MELVIN SMITH v. PAMELA SMITH AND PHILLIP BRUCE LESLIE
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RENDERED: MARCH 9, 2007; 10:00 A.M.
NOT TO BE PUBLISHED
Commonwealth Of Kentucky
Court of Appeals
NO. 2005-CA-002603-MR
MELVIN SMITH
v.
APPELLANT
APPEAL FROM BOYD CIRCUIT COURT
HONORABLE C. DAVID HAGERMAN, JUDGE
ACTION NO. 04-CI-01237
PAMELA SMITH AND
PHILLIP BRUCE LESLIE
APPELLEES
OPINION
AFFIRMING
** ** ** ** **
BEFORE: ACREE AND TAYLOR, JUDGES; EMBERTON,1 SENIOR JUDGE.
TAYLOR, JUDGE: Melvin Smith appeals from a Decree of Dissolution of Marriage
entered December 9, 2005, by the Boyd Circuit Court incorporating the findings of fact
and conclusions of law set forth in the report of the Domestic Relations Commissioner
(Commissioner), as modified by subsequent court order. On appeal, Melvin challenges
Senior Judge Thomas D. Emberton sitting as Special Judge by assignment of the Chief Justice
pursuant to Section 110(5)(b) of the Kentucky Constitution and Kentucky Revised Statutes
21.580.
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the division of the marital estate, the award of maintenance, and the award of attorney
fees. For the reasons stated, we affirm.
Melvin and Pamela Smith were married in December 1971. Melvin
initiated this action by filing a petition for dissolution of marriage in the Boyd Circuit
Court on December 20, 2004. Pursuant to Ky. R. Civ. P. (CR) 53.03, the matter was
referred to the Commissioner. The Commissioner’s report was entered September 26,
2005. Melvin filed exceptions. By order entered October 19, 2005, the circuit court
adopted in part and modified in part the Commissioner’s report. The parties’ marriage
was dissolved by Decree of Dissolution of Marriage entered in the Boyd Circuit Court on
December 9, 2005. This appeal follows.
Relevant to this appeal, the circuit court adopted, subject to amendment by
order entered October 19, 2005, the Commissioner’s recommended findings of fact and
conclusions of law. These findings and conclusions included that: (1) Melvin had gross
earnings of $108,151.57 in 2004; (2) Pamela had not worked outside the home for more
than twenty years; (3) Pamela possessed only a tenth grade education, and suffered health
problems; (4) the marital residence had been purchased on a land contract and was
scheduled to be paid-off in April 2006; and (5) the parties had a marital credit card debt
of $68,511.54.
The court ordered the sale of the marital residence, with the proceeds to
first be paid on the land contract and any remaining proceeds to be applied to the credit
card debt. The court also ordered the payment of all bank accounts, totaling
approximately $20,000.00, against the credit card debt. Any remaining credit card debt
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was to be paid by Melvin. Additionally, any surplus proceeds from the sale of the marital
residence after payment of the credit card debt, were to be divided equally between the
parties.
The court also equally divided between the parties Melvin’s 401k plan/T.
Rowe Price Account, valued at approximately $85,000.00. Melvin also had a vested
employer-funded pension benefit from AK Steel that was divided between the parties.
Pamela was awarded maintenance of $2,000.00 per month for twelve months, $1,750.00
per month for twelve months, $1,500.00 per month for twelve months, and $1,250.00 per
month for twelve months. The court further awarded Pamela permanent maintenance of
$1,000.00 per month until Pamela became eligible to draw on Melvin’s pension.2 The
court found that the parties’ two motor vehicles were Pamela’s nonmarital property and
further awarded Pamela attorney’s fees of $4,290.00. However, Melvin was awarded the
motor vehicle in his possession which was set off against the $4,290.00 Melvin was
ordered to pay toward Pamela’s attorney’s fees.
We begin our analysis with a statement of the appropriate standard of
review. In this case, an evidentiary hearing was conducted by the Commissioner, without
a jury. Accordingly, our review of the Commissioner’s findings, as adopted by the
circuit court, proceeds pursuant to CR 52.01:
Findings of fact shall not be set aside unless clearly
erroneous, and due regard shall be given to the opportunity of
the trial court to judge the credibility of the witnesses. The
Upon receipt of the pension benefit, the court ordered that the permanent maintenance award
of $1,000.00 per month be reduced by any amount of pension benefits Pamela may receive from
Melvin, but her total award would remain at $1,000.00 per month until death or remarriage.
2
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findings of a commissioner, to the extent that the court adopts
them, shall be considered as the findings of the court. . . .
CR 52.01. A finding of fact is not clearly erroneous if supported by substantial evidence.
Moore v. Asente, 110 S.W.3d 336 (Ky. 2003). Questions of law are reviewed de novo
and legal conclusions thereon made by the circuit court will not be disturbed absent an
abuse of discretion. Sherfey v. Sherfey, 74 S.W.3d 777 (Ky.App. 2002); Carroll v.
Meredith, 59 S.W.3d 484 (Ky. 2001).
With the appropriate standard of review in mind, we shall now address
Melvin’s allegations of error. Initially, Melvin contends the circuit court erred in its
division of the marital assets and debts. Specifically, Melvin contends that the marital
property was not divided in “just proportions” as required by Kentucky Revised Statutes
(KRS) 403.190.
Unfortunately for the parties, the record in this case reveals that the marital
estate is meager, at best. Neither party introduced evidence regarding the fair market
value of the marital residence. The court did equally divide between the parties assets
with substantive value, namely the 401K plan/T.Rowe Price Account and the vested
pension benefit. The court further ordered that the cash in the parties’ checking accounts
be allocated first to pay the primary outstanding debt, over $68,000.00 in credit card debt.
The circuit court has wide discretion in dividing marital property and we
may not disturb the circuit court’s rulings on property division issues unless we find that
the circuit court has abused its discretion. Davis v. Davis, 777 S.W.2d 230 (Ky. 1989).
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Based upon the evidence presented in this case, there has been no showing that the circuit
court abused its discretion dividing the property pursuant to KRS 403.190.
Melvin argues that the credit card debt was created by Pamela and it was an
abuse of discretion to allocate any of this debt to him, given the property division ordered
by the circuit court. However, unlike marital property, there is no presumption that a
debt incurred during a marriage is marital or nonmarital nor is there a presumption that
debts must be divided equally or in the same proportion as marital property. Neidlinger
v. Neidlinger, 52 S.W.3d 513 (Ky. 2001). The circuit court allocated substantial
“marital” assets to the payment of this debt and while the record does not reflect what
balance, if any, will be owed by Melvin, we do not find that the circuit court abused its
discretion in the allocation of the credit card debt.
Melvin next contends that the circuit court erred as to the amount and
duration of maintenance awarded to Pamela. Maintenance is governed by KRS 403.200
and may be awarded by a court to a party seeking maintenance if that party can establish
that he (1) lacks sufficient property that is apportioned to him to provide for his
reasonable needs; and (2) is otherwise unable to support himself through appropriate
employment. The decision of whether to award maintenance is within the circuit court’s
sound discretion and may not be disturbed unless we determine that the circuit court
abused its discretion or its ruling is otherwise based upon clearly erroneous findings of
fact. Powell v. Powell, 107 S.W.3d 222 (Ky. 2003).
In reviewing the record before us, it is clear that the Commissioner made
numerous findings of fact on this issue which were adopted by the circuit court. As
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noted, we believe the marital estate was divided in just proportions. As concerns income,
the record reflects that Melvin holds a management position at AK Steel where he has
worked for more than twenty years and his income in 2004 exceeded $100,000.00.
However, the findings regarding Pamela were just the opposite. Pamela is forty-eight
years old with a tenth grade education, who was determined to have no marketable
employment skills. The court further heard evidence that she has substantial health
problems. Based upon the record, it is obvious that the circuit court thoroughly examined
both prongs of KRS 403.200 in awarding maintenance to Pamela. Melvin has failed to
demonstrate that the court’s findings are clearly erroneous nor do we find that the circuit
court abused its discretion in awarding maintenance to Pamela.
Melvin’s final contention of error is that the award of attorney’s fees to
Pamela was an abuse of discretion. The circuit court ordered Melvin to pay Pamela’s
attorney the sum of $4,290.00, the court finding that Pamela did not have adequate funds
to pay her attorney. KRS 403.220 permits the circuit court to order one party in a divorce
action to pay a reasonable amount of the attorney’s fees of the other party if there exists a
disparity in the relative financial resources of the parties in favor of the party who is
ordered to pay the fees. Whether a party is ordered to pay attorney’s fees is strictly
within the sound discretion of the circuit court. In this case, the court carefully reviewed
the gross disparity in income of the parties. Additionally, while ordering Melvin to pay
attorney’s fees for Pamela, the court further awarded Melvin a motor vehicle in his
possession that the court had determined was nonmarital property that belonged to
Pamela, since the motor vehicle had been purchased with funds inherited by Pamela.
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Pamela has not contested this allocation of nonmarital property. Given the totality of the
circumstances, we do not find that the circuit court abused its discretion in ordering
Melvin to pay the sum of $4,290.00 in attorney’s fees.
For the foregoing reasons, the Decree of Dissolution of Marriage entered by
the Boyd Circuit Court on December 9, 2005, is affirmed.
ALL CONCUR.
BRIEF FOR APPELLANT:
BRIEF FOR APPELLEE:
Gordon J. Dill
Ashland, Kentucky
Phillip Bruce Leslie
McBrayer, McGinnis, Leslie & Kirkland
Greenup, Kentucky
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