Bergquist v. Bergquist, 2024
Trishia Bergquist (the wife) appealed the Indiana Stueben County Circuit Court’s dissolution decree to the Indiana Court of Appeals. Several issues were raised. This digest covers the issue as to whether the circuit court abused its discretion by valuing the wife’s business at $160,000.
The wife was self-employed and owned her own business, the Bent Fork Art Studio. The Bent Fork Art Studio in Angola, Ind., sells home decor, women’s clothing, baby gifts, jewelry, candles, gift cards, accessories, and art.* The wife paid rent to herself and her father on a building that both of them jointly owned. The wife claimed her income from the business was approximately $75,000 per year.
Standard of review.
The court of appeals applied a two-tiered standard of review: first, whether the evidence supported the findings and, second, whether the findings of fact support the judgment. (Hamilton v. Hamilton) The court of appeals will set aside findings only if they are clearly erroneous. “[The court of appeals’] review of the evidence must leave it with the firm conviction that a mistake has been made.” (Campbell v. Campbell) When the court of appeals reviewed family matters, it granted latitude and deference to the trial court judges. “It is not enough on appeal that the evidence might support some other conclusion; rather, the evidence must positively require the result sought by the appellant. Accordingly, we will not substitute our own judgment if any evidence or legitimate inferences support the trial court’s judgment.” (Hamilton)
The value of the wife’s business.
The trial court assigned a value of $160,000 to the wife’s business. The wife argued she presented evidence that the liquidated evidence of the inventory was $84,824. Ryan Bergquist’s (the husband) proposed value of the wife’s business was $123,000. The wife contended the $160,000 was outside the range of values supported by the evidence. The parties’ accountant testified that the inventory was worth $105,790 if “sold and liquidated. She also testified there was no additional income or goodwill that she would attribute to the business.
Counsel for the husband tried to get the wife to agree that, with the 50% markup, the inventory would be worth $150,000, but the wife would not agree, as some items sold below the 50% markup and there was a cost to sell them. The court of appeals agreed that the circuit court’s value of $160,000 for the wife’s business was outside of the range of evidence the parties submitted. “Therefore, we reverse the trial court’s valuation of the business and remand this case to the trial court to determine a value to Wife’s business that is supported by the evidence and recalculate the equalization judgment accordingly.”
* Referred to as an “Art Studio” in the opinion. Angola is a small town in northeastern Indiana.