This is а protracted custody suit where an order issued in 2002 is only just now being reviewed on appeal.
FACTS
During their ten-year marriage, Diana Spreeuw (Mother) and Douglas Barker (Father) lived in Charleston and had two children: Daryn, born January 1, 1990, and Dylan, born March 20, 1997. Mother, the family’s primary breadwinner, worked in the field of health-care finance, while Father worked as an attorney. After the birth of the parties’ second child, their marriage began deteriorating. To further complicate matters, Mother learned her employer, the last remaining health-care provider with financial operations in the area, would soon leave Charleston for Nashville. Mother immediately began searching for comparable employment in the area; however, her efforts were unsuccessful. 1 Soon thereafter, on June 25, 1999, Father commenced a divorce action.
Prior to the divorce hearing, Mother and Father reаched an agreement regarding custody and child support. With her oldest child expressing a desire to finish elementary school in Charleston and no employment opportunities in the area, Mother agreed to give Father primary custody of the children, while sharing joint legal custody with him. In addition, Mother agreed to pay Father $1,000 in child support per month. Meanwhile, Mother accepted the closest employment opportunity available in Nashville. The parties were divorced and the agreement was approved by order of the family court dated December 17, 2001.
Following the divorce, Mother moved to Nashville to begin her job. While there, she routinely sent letters to the children and called them daily. Approximately two months later, Father married Daphne Burns. Thereafter, Daphne began living with Father and the children in Charleston. Daphne
A few months later, the children arrived at Mother’s house for summer visitation. While there, her oldest child begged Mother to return to Charleston. In June 2001, Mother decided to return to Charleston and called Father to inform him of her decision. Shortly thereafter, Mother placed her home in Nashville on the market and began searching for employment. In contemplation of her return, Father scheduled a mediation session to revisit the existing visitation schedule. For sоme unknown reason, the mediation never took place, and the current visitation schedule remained in effect.
By September, Mother still had not sold her house and had failed to find comparable employment in the Charleston area. Nevertheless, Mother, believing her children needed her, took the first job she could find and moved into a friend’s house on Daniel Island. 3 Mother, who earned $74,000 a year in Nashville, was then working in a fabric store earning $6.50 an hour. Mother supplemented her income by substitute teaching at local schools for $50 a day. All the while, Mother continued her search for a financial management position in the area She solicited the service of head-hunting agencies, sent out numerous job applications, looked through employment advertisements in the newspaper, and networked with friends in search of employment. Eventually, Mother accepted a position as an accounts receivable clerk with RoHoHo Incorporated, a franchisee of Papa John’s Pizza, earning $26,000 per year.
A month after Mother’s return to Charleston, Father still
In October of 2001, Father commenced a romantic relationship with Jennifer Helm. As the relationship progressed, Jennifer began spending more and more time at Father’s home with the children present. On some occasions, Father acknowledged Jennifer stayed past the children’s bedtime. According to the testimony of Mother and the Guardian ad Litem (“Guardian”), the parties’ oldest child did not like Jennifer and felt uncomfortable with her in the house. By contrast, Father testified that his children loved Jennifer.
The parties’ lives remained virtually unchanged until August 6, 2002 when Father, pursuant to the parties’ prior understanding, picked up the children from Mother’s house at 9:00 A.M. to take their oldest child to register for school. By the time Father arrived at Mother’s residence, she had already departed for work, and the children, ages twelve and five, were alone. However, the children were provided with a list of names and telephone numbers of nearby neighbors they could contact in case of an emergency. After arriving at Mother’s house, Father immediately called Mother and informed her he was keeping the children for the remainder of the day. Father also attempted to contact the Guardian, who was unable to take his phone call at the time. Thereafter, Father visited his attorney’s office and instructed him to prepare a motion for an ex parte order. In his motion, he alleged “the children were to be left alone all day while
A mere five days before the parties’ September 10, 2002 trial date, Father, on his own initiative and without prior notice or approval, took the children to the office of Dr. Barton Saylor, a forensic psychologist, to be assessed and interviewed. From his interview with the children, Dr. Saylor concluded that the children were well-adjusted and did not display any significant emotional problems. At trial, Dr. Saylor made it clear that he did not conduct a custody evaluation or make a comparison of the parents.
Prior to trial, the Guardian submitted her written repоrt to both parties. The Guardian’s written report was the culmination of a five-month investigation of the family, consisting of numerous interviews, observations, and in-home visits. 6 The Guardian did not submit a recommendation regarding custody of the children in her report. Instead, the Guardian, through her attorney, informed the court she wished to reserve the right to make a custody recommendation at the conclusion of the testimony. At that time, the Guardian orally recommended that primary custody of the children be awarded to Mother. The Guardian based her recommendation on numerous factors including: the oldest child’s stated preference to live with Mother; Father’s refusal to allow Mother to share in parental decisionmaking; Father’s testimony that Mother should not have more time with the children beyond the existing visitation schedule; the children’s disposition while in the care of both parties; and her concerns about the impact Fаther’s relationship with Jennifer had on the children.
At the end of trial, the family court issued an order modifying custody and child support. The court’s order awarded the parties joint physical custody, designated Mother as the pri
Thereafter, both parties filed motions to alter or amend the judgment. Before the court could rule on the motions, Father also filed a motion for relief from judgment based on newly discovered evidence. The family court denied both parties’ motions to alter or amend the judgment on February 28, 2002. Father filed a notice of appeal on March 13, while Mother filed a notice of appeal on March 27. On April 7, the family court denied Father’s motion for relief from judgment based on newly discovered evidence. Subsequently, Father filed a second notice of appeal on April 11. On May 8, Court of Appeals Judge Cureton issued an order consolidating Father’s two appeals.
After trial, this case encountered many delays during its almost seven year journey to our docket. Immediately following the family court’s order, Father sought a determination
STANDARD OF REVIEW
In an appeal from the family court, this court may correct errors of law and find facts in accordance with its own view of the preponderance оf the evidence.
Semken v. Semken,
LAW/ANALYSIS
I. TIMELINESS OF MOTHERS APPEAL
Father argues Mother did not timely file her motion to alter or amend the final order pursuant to Rules 52 and 59(e), SCRCP. Assuming the motion was timely filed, Father contends Mother failed to timely file a notice of appeal. We disagree.
Father’s arguments are wholly without merit and warrant little discussion. First, Mother timely made her Rule 59(e) motion by serving Father ten days after receiving notice of the judgment.
See
Rule 59(e), SCRCP (“A motion to alter or amend the judgment shall be
sewed
not later than 10 days after receipt of written notice of the entry of the order.”) (emphasis аdded). Second, because Mother timely made a motion pursuant to Rule 59(e), the time to serve her notice of appeal did not run until she received written notice of the order granting or denying that motion.
See
Rule 203(b)(1),
II. CUSTODY
A. Final Decisionr-Making Authority
Father asserts the family court erred in awarding final decision-making authority to Mother. According to Father, the family court misconstrued the previous order as silent on the issue of final decision-making authority. Father claims the previous order implicitly granted him finаl decision-making authority when it granted him primary custody.
Unless otherwise stated by agreement of the parties or order of the family court, the power to make final decisions for children is necessarily vested in the custodial parent. Thus, Father correctly points out that the previous order implicitly granted him final decision-making authority by virtue of granting him primary legal custody. Accordingly, the family court misconstrued the previous order when it stated that it was silent as to final decision-making authority. Nevertheless, the family court awarded Mother primary legal custody based on a finding of a substantial change in circumstances. Therefore, the fact that the family court misconstrued the previous order makes no difference on appeal because the change in primary legal custody, and with it the grant of final decision-making authority, was predicated on a finding of a substantial change in circumstances, not on an interpretation of the previous order.
See McCall v. Finley,
Father argues the family court erred in awarding primary legal custody of the children to Mother, asserting the family court failed to consider or improperly considered a number of factors in the best interests of the child analysis. Specifically, Father contends the court erred by: determining he excluded Mother from the decision-making process when he held final decision-making authority; failing to take into account Mother left the children alone at home; relying on the report and recommendation of the Guardian; and considering the preference of the oldest child. 8 Lastly, Father alleges his decision-making for the children was proper, and they were doing very well in his care. We disagree.
The paramount and controlling consideration in a custody dispute is the best interests of the child.
Cole v. Cole,
In order for a court to grant a change in custody, the moving party must demonstrate changed circumstances occurring subsequent to the entry of the order in question.
Kisling v. Allison,
The family court awarded primary legal custody of the children to Mother based on a finding of a substantial change in circumstances. In making this finding, the family court determined the best interests of the children would be served by awarding primary legal custody to Mother. For the reasons set forth below, we believe the family court properly considered the best interests of the children in awarding primary legal custody to Mother.
Initially, even though the previous order granted Father final decisionmaking authority, this power did not excuse him from the responsibility of co-parenting with Mother. Therefore, this was a relevant inquiry in the court’s analysis. Contrary to Father’s assertions, the family court recounted the episode where thе children were left alone while in Mother’s care in great detail. We decline to assign additional weight to this incident on appeal as the record merely indicates the children were left alone for a short period of time while they waited for their Father to pick them up. Next, the family court properly considered the oldest child’s stated preference to live with Mother in performing the best interests analysis.
See Brown v. Brown,
Lastly, Father alleges his decision-making for the children was proper, and they were doing very well in his care. However, the record reveals Father made many decisions to advance his own interests without regard to how they affected the children. For example, Father continually allowed his
C. Physical Custody
On cross-appeal, Mother argues the family court erred in awarding both parties joint physical custody of the children without making a finding of extraordinary circumstances. Mother contends it would be in the best interests of the children for solе physical custody to be awarded to her. We disagree.
The family court, although awarding both parties joint physical custody, failed to make a finding of exceptional circumstances to support its decision.
See Patel v. Patel,
We believe the exceptional nature of this case demands that we affirm the family court’s award of joint physical custody. In this case, a seven year delay occurred between the issuance of the family court’s final order, dated December 19, 2002, and oral argument before this panel on March 5, 2009. The reasons for the delay in this case range from the acceptable — ■ Father’s bankruptcy proceeding — to the unacceptable — the rash of motions filed by both parties. Since the family court’s final order, the children have grown from the ages of five and twelve to the ages of twelve and nineteen. Undoubtedly, many things have changed in the children’s lives since 2002. However, the custodial arrangement has remained constant. At this point, we are reluctant to order a change in the
III. SUPPORT
A. Imputing Income to Mother
Father argues Mother voluntarily left a job earning $74,000 in Nashville for a low-paying job in Charleston. As a result, Father contends the family court erred in refusing to impute income to Mother. If the court refuses to impute income to Mother based on a finding of voluntary underemplоyment, Father alleges Mother’s income should be increased to reflect the raise she received from her employer, RoHoHo, Inc. We disagree.
“If the court finds that a parent is voluntarily unemployed or underemployed, it should calculate child support based on a determination of potential income which would otherwise ordinarily be available to the parent.” S.C.Code Ann. Regs. 114 — 4720(A)(5) (Supp.2008). A parent seeking to impute income to the other parent need not establish a bad faith motivation to prove underemployment.
Arnal v. Arnal,
A trial court may relieve a party from a final judgment, order, or proceeding based on newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b). Rule 60(b)(2), SCRCP. The motion must be made within a reasonable time and not more than one year after the judgment was entered. Rule 60(b), SCRCP. To obtain relief based on newly discovered evidence, a movant must establish that the
The trial court did not err in refusing to impute income to Mother. The overwhelming evidence reveals the motivating fаctor prompting Mother’s resignation from her job in Nashville was the wishes of the parties’ oldest child.
See Kelley,
In addition, we do not believe the family court erred in denying Father’s motion to increase Mother’s income from $26,000 to $31,200 based on newly discovered evidence. We believe Father could have, through the exercise of due diligence, discovered Mother’s raise in time to move for relief pursuant to Rule 59.
See
Rule 60(b)(2), SCRCP (stating a party cannot obtain relief from a final judgment based on newly discovered evidence if the evidence could have been
B. Imputing Income to Father
The family court concluded Father earned $7,500 per month in gross income, exclusive of additions for in-kind benefits received by Father. Father asserts the family court committed several errors in arriving at this figure. First, because his income varies from month to month, Father alleges the family court erred by using his highest-ever eight month income, the $6,000 a month he withdrew from his law practice in 2002, as a base-line figure for its child support
“Child support awards are within the sound discretion of the trial judge and, absent an abuse of discretion, will not be disturbed on appeal.”
Mitchell v. Mitchell,
For income from self-employment ... gross income is defined as gross receipts minus ordinary and necessary expenses required for self-employment or business operation .... However, the court should exclude from those expenses amounts allowed by the Internal Revenue Service for accelerated depreciation of investment tax credits for purposes of the guidelines and add those amounts back in to determine gross income. In general, the court should carefully review income and expenses from self-employment ... to determine actual levels of gross income available to the parent to satisfy a child support obligation. As may be apparent, this amount may differ from the determination of business income for tax purposes.
S.C.Code Ann. Regs. 114-4720(A)(4) (Supp.2008).
Based on the evidence submitted at trial, the family court did not abuse its discretion in determining Father’s gross
By the end of trial, a few things were apparent. First, by virtue of his testimony and the evidence presented at trial, Father vastly understated his gross income in his 2001 financial declaration. This fact necessarily called into question the veracity of his 2002 financial declaration. Second, the amount of money Father withdrew from his law firm in 2001, $53,000, represented about 80% of what he claimed to be his true gross income for that year, $66,372, as evidenced by his 2001 corporate income tax return. Third, Father’s 2001 corporate income tax return served as the only credible evidence to demonstrate his gross income. Still, the family court was faced with the difficult task of determining Father’s current gross income, and the only evidence depicting his gross income for the current year was his 2002 financial dеclaration. To determine Father’s current gross income, the family court relied on the historical relationship between Father’s 2001 withdrawals and his 2001 corporate income tax return. From this evidence, the family court determined Father’s withdrawals amounted to only 80% of his actual gross income for that year (80% of $66,372 = $53,097.60). Thus, when Father claimed to withdraw an average of $6,000 a month from his law firm from January 1, 2002 through August 31, 2002, the family court, operating under the assumption that this amount
The family court relied on the lone piece of credible evidence, Father’s 2001 financial declaration, in determining Fathers income for child-support purposes. We cannot conclude the family court abused its discretion in making this determination.
See Kelley,
C. Father’s Expenses
Father argues the family court improperly added ordinary business expenses to his gross income. Specifically, Father claims the court erred in adding $7,884.37 worth of automobile expenses, $1,960 in parking expenses, and $2,400 in
The court should count as income expense reimbursements or in-kind payments received by a parent from self-employment if they are significant and reduce personal living expenses, such as a company car, free housing, or reimbursed meals. S.C.Code Ann. Regs. 114 — 4720(A)(3)(c) (Supp.2008).
The family court correctly determined Father’s vehicle expenses for 2001 totaled $7,884.37. Initially, Father contends he reported his vehicle expenses of $2,462.95 as gross income in his 2001 corporatе income tax return; therefore, he asserts the family court erred in adding this amount back to his gross income. Father fails to cite to a specific page in his corporate income tax return to support his argument. Moreover, after reviewing the record, we have been unable to find where Father listed this amount as income on his tax return. Accordingly, we conclude this evidence does not appear in the record and cannot be considered on appeal. See Rule 210(h), SCACR (stating an appellate court may not consider a fact which does not appear in the record).
Next, Father argues his 2001 lease payments equaled $4,428, and his total vehicle expenses amounted to $7,037, not $7,884.37 as set forth by the family court. No evidence in the record shows the amount of lease payments paid by Father. Instead, Father has “automobile expenses” itemized as an expense in the amount of $7,884.37. Assuming Father is correct, automobile expenses, not just lease payments, paid by his law firm on his behalf would still qualify as in-kind income and would be subject to imputation as gross income. If the family court erred by using the term “lease payments” in lieu of the term “automobile expenses,” the error is without consequence.
See McCall,
However, the family court erred in adding Father’s parking charges to his gross income. The record reveals Father’s law firm spent $1,960 annually so he could park his car downtown near his office. Unlike an automobile, a parking space for work qualifies as an ordinary and necessary business expense and is properly deductible from the gross receipts of Father’s business. See S.C.Code Ann. Regs. 114-4720(A)(4) (noting a self-employed parent’s gross income for child support purposes equals gross receipts minus ordinary and necessary expenses required for business operation). Additionally, the family court erred in counting the $2,400 Father received from his former wife, Daphne Burns, as income. Father’s amended financial declaration specifically notes this money was for repayment of a debt. We do not believe payment received in satisfaction of a debt qualifies as gross income under the child-support guidelines. On remand, these expenses should be deducted from Father’s gross income, and the family court should recalculate child support pursuant to this order.
D. Reimbursement of Child Support Paid By Mother
On cross-appeal, Mother argues Father understated his income at the temporary hearing before Judge Segars-Andrews in 2001. As a result, Mother claims Father should reimburse the $6,000 she paid in child support pursuant to the temporary order. We disagree.
Mother never raised a claim for retroactive reimbursement of child support at trial and presented this argument to the court for the first time during her post-trial motions pursuant to Rule 59 and Rule 60. Accordingly, Mother’s arguments are not preserved for appellate review.
See Hickman,
A. Guardian ad Litem, Fees
Father argues the family court erred in relying on the Guardian’s report and recommendation. Father contends the Guardian conducted her investigation in a biased manner. In addition, Father claims the Guardian’s report was incomplete because it failed to include a custody recommendation. Because her report was flawed, Father contends the issue of Guardian’s fees should be remanded to the family court. We disagree.
In
Patel v. Patel,
the Supreme Court of South Carolina set forth base-line standards a Guardian should follow in developing a recommendation to the family court.
(1) conduct an independent, balanced, and impartial investigation to determine the facts relevant to the situation of the child and the family, which should include: reviewing relevant documents; meeting with and observing the child in the home setting and cоnsidering the child’s wishes, if appropriate; and interviewing parents, caregivers, and others with knowledge relevant to the case; (2) advocate for the child’s best interests by making specific and clear recommendations, when necessary, for evaluation, services, and treatment for the child and the child’s family; (3) attend all court hearings and provide accurate, current information directly to the court; (4) maintain a complete file with notes rather than relying upon court files; and (5) present to the court and all other parties clear and comprehensive written reports, including but not limited to a final report regarding the child’s best interest, which includes conclusions and recommendations and the facts upon which the reports are based. 11
Id.
Father’s arguments are not preserved for appeal. While Father complained of the Guardian’s bias during his testimo
B. Attorney’s Fees
Father argues the family court erred in awarding attorney’s fees to Mother. In the alternative, Father asserts that the amount of attorney’s fees awarded were excessive. We disagree.
“The award of attorney’s fees is left to the discretion of the trial judge and will only be disturbed upon a showing of abuse of discretion.”
Upchurch v. Upchurch,
Next, Father contends the amount of attorney’s fees awarded were excessive in light of his income. Typically, we would be very concerned by an award of attorney’s fees representing approximately 40% of Father’s annual income.
See Rogers v. Rogers,
V. RELIEF FROM DISCOVERY/EX PARTE ORDERS
Mother asks us to vacate discovery orders from seven years ago, and an ex parte order, which Father and the judge who issued it, acknowledge is moot. We decline to do so because such an order from this court would have no practical legal effect.
See Byrd v. Irmo High Sch.,
AFFIRMED IN PART, REVERSED IN PART, and REMANDED.
Notes
. The specialization required in her field of health-care finance did not translate to other finance positions.
. Despite Daphne's transient living arrangement, the children maintained a "very close” relationship with her.
. Mother bought her own home approximately a month later.
. Under the 1999 order, visitation consisted of monthly weekend visitations and longer periods of visitation during the summer and on school vacations. The 1999 order did not include a normal weekly sharing of custody between the parties due to the distance between their residences.
. Father had not discussed with Mother what plans she had for the children after school registration. Therefore, his statement that they were to be left alone "all day" is speculative. However, it is accurate to say the children were left alone for about an hour from the time Mother left for work until Father picked up the children.
. Although the Guardian requested that both parties provide her with a written list of witnesses to interview, neither рarty did so.
. At trial, Father admitted withdrawing $53,000 from his law firm in 2001. By contrast, his 2001 corporate income tax return reported his income for the year equaled $66,372.
. We note that Father’s argument concerning the family court’s reliance on the Guardian's report and recommendation is not preserved for appellate review. This issue is addressed directly under the “Fees” section of this opinion.
. In his Rule 60(b)(2) motion, Father also sought relief from judgment because Mother moved from her residence and continued to leave the children alone at home. We believe the family court acted within its discretion in refusing to grant Father relief on these grounds.
. This is not the first time Father has failed to provide candid financial information to the family court. During a hearing before the office of disciplinary counsel, Father acknowledged he did not make full financial disclosure when initially seeking a divorce from Mother.
See In re Barker,
. We note the statutory Guardian ad Litem guidelines only apply to guardians appointed on or after January 15, 2003.
Nasser-Moghaddas
. Father's lone motion to relieve the Guardian was on the basis of her move to Washington.
. On appeal, Father claims Mother failed to obtain beneficial results at trial because she received no more than Father offered in settlement negotiations — joint physical custody of the children. While we disagree with Father's argument, we also note that statements made during settlement negotiations are inadmissible. See Rule 408, SCRE ("Evidence of conduct or statements made in compromise negotiations is likewise not admissible.”).
. In addition, we note that this controversy between Mother and Father developed into a highly contentious litigation. In the end, the trial lasted for five full days. During this time, twenty-one witnesses were called, and sixty-four exhibits were presented to the court.
