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In re Marriage of Jones6/9/2004
child support obligation. As the party seeking the modification, he had to prove the change in circumstances by a preponderance of the evidence. Walters, 575 N.W.2d at 741; In re Marriage of Feustel, 467 N.W.2d 261, 263 (Iowa 1991). We agree with the district court that he met the burden of proving his income has substantially decreased, and he is no longer able to pay child support of $125 a week. Kathy has not challenged the district court's finding that Timothy's current income is $36.38 a week, or $1,891.76 a year. In applying the child support guidelines to that amount his child support should be $50 a month. Iowa Ct. R. 9.12.
The Iowa Child Support Guidelines are to be strictly followed unless applying the guidelines leads to an unjust or inappropriate result. State ex rel. Reaves v. Kappmeyer, 514 N.W.2d 101, 104 (Iowa 1994). Having determined the amount of support owed under the guidelines is $50 a month, we need next determine whether an adjustment to increase Timothy's child support to $125 a week is warranted. The guideline amount may be adjusted upward or downward if the court finds an adjustment necessary to provide for the needs of the child. In re Marriage of Beecher, 582 N.W. 2d 510, 513 (Iowa 1998).
In arguing that Timothy should pay $125 a week, Kathy focuses on Timothy's lump sum payment and the fact he paid bills out of it. Workers' compensation benefits are directly related to the worker's former earnings and his or her ability to earn income in the future. See Deaver v. Armstrong Rubber Co., 170 N.W.2d 455, 466 (Iowa 1969). Ordinarily, compensation is awarded for incapacity to earn or industrial disability and not for the injury. Id. In Swan, 526 N.W.2d at 325, the court addressed the question of whether a parent's lump sum workers' compensation benefit should be considered income for purposes of applying the child support guidelines in the year it was paid, or whether it should be considered income in the weeks for which the benefits were paid. The court wisely refused to adopt one rule to be applied in all cases, holding the appropriate treatment of a lump-sum payment of workers' compensation benefits depends on the circumstances of each case. Swan, 526 N.W.2d at 325. However, in Swan they did consider the parent's lump sum award as income apportioned over the weeks for which it was paid. Id. at 325-26.
While Kathy relies exclusively on Swan, 526 N.W.2d at 326, she does not argue that the total lump sum payment should be considered income for child support purposes in the year it was received, and she has failed to provide us with any computation of what Timothy's child support would have been in the year 2003 if his income in that year had been $70,000. That said, we find no reason to depart from the district court's decision to apportion the lump sum award over Timothy's lifetime. In arriving at this decision, we have considered that it was apportioned for a permanent disability; Timothy's income has been substantially reduced; if he receives social security disability benefits, Nicole, as a minor, will also receive benefits; and Timothy paid $5,900 in back support from the settlement proceeds.
We recognize there are times when a court can impose a trust on the proceeds from a lump sum workers' compensation settlement to provide a fund for payment of future child support. See Iowa Code ยง 598.21(1) (providing that the court may set aside part of a parent's property in a separate fund to be used for the support of the children). Kathy does not specifically ask that a trust be established. She seems to contend the money should have been paid to her immediately. Yet she cites no authority to support such an order, nor do we find such an order justifi
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