BERGER, J.
This case arises from an order of the Circuit Court for Talbot County modifying the amount of child support to be paid by appellant, Edmund A. Cutts, Jr. ("Father"), to appellee, Nancy L. Trippe ("Mother"). The court also found that the parties' eldest child was a destitute adult child, as defined by statute, and that the parties therefore had a continuing obligation to support her. This appeal followed.
Father presents two questions for our review, which we have rephrased as follows:
For the reasons set forth below, we affirm the judgment of the Circuit Court for Talbot County.
Father and Mother are the divorced parents of three children. Pursuant to the judgment of divorce, entered on February 3, 2005, the parties have joint legal custody of the children, subject to Father's specified visitation. The divorce decree, which incorporated the terms of a settlement agreement between the parties, required Father to pay $200 per week to Mother for the support of the children. Father was also ordered to provide health insurance coverage for the children.
Mother was required to pay all uninsured health expenses, co-pays, and deductibles up to $1,000 for a single illness or condition, without contribution from Father. Expenses over $1,000 would be paid one-third by Father and two-thirds by Mother. Mother was further ordered to pay the children's costs for private school, special education fees, book costs, room and board, and other private school expenses, without contribution from Father. Both parties' support obligations were set to terminate upon the first to occur for each child: (1) death of the child or parent; (2) marriage of the child; (3) the child becoming self-supporting; or (4) the child turning age 18, except if still in high school, in which case, support would continue until the child's graduation or the child's nineteenth birthday, whichever occurred first.
The oldest child, Sarah, was born on November 23, 1990. She was 19 years old at the time of the child support modification trial. Sarah was diagnosed with mild mental retardation at a young age. She has attended special schools her entire life and requires constant supervision. At the time of trial, Sarah attended a special school in New York for students who have an IQ below 70. When Sarah returns from school for weekends, holidays, and summer breaks, she resides at Mother's home, where she has her own room. Sarah is the beneficiary of a trust with a value of approximately $400,000 ("the trust"). Mother is the trustee of Sarah's trust, and has the sole power to disburse trust funds.
On March 8, 2010, Father filed a timely response to the motion to modify child support, and thereafter filed a counterclaim and amended counterclaim. The counterclaim alleged that there had been a material change in circumstances based on the children's attendance at boarding schools, and asked the court to establish a new custody and visitation schedule.
On February 1, 2011, a two day trial commenced. Mother filed a financial statement with the court detailing her monthly expenses for the three children. Mother testified that she pays 10 percent of the tuition for each child, and that her parents pay the balance. Aside from the tuition assistance provided by her parents, Mother testified that she pays for all of the children's other expenses, including food, transportation, clothes, summer camps, and tutors. In 2008, the children's health insurance provider initiated an $1,800 deductible, whereas there previously was no deductible. This deductible increased to $2,400 after December 2008. There was also a decrease in coverage for psychological care, from 80 percent to 20 percent, and increases in co-payment obligations. In the period between 2008 and 2009, Mother testified that she paid between $2,300 and $2,400 in deductibles on the health insurance policy. In the period between 2009 and 2010, Mother paid a similar amount.
As to Sarah in particular, Mother testified that she prepares Sarah's food and coordinates her medical appointments when Sarah is home. Mother partially paid $6,500 for Sarah's orthodontic bill, $603 for Sarah's oral surgery, and $200 to repair a broken orthodontic wire. Mother also introduced medical bills for Sarah totaling $4,520.95, which were related to Sarah's treatment for mild mental retardation.
Father testified that he was paying monthly insurance premiums of $1,112, which was an increase from the monthly premiums of between $500 and $600 charged at the time of the divorce. At trial, Father did not contest the amount of Sarah's orthodontic bills and agreed to be responsible for unpaid balances on those bills. Father, however, testified that he would not contribute to certain other medical expenses because, contrary to Mother's testimony, he had not been consulted about those expenses in advance.
The parties stipulated that Mother's income for the previous year was $72,601. The recent economic recession had affected Mother's income, resulting in a $90,000 to $100,000 reduction in income due to lost real estate commissions. Father's income for the prior year was $83,425.
The trial court issued a memorandum opinion on June 9, 2011. The trial judge found that Sarah was a destitute adult child within the meaning of Md.Code (1984, 2006 Repl.Vol.), §§ 13-101 and 13-102 of the Family Law Article ("FL"), and was therefore entitled to continuing support from Mother and Father. The court also found that there had been a material change in circumstances due to Mother's
We apply the clearly erroneous standard in reviewing a trial court's determination as to whether a child is a "destitute adult child" under FL §§ 13-101 and 13-102. Corby v. McCarthy, 154 Md.App. 446, 840 A.2d 188 (2003) (applying clearly erroneous standard to destitute adult child determination); Goshorn v. Goshorn, 154 Md.App. 194, 838 A.2d 1247 (2003). The clearly erroneous standard also applies to the review of modifications of child support. Ley v. Forman, 144 Md.App. 658, 800 A.2d 1 (2002) (applying clearly erroneous standard to review of a child support modification). However, "where an order [of the trial court] involves an interpretation and application of Maryland constitutional, statutory, or case law, our Court must determine whether the trial court's conclusions are `legally correct' under a de novo standard of review." See Schisler v. State, 394 Md. 519, 535, 907 A.2d 175 (2006).
Father argues that the trial court erred by determining that the parties' daughter, Sarah, is a "destitute adult child" within the meaning of FL §§ 13-101 and 13-102 for three reasons: (1) failure to consider evidence of Sarah's trust; (2) failure to make specific findings of fact regarding Sarah's reasonable living expenses; and (3) failure to weigh Sarah's expenses against her resources. Mother contends that the trial court did not err because the trust is not a currently available resource, and there was ample testimony regarding the daughter's reasonable expenses upon which to base a finding that she is a destitute adult child. We agree that the trial judge did not err in finding that Sarah is a destitute adult child.
Parents have a statutory duty to support an adult destitute child. FL § 13-102 provides, in pertinent part:
A "destitute adult child" is defined as "an adult child who: (1) has no means of subsistence;
We first consider whether a trust constitutes a "means of subsistence." No Maryland court has seemingly addressed this particular issue. We have, however, held that only resources that are currently available to a child should be considered in the destitute adult child analysis. In Presley, for example, we emphasized the focus on a child's "current situation," and cautioned that future resources should not be considered in the analysis. Presley v. Presley, 65 Md.App. 265, 278-79, 500 A.2d 322 (1985) (holding that the trial court should examine "the child's available assets" based on the child's "current situation....") (emphasis added). We further explained:
Id. at 279, 500 A.2d 322.
Here, the trial court considered the trust, but excluded it from the destitute adult child analysis on the basis that Sarah had no right to access the trust funds, nor had any funds ever been disbursed to Sarah. The trial judge explained:
This is analogous to the situation in Presley. Sarah's need for support may change in the future due to the trust, but that has no bearing on Sarah's current need for support. Since the trial judge found that the trust is not currently available to Sarah, the trial court was legally correct in excluding the trust from its analysis. Further, our analysis is underscored by the Maryland Discretionary Trust Act. See Md.Code (1994, 2012 Repl.Vol.), § 14-401 et seq. of the Estates & Trusts Article ("ET"). ET § 14-402(a)(2) provides that:
Accordingly, we hold that a trust may not be considered as an available resource in the destitute adult child analysis.
Father next argues that Mother "utterly failed to produce evidence at trial" of Sarah's "reasonable living expenses," and that the trial judge erred by failing to make findings of fact regarding Sarah's expenses. We disagree.
First, we note that the concept of "reasonable expenses" does not appear in the language of the statute itself. Pursuant to FL § 13-102(b), a parent with sufficient means may not "refuse to provide the destitute
Id. (emphasis added).
In its memorandum opinion, the trial court summarized Sarah's expenses as established through the parties' testimony. Our review of the record shows that the trial judge also considered the reasonableness of these expenses. Mother filed a financial statement with the court listing her monthly expenses for Sarah and the other children. At trial, Father scrutinized each expense, item by item. Father's counsel questioned Sarah's medical expenses as well as the expenses incurred for a diagnostic evaluation performed on Sarah by a PhD, on the basis that a PhD "is not a medical doctor." Mother explained that although not a medical doctor, the PhD was a doctor specializing in children with learning disabilities. Mother further testified that the PhD performed educational testing, and diagnosed Sarah with attention deficit disorder. Father's counsel sought to undermine this explanation by questioning why Sarah was seemingly not put on medication for the disorder until three years later. Mother explained that Sarah was, in fact, put on medication right away, but that there were no prescription expenses submitted initially because Sarah first went through trials of medication and received samples from the doctor.
Next, Father's counsel questioned the transportation expenses listed on Mother's financial statement. Mother explained that the expenses included gas, tolls, hotels, flights, etcetera for transportation for Sarah back to school. Mother testified that about two thirds of the total transportation costs were for Sarah because of the distance to her school in New York. Due to the distance, Mother was required to spend the night in a hotel when taking Sarah to school.
Additionally, Father's counsel questioned the educational expenses. Mother explained that "half of that [amount] was the initial deposit. I know the deposit for Sarah's school is $4,000.... There's also tuition insurance which is two percent of the total cost of tuition ... plus the text books.... You've got, you know, there are other book store supplies, sports equipment, fees for clubs, photography course fees. That's what all these other expenses are."
The trial court also carefully considered the reasonableness of these expenses throughout the trial. For example, Father challenged the reasonableness of expenses for the children's shelter and utilities, arguing that such expenses "are greatly diminished by the fact that [the children are] in boarding school for the vast majority of the year." The trial judge interjected: "Well doesn't [Mother] need a home for [the children] to reside in on the weekends, and vacations[,] and in the summer? It's not like she can downsize to a[n] efficiency apartment." Similarly, the trial judge rejected Father's contention that
We hold that there was ample evidence and testimony that Sarah is incurring reasonable expenses that trigger parental support under the destitute adult child statute. In our view, the trial court was not clearly erroneous in structuring its memorandum opinion with a summary of the reasonable expenses incurred based on testimony, rather than explicit findings of fact regarding the expenses.
Finally, Father argues that the trial court erred in its application of the destitute adult child statute by failing to compare Sarah's expenses to her resources. We hold that the trial court applied the proper standard.
We begin our analysis by revisiting the applicable statutory language. A "destitute adult child" is defined as "an adult child who: (1) has no means of subsistence; and (2) cannot be self-supporting, due to mental or physical infirmity." FL § 13-101(b) (emphasis added). We have extended this definition to include not only individuals with no means of subsistence, but also those with expenses that exceed their resources. See, e.g., Presley, 65 Md.App. 265, 500 A.2d 322 (child with income of $14,200 qualified as a destitute adult child); Corby, 154 Md.App. 446, 840 A.2d 188 (2003) (child with income of $22,000 qualified as a destitute adult child). Thus, the mere fact that an adult with physical or mental infirmities has a job or other source of income is not an automatic bar to parental support. In cases where a child has financial resources, "the court must weigh [the child's] total reasonable living expenses against her existing available resources. If it finds a net deficit — a need for parental support — it may then order such support." Presley, 65 Md.App. at 279, 500 A.2d 322. Upon finding a deficit, the resulting order of support is to be calculated based upon the Guidelines. Goshorn, 154 Md.App. at 219, 838 A.2d 1247.
In concluding that Sarah qualified for support as a destitute adult child, the trial court, in a memorandum opinion, addressed the statutory requirements of FL §§ 13-101 and 13-102, as well as our interpretation of these provisions in Presley. The court first summarized the testimony regarding Sarah's medical, educational, and general living expenses. The court then addressed Sarah's resources and ability to provide for herself. The court determined that Sarah was unable to provide for herself, and that she had no available resources or capacity to work due to mental infirmity. Additionally, the court set out the parties' incomes, and found and that Mother's and Father's incomes were "sufficient to provide for Sarah's support." Accordingly, the court concluded that Sarah is a destitute adult child within the meaning of the statute, and therefore entitled to continuing child support. The court calculated the amount of support based on the Guidelines.
Father concedes on appeal that Sarah meets the requirement of the second prong of FL § 13-101(b); namely, the inability to
In our view, Sarah fits the classic statutory definition of "destitute," and therefore a balancing analysis was unnecessary. The trial court determined, based on testimony, that Sarah had no job, received no disability benefits or other assistance, and had no other available financial resources. Thus, by definition, Sarah is destitute — she has "no means of subsistence." FL § 13-101(b). Accordingly, under these circumstances, there was no need for the trial judge to go any further and weigh Sarah's financial resources against her expenses, because there were simply no financial resources to consider. The purpose of establishing the balancing test in our prior decisions was not to impose a formulaic straightjacket on trial judges, but rather to extend support to those who otherwise would not qualify under the plain language of the destitute adult child statute. For that reason, Presley and Corby recognized that parents have a duty to support not only adult children with "no means of subsistence," but also those with insufficient financial resources. In sum, there are two types of individuals who qualify as destitute adult children under the statute. First, there are those with no financial resources or earning capacity, and thus by definition destitute. Second, there are individuals who have financial resources, but nevertheless are destitute due to a net deficit between reasonable living expenses and financial resources — a finding that can only be ascertained by conducting a balancing analysis.
Our rationale is bolstered by several important considerations. First, requiring courts to go through the motions of a balancing test in cases where a child has no source of income would be meaningless; if a child has no resources whatsoever, any showing of reasonable expenses will, by default, constitute a deficit. Second, our prior cases addressing this statute, such as Presley and Corby, involved children with jobs, and thus required a different analysis than the instant case. Accordingly, we hold that the trial judge applied the proper standard in determining that Sarah constituted a destitute adult child.
Father argues that the trial judge failed to find that the children's significantly reduced time at Mother's home was also a material change in circumstances that warranted a reduction in his child support obligations. Father also argues that the trial judge erred by failing to consider Sarah's trust, and, as a result, erred by adhering strictly to the Guidelines in determining Father's support obligation.
A trial court may modify a party's child support obligation if a material change in circumstances has occurred which justifies a modification. Ley v. Forman, 144 Md.App. 658, 665, 800 A.2d 1 (2002). "Once a material change in circumstances has occurred, the court must apply the guidelines in [Sections] 12-202 to 12-204 of the Family Law Article to determine the level of support to which the child is currently entitled." Rivera v. Zysk, 136 Md.App. 607, 619, 766 A.2d 1049 (2001). Under FL § 12-202(a)(2)(i), "[t]here is a rebuttable presumption that the amount of child support which would result from the application of the child support guidelines... is the correct amount of child support to be awarded." In order to rebut that presumption, a party must produce "evidence that the application of the guidelines would be unjust or inappropriate in a particular case." FL § 12-202(a)(2)(ii). See also Corby, 154 Md.App. at 496, 840 A.2d 188 (the trial court "is vested with discretion
Father first contends that the fact that the children spent significant time at boarding schools amounted to a material change in circumstances. As such, Father argues that the court should have only awarded one third of the Guidelines support amount to reflect the amount of time that the children actually spend at Mother's home. The trial judge rejected this argument, observing that: "Well doesn't she need a home for them to reside in on the weekends, and vacations[,] and in the summer?.... It's not like she can downsize to a[n] efficiency apartment." Additionally, the trial judge observed:
Father does not dispute that the children reside at Mother's home on weekends, holidays, and summer breaks. We, therefore, hold that the trial court was not arbitrary in its decision, nor was it "clearly wrong" to decline to depart downward from the Guidelines in this situation.
Finally, Father argues that the trial court should have considered Sarah's trust, and on that basis departed downward from the Guidelines. Although it is true that in "determining the amount of support, the court shall consider the financial circumstances of the individual," the trust was properly excluded from the analysis because it is not an asset currently available to Sarah.
For the foregoing reasons, we affirm the judgment of the circuit court.