Armen V. Nahabedian and Natalya V. Konishcheva
Case No: 16FL02253
Hearing Date: Tue Oct 01, 2019 10:30

Nature of Proceedings: Req. for Order: Spousal Support/Attorney Fees and Costs

Respondent’s RFO: Spousal Support; Attorney Fees and Costs

Attorneys:

Petitioner [“father”] in pro per;

Marcus Morales for Respondent [“mother”]

Rulings:

1. Father is ordered to pay $3,121 per month in spousal support retroactive to the date of filing mother’s RFO, June 12, 2019; and

2. To pay $25,000 in need-based attorney fees and costs to mother’s counsel, Marcus Morales, forthwith.

3. This case needs to be expedited. A Mandatory Settlement Conference is set for Friday February 7, 2020, in Department 5 at 8:30 am; settlement briefs due one week in advance; and

4. Trial is set for February 25, 2020, at 11:30 am.

Analysis

Father filed for Dissolution in 2016; mother filled her response for dissolution in 2/2019.

Mother RFO filed 6/12

Seeks spousal support [$6,000] and attorney fees [$25,000] and costs [$5,000]; mother claims that father filed for dissolution in 2016; father and she were married in July 2004 and, according to her response filed February 2019, we separated in June 2019. The marriage lasted almost 12 years; they have one minor child, a son, born October 1, 2004; during marriage, father opened an oil business named Citadel; he was the President and CEO of the business from August 2011 to May 2019; in June 2018 the business made $206,550 in that month; Citadel Exploration Inc. is a publicly traded company under the stock symbol COIL; current price per share is 0.062; father has the funds to pay her support, and has been paying all of her expenses; since separation, she has been working as a realtor in the Santa Barbara area but has not been making an income as her expenses exceed any potential income; when they separated, father agreed to and has been paying for her monthly rent, which equals to $3,600/mo; he also currently pays all her expenses, including rent and all living expenses; but every month he complains about paying her and threatens to cut her off; she claims she needs a support order so that he cannot choose when he wants to pay her; she is a realtor, but has not sold a home in many years; income is currently zero.

Her request is supported by an attorney fee declaration.

Father’s I&E Declaration

Reports his average monthly income through April 2019 was $10,000 per month; has had additional $2,200 per month from business consulting sources; BUT he claims he has no income now as he is no longer employed by Citadel; reports he pays $1,000/mo for children of another relationship; that he has cash of only $500 and other assets are minimal; living expenses are $4,100/mo; reports very significant installment debt; time share reporting is confusing but appears to be 50/50 unless otherwise agreed; reports there is no health insurance for the minor child; child care costs reported at $700/mo. Reports mother’s expenses are $2,700/mo rent and he pays all her utilities and many other expenses; she recently purchased a new car.

Mother’s 20-page Reply filed 8/20

Father does not dispute that until recently he was the Director, CEO & President of Citadel, a publicly traded company. As a publicly traded company, Citadel is required to file financial statements and show its executive compensation with the Securities Exchange Commission (“SEC”). The attached SEC filings show that father’s Executive Compensation was $720,000 in 2018 and $637,936 in 2017; his executive compensation was $53,161 per month in 2017 and $60,000 per month in 2018; his claims of sudden poverty are contrary to the SEC filings. Citadel’s most recent Form filed with the SEC showed total assets of $6,903,488 as of June 30, 2019, and $7,414,893 in total assets of December 31, 2018; father is Citadel’s largest shareholder. The SEC Form 8-K report shows that father tendered his resignation as Director, CEO & President of Citadel on May 1, 2019. This was only two months after mother retained an attorney and filed her Response and Request For Dissolution of Marriage, requesting spousal support. The timing of his resignation is a clear ploy to attempt to avoid his financial obligations to mother; he was not pushed out, he quit.

Father has produced zero bank statements; produced zero tax returns; has not provided a Schedule of Assets and Debts. Mother requests that he be ordered to pay $6,000 per month in spousal support retroactive to the date of filing this RFO, June 12, 2019; be ordered to pay $25,000 in need-based attorney fees and costs to mother’s counsel, Marcus Morales.

Father’s additional Response or Reply filed 9/12

The additional filing is not authorized, but the Court has read it all anyway; even though father, unaccountably, hand wrote it.

Mother’s Sur-Reply filed 9/24

Mother acknowledges that father filed responses on 9/12. Mother continues to report that she is not working and has been supported by father after separation, and continuing today; she now has the 2017 and 2018 income tax returns; tax returns prove that father has misrepresented his income; 2017 tax return reports he received $120,000 in wages and salary; his 2018 tax return likewise reports $120,000 in wages and salary, all from his employment; his yearly income of $120,000 is appropriate to set temporary guideline spousal support; he should be ordered to pay guideline spousal support and need-based attorney fees to mother based on his income of $120,000.00; she has no income and has received no compensation in real estate, contrary to father’s claims. Father has not provided a single document showing that mother has earned any income; she currently survives by father paying her living expenses; mother is unable to pay for living expenses; father admits that he has financially helped her, but claims that he is going deeper into debt by helping her; he has failed to provide bank statements showing the Court the true nature of his income and assets; has not provided proof of any debts that he has incurred to support her; he should be ordered to pay spousal support to her and pay her attorney fees; to date, Morales Law has received zero dollars in attorney fees from mother, father or any other third party for work on this case.

Requested Relief: pursuant to her DissoMaster [Exhibit 2] father be ordered to pay $3,121 per month in spousal support retroactive to the date of filing mother’s RFO, June 12, 2019, and to pay $25,000 in need-based attorney fees and costs to mother’s counsel, Marcus Morales, forthwith.

The Court’s Conclusions

Mother’s requests are all reasonable.