Bell v. Bell, 17798

Citation499 N.W.2d 145
Decision Date17 November 1992
Docket NumberNo. 17798,17798
PartiesPaulette A. BELL, Plaintiff and Appellee, v. Stephen G. BELL, Defendant and Appellant. . Considered on Briefs
CourtSupreme Court of South Dakota

Richard A. Johnson of Strange, Farrell, Johnson & Casey, Sioux Falls, for plaintiff and appellee.

Thomas J. Nicholson of McFarland and Nicholson, Sioux Falls, for defendant and appellant.

MILLER, Chief Justice.

Steve Bell appeals the circuit court's judgment, divorce decree and denial of his motion to reopen. We affirm in part, reverse in part, and remand.

FACTS

Steve and Paulette were married April 22, 1972, at Sioux Falls, South Dakota, and have lived there throughout most of their marriage. Three children were born to the marriage: Bradley, on May 17, 1973; Robin, on March 31, 1975; and Travis, on April 14, 1980. The parties are each thirty-nine years old.

Steve has a high school education. Prior to the marriage of the parties, Steve had been employed at American Freight in Sioux Falls. He worked there as a utility mechanic until they closed in 1988. Steve then sought employment in the Sioux Falls, Minneapolis and Kansas City areas. After three months, Steve moved to Kansas City, alone, when he found a job with a trucking firm which paid better wages than did the available jobs in Sioux Falls. Steve has stayed in the Kansas City area, living in the office where his brother works. Steve had been returning to Sioux Falls several weekends a month until this action was started. His Kansas City firm down-sized after one and one-half years and he lost his job.

At about this time, Steve obtained a part-time job as a gardener which developed into a temporary full-time job. While working as a full-time gardener, he also took a full-time job at Overnight Freight. Steve worked sixteen hours per day for about six weeks at which time the gardening job ended. 1 In December, 1990, Overnight Freight laid him off for lack of work. Steve remained unemployed until March, 1991, when he was temporarily called back by Overnight Freight for several weeks. Steve has since been unsuccessful in his search for truckline employment despite numerous inquiries. Steve was unemployed at the time of this divorce trial and his unemployment benefits had expired.

Steve has high blood pressure and diabetes which appear to be controlled with medications. In addition, due to a blood infection in May, 1991, he has pericarditis, a heart problem.

Paulette has a high school education. When she was not working outside the home, she took care of the children and the household. Paulette did some babysitting while the children were little and worked as a waitress in 1981-82. Due to a bad back, Paulette did not again work outside the home until 1984 or 1985 when she went back to work part-time. Most of her work has been in sales. In 1990, Paulette took some marketing classes at Southeast Area Vo-Tech in Sioux Falls and has had one night class in computer-assisted design. Paulette also has some health problems. As previously alluded to, she has back problems which led to surgery in 1989. Her back problems may recur. She also suffers from allergies which have occasionally caused her to be bedridden with bad headaches.

This divorce action was commenced November 7, 1990. A trial was held August 23, 1991, at which time both parties testified. During the course of trial Paulette testified that in 1988 she thought she made $10,000. Subsequent to trial, Steve obtained copies of Paulette's W-2 tax statements. As these forms showed that Paulette's trial testimony greatly understated her 1988 wages, Steve filed a motion to reopen. This motion was made two weeks after the court's memorandum opinion of August 30, 1991, wherein the trial court noted that Paulette was capable of earning only minimum wages. The court, without holding a hearing, denied the motion.

In December, 1991, the court entered its judgment granting Paulette a decree of divorce on grounds of extreme cruelty. Child custody and support payments, as well as alimony and property division were ordered. Steve appeals, arguing (1) the trial court abused its discretion when it ordered alimony and child support payments which exceed the total of his monthly income; (2) the trial court was clearly erroneous in its identification and division of the marital assets; and (3) the trial court abused its discretion when it denied his motion to re-open.

DECISION

ISSUE I

WHETHER THE TRIAL COURT ABUSED ITS DISCRETION IN ITS

IDENTIFICATION AND DIVISION OF THE MARITAL

ASSETS.

A trial court's findings "will not be set aside unless they are clearly erroneous." Tate v. Tate, 394 N.W.2d 309, 310 (S.D.1986). "This court will not disturb a division of property unless it clearly appears the trial court abused its discretion." Kanta v. Kanta, 479 N.W.2d 505, 507 (S.D.1991); Johnson v. Johnson, 471 N.W.2d 156, 159 (S.D.1991); Fox v. Fox, 467 N.W.2d 762, 766 (S.D.1991).

1. Retirement Plan.

We look first to Steve's allegation that the trial court abused its discretion when it awarded half of his retirement plan to Paulette. Steve has been a member of the Teamster's Union for sixteen years. His Teamster's pension plan vested after ten years. The present retirement value of his retirement plan is $200/month upon reaching age sixty-five.

"In South Dakota a retirement plan has been recognized as a divisible marital asset since it represents consideration in lieu of a higher present salary. Contributions made to the pension plan would have been available to the family as disposable income during the marriage." Stemper v. Stemper, 403 N.W.2d 405, 408 (S.D.1987) (citations omitted). Steve argues that because there was no evidence presented that the retirement plan was funded in lieu of a higher present salary, or that it affected his family's disposable income during the marriage, the retirement plan is not marital property subject to division. We note that even a non-contributory pension plan is a marital asset even though such a plan has no effect on disposable income during the marriage. Stemper, 403 N.W.2d at 407-08. The pension plan benefits were clearly accrued during the marriage and are therefore, a marital asset subject to division. Id. See also Kanta, 479 N.W.2d at 510; Stubbe v. Stubbe, 376 N.W.2d 807, 809 (S.D.1985). The trial court did not abuse its discretion by including the accrued pension plan benefits as a part of the marital assets to be divided. However, the division, if any, of this marital asset is to be reconsidered on remand as more fully discussed below.

2. Use of Marital Home.

Steve also argues that the trial court abused its discretion when it awarded the use of the marital home to Paulette until the youngest child is emancipated. 2

The trial court's judgment and decree reads in part that "[t]he parties (sic) real estate shall be held in an undivided interest one-half ( 1/2) to each party. [Paulette] shall be awarded the use of the real estate until the youngest child attains the age of eighteen years or graduates from high school whichever event occurs later, but in no event past the youngest child's nineteenth birthday." The house, with a fair market value of $70,000, represents the parties' major marital asset. 3

Where "the welfare and best interests of the children require ... [the trial] court may assign the use and possession of the marital home to the custodial parent[.]" Johnson v. Lowary, 81 S.D. 202, 206, 132 N.W.2d 823, 825 (1965). Paulette argues that it would be a major disruption to the children's lives to force them to move due to a sale of the home. We are not persuaded. The oldest child is emancipated. An affidavit in the record shows an intent on the part of the middle child to move out. There is little in the record to indicate that a move would be more disruptive to the youngest child than to any child.

During the marriage of these parties, they purchased three marital homes. Their contributions to the purchase of the first home were approximately equal. A second home was acquired with assistance from Paulette's father in the form of $5,000 for the downpayment, $4,000 of which has apparently been repaid. These two homes were sold; the proceeds and $35,000 borrowed from a bank were used for the purchase of the home and small acreage here at issue.

There was testimony that the bank mortgage on the marital home was paid off in a lump sum with money borrowed from Steve's mother. Both parties acknowledge the money was not a gift and Steve was making $400/month house payments to his mother until Steve became unemployed. Steve testified his father had drawn up some type of a repayment schedule to which Steve and Paulette agreed, although there was no formal promissory note between the Bells and Steve's mother. Steve further testified, and presented an exhibit at trial in support of his testimony, that he owed his mother in excess of $14,000 on that loan. Steve had also been making additional payments to his mother against other borrowed sums of money totaling in excess of $24,000. All payments stopped by December, 1990, after this divorce proceeding was commenced and Steve was no longer employed.

Undisputed testimony shows a minimum of $14,000 is still owing to Steve's mother on the house loan. Paulette received substantial sums of money from Paulette's father in addition to the downpayment on the second home. The court noted in its memorandum opinion that it could not determine the amounts of the loans from Steve or Paulette's parents. Though this may be true, the court's subsequent finding that the debts of the parties were only $5,830 is clearly erroneous and must be set aside, Tate, 394 N.W.2d at 310, as the evidence clearly shows a substantial sum of money is still owed on the home. Although the trial court need not be perfect in its valuations, the findings of the court must at least be within the range of evidence before it. Moser v. Moser, 422 N.W.2d...

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