Marriage of PletcherAnnotate this Case
The issue presented by this case arose from a family law order setting pendente lite spousal support. Appellant Mitchell Fletcher operated an investment management business. His income fluctuated considerably from year to year depending on the performance of the market. In re Marriage of Riddle, 125 Cal.App.4th 1075 (2005) held that a court had to calculate future income based on a representative sample of past income. Instead of doing that, the trial court here forecasted Mitchell’s future income based on the most recent year of historical income, which happened to be Mitchell’s best year ever by a wide margin. Given the nature of his income structure, however, it was unlikely Mitchell would repeat such a year. In the recent past, Mitchell had made as little as one-third of the amount the court based its calculation on. The Court of Appeal determined the trial court abused its discretion in calculating his prospective income on an unrepresentative sample period. In addition to managing investments, Mitchell and Jill Fletcher started a theater company. In calculating Mitchell’s income, Court of Appeal found the trial court did not consider any losses from the theater company on the ground that the theater was not “related to” the investment business. The Court agreed with Mitchell that the trial court employed the wrong legal standard in conducting that analysis. The error, however, was harmless because Mitchell did not identify any prospective theater expenses that would impact his income going forward. Nevertheless, because this issue may recur in this case, the Court set forth the proper legal standard for further proceedings upon remand.