TN Dad and Dr. Claims Lower Child Support Due to Income Drop of $500K

Tennessee child support law case law summary on lowering child support from the Court of Appeals.

LOUIS ERNEST CUNNINGHAM v. CHERYL LYNNE CHEATHAM CUNNINGHAM – Lowering Tennessee Child Support

The parties in this case are Cheryl Lynne Cheatham (“Mother”) and Louis Ernest Cunningham (“Father”). The parties were married for 5 years and separated for 4 years. The parties have one child. At the time of the divorce, Father had a medical practice valued at $1.3 million dollars. Father was ordered, in 1999, to pay $6,200 per month in child support based upon his net income of $52,000 per month. Father was also required to put $4,486 per month in an educational trust and a $900,000 life insurance policy for the child.

Father appealed the initial child support determination seeking a downward deviation in the child support owed and the life insurance policy. The appellate court remanded the issue of the child support and life insurance policy back to the trial court to determine if the monthly child support payment should be deviated downward, as father exercised 160 days of visitation and to determine the appropriate life insurance policy based upon Father’s child support obligation.

On remand from the appellate court, the trial court declined Father’s request for the downward deviation in child support. It also reaffirmed Father’s obligation to maintain a $900,000 life insurance policy.

Father appealed the second trial court ruling. The appellate court affirmed the trial courts ruling and remanded the case back to the trial court to determine all pending disputes between Mother and Father.

An order was entered by the trial court on September 11, 2006. In regards to child support, the trial court found that: (1) Father owed back child support payments of $1,525 per month for 51 months plus 12% statutory interest, (2) Father failed to establish educational trust and owes $4,486 per month for 81 months, (3) Father shall give mother proof of life insurance policy for child, and (4) Father’s modification of child support is denied.

Father again appealed the 2006 order arguing that he did not owe child support retroactive to January 1999 and the trial court erred in denying Father’s request to modify child support payment.

In determining whether the child support arrearage should be retroactive to the initial order in 1999 or the amended order in 2002, the appellate court considered applicable case law. The court determined that the child support back payments should accrue from the initial 1999 order since the 2002 order did not change the amount or obligation for Father to pay the child support.

The appellate court further looked at the record to determine if the trial court erred in failing to reduce Father’s child support payment. The income shares model requires that the trial court follow the guidelines under T.C.A. 36-5-101(E)(A) in determining the child support obligation. The trial court can then decide if a deviation from the guidelines is justified and provide evidence for the justification. The facts show that the trial court made no findings regarding Father’s income or his child support requirements for other children. Father stated that his income had decreased from $900,000 per year to $412,248 per year. Additionally, father had evidence that he paid $3,000 per month in child support to two other biological children. Appellate court remanded the child support modification issue to the trial court. Trial court must make findings to determine the Father’s presumptive child support payment under the guidelines, including the change in father’s income and number of children he is supporting. If the trial court finds a deviation from the guidelines is required, trial court must provide written support for such deviation.

No. W2006-02685-COA-R3-CV (Tenn. Ct. App. June 25, 2008).

See original opinion for exact language.  Legal citations omitted.

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