Terry D. Reed
Hymes & Coonts
Buckhannon, West Virginia
Attorney for the Appellant
George Higinbotham
Higinbotham, Jones & Higinbotham
Fairmont, West Virginia
Attorney for the Appellee
The Opinion of the Court was delivered PER CURIAM.
2. "In addition to the factors or circumstances listed
for consideration in Lambert v. Miller, 178 W. Va. 224, 358 S.E.2d
785, 787 (1987), the family law master or circuit court may
determine that a substantial change in circumstances has occurred
because of a change in the cost of living caused by inflation or
increases in the children's needs because they are older, or
unexpected changes affecting basic needs such as housing or
transportation." Syllabus Point 2, Gardner v. Gardner, 184 W. Va.
260, 400 S.E.2d 268 (1990).
3. "For cases arising before July 1, 1990, a party
seeking a modification of a child support order must show that the
welfare of the child or children requires the modification and that
a substantial change of circumstances occurred after the entry of
the existing order that was not adequately dealt with in that
order. For cases arising after July 1, 1990, a party seeking a
modification of a child support order must either meet the criteria
outlined above or show that the support award is not within 15% of
the child support guidelines adopted pursuant to W. Va. Code, 48A-2-8 [1989]." Syllabus Point 1, Gardner v. Gardner, 184 W. Va. 260,
400 S.E.2d 268 (1990).
4. "Once a family law master or circuit court finds
that a party has shown a change of circumstances justifying
modification of child support, the amount of child support shall be
in accordance with the child support guidelines established
pursuant to W. Va. Code, 48A-2-8(a) [1989], unless the family law
mater or the court shall determine, in a written finding or a
specific finding on the record, that the application of the
guidelines would be either unjust, inappropriate, waived by the
parties pursuant to the safeguards outlined in W. Va. Code, 48A-2-8(a)(1) [1989], or contrary to the best interests of the children
or the parties." Syllabus Point 3, Gardner v. Gardner, 184 W. Va.
260, 400 S.E.2d 268 (1990).
Per Curiam:
Pamela Thompson appeals a final order of the Circuit
Court of Marion County, dated September 10, 1991, reducing the
monthly child support payments owed to her by her ex-husband,
Stephen Thompson. The circuit court found that the reduction was
authorized under W. Va. Code, 48-2-15(e) (1991). On appeal, Ms.
Thompson argues that Mr. Thompson has waived his right to request
a modification pursuant to W. Va. Code, 48A-2-8(a)(1) (1989). We
agree, and, accordingly, we reverse the circuit court's final
order.
Under the terms of the settlement, Ms. Thompson was given
sole custody of the parties' three minor children. Mr. Thompson
was required to pay Ms. Thompson $1800 per month child support
until July 20, 1997, at which time the amount of child support owed
would be reduced to $1500 per month. On July 30, 2004, all child
support payments would cease. Mr. Thompson further agreed to pay
all expenses relating to the college education of each of the four
children. Finally, Mr. Thompson assigned one-half of his
retirement benefits to his former wife. In exchange for the above
considerations, Ms. Thompson conveyed her interest in the marital
residence and some property in Florida to her ex-husband. She
further relinquished her interest in the parties' savings account,
which was valued at approximately $7000. The agreement also
contained the following provision in Paragraph 16: "It is further
expressly agreed and understood that this contract is forever
binding upon the parties hereto, except that the same may be
modified or changed by mutual agreement, in writing, by the parties
hereto."
Since entry of the support order, Mr. Thompson's
financial situation has significantly improved. He sold the
Florida property, leased the marital residence with an option to
buy, and liquidated the savings account. Moreover, Mr. Thompson
had a taxable income of $66,806 in 1989, and, since then, he has
received at least two pay raises of 4 percent each. Mr. Thompson
also received a gift of $10,000 from his uncle.
Nonetheless, in October of 1990, Mr. Thompson petitioned
the Circuit Court of Marion County for a reduction in child
support. He contended that since entry of the September, 1989,
order, there had been a substantial change in his financial
situation. Specifically, he argued that at the time the order was
entered, he believed he would be able to sell the marital
residence. Because the property had not been sold, Mr. Thompson
argued that he could no longer afford the child support payments.
On February 15, 1991, and June 21, 1991, the family law
master held hearings on the petition. After hearing evidence on
the matter, the family law master reduced the child support award
from $1800 to $924.68 per month.See footnote 1 He reasoned that the original
order could be revised pursuant to W. Va. Code, 48-2-15(e), because
$1800 per month was more than 15 percent in excess of the amount
required under the child support guidelines.
Until 1990, the only way a party could obtain a
modification of a child support award was to demonstrate that there
had been a uncontemplated substantial change in circumstances and
that the proposed modification would be in the child's best
interests. We recognized this rule of law in Syllabus Point 1 of
Lambert v. Miller, 178 W. Va. 224, 358 S.E.2d 785 (1987):
"A child support order may be
modified only upon a substantial change of
circumstances which was uncontemplated by
either of the parties at the time the order
was entered and upon a showing that the
benefit of the child requires such
modification. W. Va. Code, 48-2-15(e)
[1986]."
See also Clay v. Clay, 182 W. Va. 414, 388 S.E.2d 288 (1989); Goff
v. Goff, 177 W. Va. 742, 356 S.E.2d 496 (1987); Zirkle v. Zirkle,
172 W. Va. 211, 304 S.E.2d 664 (1983); Douglas v. Douglas, 171
W. Va. 162, 298 S.E.2d 135 (1982).
"[T]he issue of whether there has been a substantial
change of circumstances is essentially a factual determination."
Lambert v. Miller, 178 W. Va. at 226, 358 S.E.2d at 787.
(Citations omitted).
"Among some of the factors or circumstances
considered include: a change in the financial
resources or ability to pay on part of the
parent obligated to pay support, needs of the
child or children for whom support is paid, a
good or bad faith motive of the obligated
parent in sustaining a reduction of income,
and the duration of the change, namely,
whether the change is temporary or permanent."
178 W. Va. at 226, 358 S.E.2d at 787.
(Citations omitted).
Three years later in Syllabus Point 2 of Gardner v. Gardner, 184 W.
Va. 260, 400 S.E.2d 268 (1990), we expanded on the factors a court
should consider in assessing whether a substantial change of
circumstances had occurred:
"In addition to the factors or
circumstances listed for consideration in
Lambert v. Miller, 178 W. Va. 224, 358 S.E.2d
785, 787 (1987), the family law master or
circuit court may determine that a substantial
change in circumstances has occurred because
of a change in the cost of living caused by
inflation or increases in the children's needs
because they are older, or unexpected changes
affecting basic needs such as housing or
transportation."
After reviewing the evidence in this case, we find that
Mr. Thompson has failed to demonstrate a substantial change in
circumstances warranting a modification of the original child
support order. In his petition for modification, Mr. Thompson
readily concedes that he "consented and agreed to child support
payments in the amount of $1800 per month[.]" However, he argues
that he conditioned this agreement upon the "expected sale of
certain assets" -- i.e. the marital residence.
Although Mr. Thompson now asserts that he only agreed to
the child support order because he believed he could easily sell
the marital residence, the record fails to support this assertion.
There is no provision in the original order indicating that the
amount agreed upon was contingent upon the sale of the marital
home. Moreover, all the evidence supports the conclusion that Mr.
Thompson knew the property would be difficult to sell. The house
had been for sale for several years prior to Mr. Thompson's divorce
and had never been sold. Indeed, Mr. Thompson did not even obtain
an appraisal of the value of the home before he entered into the
agreement. We further find Mr. Thompson's argument unpersuasive
because he made little, if any, effort to sell the house. For
example, he never formally listed the house with a realtor or even
placed a "For Sale" sign in the yard. Accordingly, we find Mr.
Thompson's inability to sell the marital residence, especially in
the absence of its sale being an express condition precedent in the
original order, is not a substantial change of circumstances
warranting modification.
Finally, the record does not demonstrate that Mr.
Thompson's inability to sell the house has hindered his financial
situation. Indeed, his financial situation has not deteriorated
since entry of the divorce decree, but has significantly improved.
For at least two years following the entry of the order, Mr.
Thompson received a 4 percent pay raise. He was able to sell the
property in Florida and lease the marital residence, thus improving
his cash flow and lowering his debt. Finally, he received a
$10,000 gift from his uncle.
We acknowledged this legislative change in Gardner v.
Gardner, supra, and then fashioned the following rule in Syllabus
Point 1:
"For cases arising before July 1,
1990, a party seeking a modification of a
child support order must show that the welfare
of the child or children requires the
modification and that a substantial change of
circumstances occurred after the entry of the
existing order that was not adequately dealt
with in that order. For cases arising after
July 1, 1990, a party seeking a modification
of a child support order must either meet the
criteria outlined above or show that the
support award is not within 15% of the child
support guidelines adopted pursuant to W. Va.
Code, 48A-2-8 [1989]."
In this case, the family law master modified the child
support order because the amount owed by Mr. Thompson was 15
percent more than he would have been required to pay under the
guidelines formula. Apparently, the family law master believed
that the amendment applied to any petition for modification filed
after the July 1, 1990, date. On appeal, Ms. Thompson argues that
the amendment only applies to original support orders entered after
July 1, 1990.
Even if the family law master were correct, we would hold
that Mr. Thompson waived his right to request a modification
pursuant to W. Va. Code, 48A-2-8(a)(1) (1989), which states, in
pertinent part:
"The guidelines shall not be followed:
"(1) When the child support award
proposed to be made pursuant to the guidelines
has been disclosed to the parties and each
party has made a knowing and intelligent
waiver of said amount, and the support
obligors have entered into an agreement which
provides for the custody and support of the
child or children of the parties[.]"See footnote 2
In Syllabus Point 3 of Gardner v. Gardner, supra, we
recognized that a party could waive application of the child
support guidelines under this amendment:
"Once a family law master or circuit
court finds that a party has shown a change of
circumstances justifying modification of child
support, the amount of child support shall be
in accordance with the child support
guidelines established pursuant to W. Va.
Code, 48A-2-8(a) [1989], unless the family law
master or the court shall determine, in a
written finding or a specific finding on the
record, that the application of the guidelines
would be either unjust, inappropriate, waived
by the parties pursuant to the safeguards
outlined in W. Va. Code, 48A-2-8(a)(1) [1989],
or contrary to the best interests of the
children or the parties." (Emphasis added).
See also Wyatt v. Wyatt, 185 W. Va. 472, 408 S.E.2d 51 (1991); Wood
v. Wood, 184 W. Va. 744, 403 S.E.2d 761 (1991).
Here, the parties expressly agreed in the child support
order that "this contract is forever binding upon the parties
hereto, except that the same may be modified or changed by mutual
agreement, in writing, by the parties hereto." In the hearing on
February 15, 1991, Mr. Thompson admitted that he had been advised
of the child support guidelines and that he had knowingly and
intelligently waived them.See footnote 3 Moreover, he admitted that (1) he had
been represented by counsel during negotiations of the contract;
(2) he was satisfied with the representation that he received; (3)
he voluntarily signed the agreement; (4) he understood the
agreement, and, finally, (5) he was not coerced into signing the
document.
Reversed.
"Q. Now, with respect to the property
settlement agreement, you were aware when you
signed that as to the amount of child support
you were agreeing to pay, were you not?
"A. Yes, sir.
"Q. And you, likewise, were aware that
that very well would be in excess of that
which would be required if you let a judge or
the judiciary set that amount, were you not?
"A. Yes sir.
"Q. You were aware that they had
guidelines that they followed and that those
guidelines may very well be less than what
you agreed to?
"A. Yes sir.
"LAW MASTER: Do you recall what the
guidelines amount was?
"WITNESS: No, sir.
"LAW MASTER: Okay. Go ahead.
"MR. REED: But in spite of that you
elected to rather than proceed with what the
guidelines were and letting the Court set it,
you elected to sign the property settlement
agreement?
"A. Yes, sir.
"Q. And to the extent that what is
required to be paid under the property
settlement agreement exceeds the guidelines,
you agreed to it, is that correct?
"A. Yes, sir."