IN RE THE MARRIAGE OF STACY MICHELLE GUBBELS AND JEFF GERHARD GUBBELS Upon the Petition of STACY MICHELLE GUBBELS , Petitioner - Appell ee , And Concerning JEFF GERHARD GUB BELS , Respondent - Appell ant .
Annotate this Case
Download PDF
IN THE COURT OF APPEALS OF IOWA
No. 9-053 / 08-0965
Filed March 26, 2009
IN RE THE MARRIAGE OF
STACY MICHELLE GUBBELS
AND JEFF GERHARD GUBBELS
Upon the Petition of
STACY MICHELLE GUBBELS,
Petitioner-Appellee,
And Concerning
JEFF GERHARD GUBBELS,
Respondent-Appellant.
________________________________________________________________
Appeal from the Iowa District Court for Pottawattamie County, Jeffrey L.
Larson, Judge.
Jeff Gubbels appeals the property distribution provisions of a dissolution
decree. AFFIRMED.
Bryan D. Swain of Salvo, Deren, Schenck & Lauterbach, P.C., Harlan, for
appellant.
Joseph J. Hrvol of Joseph J. Hrvol, P.C., Council Bluffs, for appellee.
Considered by Vogel, P.J., and Vaitheswaran and Eisenhauer, JJ.
2
VAITHESWARAN, J.
Jeff Gubbels appeals the property distribution provisions of a dissolution
decree.
I. Background Facts and Proceedings
Jeff and Stacy Gubbels married in 1997 and divorced eleven years later.
At trial, the couple presented differing valuations of certain assets. Following
trial, the district court dissolved the marriage and proceeded with a property
division.
The court valued a 1968 Chevrolet Camaro that Jeff claimed he sold to his
brother, as well as eighteen racing greyhound dogs in which the Gubbels had an
ownership interest. Jeff was awarded “any interest the parties may have in his
1968 Camaro.” He was also awarded the dogs. Finally, Jeff was assigned as
assets several withdrawals from the couple’s account as well as $6800 in
payments on a credit card account he owned jointly with his mother.
The court set aside to Stacy assets she inherited from her father or
purchased with inherited funds.
The court next valued the family home and
awarded it to Stacy. As Stacy received substantially more than Jeff, the court
ordered that Stacy make an equalizing payment to Jeff of $24,987.50.
II. Analysis
On appeal, Jeff contends that “Stacy invented illusory assets to be placed
on [his] side of the distribution.” Specifically, he takes issue with the district
court’s treatment of (A) the Camaro, (B) the eighteen dogs, (C) the cash
withdrawals and credit card payments, and (D) the couple’s house. We will
3
address these arguments, taking into consideration the factors set forth in Iowa
Code section 598.21(5) (2007).
A.
Camaro
Jeff asserts that the Camaro was sold before the dissolution proceedings
began and, accordingly, was not an asset subject to division. Alternately, he
argues that, if it was subject to division, its value was $1500 rather than $10,000,
as the district court found.
The district court thoroughly analyzed this issue, including with its fact
finding a determination that Jeff was not credible. The court’s finding was as
follows:
Jeff also owned a 1968 Chevrolet Camaro automobile which he
alleges was sold to his brother Tim for $1,500 during the pendency
of this action. There is considerable dispute as to the condition of
the vehicle at the time of the “sale.” Stacy alleges that Jeff had
previously told her the vehicle was worth in excess $20,000, while
Jeff disputes that assertion and places the value far lower. Having
reviewed the evidence, observed the witnesses, and the relative
candor of the parties, the Court believes the Camaro is a marital
asset which was sold for far less than its fair market value, which
the Court places at $10,000.
We generally defer to a district court’s credibility findings because the court has a
firsthand opportunity to hear the evidence and view the witnesses.
In re
Marriage of Brown, 487 N.W.2d 331, 332 (Iowa 1992). Here, the record amply
supports the district court’s findings, including its credibility determination.
Jeff’s brother, Tim, testified that he would have to replace the engine,
even though it had recently been replaced. Additionally, Tim testified that he
insured the vehicle for $10,000. The district court could have found that these
facts undercut Jeff’s assertion of the car’s value. Indeed, on our de novo review
4
of the record, we are convinced that the court could have assigned the Camaro a
value as high as $20,000, based on Stacy’s testimony.
The court chose a
number that was in the mid-range of the figures presented by the parties and was
supported by the insured value of the car. We find no reason to disagree with
this valuation.
B.
Racing Greyhounds
Jeff also takes issue with the district court’s valuation of the eighteen
greyhounds. He alternately asserts that the court should have ordered the dogs
sold and divided the proceeds equally between the parties.
The district court found as follows:
It is clear from the record that partial ownership of these dogs was
negotiated and arranged by Jeff. This ownership interest has
resulted in $18,000 to $24,000 per year in income over the past
several years. These dogs have value not only as items of
personal property but, also, as income producers. The court has
been asked to establish a fair market value for these animals.
Based upon all the evidence, the Court believes that the fair market
value of the ownership interest which these parties possess in the
eighteen dogs which are currently racing, is $40,000. Since Jeff
negotiated the parties’ position and is the most informed concerning
the parties’ status in the relationship, he should be awarded these
eighteen dogs free and clear of any claim by Stacy therein.
On our de novo review, we are persuaded that the district court’s $40,000
valuation of the dogs was equitable. Stacy presented evidence that the dogs
were worth $60,000. This evidence was based on the opinions of other dog
owners who Jeff conceded would be familiar with their worth. While the district
court could have adopted Jeff’s $10,000 estimate of their value based on the age
of the dogs and their racing classifications, we affirm the valuation, as it was
5
within the permissible range of the evidence. See In re Marriage of Bare, 203
N.W.2d 551, 554 (Iowa 1973).
C.
Cash Withdrawals and Credit Card Payment.
The court assessed to Jeff cash withdrawals of $4000, $6000, and $1500,
as well as the $6800 in payments made on Jeff’s credit card. Specifically, the
court found as follows:
By way of explanation, Jeff has indicated that the [credit] card was
a relative’s and that much of the money removed went to pay for
family expenses after he lost his job. There is little or no evidence
that the [credit] card was a relative’s and that much of the money
removed went for any expenses related to his family. Likewise, the
$4000 cash withdrawal on November 13, 2007, the $6,000 transfer
to another account on November 19, 2007, and the $1,500 cash
withdrawal on January 30, 2008, all predate losing his job.
Jeff takes issue with these findings. He contends that the couple continued to
live together while the proceedings were pending and Jeff continued to pay the
family’s living expenses.
He also points to Stacy’s failure to contradict his
testimony that his mother furnished the funds to pay the credit card balance.
The dissipation of assets is a proper consideration when dividing property.
See In re Marriage of Fennelly, 737 N.W.2d 97, 104 (Iowa 2007). On our de
novo review, we find support for the district court’s determination that Jeff could
not tie the cash withdrawals to legitimate household expenditures. See id. at
106. (“Ted failed to prove the cash advances were the result of legitimate
household and business expenses. Although all debt is not wasteful, we find this
amount unreasonable because he failed to adequately explain it.”).
Jeff’s testimony is instructive. When asked whether he removed $20,000
from the couple’s joint account between November 2007 and February 21, 2008,
6
he responded “I could have.” When asked whether the money was used to pay
for bills, he responded, “some of it could have been bills.” He then proceeded to
explained that $10,000 of the money was lent to his brother. While he suggested
that most of it was paid back, he provided no documentation to support this
assertion. He also did not claim that he re-deposited his brother’s payments into
the joint account.
With respect to the credit card, Jeff acknowledged that he was the primary
owner and his mother was only the secondary owner of the card.
He also
acknowledged that the bank statement came to him. While he asserted that his
mother forwarded him the money to pay the balance, he again furnished no
documentation to support this assertion.
Based on this record, we conclude that the district court acted equitably in
assigning to Jeff the value of the cash withdrawals and the credit card payment.
D. House
The district court valued the couple’s house at $154,000, but deducted the
potential costs of a sale, leaving net equity of $142,500. Jeff contends that the
district court should not have deducted the sale expenses, as Stacy did not
intend to sell the home. Alternately, he argues that the district court should not
have credited Stacy with premarital assets.
The district court thoroughly explained its rationale for dealing with the
house. The court stated:
[T]he net equity [in the home] would include costs of sale of at least
5 percent, which reduces the equity by approximately $11,500
resulting in net equity of $142,500. Rather than computing net
equity, the Court could have determined that Stacy brought assets
into the marriage valued at $11,500 since she owned a home
7
beforehand and Jeff did not. It is clear from the testimony that,
after the marriage, each of the parties invested money and labor
into the home to make it saleable at an increased price, however, it
had some value at the time of the marriage for which Stacy could
be given credit. Under either the net equity approach used by the
Court herein or the pre-marital asset approach, the result would be
the same.
We discern no inequity in the court’s findings. Although the record does not
contain evidence that Stacy intended to sell the house, the court was well within
its authority to alternately afford Stacy a credit of $11,500 for the home that she
brought into the marriage. See Iowa Code § 598.21(5)(b); In re Marriage of
Miller, 552 N.W.2d 460, 465 (Iowa Ct. App. 1996). That property was purchased
for $30,000 and was sold for $60,000. While the labor of Jeff and his mother
contributed to the increase in value, the district court effectively took that fact into
account by only affording Stacy a credit of $11,500 rather than a credit for the full
appreciation of $30,000. Accordingly, we affirm the district court’s valuation of
the house.
AFFIRMED.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.