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COURT OF APPEALS DECISION DATED AND RELEASED November
2, 1995 |
NOTICE |
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A party may file with the Supreme Court a petition to review an
adverse decision by the Court of Appeals.
See § 808.10 and Rule 809.62,
Stats. |
This opinion is subject to further editing. If published, the official version will appear in the bound
volume of the Official Reports. |
No. 95-1103
STATE OF WISCONSIN IN
COURT OF APPEALS
DISTRICT IV
IN RE
THE MARRIAGE OF:
DOMINIC
J. VITTONE,
Petitioner-Respondent,
v.
KATHLEEN
M. VITTONE,
Respondent-Appellant.
APPEAL
from a judgment of the circuit court for Rock County: PATRICK J. RUDE, Judge. Affirmed
in part; reversed in part and cause remanded with directions.
Before
Gartzke, P.J., Dykman and Sundby, JJ.
PER
CURIAM. Kathleen M. Vittone appeals
from a judgment of divorce in which the trial court ordered her former husband,
Dominic J. Vittone, to pay her $91.96 per week in maintenance. The issues are whether the trial court
erroneously exercised its discretion:
(1) when it used forty hour work weeks to determine Dominic's
income though the record indicates that Dominic routinely works more than forty
hours per week; (2) when it divided the parties' total income in
proportion to the number of hours each party worked, without giving
consideration to the health of the parties; and (3) when it did not take
into account the tax implications of the maintenance payment. We conclude that the court erred when it did
not consider the health of the parties and the tax consequences to each
party. We also conclude that it erred
when it excluded Dominic's overtime pay.
Consequently, the court's decision did not achieve the objectives of
fairness and support. Accordingly, we
reverse that part of the judgment awarding maintenance, and remand with
directions that the trial court recalculate the maintenance award.
BACKGROUND
Kathleen
and Dominic Vittone were married for about twenty-six years when Dominic
started this divorce action. Dominic
works as a union electrician. His
income rose substantially over the years and at the time of the divorce, he was
earning $21.36 per hour. During the
last four years of the marriage, he worked considerably more than forty hours
per week.
Kathleen
graduated from nursing school and worked for a few months after the
marriage. She stayed home from 1969 to
1984 to care for the couple's children.
She also provided care to their son who had insulin dependent
diabetes. In 1984, Kathleen returned to
work as a nurse. Currently, she works
about twenty-four hours per week, at $14.49 per hour, for the Riverview Clinic.
Kathleen
asserts that she works part time because she suffers from migraine
headaches. She received specialized
care from Dr. Frederick Freitag, a headache specialist in Chicago, Illinois,
during the last two years of the marriage.
Kathleen was referred to Dr. Freitag by her physician in Madison,
Wisconsin, who attempted several different treatments for her migraine
headaches without success. Dr. Freitag
prescribed several types of drugs for Kathleen, and advised her to limit her
work hours to twenty-four to twenty-eight hours per week. This treatment has proven effective in
controlling her migraines.
The
trial court calculated the maintenance award by considering Dominic's earnings
as if he only worked forty hours per week.
It relied upon each spouse's net income after federal, state, and social
security taxes were deducted at each spouse's tax bracket level. Then the court divided the parties' total
net income in proportion to the hours each worked. Kathleen appeals.
MAINTENANCE
The
determination of the amount and duration of maintenance rests within the sound
discretion of the trial court and will not be disturbed absent an erroneous
exercise of that discretion. LaRocque
v. LaRocque, 139 Wis.2d 23, 27, 406 N.W.2d 736, 737 (1987). An erroneous exercise of discretion occurs
when the trial court has failed to consider the proper factors, has based the
award upon a factual error, or when the award itself was, under the circumstances,
either excessive or inadequate. DeLaMatter
v. DeLaMatter, 151 Wis.2d 576, 582-83, 445 N.W.2d 676, 679 (Ct. App.
1989). Therefore, the "court's
decision must `be the product of a rational mental process by which the facts
of record and law relied upon are stated and are considered together for the
purpose of achieving a reasoned and reasonable determination.'" Trieschmann v. Trieschmann,
178 Wis.2d 538, 541-542, 504 N.W.2d 433, 434 (Ct. App. 1993) (quoted source
omitted).
The
dual objectives of maintenance are support and fairness. LaRocque, 139 Wis.2d at 33, 406
N.W.2d at 740. The support objective is
to maintain the recipient spouse in accordance with the needs and the earning
capacities of the parties. Id. The fairness objective is meant to ensure a
fair and equitable arrangement in each individual case. Id. Thus, maintenance is not to be calculated at bare subsistence
levels, Forester v. Forester, 174 Wis.2d 78, 89, 496 N.W.2d 771,
775 (Ct. App. 1993), but at a standard of living the parties enjoyed in the
years immediately preceding the divorce.
LaRocque, 139 Wis.2d at 36, 406 N.W.2d at 741. In determining the amount of maintenance,
the trial court should begin with an equal division of the total earnings of
both parties. Bahr v. Bahr,
107 Wis.2d 72, 85, 318 N.W.2d 391, 398 (1982).
If a spouse works overtime on a regular basis, the total earnings must
include the overtime income. DeLaMatter,
151 Wis.2d at 589, 445 N.W.2d at 682.
The court may then adjust the maintenance award following a reasoned
consideration of the statutory factors.
Bahr, 107 Wis.2d at 85, 318 N.W.2d at 398. Section 727.26, Stats., specifies that the court may order a maintenance
award after considering:
(1) The length of the marriage.
(2) The age and physical and
emotional health of the parties.
....
(6) The feasibility that the party
seeking maintenance can become self‑supporting at a standard of living
reasonably comparable to that enjoyed during the marriage, and, if so, the
length of time necessary to achieve this goal.
(7) The
tax consequences to each party.
We
conclude that the trial court erroneously exercised its discretion when it did
not include Dominic's overtime pay in its calculation of the parties' total
earnings. Similar to the husband in DeLaMatter,
Dominic routinely worked more than forty hours per week. Therefore, his overtime pay should have been
included in the maintenance calculation.
Furthermore,
the trial court erroneously calculated the maintenance award by dividing the
total income between the parties in proportion to the number of hours each
spouse worked per week. It failed to
start with the presumed equal division of total income and did not consider
evidence that Kathleen is unable to work full time because of her migraine
headaches. The court should have
started with a equal division of total income, and then considered Kathleen's
asserted inability to work full time, her contributions to the marriage, and
other relevant factors to decide whether to deviate from that division in
either direction.
The
trial court also erroneously exercised its discretion because it failed to
consider the tax consequences of its maintenance award. It used each party's net income to calculate
the total earnings of the parties and then divided that total between
them. This method is incorrect. First, because Kathleen earns less, her
income is taxed at a lower rate than Dominic's. Second, Kathleen will have to pay income tax on the maintenance
award while Dominic can deduct his maintenance payments from his gross
income. The court should have used the
parties' gross income to calculate maintenance payments.
Finally,
we conclude that the weekly payment of $91.96 is inadequate to support Kathleen
at a standard of living comparable to that she enjoyed during the
marriage. There may be insufficient
income to permit both Dominic and Kathleen to enjoy a standard of living
comparable to that enjoyed during the marriage. But in that case, the court should equitably divide the
shortfall. Consequently, we reverse in
part and remand for a recalculation of the maintenance award.
By
the Court.—Judgment affirmed
in part; reversed in part and cause remanded with directions.
This
opinion will not be published. See
Rule 809.23(1)(b)5, Stats.