In Re Marriage of Olson

Summary

After 30 years of marriage, the payor sought to reduce spousal support as his income fell and fluctuated. He held over $400,000 in IRAs, annuities and other savings. The trial court appointed an accountant as special master to determine each party's monthly income, business expenses and tax adjustments and to run a default support computer program, counting retirement funds as income only when withdrawn. The Court of Appeal held that delegating these findings was an improper delegation of judicial authority, but upheld use of the program on these facts and held courts have broad discretion over undrawn retirement contributions and accruals. It reversed and remanded, including for a determination of appellate attorney fees.

What it means for the financial analysis

Income analyses for spousal support may need to be framed as reports and recommendations that the court can adopt, since a neutral accountant's income, expense and tax determinations cannot bind the parties without a stipulation. On retirement accounts, the case gives no bright-line rule, so the analysis should separate contributions, undrawn accruals and actual withdrawals, and note the payor's age and any early withdrawal penalty, because the court may include, exclude or partly include each.

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