## Facts

- Lisa Lauderman (Mother) and Russell Nomura (Father) were never married and had one child together (born 1999); Mother had custody, and Father paid child support.
- In 2004, Father’s child-support obligation was set at $263 per week.
- In early 2007, Father accrued $3,419 in arrears but later paid the arrears in full.
- In November 2007, the Wyoming Department of Family Services (DFS) petitioned to modify Father’s child-support obligation downward.
- At the time of trial, Mother was unemployed and staying home with her newborn child (not related to Father).
- Mother had worked as a welder at L & H Industrial, Inc., from May 2007 until her termination in November 2007 shortly before giving birth; she had worked 12-hour shifts and had earned about $16 per hour.
- Mother acknowledged she was able to work and that jobs were available, despite her decision to remain at home with the newborn.
- Father was self-employed as a drywaller through his own company (RNR Drywall, Inc.) and was the sole owner and employee.
- Father testified that his business suffered after the construction industry collapsed in 2008; he also offered letters from contractors to corroborate that he sought work over a wider area and that contractors had no work available.
- The district court found Mother voluntarily unemployed and imputed income to her equal to her prior welding earnings (net monthly income found to be $2,562.00).
- The district court calculated Father’s net monthly income at $3,767.68, relying on his 2008 business income and future earning capability rather than his higher 2007 income because using prior, more profitable years would create an unrealistically high support obligation.
- The district court treated Father’s 2008 truck purchase as a proper business expense and did not include it as income.
- Based on these findings, the district court reduced Father’s support obligation to $650 per month (down from an amount roughly equivalent to about $1,100 per month under the prior weekly order).
- Mother appealed, challenging the income calculations and the admission of the contractor letters.

## Issues

1. Whether the district court abused its discretion in calculating the parties’ incomes for child-support purposes, including imputing income to Mother and using Father’s 2008 self-employment earnings and business deductions.
2. Whether the district court abused its discretion by admitting letters from contractors offered to corroborate Father’s testimony about reduced available work.

## Decision

- The Wyoming Supreme Court affirmed the district court’s order modifying child support.
- The Court held the district court did not abuse its discretion in finding Mother voluntarily unemployed and imputing income based on her recent welding job and admitted ability to work.
- The Court held the district court did not abuse its discretion in calculating Father’s income using 2008 earnings and expected near-term earning capacity in light of the 2008 construction downturn, rather than relying on higher prior-year income.
- The Court upheld the district court’s treatment of the truck purchase as a legitimate business expense in determining Father’s income.
- The Court held the district court did not abuse its discretion in admitting the contractor letters as corroborative evidence.

## Legal Principles

- Child-support modification decisions are reviewed for abuse of discretion.
- A court may impute income to a parent who is voluntarily unemployed when the record supports the parent’s ability to work and an earning level supported by recent work history.
- For a self-employed parent, the court may base income on actual, more recent business earnings and reasonable projections when the evidence shows that earlier, higher earnings no longer reflect current market conditions.
- In determining income available for child support, a court may deduct reasonable and necessary business expenses; whether an expense (including a vehicle purchase) is properly treated as a business expense is a fact-based determination for the trial court.
- Evidentiary rulings in child-support proceedings are reviewed for abuse of discretion; corroborative documents may be admitted when used to support testimony about income conditions and work availability.

## Conclusion

Lauderman affirmed a downward modification of Father’s child-support obligation because the district court reasonably imputed income to Mother based on her prior welding earnings and her acknowledged ability to work, reasonably calculated Father’s income from his 2008 self-employment results given the construction downturn, properly treated the truck purchase as a business expense, and permissibly admitted contractor letters corroborating Father’s lack of available work.


Lauderman v. Wyoming Department of Family Services, 232 P.3d 604 (2010)