Ball v. Ball, 2025 UT App 200
Case Summary
Timothy Alexander Ball and Natalie Ball married in February 1999 and had four children together. During the marriage, Timothy spent over $50,000 in marital funds on “pen pal” dating websites while pursuing what he admitted were inappropriate relationships with other women, concealing this conduct from Natalie for at least three years; discovery of one such relationship prompted Natalie to file for divorce in December 2020. Following a two-day trial, the district court entered a divorce decree awarding Timothy custody of the children, modest alimony to Natalie, and an equal split of the marital home’s equity—but it reallocated the entirety of Timothy’s share of that equity, in the amount of $54,003.42, to Natalie as an offset for his dissipation of marital funds. Timothy appealed, challenging both the size of that offset and the district court’s denial of his request for attorney fees under rule 68 of the Utah Rules of Civil Procedure.
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Briefing Documents
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Facts
Marriage and Family:
- Timothy and Natalie were married in February 1999 and had four children during the marriage.
- During the marriage, Timothy engaged in what he termed “pen pal” relationships with other women through dating websites, which he admitted were “inappropriate.”
Dissipation of Marital Funds:
- Timothy spent over $50,000 in marital funds on the dating websites and actively concealed this activity from Natalie for at least three years.
- At trial, Timothy admitted to spending $54,003.42 in marital funds on the dating sites and to actively concealing these charges from Natalie.
- Discovery of one of these relationships served as the catalyst for Natalie’s decision to file for divorce.
Divorce Petition and Settlement Offer:
- The parties separated in October 2020, and Natalie filed her petition for divorce in December 2020, seeking sole legal and physical custody, $2,068 per month in child support, $2,000 per month in alimony for the length of the marriage, and the marital home along with all of its equity.
- Timothy later filed a rule 68 settlement offer proposing joint legal and physical custody, $674 per month in child support, $1,200 per month in alimony for ten years, and 10% of the home equity (he asserted the home actually belonged to his father and that the couple was entitled to only 20% of the total equity).
- Natalie did not accept Timothy’s settlement offer, and the case proceeded to a two-day trial.
Divorce Decree — Custody, Support, and Alimony:
- The district court awarded Timothy sole legal custody and primary physical custody of the children, with Natalie receiving parent-time and being ordered to pay $512 per month in child support.
- The court found Natalie had an unmet monthly need of $1,188.73 and that Timothy’s income exceeded his expenses by $418 per month, and on that basis awarded Natalie $400 per month in alimony.
Marital Home and the Dissipation Offset:
- The court rejected Timothy’s contention that the marital home belonged to his father and found unpersuasive his claim that his father was owed repayment for funds advanced toward the home.
- The court ordered the home sold and its equity split equally, but reallocated part of Timothy’s share to satisfy other property awards to Natalie, the largest being the full $54,003.42 he had spent on the dating websites.
- The court reasoned that Natalie “should not have suffered the consequences” of Timothy’s dissipation of marital assets and awarded her the full amount from Timothy’s share of the home equity.
Rule 59 Motion to Amend:
- Timothy moved under rule 59 to amend the decree, arguing that Natalie should receive an offset of only half the $54,003.42, since if the funds had remained in a joint account she would have been entitled to only 50% of them, and that the full award was not supported by any finding of exceptional circumstances or, alternatively, was improperly punitive.
- The district court denied the motion, clarifying that the full award was not intended as punishment but was based on Timothy’s own trial testimony that he did not believe Natalie should bear any responsibility for the funds he had squandered.
Attorney Fees Motion:
- Timothy separately moved for an award of attorney fees under rule 68, arguing that his settlement offer represented a greater value to Natalie than what she ultimately received at trial.
- The district court denied the motion, reasoning that fee awards “as permitted by law” for establishing an order are governed by need, ability to pay, and reasonableness, and that Natalie had been found to be financially in need and lacked the ability to pay Timothy’s requested fees.
Issues of the Case
Timothy Alexander Ball, as appellant, raised two issues on appeal.
Issue 1: Offset for Dissipated Marital Funds
Issue 2: Denial of Attorney Fees Under Rule 68
The Court of Appeals reversed and remanded on Issue 1, concluding that the district court exceeded its discretion by awarding Natalie an offset equal to the full amount of the dissipated funds rather than half that amount. The Court affirmed on Issue 2, concluding that the district court did not exceed its discretion in denying Timothy’s request for attorney fees.
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Property Division — Dissipation of Marital Assets
Claim on Appeal: Timothy conceded that it was his fault the $54,003.42 was lost and that Natalie should not bear responsibility for that loss, but argued the district court went too far by awarding her an offset equal to the entire amount rather than only half of it.
Holding: — Reversed and Remanded. The Court of Appeals agreed that the district court miscalculated the offset: awarding Natalie the full $54,003.42, rather than half of that amount, gave her a windfall beyond what was necessary to make her whole, so the case was remanded for the offset to be recalculated.
Statutory Authority: No Utah Code provision directly governs the calculation of a dissipation offset; the rule applied is a common-law equitable-distribution principle drawn from Utah Supreme Court precedent.
Standard of Review:
- Considerable discretion / presumption of validity — applied to the district court’s adjustment of the parties’ financial and property interests in a divorce action; reversal is warranted only for (1) a misapplication of law causing substantial and prejudicial error, (2) clearly erroneous factual findings, or (3) an inequity so serious as to manifest a clear abuse of discretion.
Controlling Cases:
- Gardner v. Gardner, 2019 UT 61, 452 P.3d 1134 (setting out the deferential standard of review for a district court’s division of marital property)
- Beverlin v. Beverlin, 2025 UT App 72, 572 P.3d 428 (marital property is presumptively divided equally absent exceptional circumstances, which must be memorialized in detailed findings)
- Goggin v. Goggin, 2013 UT 16, 299 P.3d 1079 (establishing that a spouse who dissipates marital assets should be charged with the dissipation, but the non-dissipating spouse’s offset should ordinarily equal only half of the dissipated funds, since half belonged to the dissipating spouse in any event)
Why It Matters: The decision reinforces Goggin’s rule that a dissipation offset is designed to make the wronged spouse whole, not to penalize the dissipating spouse or award a windfall—so absent findings of exceptional circumstances justifying a larger award, the offset should ordinarily equal half of the dissipated funds. Practitioners litigating dissipation claims should anchor their offset requests to this 50% baseline and be prepared to justify, with specific findings, any request to deviate from it, even where the dissipating spouse concedes fault at trial.
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Attorney Fees
Claim on Appeal: Timothy argued that because his rule 68 settlement offer was, on balance, more favorable to Natalie than what she ultimately received at trial, the district court erred in refusing to award him attorney fees.
Holding: — Affirmed. The Court of Appeals held that the district court did not exceed its discretion in denying fees, because rule 68 does not independently authorize attorney fee-shifting in a divorce action, and the statutory needs-based analysis supported denial given the evidence of Natalie’s financial need and inability to pay.
Statutory Authority: Utah Code § 30-3-3(1) (2020) (current version at Utah Code § 81-1-203(1)(a)) — authorizes an award of attorney fees in a divorce action, to enable a party to prosecute or defend the action, based on the receiving spouse’s financial need, the other spouse’s ability to pay, and the reasonableness of the requested fees.
Standard of Review:
- Broad discretion / presumption of correctness — applied to the district court’s award or denial of attorney fees, reversed only for a clear abuse of discretion.
- Highly deferential / clearly erroneous — applied to the district court’s underlying factual findings regarding need and ability to pay.
Controlling Cases:
- Cox v. Cox, 877 P.2d 1262 (Utah Ct. App. 1994) (rule 68 applies only to taxable costs; attorney fees are not taxable costs and may be awarded only where contractual or statutory liability exists)
- Alpha Partners, Inc. v. Transamerica Inv. Mgmt., LLC, 2006 UT App 331, 153 P.3d 714 (reaffirming that rule 68 does not itself authorize an award of attorney fees)
- Mark v. Mark, 2009 UT App 374, 223 P.3d 476 (broad discretion afforded to a district court’s award of attorney fees)
- Dahl v. Dahl, 2015 UT 79, 459 P.3d 276 (highly deferential review of a district court’s factual findings)
- LeFevre v. Mackelprang, 2019 UT App 42, 440 P.3d 874 (attorney fee award in a divorce action must be based on financial need, ability to pay, and reasonableness)
- Busche v. Busche, 2012 UT App 16, 272 P.3d 748 (a district court is not required to treat a party’s assets, such as home equity, as income when assessing ability to pay)
- State v. Kitches, 2021 UT App 24, 484 P.3d 415 (an appellate court may resolve a claim on the merits in a party’s favor without first addressing preservation)
Why It Matters: The opinion confirms that a favorable rule 68 settlement offer does not, by itself, entitle a party in a domestic relations case to attorney fees; because rule 68 fee-shifting for divorce actions is channeled through the statutory needs-based framework, an offeror who prevailed on paper under rule 68 can still be denied fees if the offeree lacks the ability to pay. This limits rule 68 as a fee-shifting tool in family law and directs practitioners back to the traditional need/ability-to-pay/reasonableness analysis.
Rules of Evidence
Utah Codes
Need-Based Attorney Fees
Governs:
Authorizes a court in a domestic relations action to order one party to pay the other party’s attorney fees to enable that party to prosecute or defend the action. An award is based on the receiving party’s financial need, the other party’s ability to pay, and the reasonableness of the requested fees.
Opinion Quote:
“The district court here appropriately turned to the statutory provision addressing attorney fees in the divorce context, which provided that the court may order one party to pay the attorney fees of the other party ‘to enable the other party to prosecute or defend the action.’ Utah Code § 30-3-3(1) (2020) (current version at Utah Code § 81-1-203(1)(a)).” Ball v. Ball, 2025 UT App 200, ¶ 21.
Application in the Case:
Applying § 30-3-3(1), the Court of Appeals affirmed the district court’s denial of Timothy’s request for attorney fees. The court held that Rule 68 does not independently authorize attorney-fee awards in divorce actions and that attorney fees must instead be evaluated under the statutory factors of financial need, ability to pay, and reasonableness. Because the district court found that Natalie remained financially unable to pay Timothy’s attorney fees, denial of the request was proper. Ball v. Ball, 2025 UT App 200, ¶¶ 21–23.
Utah Legislature:
https://le.utah.gov/xcode/Title81/Chapter1/81-1-S203.html
Rules of Civil Procedure
Settlement Offers
Governs:
Allows a party to make a formal settlement offer before trial. If the offeree rejects the offer and fails to obtain a more favorable judgment, the offeree may be required to pay the offeror’s post-offer taxable costs. Rule 68 does not independently authorize an award of attorney fees.
Opinion Quote:
“Rule 68 provides, ‘If the adjusted award is not more favorable than the offer, … the offeree shall pay the offeror’s costs incurred after the offer.'” Ball v. Ball, 2025 UT App 200, ¶ 20.
Application in the Case:
Timothy argued that because his Rule 68 settlement offer was more favorable to Natalie than the ultimate divorce decree, he was entitled to attorney fees. The Court rejected that argument, holding that Rule 68 authorizes only taxable costs and does not independently provide a basis for attorney-fee shifting in divorce actions.
Utah Judiciary:
https://legacy.utcourts.gov/rules/view.php?type=urcp&rule=68
New Trial; Altering or Amending a Judgment
Governs:
Permits a party to move the district court to alter or amend a judgment after entry.
Opinion Quote:
“Timothy thereafter filed a motion pursuant to rule 59 of the Utah Rules of Civil Procedure requesting that the district court amend the divorce decree….” Ball v. Ball, 2025 UT App 200, ¶ 9.
Application in the Case:
Timothy filed a Rule 59 motion asking the district court to reduce the dissipation offset from the full amount of the dissipated funds to one-half. The district court denied the motion, but the Court of Appeals ultimately reversed that ruling and remanded for recalculation of the offset.
Utah Judiciary:
https://legacy.utcourts.gov/rules/view.php?type=urcp&rule=59
Utah Code of Judicial Administration
Utah Rules of Appellate Procedure
Record on Appeal — Transcript Requirements
Governs:
Requires an appellant challenging factual findings to provide a transcript of all evidence relevant to those findings.
Opinion Quote:
“If the appellant intends to argue on appeal that a finding or conclusion is unsupported by or is contrary to the evidence, the appellant must include in the record a transcript of all evidence relevant to such finding or conclusion.” Ball v. Ball, 2025 UT App 200, ¶ 15 n.2 (quoting Utah R. App. P. 11(c)(2)).
Application in the Case:
Natalie argued Timothy failed to provide an adequate appellate record because he did not include the full trial transcript. The Court rejected that argument, concluding Timothy challenged only the legal calculation of the dissipation offset rather than the district court’s factual findings, making the complete transcript unnecessary.
Utah Judiciary:
https://legacy.utcourts.gov/rules/view.php?type=urap&rule=11
Utah Rules of Professional Conduct
Case Cited
- Gardner v. Gardner, 2019 UT 61, 452 P.3d 1134 (standard of review for a district court’s division of marital property)
- Mark v. Mark, 2009 UT App 374, 223 P.3d 476 (standard of review for attorney fee awards)
- Dahl v. Dahl, 2015 UT 79, 459 P.3d 276 (standard of review for factual findings underlying discretionary rulings)
- Beverlin v. Beverlin, 2025 UT App 72, 572 P.3d 428 (presumption of equal division of marital property absent exceptional circumstances)
- Goggin v. Goggin, 2013 UT 16, 299 P.3d 1079 (calculation of the proper offset for a spouse’s dissipation of marital assets)
- Cox v. Cox, 877 P.2d 1262 (Utah Ct. App. 1994) (rule 68 limited to taxable costs, not attorney fees)
- Alpha Partners, Inc. v. Transamerica Inv. Mgmt., LLC, 2006 UT App 331, 153 P.3d 714 (reaffirming Cox’s limitation on rule 68 fee-shifting)
- LeFevre v. Mackelprang, 2019 UT App 42, 440 P.3d 874 (statutory basis and required findings for attorney fee awards in divorce actions)
- Busche v. Busche, 2012 UT App 16, 272 P.3d 748 (discretion to decide whether to treat assets like home equity as income in an ability-to-pay analysis)
- State v. Kitches, 2021 UT App 24, 484 P.3d 415 (appellate court’s discretion to bypass preservation analysis where the merits favor the non-preserving party)
Litigation and Appellate Strategy
Reversal Predictor:
- A dissipation offset awarding the wronged spouse more than the amount necessary to restore her to the position she would have occupied had the funds not been dissipated.
- Findings that characterize a full-value offset as compensatory when the practical effect is punitive or produces a windfall.
- Absence of specific findings identifying exceptional circumstances justifying a departure from the general presumption of equal division of marital property.
Mandatory Factor Checklist:
- Identification of the dissipated funds as marital property before any offset is calculated.
- Express findings of any exceptional circumstances relied upon to depart from equal division of marital property, per Beverlin v. Beverlin.
- For attorney fee awards under the divorce fee statute: findings addressing the receiving spouse’s financial need, the paying spouse’s ability to pay, and the reasonableness of the requested fees, per LeFevre v. Mackelprang.
Signal Cluster (High-Risk Appeal Profile):
A trial court order is at heightened risk of reversal on appeal where it (1) awards a dissipation offset exceeding half of the dissipated funds, (2) justifies that award using the dissipating spouse’s trial testimony rather than a finding of exceptional circumstances, and (3) does not address, in its findings, why the wronged spouse is entitled to a greater share than the equalizing offset that Goggin contemplates.
Insights
Utah-Only Jurisprudence:
The opinion relies exclusively on Utah authority — Utah Supreme Court and Court of Appeals precedent and the Utah Code — without reference to out-of-state cases or treatises. This reflects the well-settled, largely codified and Utah-specific nature of divorce property division and fee-shifting doctrine.
Doctrinal Anchors (Utah Supreme Court):
- Gardner v. Gardner, 2019 UT 61 — establishes the deferential, three-part standard of review for a district court’s adjustment of marital financial and property interests; anchors the Court’s review of the dissipation offset.
- Goggin v. Goggin, 2013 UT 16 — establishes that a spouse who dissipates marital assets must be charged with the dissipation but that the non-dissipating spouse’s offset should ordinarily be half the dissipated amount, since the other half belonged to the dissipating spouse regardless; this case directly controls the outcome on Issue 1.
- Dahl v. Dahl, 2015 UT 79 — supplies the clearly-erroneous standard for reviewing the factual findings underlying the attorney fee denial.
The Most Important Holding:
The most significant holding is that an offset for dissipated marital funds is compensatory, not punitive, and should ordinarily be capped at half the dissipated amount even where the dissipating spouse concedes complete fault and testifies that the other spouse should bear no responsibility. A district court cannot use such testimony to justify a full-value offset where doing so functionally gives the wronged spouse more than she would have received had the funds never been dissipated in the first place.
Reversal Based on Legal Error vs. Factual Error:
The reversal on Issue 1 rests on a legal/mathematical miscalculation rather than a clearly erroneous factual finding: the district court’s factual finding that Timothy dissipated $54,003.42 was undisturbed, but the court’s conclusion that a full offset — rather than a half offset — was necessary to prevent Natalie from bearing the consequences reflected a misapplication of the equitable-distribution offset framework established in Goggin. On Issue 2, affirmance rested on the deferential factual finding that Natalie was in need and unable to pay, which Timothy did not show to be clearly erroneous.
Strategy Insight:
Framing a dissipation-offset challenge as a legal/mathematical miscalculation — rather than as a factual dispute about how much was dissipated or why — allows an appellant to succeed on a limited record and under a standard of review that, while deferential, still requires correct application of the Goggin offset formula. Conversely, a fee denial predicated on the paying party’s need and inability to pay is difficult to overturn because it turns on record-specific, highly deferential factual findings rather than a discrete legal rule.
Practitioner Takeaways
Trial Lawyers:
When requesting a dissipation offset, request only half of the dissipated amount unless prepared to develop specific findings of exceptional circumstances justifying a full-value award; testimony from the dissipating spouse disclaiming responsibility is not, by itself, sufficient to support a full offset.
Appellate Lawyers:
A challenge to a dissipation offset calculation may be reviewable without a complete trial transcript where the appellant accepts the district court’s underlying factual findings and challenges only the legal calculation drawn from them; frame such arguments carefully to avoid an URAP 11(c)(2) inadequate-record objection.
Parties Considering Rule 68 Offers in Family Law Cases:
A favorable settlement offer under rule 68 does not guarantee an attorney fee award in a divorce action; because fee-shifting in this context is governed by the need/ability-to-pay/reasonableness statute, offerors should not assume rule 68 alone will secure fees against a financially needy offeree.
Majority Opinion
2025 UT App 200
THE UTAH COURT OF APPEALS
NATALIE BALL,
Appellee,
v.
TIMOTHY ALEXANDER BALL,
Appellant.
Opinion
No. 20240286-CA
Filed December 26, 2025
Fourth District Court, Provo Department
The Honorable Christine S. Johnson
No. 214400001
Trevor Casperson, Attorney for Appellant
Emily Adams and Mikayla Irvin,
Attorneys for Appellee
JUDGE MICHELE M. CHRISTIANSEN FORSTER authored this Opinion,
in which JUDGES RYAN M. HARRIS and RYAN D. TENNEY
concurred.
CHRISTIANSEN FORSTER, Judge:
¶1 Timothy Alexander Ball appeals the district court’s award of certain marital property to Natalie Ball in the parties’ divorce decree. He also contests the court’s denial of his request for attorney fees pursuant to rule 68 of the Utah Rules of Civil Procedure. We agree that the court exceeded its discretion by miscalculating the appropriate amount of the offset it awarded to Natalie for the marital funds dissipated by Timothy, and we therefore reverse and remand this case on that narrow issue. As to the request for attorney fees, however, the court did not exceed its discretion in denying Timothy’s request for fees, and we therefore affirm this ruling.
1. Because the parties share a surname, we refer to them by their given names, with no disrespect intended by the apparent informality.
BACKGROUND
¶2 Timothy and Natalie were married in February 1999. During their marriage, they had four children together. Also during their marriage, Timothy engaged in “admitted[ly] inappropriate relationships [with other women through] what he terms . . . ‘pen pal’ websites,” spent “over $50,000 in marital funds” on these websites, and “actively concealed this activity from [Natalie] for at least three years.” Eventually, one of these relationships was discovered and “serv[ed] as the catalyst for [Natalie] to file for divorce.”
¶3 The parties separated in October 2020, and Natalie filed her petition for divorce in December 2020. In her petition, Natalie sought “sole legal and physical custody of the minor children,” “$2,068 per month in child support,” $2,000 per month in alimony “for a period of the length of the marriage,” “possession of the marital home,” and all the equity in the marital home.
¶4 Timothy eventually filed a settlement offer under rule 68 of the Utah Rules of Civil Procedure, offering Natalie joint legal and physical custody of the children, $674 per month in child support, $1,200 per month in alimony for ten years, and 10% of the equity in the marital home (Timothy asserted that the home was the property of his father and that the couple was “entitled to20% of the total equity”). Natalie did not accept the settlement offer.
¶5 The case proceeded to trial, and the court thereafter entered written findings and conclusions and a divorce decree. In the divorce decree, Timothy was granted sole legal custody of the children as well as primary physical custody, while Natalie was awarded parent-time. Natalie was ordered to pay $512 per month in child support.
¶6 As to alimony, the district court found that Natalie had monthly expenses that exceeded her monthly income, leaving her with “an unmet need of $1,188.73 per month.” The court then found that Timothy had monthly income that exceeded his monthly expenses by $418 per month. Based on those findings, the court awarded Natalie alimony of $400 per month.
¶7 Concerning the marital home, the court found that Timothy’s father did not own the property as had been argued by Timothy. The court also found “unpersuasive” Timothy’s assertion that his father was “meant to be repaid” funds given to the couple for the home. Thus, the court ordered that the home be sold and the equity in the home be split equally between Timothy and Natalie. However, the court made some “reallocation” of Timothy’s portion of the equity to satisfy certain amounts that Natalie was awarded in the division of the parties’ personal property and assets.
¶8 The largest of these offsets, by far, concerned the money Timothy had spent on dating websites while married to Natalie. The court found that Timothy “admitted to spending $54,003.42 in marital funds on Dating Sites” and “admitted to actively concealing these charges from [Natalie].” The court determined that this was “a dissipation of marital assets,” that Natalie “should not have suffered the consequences” of these actions, and that, accordingly, Natalie “should be awarded $54,003.42 from [Timothy’s share] of the equity in the home for his dissipation of the marital assets.”
¶9 Timothy thereafter filed a motion pursuant to rule 59 of the Utah Rules of Civil Procedure requesting that the district court amend the divorce decree to, among other things, award Natalie an offset of only half of the $54,003.42 of dissipated funds. He argued that “pursuant to the presumption in divorce cases,” Natalie would be entitled to only half of the total funds, reasoning that “if that money had been saved in an account instead,
[Natalie] would have only be[en] entitled to 50% of it.” He asserted that the court made no explanation as to “why this is an exceptional circumstance” that would allow a departure from the general presumption that marital property be split equally, and he additionally argued that if the court intended to award Natalie the full percentage as “a punishment,” “such a reasoning [was] not a valid basis to rebut the presumption of equal distribution.”
¶10 The district court denied Timothy’s motion to amend the divorce decree on this point, reasoning as follows: The Court had awarded one hundred percent of those funds to [Natalie] and this was based on the testimony of [Timothy] during trial indicating that he did not believe that [Natalie] should be
responsible for those funds. That is what this ruling was in essence based on. This was not an intent to punish or take any punitive measures against [Timothy], rather this was based on what he represented. What has now been suggested by [Timothy] is that perhaps that’s not what he meant, but that he
meant for it to be divided in whole, the entire amount divided 50/50 between the two parties. So that he would be responsible for his part of the loss and [Natalie] would be responsible for the other half of the loss. The Court declines to do that for the reasons that were stated. [Timothy] indicated that he believed that it was proper that he did not intend for [Natalie] to be responsible for the money that he lost by his own failures. It was his acknowledgement
that he had squandered that money. For that reason the Court had found that itwas justified for [Timothy] to be responsible for the. . . funds that were taken out of the account for hisonline dating relationships. That is still supported based on [Timothy’s] own testimony.
¶11 Timothy also filed a motion requesting “that attorney fees be awarded on the basis that the Rule 68 [settlement] offer clearly represented a greater value than what was ordered in the Decree” to Natalie. The district court denied Timothy’s motion. While the court stated that rule 68 “allows fees if permitted by law,” the court also observed that “fees as permitted by law for establishing an order are limited” and are “based on need, ability to pay, and
reasonableness.” The court then reasoned that because Natalie had been “found to be financially in need” and did not “have the ability to pay the amount of fees that [Timothy was] asking for under Rule 68,” an award of fees was not warranted under that rule.
¶12 Timothy thereafter timely appealed these determinations.
ISSUES AND STANDARDS OF REVIEW
¶13 Timothy argues that the district court erred by awarding Natalie an offset for the full amount of $54,003.42 of the dissipated funds. He argues that, instead, she should have been awarded an offset equal to only half of that amount. “In divorce actions, a district court is permitted considerable discretion in adjusting the financial and property interests of the parties, and its actions are entitled to a presumption of validity.” Gardner v. Gardner, 2019 UT
61, ¶ 18, 452 P.3d 1134 (quotation simplified). “Accordingly, we will reverse only if (1) there was a misunderstanding or misapplication of the law resulting in substantial and prejudicial error; (2) the factual findings upon which the award was based are clearly erroneous; or (3) the party challenging the award
shows that such a serious inequity has resulted as to manifest a clear abuse of discretion.” Id. (quotation simplified).
¶14 Timothy also argues that the district court erred in denying his request for attorney fees under rule 68 of the Utah Rules of Civil Procedure. “Trial courts have broad discretion in awarding attorney fees. Where the trial court may exercise broad discretion, we presume the correctness of the court’s decision absent a clear abuse of discretion.” Mark v. Mark, 2009 UT App 374, ¶ 7, 223 P.3d 476 (quotation simplified). Similarly, “[o]ur review of [factual] findings is highly deferential and we will reverse the district court only if its findings are clearly erroneous.” Dahl v. Dahl, 2015 UT 79, ¶ 173, 459 P.3d 276.
ANALYSIS
I. The Dissipated Marital Funds
¶15 Timothy argues that the district court erred in awarding Natalie an offset equal to the total funds dissipated by him on dating websites. Timothy concedes “that it was his fault that the $54,003.42 was lost” and that “Natalie should not be responsible for its loss,” but he argues that “[t]he court went too far” in awarding Natalie an offset equal to the full amount of those marital funds as opposed to an offset equal to half of that amount. We agree.
2. Natalie argues that “Timothy has failed to provide a complete transcript of the parties’ two-day divorce trial and has thus failed to provide an adequate record on appeal.” She points to rule 11 of the Utah Rules of Appellate Procedure, which provides that “[i]f the appellant intends to argue on appeal that a finding or conclusion is unsupported by or is contrary to the evidence, the appellant must include in the record a transcript of all evidence relevant to such finding or conclusion.” Utah R. App. P. 11(c)(2). But Timothy accepts the district court’s factual findings regarding the concessions he made at trial about Natalie not being responsible for the $54,003.42 loss, as well as the court’s implicit finding that he agreed he should be 100% responsible for that loss.
The real issue underlying Timothy’s argument is what amount of an offset of the full amount “was based on the testimony of [Timothy] during trial indicating that he did not believe that [Natalie] should be responsible for those funds” that he lost. Thus, the court set forth findings clearly stating the reasoning behind Natalie’s award—that Timothy had agreed Natalie should not be responsible for the $54,003.42 in lost marital funds.
¶16 “In Utah, marital property is ordinarily divided equally between the divorcing spouses. After identifying property as marital, the court must consider whether there are exceptional circumstances that overcome the general presumption that marital property be divided equally.” Beverlin v. Beverlin, 2025 UT
App 72, ¶ 26, 572 P.3d 428 (quotation simplified). And “if such exceptional circumstances warrant an unequal division of the marital property, the district court must memorialize the exceptional circumstances in detailed findings.” Id. (quotation simplified). Further, “when a court finds that a spouse has dissipated marital assets, the court should calculate the value of the marital property as though the assets remained. As a result, when the court conducts its equitable distribution of the marital property, the other spouse should receive a credit for his or her share of the assets that were dissipated.” Goggin v. Goggin, 2013 UT 16, ¶ 49, 299 P.3d 1079 (footnote omitted). And the amount of that credit (or offset) should ordinarily be half of the dissipated
marital funds, not the entire amount. See id. ¶ 46 (agreeing with the appellant’s argument “that although he dissipated marital funds, half of those funds were his, and accordingly, he should only be accountable to [the respondent] for her share”).
¶17 The district court determined that the $54,003.42 Timothy spent on dating websites was marital property. But the court awarded Natalie an offset of that full amount, reasoning that she “should not have suffered the consequences of [Timothy’s] actions.” Although the court also made reference to Timothy “actively concealing these charges from [Natalie],” the court later clarified in its decision on the rule 59 motion that the award of the full amount of the dissipated funds was not made with “an intent to punish or take any punitive measures against [Timothy].” Instead, the court repeatedly reiterated that the decision to award an offset to the already-divided marital property is necessary to make him 100% responsible for that loss. We may review such an
argument without reference to the entire trial transcript, and in this particular instance Timothy was not required to provide the whole trial transcript as part of the record on appeal.
¶18 But the problem here resides in the fact that the district court’s ultimate award to Natalie of an offset of the full $54,003.42 goes beyond its stated intent of assuring that Natalie is not responsible for the loss of the marital funds. The court was simply incorrect that accepting Timothy’s request to award an offset of half that amount would mean the loss would be “divided” and Timothy “would be responsible for his part of the loss and [Natalie] would be responsible for the other half of the loss.” On the contrary, requiring that Timothy pay—from his portion of the equity in the marital home—half of the $54,003.42 to Natalie would make her whole, bringing her portion of the marital property equal to what it would have been if Timothy had never used the funds and the funds had instead remained in the couple’s bank account to be split upon divorce. And requiring Timothy to pay half of the total amount to Natalie would increase Natalie’s award of marital property by $27,001.71 and decrease Timothy’s award by $27,001.71, resulting in Timothy receiving
$54,003.42 less than Natalie and, thus, him bearing the entirety of the loss of the dissipated funds (and Natalie being reimbursed for the full amount of the loss). The awarding of an offset equal to the full amount of funds, on the other hand, left Natalie with a larger award of marital property than she would have received had the funds never been dissipated in the first place, and we see nothing in the court’s order indicating an intent to provide Natalie a windfall in this way. Thus, we determine that the court exceeded its discretion by miscalculating this award, and we therefore reverse the award and remand the case so that the award may be
accordingly adjusted.
3. Indeed, this result would be equivalent to awarding Natalie $54,003.02 of marital property off the top and then proceeding to equally divide the remining marital property between the parties.
II. Attorney Fees
¶19 Timothy argues that the district court erred in refusing to award him his attorney fees. He argues that because he made a settlement offer under rule 68 of the Utah Rules of Civil Procedure and because, “on balance, the offer was more favorable than what Natalie received at trial,” he should have been awarded attorney fees.
¶20 Rule 68 provides, “If the adjusted award is not more favorable than the [settlement] offer, . . . the offeree shall pay the offeror’s costs incurred after the offer.” Utah R. Civ. P. 68(b). “The Utah Supreme Court has construed this rule such that it applies to taxable costs only. Attorney[] fees are not taxable as costs, but may be awarded against an opposing party only if there is contractual or statutory liability therefor.” Cox v. Cox, 877 P.2d 1262, 1270 (Utah Ct. App. 1994) (quotation simplified); accord Alpha Partners, Inc. v. Transamerica Inv. Mgmt., LLC, 2006 UT App 331, ¶ 41, 153 P.3d 714.
¶21 Thus, when considering whether to award attorney fees, the district court here appropriately turned to the statutory provision addressing attorney fees in the divorce context, which provided that the court may order one party to pay the attorney fees of the other party “to enable the other party to prosecute or defend the action.” Utah Code § 30-3-3(1) (2020) (current version at Utah Code § 81-1-203(1)(a)). An award of attorney fees under this section “must be based on evidence of the financial need of the receiving spouse, the ability of the other spouse to pay, and the reasonableness of the requested fees.” LeFevre v. Mackelprang, 2019 UT App 42, ¶ 39, 440 P.3d 874 (quotation simplified). Here the district court denied Timothy an award of attorney fees
because Natalie “was found to be financially in need” and did “not have the ability to pay,” and Timothy specifically challenges this assessment on appeal.
4. Natalie argues that this issue was not preserved for appeal. But because this issue is easily resolved in her favor, we elect t address it without first engaging in a preservation analysis. See State v. Kitches, 2021 UT App 24, ¶ 28, 484 P.3d 415 (“[I]f the merits of a claim can easily be resolved in favor of the party asserting that the claim was not preserved, we readily may opt to do so without addressing preservation.” (emphasis omitted)).
¶22 The district court’s determination regarding Natalie’s inability to pay was based on the findings in the divorce decree of her financial need. Those underlying findings establish that Natalie had monthly expenses that exceeded her monthly income, leaving her with “an unmet need of $1,188.73 per month.” Although the court had awarded alimony of $400 per month (from Timothy’s surplus), this still left Natalie with a monthly shortfall of $788.73.
¶23 Timothy does not directly attack these underlying findings but simply argues that “Natalie did in fact have sufficient resources” to pay his attorney fees, pointing to the fact that she was awarded half of the equity in the marital home, “over $61,000 in offsets,” and half of the parties’ bank account.6 This argument is unavailing. Our caselaw does not “mandate[] that the court consider all the paying party’s assets, such as home equity, as income” when addressing a party’s ability to pay; “rather, the matter is left to the court’s judgment.” Busche v. Busche, 2012 UT App 16, ¶ 31, 272 P.3d 748. And in this case, considering the significant ongoing gap between Natalie’s income and needs, we cannot say the court clearly erred in determining Natalie “to be
financially in need” or that the court exceeded its considerable discretion in determining that an award of attorney fees was not warranted here.
5. Although Timothy’s opening brief additionally argues that “the attorney fee award under Rule 68 should not be subject to a needs
based analysis,” his reply brief clarifies that his appeal on the attorney fees issue “only challenges this finding” regarding Natalie’s ability to pay. We limit our analysis accordingly.
6. By far the largest offset was the $54,003.42 awarded to Natalie for the dissipated funds discussed in Part I. And our resolution of that issue will result in this awarded offset being cut in half, which will significantly reduce the total amount of offsets awarded to Natalie in any event.
We therefore affirm the district court’s denial of Timothy’s request for attorney fees.
CONCLUSION
¶24 The district court miscalculated the amount of the offset that would relieve Natalie from all responsibility for the dissipated marital funds, and we therefore reverse and remand this case for the district court to correct this award. But the court did not exceed its discretion in denying Timothy’s request for attorney fees, and we therefore affirm that determination.
7. Furthermore, we note that Timothy was unlikely to have fared any better had the court taken these other awards into account. This is because the vast majority of these awards came from marital property that was split equally between the parties—the equity in the marital home and the funds in the parties’ bank account. Thus, aside from the few offsets established by the court (which offsets will be substantially decreased as a result of this appeal), the consideration of these awards would have increased Timothy’s ability to pay his own fees as much as they would have decreased Natalie’s financial need.
8. Because of our resolution on this issue, we also necessarily deny Timothy’s request for an additional award of attorney fees on appeal.