Opinion ID: 2038814
Heading Depth: 1
Heading Rank: 5

Heading: Alleged Child Support Arrearages and Credit for Alleged Child Support OverPayments.

Text: Because these issues are related, we discuss them together. As mentioned, the district court found David to be in arrears by $29,649. In computing this amount, the district court accepted David's testimony that he paid all of his child support including the support based on his bonus income. The district court's calculation of child support arrearages included David's (1) yearly trust income from the Nellie McCurnin Trust, (2) trust and other capital gains distributions from the same trust, including the $203,042 one-time capital gain from the sale of trust property in 1995, (3) David's other personal non-W-2 income, such as interest and dividends, and (4) retirement contributions withheld from David's paychecks. David challenges the calculation of the arrearages on several grounds. He contends the decree was very specific in basing his child support on his W-2 income and does not contemplate child support based on any other income except W-2 income. In addition, he contends Jennifer never filed a pleading asking the court to modify the decree to include non-W-2 income on the ground that there existed a material and substantial change in circumstances not contemplated at the time of the decree warranting a change in the decree's child support formula. David testified that he reviewed his bank records for ten years and the Polk County child support records. From those records, he prepared exhibits showing that if only his W-2 income (monthly salary and year-end bonus) is considered he overpaid child support by $79,001, most of which was attributable to direct payments to Jennifer. According to his calculations, the overpayment resulted because he continued to pay year-round monthly support for five children even after two and later three turned eighteen, and he was no longer required to pay monthly child support for them. On cross-examination, he conceded he brought no records to court to substantiate payments made directly to Jennifer. Jennifer testified David made all of his periodic child support and alimony payments but was not satisfied that he had made all child support payments due on David's bonus income. Like the district court, we find that David made all of his periodic child support payments and child support payments based on his bonus income. We also find that he made all of his alimony payments under the decree. We reject David's request for credit against future child support for the alleged overpayment for three reasons. First, he made no request for such a credit in his pleadings, his proposed findings to the district court, or in his post-trial motion to enlarge, amend, and reconsider pursuant to Iowa Rule of Civil Procedure 1.904(2). Second, the alleged overpayment is based strictly on David's testimony with no supporting documentation, which casts considerable doubt as to the magnitude of his claim. Last, we consider him a volunteer to the extent that he made any overpayments and therefore not entitled to any credit. That leaves for our determination the propriety of the district court's inclusion of (1) yearly income from the Nellie McCurnin Trust, (2) trust and other capital gains distributions from the trust, including the $203,042 one-time capital gain from the sale of trust property in 1995, (3) David's other personal non-W-2 income, such as interest and dividends, and (4) retirement contributions withheld from David's paychecks. For the following reasons, we agree with David that the district court erred in including any of this income. The decree here was a stipulated agreement. As such, once approved, the agreement is interpreted and enforced as a final judgment of the court. In re Marriage of Handeland, 564 N.W.2d 445, 446 (Iowa Ct.App.1997). In determining the correct amount of child support, the net monthly income of the parties must be computed. State of Iowa ex rel. Nielsen v. Nielsen, 521 N.W.2d 735, 737 (Iowa 1994). Net monthly income means the gross monthly income less deductions for certain identified items. Iowa Ct. R. 9.5. All income that is not anomalous, uncertain, or speculative should be included for the purpose of determining a child support obligation. In re Marriage of Nelson, 570 N.W.2d 103, 105 (Iowa 1997) (one-time bonus not included in calculating guideline child support). As to bonus income, the payor's income is evaluated to see if the amount paid was consistent from year to year. Id. If the bonus was consistent, the bonus is included in the gross income figure. Id. The decree requires David to pay Jennifer as part of child support a percentage of his employment bonus. In fact, the decree required David to give Jennifer a copy of his W-2 for the preceding year. The decree also required that if Jennifer became employed, she was to notify David and provide him with verification of net monthly pay, in order that the child support obligation, required pursuant to the provisions of this paragraph, may be adjusted, if necessary, in accordance with the Child Support Guidelines then in effect. This language suggests that David's net monthly income for child support purposes is limited to employment income reflected on his W-2. The decree did not require David to give Jennifer copies of his tax returns, which would include a figure for all income. The same thing is true as far as Jennifer is concerned. The decree likewise required her to provide David a copy of her W-2 for the preceding year and did not require her to give David copies of her tax returns. Moreover, the decree, which awarded David his interest in the Nellie McCurnin Trust, did not include, as David's net monthly income, trust payments to David. He was not receiving payments from the trust at the time because his mother was still alive, and he was not entitled to receive such payments until her death. Nor did the decree make reference to David's anticipated future receipt of trust income. For all of these reasons, we are satisfied that the child support awarded in the decree was based solely on W-2 incomewages including bonuses. We note that Jennifer did not appeal following the entry of the decree. The decree was therefore res judicata as to what was to be considered in calculating David's child support obligation until a modification changed its provisions. See In re Bisenius, 573 N.W.2d 258, 260 (Iowa 1998). We therefore conclude the district court and the court of appeals erroneously determined that David was in arrears concerning his child support obligation.