The Indiana Court of Appeals has upheld a ruling that grants sole legal and primary physical custody of two children to Lacey Lawana Holstein, following a contentious divorce from Jon Hansford Holstein. The court's decision, made on June 16, 2026, is significant as it emphasizes the importance of a stable environment for children in custody disputes.

Jon Holstein appealed the trial court's decision, arguing that the court abused its discretion by not awarding him joint legal custody and primary physical custody. The ruling affects both parents and their two children, D.H. and E.H., and highlights the complexities of custody arrangements in divorce cases.

Background

Jon and Lacey Holstein were married in June 2012 and have two children together. Their marriage began to deteriorate around late 2023, when Jon accused Lacey of having an affair with a coworker. Tensions escalated, leading to a series of arguments that culminated in Lacey filing for a protective order against Jon in January 2024, followed by a divorce filing later that month.

In July 2024, both parents agreed to a provisional order that granted Lacey primary physical custody of the children, with Jon having parenting time. However, their relationship continued to deteriorate, leading to significant communication issues regarding the children's welfare. By June 2025, during the final dissolution hearing, Lacey sought sole legal and primary physical custody, while Jon sought joint legal and primary physical custody.

The Ruling

The Indiana Court of Appeals, led by Judge DeBoer, affirmed the trial court's decision to award Lacey sole legal and primary physical custody. The court found no abuse of discretion in the trial court's ruling. Judge DeBoer stated, "After a careful consideration of the statutory factors and having observed the demeanor and assessed the credibility of the witnesses, the trial court concluded it was in the Children’s best interests for Mother to have primary physical custody."

The court noted that Lacey had been the primary caregiver during the marriage and that Jon had exhibited anger management issues during their disputes. The trial court determined that shared physical custody was unworkable due to the lack of trust and goodwill between the parents, as evidenced by their ongoing arguments and inability to cooperate on matters related to the children.

Impact

This ruling sets a precedent for future custody cases in Indiana, particularly those involving high-conflict divorces. It emphasizes the importance of a stable environment for children and the need for parents to demonstrate effective communication and cooperation. The court's decision highlights that joint custody may not be appropriate when parents have a history of conflict and are unable to work together for the children's benefit.

The ruling also underscores the court's discretion in custody matters, as it is guided by the best interests of the children involved. This case may serve as a reference for other courts facing similar custody disputes, particularly in cases where one parent exhibits concerning behavior that may affect the children's welfare.

What's Next

Jon Holstein has the option to appeal the decision to the Indiana Supreme Court, although it is unclear if he will pursue this route. There are no related cases pending that could impact this ruling. The court's decision stands as a significant outcome in the Holstein divorce case.