SUSAN BARNETT COMER v. GARRY MARRS COMER
Annotate this Case
Download PDF
RENDERED:
JANUARY 27, 2006; 2:00 P.M.
NOT TO BE PUBLISHED
Commonwealth of Kentucky
Court of Appeals
NO. 2003-CA-002468-MR
AND
NO. 2003-CA-002491-MR
SUSAN BARNETT COMER
v.
APPELLANT/CROSS-APPELLEE
APPEAL AND CROSS-APPEAL FROM WARREN FAMILY COURT
HONORABLE MARGARET RYAN HUDDLESTON, JUDGE
ACTION NO. 99-CI-01010
GARRY MARRS COMER
APPELLEE/CROSS-APPELLANT
OPINION
AFFIRMING IN PART, VACATING IN PART
AND REMANDING
** ** ** ** ** ** ** **
BEFORE: HENRY AND VANMETER, JUDGES; MILLER, SENIOR JUDGE.1
HENRY, JUDGE:
Susan Barnett Comer appeals from the Findings of
Fact, Conclusions of Law, and Decree of Dissolution of Marriage
entered by the Green Circuit Court on January 10, 2002.
No. 2003-CA-002468-MR).
(Case
Susan alleges that the circuit court
erred in its allocation of the real property at issue in the
1
Senior Judge John D. Miller sitting as Special Judge by assignment of the
Chief Justice pursuant to Section 110(5)(b) of the Kentucky Constitution and
Kentucky Revised Statute 21.580.
case, in its allocation of marital debt, and in its failure to
award her maintenance.
In his cross-appeal (Case No. 2003-CA-
002491-MR), Garry contends that the family court erred by
failing to more specifically designate the boundaries associated
with its awarding of one-half of a 13.26 acre tract of property
to each of the parties, and by failing to address his request
for attorney fees.
For the reasons stated below, we remand for
additional findings regarding the marital/nonmarital character
of the real property at issue in the case; remand for additional
findings concerning the family court’s assignment of marital
debt; and remand for a more specific division of a tract of
property that was distributed equally between the parties.
We
affirm the family court’s determinations with respect to the
remaining issues.
The parties were married on October 11, 1985.
children were born during the marriage.
Four
On August 11, 1999,
Susan filed a petition for dissolution of marriage.
On March 21, 2001, the parties entered into a partial
settlement agreement.
The agreement resolved the issues of
child custody, visitation, child support, household furnishings,
firearms, vehicles, and health insurance.
Garry agreed to pay
child support in the amount of $500.00 per month and to maintain
health insurance on all of the minor children.
Non-reimbursed
medical expenses were to be paid in accordance with Kentucky
- 2 -
Revised Statutes (KRS) 403.211.
Additionally, the parties later
agreed that each would receive his/her own retirement plan.
Following a hearing on issues concerning the
distribution of real property, allocation of marital debt, and
either party’s entitlement to maintenance, on January 10, 2002,
the family court entered its Findings of Fact, Conclusions of
Law, and Decree of Dissolution of Marriage.
The order divided
various tracts of real property between the parties; allocated
the mortgage debt associated with the real property; and
determined that neither party was entitled to a maintenance
award.
Subsequently, Susan and Garry each filed a motion to
alter, amend, or vacate.
Following a hearing on the motions, on
May 23, 2002, the family court entered an order captioned “Order
on Petitioner and Respondent’s Motion to Alter, Amend, or Vacate
the Findings of Fact, Conclusions of Law and Decree of
Dissolution of Marriage.”
In the text, however, the Order
overruled only Garry’s motion to alter, amend, or vacate.
Susan appealed (Case No. 2002-CA-001220-MR) and Garry
cross-appealed (Case No. 2002-CA-001338-MR) the family court’s
rulings to this Court; however, upon realizing that Susan’s
motion to alter, amend, or vacate had not been ruled upon, on
October 16, 2003, this Court entered an order dismissing the
- 3 -
appeals and remanding the case for a ruling upon Susan’s motion
to alter, amend, or vacate.
Following remand, on November 5, 2003, the family
court entered an order denying Susan’s motion to alter, amend or
vacate, after which the case was ripe for appeal.
Susan
thereafter filed her notice of appeal (Case No. 2003-CA-002468MR) and Garry filed his notice of cross-appeal (Case No. 2003CA-002491-MR).
We begin with a general statement of our standard of
review.
Under Kentucky Rules of Civil Procedure (CR) 52.01, in
an action tried without a jury, "[f]indings 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.
A factual finding is not clearly
erroneous if it is supported by substantial evidence.
Owens-
Corning Fiberglas Corp. v. Golightly, 976 S.W.2d 409, 414 (Ky.
1998); Uninsured Employers' Fund v. Garland, 805 S.W.2d 116, 117
(Ky. 1991).
Substantial evidence is evidence, when taken alone
or in light of all the evidence, which has sufficient probative
value to induce conviction in the mind of a reasonable person.
Golightly, 976 S.W.2d at 414; Sherfey v. Sherfey, 74 S.W.3d 777,
782 (Ky.App. 2002).
issues de novo.
An appellate court, however, reviews legal
See, e.g., Carroll v. Meredith, 59 S.W.3d 484,
- 4 -
489 (Ky.App. 2001); Hunter v. Hunter, 127 S.W.3d 656 (Ky.App.
2003).
CASE NO. 2003-CA-002468-MR
In her direct appeal, Susan contends that the family
court erred in its allocation of marital property, its
allocation of debt between the parties, and in denying her
request for maintenance.
Allocation of Property and Debt
Issues remaining for decision following the execution
of the settlement agreement were the assignment and distribution
of four tracts of real property (including the lot upon which
the marital residence was situated) and two mortgages.
The
first two tracts originally consisted of a single 17.08 acre
tract.
This tract was later subdivided into the 3.28 tract upon
which the marital residence is situated and a 13.26 acre lot.
The third tract is a 13.64 acre parcel, and the fourth tract is
a 14 acre parcel.
Garry purchased and owned the 17.08 acre tract and the
13.64 acre tract prior to the parties’ marriage.
He owned a
one-half interest in the 14 acre lot at the time of the parties’
marriage; however the other half-interest in the lot was given
to him by his parents shortly following his marriage to Susan.
As Garry either owned the property interests prior to the
- 5 -
marriage, or the property interests were given to him during the
course of the marriage, absent any intervening factors, all of
the real property would, in the normal course of events, be
characterized as Garry’s nonmarital property.
At the time of the hearing, there were two mortgages
on the property, a $98,012.90 first mortgage, and a $10,000.00
second mortgage.
It appears that the mortgages were secured by
all of the acreage and the marital residence.
In the family court’s January 10, 2002, order, the
family court awarded Susan the marital residence and the 3.82
acre lot upon which it was situated, and one-half of the 13.26
acre tract.
Garry was awarded the remaining one-half of the
13.26 acre tract, the 14 acre tract, and the 13.64 acre tract.
With regard to the debt, Susan was assigned the entire
$98,012.90 first mortgage, and $8,000.00 of the $10,000.00
second mortgage.
Garry was assigned the remaining $2,000.00 of
the second mortgage.
KRS 403.190, Disposition of Property, provides, in
relevant part, as follows:
(1) In a proceeding for dissolution of the
marriage or for legal separation, or in
a proceeding for disposition of
property following dissolution of the
marriage by a court which lacked
personal jurisdiction over the absent
spouse or lacked jurisdiction to dispose
of the property, the court shall assign
each spouse's property to him. It also
- 6 -
shall divide the marital property
without regard to marital misconduct in
just proportions considering all
relevant factors including:
(a) Contribution of each spouse to
acquisition of the marital property,
including contribution of a spouse as
homemaker;
(b) Value of the property set apart to each
spouse;
(c) Duration of the marriage; and
(d) Economic circumstances of each spouse
when the division of property is to
become effective, including the
desirability of awarding the family home
or the right to live therein for
reasonable periods to the spouse having
custody of any children.
(2) For the purpose of this chapter,
"marital property" means all property
acquired by either spouse subsequent to
the marriage except:
(a) Property acquired by gift, bequest,
devise, or descent during the marriage
and the income derived therefrom unless
there are significant activities of
either spouse which contributed to the
increase in value of said property and
the income earned therefrom;
(b) Property acquired in exchange for
property acquired before
the marriage or in exchange for property
acquired by gift, bequest, devise, or
descent;
(c) Property acquired by a spouse after a
decree of legal separation;
(d) Property excluded by valid agreement of
the parties; and
(e) The increase in value of property
acquired before the marriage to the
extent that such increase did not result
from the efforts of the parties during
marriage.
- 7 -
(3) All property acquired by either spouse
after the marriage and before a decree
of legal separation is presumed to be
marital property, regardless of whether
title is held individually or by the
spouses in some form of co-ownership
such as joint tenancy, tenancy in
common, tenancy by the entirety, and
community property. The presumption of
marital property is overcome by a
showing that the property was acquired
by a method listed in subsection (2) of
this section.
Our standard of review on a question of division of
property is stated as follows: "[t]his court cannot disturb the
findings of a trial court in a case involving dissolution of
marriage unless those findings are clearly erroneous ... The
property may very well have been divided or valued differently;
however, how it actually was divided and valued [is] within the
sound discretion of the trial court."
Cochran v. Cochran, 746
S.W.2d 568, 569-70 (Ky.App.1988) (citation omitted).
There is
no statutory basis requiring that property be divided equally.
Wood v. Wood, Ky. App., 720 S.W.2d 934, 935 (1986) (award of
$1,024,525 to husband and $512,000, including $300,000 cash, to
wife upheld).
In its January 10, 2002, order, the family court
addressed property and debt distribution and assignment issues
as follows:
The Court will now address the valuation and
disposition of the marital residence and
forty four (44) acres situated at 4134 Dye
- 8 -
Ford Road, Bowling Green, Warren County,
Kentucky. Pursuant to KRS 403.190(3), all
property acquired by either spouse after the
marriage and before a decree of dissolution
is presumed to be marital property
regardless of how the property is held. The
presumption is rebutted by successfully
asserting that the property was acquired by
a method listed in KRS 403.190(2). Also,
the trial court must make some valuation of
the property. Callahan v. Callahan,
Ky.App., 579 S.W.2d 385 (1979). Most
important, where there is a lack of evidence
on valuation, the trial judge has discretion
to (1) order proof to be obtained; (2)
appoint experts to furnish the value at a
cost to the parties, or (3) direct that the
property be sold. Robinson v. Robinson,
Ky.App., 569 S.W.2d 178 (1978) overruled on
other grounds Brandenburg v. Brandenburg,
Ky.App., 617 S.W.2d 871 (1981). Notably,
under Kentucky case law “acquired property”
is synonymous with equity. An increase in
the value of property that is due solely to
the joint efforts of the parties is
divisible marital property. Goderwis v.
Goderwis, Ky., 780 S.W.2d [39] (1989).
However, increases that are not due to the
parties’ joint efforts are separate, non
marital interests. The marital home of the
parties and the surrounding acreage was
purchased prior to the marriage of the
parties. The Petitioner admitted during her
testimony on October 24, 2001, that all but
one of the tracts of lane in dispute were
purchased prior to the marriage. The tract
of land purchased during the marriage
concerned a sale by the Respondent’s father
to the Respondent of a tract of land for
$1.00 shortly after the marriage of the
parties. The Court finds the payment of
$1.00 to the father was in no way indicative
of the value of the tract; consequently, the
Court finds the sale of the piece of
property for $1.00 was a gift with the
purchase price of the property being mere
peppercorn.
- 9 -
A mortgage exists on the home to Wells Fargo
Bank with a payoff amount of $98,012.90,
which was testified to by the Petitioner at
the second day of final trial which occurred
on October 24, 2001. The Petitioner
testified she had singly paid $2,758.94 from
August 18, 1999 until June 20, 2001 to
reduce the principal balance on the mortgage
to Wells Fargo. The monthly mortgage
payment on the marital home is $639.65, and
the Petitioner testified the Respondent had
not assisted in any mortgage payments since
he moved out in August, 1999.
Further, a home equity loan exists on the
property with an approximate balance of
$10,000 which was testified to by the
Petitioner at the first day of the final
trial on June 20, 2001. The Petitioner’s
testimony revealed the home equity loan has
a cap of $10,000. The principal due on the
loan had been reduced by the Petitioner by
approximately $2,517.00 since the Respondent
left the home, but the Petitioner testified
that a need arose for her to purchase a car
since the 1990 Volvo station wagon she drove
became unsafe to operate on public roads.
The car the Petitioner purchased was a 1991
Volvo station wagon with 140,000 miles for
$3,500.00. The purchase by the Petitioner
of a ten (10) year old automobile
demonstrates her simple want of finding a
serviceable automobile. Consequently, the
Court finds the additional funds borrowed on
the home equity loan which maxed it out
again at $10,000.00 was a reasonable
expenditure.
. . . .
The Brandenburg formula requires this Court
to divide the marital contribution and the
total contribution and then multiply the
quotient by the equity in the home to find
what percentage of the total value of the
home is marital. Brandenburg v.
- 10 -
Brandenburg, Ky.App., 617 S.W.2d 871 (1981).
No testimony or documents were presented to
this Court which would allow this Court to
compute the nonmarital and marital
percentages. The parties married in 1985
while the Respondent purchased the house and
seventeen (17) acres on Dye Ford Road in
1975. Two (2) other contiguous tracts of
land were purchased by the Respondent during
a prior marriage. Another tract of land was
sold to the Respondent by his father several
months into the marriage of the parties for
$1.00. The Respondent purchased his former
wife’s interest in the property through
their divorce action in 1982. The Court
finds the house and acreage has an
approximate value of $140,000.00 The figure
was derived from an appraisal completed on
February 7, 2000 by Graham Company; however,
the total value of the marital home and
surrounding acreage has certainly increased
since February 7, 2000. Testimony elicited
at trial revealed that since the appraisal
several improvements had been added to the
marital home which added value to the
marital home. The Court finds the home
individually has a value of approximately
$105,000; however, a mortgage currently
exists on the home in the amount of
$98,012.90 along with a home equity loan in
the amount of $10,000.00. The figure for
the home’s value was derived from an
appraisal prepared on May 22, 2001 by
Brantley Appraisal Company. The
Respondent’s plan for division of the
property involved the Petitioner being
awarded the marital home and the tract of
land on which it is located with the
Respondent being awarded the other three (3)
tracts of land.
The Court has reviewed the evidence
presented and of record to reach a decision
in this matter with the added proviso that
the Court was not provided with enough
information to properly complete the
Brandenburg formula as designed by the
- 11 -
Kentucky Court of Appeals. The Court finds
the Petitioner should be awarded the home
and the tract of land on which it sits. The
first mortgage shall be assigned solely and
individually to the Petitioner; however, the
Respondent shall be responsible for
$2,000.00 of the $10,000.00 owed on the home
equity loan. The Respondent should be
awarded the entirety of the 14 and 13.64
acre tracts. The Petitioner and Respondent
should dissect the 13.26 acre tract with the
Respondent receiving the top half of the
tract and the Petitioner receiving the
bottom half of the tract. The two and a
half tracts awarded to the Respondent are
contiguous and the 14 acre tract of land
awarded to the Respondent allows road
access.
Susan contends that the family court erred in its
distribution of the real property at issue in this case.
She
does not, however, provide a specific alternative distribution
plan.
Garry’s proposed distribution plan consisted of awarding
Susan the marital residence and the 3.82 acre tract upon which
it is situated, and awarding him the remaining real property.2
The findings of the family court, as far as they go,
are supported by substantial evidence and are, accordingly, not
clearly erroneous.
We are hampered in our review, however, by
the family court’s failure to make threshold findings regarding
the marital/nonmarital character of the real property under
consideration.
Under KRS 403.190, the trial court's division of
2
Even if the marital residence and the tract upon which it is situated is
Garry’s nonmarital property, the awarding of this property to Susan was
proper because the distribution was in conformance with Garry’s own
distribution plan.
- 12 -
property involves a three-step process:
(1) characterizing each
item of property as marital or nonmarital; (2) assigning each
party's nonmarital property to that party; and (3) equitably
dividing the marital property between the parties.
v. Travis, 59 S.W.3d 904, 909 (Ky. 2001).
See Travis
Because the family
court failed to follow this formula, we cannot proceed with a
proper review of the family court’s distribution of the real
property at issue in this case.
Garry either owned the property prior to the marriage
or received the property by gift from his parents during the
marriage.
In the normal course of events, then, all of the real
property would be characterized as his nonmarital property.
In her arguments, however, Susan appears to presuppose
that the character of the all of the real property is marital
because of events occurring during the marriage.
She notes that
all of the property, by conveyance and deed, was converted to a
tenancy by the entirety for the reason, it appears, of providing
for a survivorship interest as a matter of estate planning.
Subsequently, Garry deeded his interest in the property to his
wife for reasons apparently related to his personal bankruptcy
action.
In her brief, Susan states “[b]ecause the Appellee
conveyed the property to the Appellant by general warranty deed
to December 31, 1998, any non-marital interest he may have
claimed in the parcels was extinguished.”
- 13 -
Garry, on the other hand, argues that the distribution
of property was proper because “the trial court saw the nonmarital nature of such properties despite the conveyance.”
As
the intent of the parties at the time of the conveyance is
relevant in determining the effect on the marital/nonmarital
character of the property following the transaction, See Hunter
v. Hunter, 127 S.W.3d 656 (Ky.App. 2003), this is a factual
issue for resolution by the family court.
Because it is unclear from the family court’s order
which of the real property is marital and which is nonmarital,
we are unable to undertake a meaningful review of the family
court’s distribution of the property.
We accordingly remand for
additional findings by the family court with directions to
characterize each of the four tracts of property as marital or
nonmarital.
The family court should make additional findings as
necessary to support its characterization of the property as
marital or nonmarital.
In addition, the family court should
assign a valuation to the property assigned to each party.
Susan also contends the family court erred by failing
to give her credit for her nonmarital funds invested into the
improvement of the marital residence.
In support of her
argument, Susan states as follows:
The Appellant, on the other hand, had a
legitimate non-marital interest claim which
was traceable pursuant to evidence submitted
- 14 -
at trial. Chenault v. Chenault, Ky., 799
S.W.2d 575, 579 (1990). The Appellant
received over $20,412.66 as monies inherited
from her grandparents in 1990 and 1994. In
addition, she received a gift of $4,730.00
from her sister. These funds were used to
pay for renovations to the property totaling
approximately $16,612.81. At trial, the
Appellant presented bank records showing
deposits of these funds and payment of
contractors. Further, after the parties’
separation, the Appellant continued to
renovate the property by replacing carpet,
painting, and adding tile to the bathroom.
Additionally, she paid all mortgage
payments, insurance premiums and property
taxes on the property in question.
The trial court recognized that the
Appellant should not be held to a stringent
standard of tracing. The Appellant’s
evidence was sufficient and she is entitled
to a credit against any marital equity for
her entire non-marital contribution.
The family court addressed this issue as follows:
The Petitioner demonstrated she had spent a
total of $9,882.81 on improvements to the
marital home. The Petitioner testified the
money to improve the home was derived solely
from an inheritance she received. The
accounting on what was spent to improve the
home was exceptional; however, the
accounting for tracing the inheritance funds
was lacking. The Kentucky Supreme Court set
forth in Chenault v. Chenault, Ky., 799
S.W.2d 575, 579 (1990), the general
requirement that nonmarital assets be traced
into assets owned at the time of dissolution
while relaxing some of the draconian
requirements previously established for
tracing nonmarital assets. The Petitioner
testified she received an inheritance from
the death of her grandparents in the total
amount of $22,000.00 which was distributed
to her in several payments. The
- 15 -
distributions to the Petitioner were placed
in either checking or savings accounts of
the parties. Subsequently, checks were
written by the Petitioner to pay for various
improvements to the marital home. It is
important to note that the checks were not
written immediately after the inheritance
checks were deposited into the account of
the parties. The Petitioner even testified
she had transferred at least one
distribution payment from a savings account
to a checking account before writing a check
for home improvements at a later date.
Prior to the Chenault decision by the
Kentucky Supreme Court, the Kentucky Court
of Appeals set forth a minimal tracing
requirement in Allen v. Allen, Ky.App., 584
S.W.2d 599 (1979). The Allen decision
required a party asserting a non-marital
claim to funds in a bank account at least
demonstrate that the account in which
nonmarital funds were deposited and
commingled with marital funds was not
reduced below the nonmarital funds
deposited. The requirement, though not
citing Allen directly, was argued by the
Respondent’s counsel through his crossexamination of the Petitioner. Although the
bank accounts of the parties in which the
non-marital inheritance distribution checks
were deposited dropped below the amounts
deposited in the inheritance checks, the
Chenault decision explicitly calls into
question the tracing requirement posited in
Allen. Regardless of the continuing
efficacy of the Allen decision, the Court
finds the Petitioner commingled her
inheritance distributions in the joint bank
accounts of the parties. The checks for
home improvements were not written
immediately after the distributions which
further muddied the ability of the
Petitioner to demonstrate that funds used
for home improvements were derived solely
from nonmarital sources.
- 16 -
A party claiming that property, or an interest
therein, acquired during the marriage is non-marital bears the
burden of proof.
Sexton v. Sexton, Ky., 125 S.W.3d 258, 266
(2004); Terwilliger v. Terwilliger, Ky., 64 S.W.3d 816, 820
(2002).
"Tracing" is defined as "'[t]he process of tracking
property's ownership or characteristics from the time of its
origin to the present.'"
Sexton, 125 S.W.3d at 266 (citing
Black's Law Dictionary 1499 (7th ed.1999)).
When the original
property that is claimed to be non-marital is no longer owned,
then the non-marital claimant must trace the previously owned
property into a presently owned specific asset.
Id.; See also
Chenault v. Chenault, Ky., 799 S.W.2d 575, 578 (1990).
The tracing requirement simply means that "[w]hen the
original property claimed to be nonmarital is no longer owned,
the nonmarital claimant must trace the previously owned property
into a presently owned specific asset."
Graham & Keller, 15
Kentucky Practice, Domestic Relations Law § 15.10, p. 512. (2nd
ed. West Group 2000).
See also KRS 403.190(3), and Brosick v.
Brosick, 974 S.W.2d 498 (Ky.App. 1998).
If the claimant does
so, then the trial court assigns the specific property, or an
interest in specific property, to the claimant as his or her
non-marital property.
See Brunson v. Brunson, 569 S.W.2d 173,
176 (Ky.App. 1978); and Angel v. Angel, 562 S.W.2d 661, 664-665
(Ky.App. 1978).
- 17 -
In Chenault v. Chenault, supra., the Kentucky Supreme
Court recognized that tracing to a mathematical certainty is not
always possible, noting that: "[w]hile such precise requirements
for nonmarital asset-tracing may be appropriate for skilled
business persons who maintain comprehensive records of their
financial affairs, such may not be appropriate for persons of
lesser business skill or persons who are imprecise in their
record-keeping abilities."
Id. at 578.
As a result, the
Chenault court held that testimony alone may be sufficient to
satisfy the tracing requirement.
More recently, however, the
Court has held that while Chenault relaxed the more draconian
requirements for tracing, it did not do away with the tracing
requirements altogether.
at 821.
Terwilliger v. Terwilliger, 64 S.W.3d
It has long been the rule that nonmarital funds which
have been commingled with marital funds may be traced by showing
that the balance of the commingled account "was never reduced
below the amount of the nonmarital funds."
Allen v. Allen, 584
S.W.2d 599, 600 (Ky.App. 1979).
The family court concluded that Susan failed to meet
her burden to establish tracing of the nonmarital funds she
acquired during the marriage.
While Susan did provided evidence
of her inheritance from her grandparents, her gift from her
sister, deposits of those funds into the parties’ bank accounts,
and evidence that funds were used from the bank accounts to make
- 18 -
improvements to the martial home, the family court’s
determination that her evidence was insufficient to establish
tracing was not clearly erroneous.
While we may have reached a
different conclusion than the family court regarding whether
Susan had met her burden of proving tracing, we will not
substitute our judgment for its determination.
Susan contends that the family court erred by
assigning her the entire $98,012.90 first mortgage debt and
$8,000.00 of the $10,000.00 second mortgage debt.
Susan argues
that there is unrebutted evidence in the record demonstrating
that amounts of the mortgage loan proceeds were used to finance
Garry’s personal legal fees, business losses, gambling losses,
and losses associated with his alcoholism.
Our Supreme Court has held that "issues pertaining to
the assignment of debts incurred during the marriage are
reviewed under an abuse of discretion standard."
Neidlinger v.
Neidlinger, 52 S.W.3d 513, 523 (Ky.2001). "Abuse of discretion
in relation to the exercise of judicial power implies arbitrary
action or capricious disposition under the circumstances, at
least an unreasonable and unfair decision."
Sherfey v. Sherfey,
74 S.W.3d 777, 783 (Ky.App. 2002), citing Kuprion v. Fitzgerald,
888 S.W.2d 679, 684 (Ky. 1994). (Internal quotations omitted).
"The exercise of discretion must be legally sound."
Kuprion, 888 S.W.2d at 684.
- 19 -
Id., citing
Again, we are hampered in our review of this issue
because the family court did not make findings in support of its
assignment of $106,012.90 in debt to Susan against the
assignment of $2,000.00 in debt to Garry.
The reason for the
disparity in the assignment of debt is not immediately apparent,
and, absent findings of fact in support of its assignment of
debt, we are unable to undertake a meaningful review of this
issue.
We accordingly remand for additional findings on the
issue of the assignment of the parties’ marital debt.
In
connection with its additional findings, the family court should
make findings addressing Susan’s allegation that portions of the
mortgage loan funds were used to finance Garry’s personal legal
fees, gambling and business losses, and losses associated with
Garry’s alcoholism.
After the family court has made its
additional findings, it should revisit the assignment of debt in
light of its findings.
Maintenance
Next, Susan contends that the circuit court erred by
failing to award her maintenance.
KRS 403.200 provides as follows:
(1) In a proceeding for dissolution of
marriage or legal separation, or a
proceeding for maintenance following
dissolution of a marriage by a court
which lacked personal jurisdiction over
the absent spouse, the court may grant
- 20 -
a maintenance order for either spouse
only if it finds that the spouse seeking
maintenance:
(a) Lacks sufficient property, including
marital property apportioned to him, to
provide for his reasonable needs; and
(b) Is unable to support himself through
appropriate employment or is the
custodian of a child whose condition or
circumstances make it appropriate that
the custodian not be required to seek
employment outside the home.
(2) The maintenance
amounts and for
the court deems
considering all
including:
order shall be in such
such periods of time as
just, and after
relevant factors
(a) The financial resources of the party
seeking maintenance, including marital
property apportioned to him, and his
ability to meet his needs independently,
including the extent to which a
provision for support of a child living
with the party includes a sum for that
party as custodian;
(b) The time necessary to acquire sufficient
education or training to enable the
party seeking maintenance to find
appropriate employment;
(c) The standard of living established
during the marriage;
(d) The duration of the marriage;
(e) The age, and the physical and emotional
condition of the spouse seeking
maintenance; and
(f) The ability of the spouse from whom
maintenance is sought to meet his needs
while meeting those of the spouse
seeking maintenance.
Under this statute, the trial court has dual
responsibilities:
one, to make relevant findings of fact; and
- 21 -
two, to exercise its discretion in making a determination on
maintenance in light of those facts.
In order to reverse the
trial court's decision, a reviewing court must find either that
the findings of fact are clearly erroneous or that the trial
court has abused its discretion.
Weldon v. Weldon, 957 S.W.2d
283, 285 (Ky.App. 1997).
With regard to its decision not to award maintenance
to Susan the family court made the following findings:
The Court will now address whether the
Petitioner is entitled to an award of
maintenance. The first factor to consider
is whether the Petitioner lacks sufficient
property, including property apportioned to
her, to provide for her reasonable needs.
The Court finds the Petitioner has
sufficient property, including property
apportioned to her, to provide for her
reasonable needs. The second factor to
consider is whether the Petitioner is able
to support herself through appropriate
employment or if she is the custodian of a
child whose condition or circumstances make
it appropriate that the custodian not be
required to seek employment outside the
home. The Court finds the Petitioner is
able to support herself through appropriate
employment. The Petitioner earns a gross
income of approximately $38,903.10 per year,
and her children are between the ages of
twelve (12) and fifteen (15) who are in good
health which means they do not require her
to remain in the home. The Court is aware
that the Petitioner will have trouble paying
all of her bills, but a divorce by its
nature is expensive for both parties since
the incomes which formerly supported one
household now support two. Therefore, the
Court has reviewed the two (2) factors
necessary for an award of maintenance to be
- 22 -
made, and the Court finds the Petitioner is
not entitled to an award of maintenance.
Based upon 2001 earnings, Susan earns a gross yearly
income of $38,903.10 from her position as a middle school
science teacher, or approximately $3,241.93 per month in gross
income.
Susan’s net pay from her job is $2,627.52 per month.
When combined with her $500.00 per month child support payment
from Garry, her net monthly income is approximately $3,127.52
per month.
In the trial court’s property distribution, Susan
was awarded the marital home and acreage with a combined value,
as determined by the family court, of approximately $140,000.00.
Marital debt allocated to Susan consisted of the first and
second mortgage on the residence of $98,012.90 and $8,000.00,
respectively.
is $639.65.
The monthly mortgage payment on the marital home
Susan alleges that she has total monthly expenses
of $4,183.00.
Charles testified at the hearing that his net
disability retirement income is $1,549.94 per month and that he
earns up to an additional $100.00 per month in income from parttime work through Enterprise Rent-A-Car.
Based upon this, after
payment of his $500.00 per month child support obligation,
Garry’s net income is approximately $1,149.94 per month, or
approximately $13,800.00 per year.
- 23 -
The amount and duration of maintenance is within the
sound discretion of the trial court.
Russell v. Russell, 878
S.W.2d 24, 26 (Ky.App. 1994) Furthermore, in matters of such
discretion, "unless absolute abuse is shown, the appellate court
must maintain confidence in the trial court and not disturb the
findings of the trial judge." (Emphasis added.)
782 S.W.2d 56, 60 (Ky.App. 1990).
Clark v. Clark,
See also Platt v. Platt, 728
S.W.2d 542 (Ky. App. 1987); Moss v. Moss, 639 S.W.2d 370
(Ky.App. 1982) and Weldon v. Weldon, 957 S.W.2d 283, 285-286
(Ky.App. 1997).
We cannot conclude that the family court absolutely
abused its discretion in denying Susan’s request for
maintenance.
Garry’s relatively modest net income after payment
of his child support obligation would make any substantive
maintenance award impractical.
Moreover, Susan has a stable job
which provides a moderate income.
In combination with her child
support award, the trial court’s finding that Susan has
sufficient means to meet her reasonable needs was not clearly
erroneous.
CR 52.01.
We accordingly affirm the family court’s
denial of a maintenance award.
CASE NO 2003-CA-002491-MR
In his cross-appeal, Garry contends that the family
court erred by failing to more specifically designate the
boundaries of a 13.26 acre tract of property which was evenly
- 24 -
divided between the parties, and by failing to address his
request for attorney fees.
Boundaries of 13.26 Acre Tract
As previously noted, the family court awarded each of
the parties one-half of the 13.26 acre tract.3
The family
court’s January 10, 2002, order stated “[t]he Petitioner and
Respondent should dissect the 13.26 acre tract with the
Respondent receiving the top half of the tract and the
Petitioner receiving the bottom half of the tract.”
In his motion to alter, amend, or vacate, Garry
indicated that a dispute had developed regarding how the tract
should be divided and requested that the family court clarify
its intention regarding how the tract should be partitioned.
In his brief, Garry states that “[w]ithout any further
specific direction from the trial court, the parties have not
been able to agree as to how the property should be dissected.
Without any further directive from the trial court, the parties
are left to speculate and debate what the trial court’s
intention was in the property distribution and dissection.”
The
family court’s division of the tract with mere reference to the
“top half” and the “bottom half” is ambiguous.
3
We accordingly
Elsewhere in this opinion we have remanded the issue of the
marital/nonmarital character of this tract for additional findings by the
family court. We recognize that depending upon the outcome of the family
court’s additional review of marital/nonmarital character of this tract, this
issue may become moot.
- 25 -
remand with instructions for the family court to clarify the
boundary line between the “top half” and the “bottom half” of
the tract.
Attorney Fees
Garry also contends that the trial court erred by
failing to consider his request for attorney fees.
Susan
contends that this issue is not preserved for review.
We agree.
Garry does not, as required by CR 76.12(4)(c)(iv)
provide a reference to the record identifying the manner in
which the issue is preserved.
Moreover, our review of the
circuit court record discloses that Garry did not file a motion
requesting attorney fees; that he did not identify attorney fees
as an issue in his mandatory case disclosure, in the parties’
partial settlement agreement, or in his trial memorandum; and
that he raised this issue for the first time in his CR 59.05
motion to alter, amend, or vacate.
“A party cannot invoke [CR 59.05] to raise arguments
and introduce evidence that could and should have been presented
during the proceedings before entry of the judgment.”
Kurt A.
Philipps, Jr., 7 Kentucky Practice, Rules of Civil Procedure
Annotated, CR 59.05, cmt. 5, at 541 (6th ed. 2005).
The issue
of attorney fees is accordingly not preserved for our review,
and we will not address this issue on the merits.
- 26 -
For the foregoing reasons the portions of the trial
court’s judgment dealing with the marital/nonmarital character
of the real property at issue, assigning marital debt and
attempting to equally divide a tract of real estate are vacated,
and this case is remanded for additional proceedings consistent
with this opinion.
In all other respects the judgment is
affirmed.
ALL CONCUR.
BRIEF FOR APPELLANT:
BRIEF FOR APPELLEE:
B. Alan Simpson
Bowling Green, Kentucky
David F. Broderick
P. Kevin Hackworth
Bowling Green, Kentucky
- 27 -
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.