN
a. The Husband shall, pay directly to the Wife the monthly base support amount of Two Thousand One Hundred and Seventy Seven Dollars ($2,177.00) per month, for the support and maintenance of the children of the parties.... This amount is the sum calculated for child support as [is] required by Section 20-108.2 of the Code of Virginia (1950, as amended), pursuant to the worksheet attached as Attachment A to this agreement....
c. The parties agree that they shall split, in the same proportion as their annual gross incomes bear to their annual combined gross incomes, as calculated in Attachment A of this Agreement or as
modified by a court in the future, any child care costs incurred on behalf of the children due to the employment of the custodial parent. The Wife shall notify the Husband of any change in the amount of the child care costs. In the event that child care costs rise in a month, the Husband shall be responsible for reimbursing the Wife on the first day of the next month for his proportionate share of such increases. In the event that child care costs decline in a month, the Wife shall notify the Husband who shall reduce his payment of child care costs on the first day of the next month by his proportionate share of such decline. Upon request by the Husband, the Wife annually will provide the Husband with a copy of canceled checks, tax deposits and such other information as Wife may maintain documenting the payment of child care costs for the period for which said information is requested.d. The Husband shall make consecutive monthly installments of the child support on the first day of each month until each child dies, marries, becomes self-supporting, reaches the age of eighteen (18) years or otherwise becomes emancipated, whichever event first occurs, except that support shall continue to be paid for a child if he or she is a full-time high school student, not self-supporting and living in the home of the residential custodian, until he or she reaches the age of nineteen (19) years or graduates from high school, whichever first occurs.
e. If there is any change in circumstances, the parties shall follow the child support guidelines contained in § 20-108.2 of the Code of Virginia or its successor statute and any other relevant Virginia statutes and case law for determination of child support.
No support order may be retroactively modified.
Code § 20-108 ; Cofer v. Cofer, 205 Va. 834, 839, 140 S.E.2d 663, 667 (1965). Past due support installments become vested as they accrue and are thereafter immune from change. Id. Parties cannot contractually modify the terms of a support order without the court‘s approval. Capell v. Capell, 164 Va. 45, 52, 178 S.E. 894, 896 (1935). Nor does a party‘s passive acquiescence in nonpayment of support operate to bar that party from later seeking support arrearages. Richardson v. Moore, 217 Va. 422, 423, 229 S.E.2d 864, 866 (1976). Should circumstances change requiring alteration in the amount of support, a party‘s remedy is to apply to the court for relief. Newton v. Newton, 202 Va. 515, 519, 118 S.E.2d 656, 659 (1961).
