In re Marriage of Usher

Summary

The father agreed to $17,500 monthly child support. He later sought a reduction because his employment income fell, although he held over $67 million in assets, including about $34 million in liquid funds. The trial court cut support to $9,842 and imputed a 1% return to most of his assets. The Court of Appeal held that no substantial evidence showed a material change in his ability to pay and that the 1% rate was unsupported, so the order was reversed.

What it means for the financial analysis

Do not analyze income from salary alone when the payor has substantial assets. Build the full picture: actual investment returns by account, the assets producing nothing, and what a reasonable return on those would be. The court rejected an unsupported 1% figure. The only record evidence was a 2.46% overall return for 2013 and 5% to 7% on the invested third, so an expert should document actual returns from account statements. A rate offered without that backing is vulnerable, as is an assertion that the payor's investment choices put income off limits.

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