Carleton and Carleton

Under OAR 137-050-0715(1), (2) and (4)(f), accelerated depreciation may be excluded from calculation of a party's income when determining support; when neither party presents evidence regarding what portion of depreciation expenses are accelerated, and the court points this out with opportunity to clarify, the court may properly exclude the entire amount if the support formula is properly applied.

Wife filed for dissolution of marriage and child and spousal support. The court entered an order for Husband to pay Wife (and Child attending school) child support but no spousal support. At trial, both parties presented testimonial evidence from accountants regarding calculation of Husband's income from his one third interest in a partnership, which excluded a significant amount of depreciation expenses. The guidelines under OAR 137-050-0715(4)(f) provide that ordinary and necessary expenses for accelerated depreciation expenses may be excluded from income, but because neither party presented evidence showing what portion of the depreciation was accelerated, and the court was unwilling to guess, all depreciation was excluded from Husband's income. On appeal, Wife challenged this calculation of Husband's income. The Court held the trial court was obligated to calculate Husband's support by using the formula established under ORS 25.275, using both parties' income determined under OAR 137-050-0715(1), (2) and (4), and that the court understood them and properly calculated income based on those guidelines. Affirmed.