ILNews

Justices: Child support agreement must apply changing guidelines

Back to TopCommentsE-mailPrintBookmark and Share

A father whose annual income included varying bonuses and commissions is obligated to provide child support payments in line with evolving guidelines, despite a support agreement made a year earlier than the rules were revised, the Indiana Supreme Court ruled.

Justices on Thursday affirmed a ruling of Allen Superior Judge Pro Tem Thomas Boyer in Courtney L. Schwartz v. Jodi S. Heeter, 02S03-1301-DR-18, which overturned a divided opinion of the Court of Appeals.

Justice Loretta Rush wrote that the mother and father made a commendable agreement in 2009 laying out the father’s child support obligations in which he would pay a fixed amount based on regular income plus a lump-sum annual amount calculated from the varying income from bonuses and commissions governed by a distribution clause in the agreement. The guidelines changed in 2010.

“We therefore face a question of contract interpretation: Does the Agreement incorporate the version of the Guidelines in effect at the time the Agreement was made, or the one in effect for each particular year’s income? The trial court interpreted the Agreement as incorporating the version that applied to a particular year’s income, and we agree,” Rush wrote in a unanimous opinion.

“Since the Guidelines are regularly amended to fit changing economic conditions, we hold that this Agreement anticipates and incorporates those future changes, because it does not specify otherwise.”

The change in Child Support Guidelines in 2010 resulted in the trial court ordering the father to pay an arrearage of $38,376 for 2010 income based on a “true up” clause in the agreement, but the majority of a Court of Appeals panel reversed that determination of the trial court. Dissenting COA Judge Paul Mathias would have affirmed the trial court as the justices did.

“The Court of Appeals majority found the parties intended for Father to use the 2009 Guidelines in perpetuity. In coming to this defensible conclusion, the majority determined the 2009 Guidelines and formula were “factors” the Distribution Clause required to stay the same. But in interpreting a contract, we should not look at particular words in isolation,” Rush wrote.

“We read the Distribution Clause as requiring Father to calculate each year’s child-support obligation by applying the version of the Guidelines applicable to that year’s income. The language and structure of the Distribution Clause, the regularly changing nature of the Guidelines, and the basic purpose of those periodic changes and of child support generally, all lead us to that conclusion,” the court concluded.

 
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

ADVERTISEMENT