Warren v. Warren

• Decision Date: 29 September 1982
• Docket Number: No. 17514,17514
• Citation: 655 P.2d 684
• Parties: Barbara J. WARREN, Plaintiff and Appellant, v. Robert L. WARREN, Defendant and Respondent.
• Court: Utah Supreme Court

Page 684

655 P.2d 684

Barbara J. WARREN, Plaintiff and Appellant, v. Robert L. WARREN, Defendant and Respondent.

No. 17514.

Supreme Court of Utah.

Sept. 29, 1982.

John D. Parken, Paul H. Proctor, Salt Lake City, for plaintiff and appellant.

Nicolaas de Jonge, Salt Lake City, for defendant and respondent.

HALL, Chief Justice:

In this divorce action, plaintiff appeals from the trial court's division of marital assets and liabilities, its alimony award and its refusal to award plaintiff her attorney fees.

Plaintiff married defendant in 1952 in San Antonio, Texas, four months after the death of her father left her with an inheritance of approximately $200,000. Defendant, who was studying engineering at Rice University, worked only part-time during the first two years of their marriage, while plaintiff paid for most of the living expenses of the parties from her inheritance money. In 1954, defendant received his engineering degree. Since that time, he has worked full-time for a company now known as E-Systems, contributing his income to support of the family. In addition to this income, plaintiff expended substantial sums from the principal and income of her inheritance money during the marriage.

In dividing the property of the parties, the trial court awarded to plaintiff all of the property inherited from her father, consisting of a trust fund, 490 shares of National Bancshares Corporation of Texas (National Bancshares) stock, jewelry and household furniture. Plaintiff also received one-half of the equity in the parties' house and most of the personal property of the parties acquired during the marriage, including jewelry, furs, a Saab automobile and nearly all of the household furnishings. Defendant received one-half of the equity in the house, 1,624.32 shares of E-Systems stock acquired under employee stock option and stock ownership plans, 1 unit of a corporate income fund and unnamed other stocks managed by Merrill Lynch, Pierce, Fenner & Smith, Inc. (Merrill Lynch), an employee retirement pension, $75 in savings bonds, a $2,700 promissory note, a $500 account receivable and personal property including a Jeep, a boat, various tools, a gun collection and other items related to his hobbies of hunting and fishing.

The trial court ordered plaintiff to pay debts incurred on 9 credit cards and $2,604 in income taxes for the year 1979, for a total of $10,633. The court ordered defendant to pay $1,003 in past mortgage payments, $2,000 to Merrill Lynch and $2,604 in 1979 income taxes. The court also awarded plaintiff $400 per month alimony for a 4-year period and the right to petition for extension of alimony at the end of that period.

I. Distribution of Property

Plaintiff claims that the trial court overvalued the property awarded to her and undervalued the property awarded to defendant and that this resulted in an unfair division of the marital property. The trial court valued the parties' furniture and household effects at a total of $51,484 based on an itemized list of estimated values compiled by defendant and admitted as evidence. Plaintiff claims that defendant's estimates are inflated and that they improperly reflect replacement cost rather than actual market value.

Plaintiff suggests no alternative criteria by which the trial court might have evaluated the household property. Plaintiff did not furnish a list of estimates equivalent to that of defendant or any other appraisal of the property. Plaintiff provided one exhibit showing the sources and purchase prices of some furnishings. However, the list is far from complete and contains no indication of current values. Plaintiff was directed in the pretrial order and in an earlier order to supply information concerning such present values, but failed to do so.

Apart from defendant's valuation of the property, the only evidence before the court as to value of the parties' household effects consisted of a nonitemized appraisal made at defendant's request by an antique dealer, Tom Olsen. Olsen estimated the value of the contents of the home at a minimum of $50,000 on an immediate sale basis and at a retail replacement value of $100,000. Thus, the only specific evidence presented on the issue of value supports the $51,484 figure adopted by the trial court.

The trial court's valuation of the jewelry and furs awarded to plaintiff accords with written appraisals of these items by a highly experienced furrier and jeweler whose qualifications plaintiff does not dispute. Each of the estimates was prepared in accordance with appraisal practices standard in the profession of the appraiser and without knowledge of the purpose of the appraisal. In addition, both appraisals were made more than two years in advance of the trial date. Each of the appraisers, testifying at trial, indicated that the items appraised might have increased significantly in value during the intervening two years. Thus, the trial court did not err in valuing the jewelry and furs in accordance with the professional appraisals provided, which constituted the sole evidence before it on the issue of current value.

Plaintiff alleges that the trial court unfairly awarded to defendant most of the income-producing assets, such as stocks, and that most of the property awarded to her was unlikely to increase in value. Even assuming, arguendo, that securities constitute a more desirable asset than tangible real or personal property of equivalent value, we find no injustice in the trial court's allocation of property. The trust received by plaintiff as part of that allocation consisted of stocks, government securities and one promissory note to which plaintiff, in her brief, assigns a total value of approximately $97,500. In addition, plaintiff received National Bancshares stock carrying a value of approximately $13,720 on the first day of trial, according to the testimony of a Merrill Lynch stockbroker. Defendant's E-Systems stocks, on the other hand, held a value of approximately $74,313, according to Wall Street Journal stock quotations for the same day as reported in defendant's testimony. Defendant's remaining stocks, excluding one unit of corporate income fund, carried a stipulated total value of $309. Thus, plaintiff received a total of approximately $111,220 in securities, while those received by defendant amounted to approximately $74,622 in value.

Plaintiff also complains that the trial court undervalued defendant's pension fund by assigning to the fund its calculated present value rather than its ultimate future value. Defendant is not presently eligible to receive pension payments and plaintiff has shown no reason why his interest in the fund should be assessed at its projected future value rather than at its actual present worth. Moreover, the parties stipulated, in their pretrial agreement, to the $20,247 valuation used by the trial court. Because the court used an unrealistically low 8% interest rate to compute the present value of the pension, the $20,247 figure is, in all likelihood, too high rather than too low an estimation of value.

Valued in accordance with the evidence discussed above and with the trial court's findings, the property distributed to plaintiff carried a total value of $209,250, while the property received by defendant amounted to $133,988 in value. We find no inequity or abuse of discretion in the court's allocation.

II. Division of Liabilities

Plaintiff contends that the trial court unfairly burdened her by requiring her to pay $10,633 in liabilities consisting chiefly of unpaid credit card balances. Plaintiff in her testimony did not attribute any of the credit card debts to expenditures made on behalf of defendant. However, she claims that some of the liabilities represent expenditures made on behalf of the children, implying that defendant should bear responsibility for such expenditures.

Plaintiff presented no evidence at trial to show what percentage of the credit card liabilities might be attributed to expenditures in behalf of the children, specifically identifying only two such expenditures. All of the children of the parties are over 18 years of age and none was living at home at the time of trial. From the evidence presented, the trial court properly might have concluded that plaintiff had incurred the credit card liabilities principally for her own benefit and that she should bear responsibility for such liabilities.

Plaintiff also labels as unjust the trial court's order that she pay a portion of the parties' 1979 joint tax liability. The total federal income tax of the parties in 1979 was $13,917 plus interest and penalties. Of this amount, defendant assumed responsibility for $11,821. Plaintiff, who acknowledges that her own 1979 income constituted one-sixth of the total income of the parties, was ordered to pay $2,604, approximately one-sixth of the total tax. It is difficult to see how the trial court's division of tax liabilities could have been improved upon.

III. Alimony

Plaintiff claims that the trial court's alimony award is insufficient...