Marriage of McKarus CA2/6

Filed 6/2/15 Marriage of McKarus CA2/6 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SIX

In re Marriage of GLORIA and 2d Civil No. B255115 DOUGLAS MCKARUS. (Super. Ct. No. D306551) (Ventura County)

GLORIA LYNN MCKARUS,

Respondent,

v.

DOUGLAS MCKARUS,

Appellant.

Douglas McKarus appeals a denial of his motion to terminate his obligation to pay spousal support to Gloria Lynn McKarus. He contends the trial court abused its discretion when it determined that his monthly income includes $4,900 in principal payments that he receives each month from annuity policies. We affirm. FACTUAL AND PROCEDURAL BACKGROUND After 16 years of marriage, Gloria and Douglas separated in 2004.1 They had two teenage children who are now adults. The only issue on appeal is spousal support.

1 We shall refer to Gloria and Douglas McKarus by their first names not from disrespect, but to ease the reader's task.

Gloria was 44 years old when the parties separated. She had not worked outside the home. She was not a high school graduate. Douglas was 59 years old and was a retired attorney. Douglas had "significant funds" in annuities and deferred compensation accounts. In 2004, the trial court admonished the parties to become self-sufficient. Douglas returned to work. In 2006, the trial court ordered Douglas to pay Gloria $3,500 in spousal support each month. It based the 2006 order on a determination that Douglas's employment income was $5,806 per month and that his other taxable income, actual and imputed, was $14,926 per month. Douglas had two annuities, which were "the keystone of his long-range investment strategy and retirement plan. His plan, prior to separation, was to 'amortize' these policies when he turned 65 in order to maximize the income from them." He had not amortized them, but the court imputed $10,350 per month income from the annuity policies. The court imputed $2,000 per month income to Gloria. It found she did not report her actual income to the court and did not comply with the trial court's admonition to become self-supporting. Douglas paid support as ordered. In 2013, Douglas was age 68 and retired. He asked the trial court to terminate his obligation to pay spousal support. The court conducted an evidentiary hearing. The trial court denied Douglas's motion, but it reduced his obligation to pay spousal support to $2,000 per month. It also ordered that support would terminate in December 2015. The court determined that Douglas's monthly income was $17,858, including the monthly payments he received from two annuities. These annuity payments included $10,350 in interest income and $4,900 in principal payments. On appeal, Douglas contends the court should not have included the $4,900 principal payments.