In Re Marriage of Kirk

The superior court, on a motion to modify support obligations, terminated Von D. Kirk’s obligation to pay spousal support to his former wife, Jane A. Kirk, and reduced his obligation to pay child support to $1,200 per month. The court determined not to consider as part of Von’s gross income $4,450 per month which he received in the form of a reduction of debt owed to his employer. Jane appeals, seeking review of the court’s decision not to consider the debt reduction in calculating Von’s support obligations.

Factual and Procedural Background

Jane Kirk (hereafter Jane) and Von Kirk were married in 1970. They separated in 1982; dissolution proceedings were begun in May 1982; and an interlocutory judgment of dissolution was entered on June 20, 1983. The marriage produced four children, whose legal custody is shared by Von and Jane, with sole physical custody in Jane.

At the time of the filing for dissolution Von was principal owner and controlling shareholder of KTK, Inc., which operated Kirk Volvo, an automobile dealership. Following separation he caused large sums to be advanced to himself which were treated as a loan from the corporation. At the time of the review…