Beckham v. Beckham

• Decision Date: 03 April 2001
• Parties: (Mo.App. W.D. 2001) Janet Leta Beckham, Respondent, v. Charles R. Beckham, Appellant. WD58405 0
• Court: Missouri Court of Appeals

41 S.W.3d 908 (Mo.App. W.D. 2001)

Janet Leta Beckham, Respondent, v. Charles R. Beckham, Appellant.

WD58405

Missouri Court of Appeals Western District

04/03/2001

Appeal From: Circuit Court of Cass County, Hon. Mary Ellen Trimiar Young

Counsel for Appellant: Sharon M. Westhoff

Counsel for Respondent: Kevin K. Anderson

Opinion Summary: Husband and Wife sought a dissolution of marriage. The court found that thirty-five acres of property and a house were commingled, and that each party was entitled to fifty percent of such property. Husband appealed arguing that the trial court erred in determining that his separate property was commingled with marital property and in failing to divide the land and marital home according to the parties' contributions.

AFFIRMED.

Court holds:

(1) The trial court did not misapply the law in determining that the marital home was marital property.

(2) The trial court's division of property was not unduly weighted in favor of the wife.

Harold L. Lowenstein, Judge

Husband appeals from a dissolution judgment, arguing that the trial court erred in determining that his separate property was commingled with marital property and in failing to divide the land and marital home according to the parties' contributions.

Factual and Procedural History

This dissolution of marriage case is between Charles R. Beckham (Appellant), who is retired from the Missouri Highway Department, where he was an inspector for bridge construction (though he still works from time to time as a contractor), and Janet Lea Beckham (Respondent), a caregiver who earns $8 per hour.

The parties became engaged to be married in July of 1986. Shortly thereafter, Appellant sold a home he had from a previous marriage. On September 10, 1986, Appellant made a down payment of $20,000 on thirty-five acres of unimproved land, he testified, in "anticipation" of the marriage. This land was titled solely in Appellant's name and still is. The down payment was in part from proceeds of the sale of Appellant's first home and in part from his savings in a credit union. On September 11, 1986, Appellant executed a Deed of Trust from a local bank, encumbering the acreage with a construction loan of $45,000. There is some dispute as to whether this initial loan was incurred solely by Appellant or jointly by both parties, though an unsigned application containing both parties' names was admitted at trial. Near the beginning of November of 1986, Appellant moved into rental property occupied by Respondent and her two teenaged children, and the parties were married November 21, 1986. In March of 1987, Appellant and Respondent converted the original $45,000 construction loan to a $60,000 loan because of unforeseen expenses. Both parties signed to be responsible for the $60,000 debt, which replaced entirely the original $45,000 debt. In addition, Appellant placed approximately $30,000 from the sale of his non-marital home into finishing the new residence (construction, appliances, carpeting, furniture), though the record is unclear as to whether he contributed this amount before or after the couple married. The parties, Appellant in particular, also put in a great deal of "sweat equity." Appellant drew up plans, worked with contractors and did some of the construction labor himself or with friends. Respondent was responsible for some of the painting.

The parties moved into the marital home in June of 1987. Appellant testified that the real estate was purchased with the anticipation that the couple would marry and build a home. Had he not met Respondent, he testified, Appellant planned to stay in the home of his first marriage.¹

Appellant also testified that during the marriage, both parties made payments on the $60,000 deed of trust. There was also evidence that although Respondent kept a checking account in her name only, the parties had an additional checking account in both of their names from which payments on the deed of trust were paid. From her own checking account, Respondent paid the telephone bills and purchased groceries and all the personal items and sundries used in the home. Appellant paid all of the other utility bills.

The parties separated in April of 1998 and filed for divorce in May of 1998. Respondent testified that early in the marriage, Appellant was physically abusive and that he was mentally abusive ("controlling and intimidating") throughout the marriage.

Relevant to this appeal, the trial court found that the thirty-five acres and the house were commingled,² and that in the division of this marital property, each party was entitled to fifty percent of that property (though Appellant had the right of first refusal). Appellant asserts that the trial court erred first in determining that the acreage and house titled solely in Appellant's name were commingled and second in failing to divide the land and house according to the contribution of the parties pursuant to section 452.330.1, RSMo. Supp. 1998.³

Standard of Review

The trial court's decision in a dissolution of marriage action will be affirmed unless there is no substantial evidence to support the decision, the decision is against the weight of the evidence, or the decision erroneously declares or misapplies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). "The party challenging the dissolution decree has the burden of demonstrating error." Taylor v. Taylor, 12 S.W.3d 340, 344 (Mo. App. 2000). This court views the trial court's findings in the light most favorable to the trial court's decision. Id.

"A trial court possesses broad discretion in identifying marital property." Absher v. Absher, 841 S.W.2d 293, 294 (Mo. App. 1992). When characterizations of property as marital or separate rest on an assessment of witness credibility, this court defers to the trial court's determination of that credibility. Feinstein v. Feinstein, 778 S.W.2d 253, 261 (Mo. App. 1989); True v. True, 762 S.W.2d 489, 492 (Mo. App. 1988).

Analysis

I.

Appellant first argues that the trial court misapplied the law in finding that the land and house titled only in Appellant's name were commingled and therefore erred in not setting aside Appellant's non-marital interest in the property. Specifically, Appellant seeks to be credited with the $20,000 that he used to purchase the land and with the approximately $30,000 used to build and furnish the house. Appellant argues that the court erred in not applying the "source of funds" rule because this $50,000 was and is his separate, non-marital property. ⁴

In 1984, the Supreme Court of Missouri invoked the "source of funds" doctrine (which is now reflected in section 452.330.4). Hoffman v. Hoffman, 676 S.W.2d 817, 825 (Mo. banc 1984). The effect of this doctrine is that courts must set aside a spouse's separate property in dissolution cases, and property is deemed separate or marital based on the source of funds that financed the purchase. Id. at 824. Property is considered acquired as it is paid for so that a portion of the property's ultimate value will be marital property. Id.

Property is considered non-marital if a spouse owned it before the marriage and retained title to it after marriage. Kinsey-Geujen v. Geujen, 984 S.W.2d 577, 579 (Mo. App. 1999). Adding a spouse's name to the title creates a presumption that the property has been transmuted to marital property. Id. However, having both spouses' names on the title is not the sole means of transmuting separate property into marital property. "Where the parties continually commingle marital assets and earnings, and treat property as communal, separate property may be transmuted into marital property." Cuda v. Cuda, 906 S.W.2d 757, 759 (Mo. App. 1995). In this regard, the parties' intent is the determining factor. Kinsey-Guejen, 984 S.W.2d at 579. Alternatively, property that is purchased with funds from separate property 'in contemplation of marriage and [that is] intended to be marital property' may be considered marital property where there is evidence to support such a finding. Colborn v. Colborn, 811 S.W.2d 831, 834-35 (Mo. App. 1991)(emphasis added).

Because the marital home was never titled in Respondent's name so as to invoke a presumption of transmutation, the question is either 1) whether there was sufficient commingling of the assets so as to transmute the home to marital property, or 2) whether the property was purchased in contemplation of marriage with the intent that it be marital property. Viewed in the light most favorable to the trial court's decision and given the Missouri precedent set forth below, this court concludes that the trial court did not err in applying the law.

In True v. True, supra, the wife complained that the trial court erred in classifying all of the property in dispute as marital. 762 S.W.2d at 490. At issue were five parcels of land, some of which were titled in one spouse's name, some of which were titled in both spouses' names. Id. at 490-91. Three parcels were acquired during the marriage, two were acquired by the wife before the marriage. Id. at 491. A month before the parties married, the wife purchased property where the parties lived for five years. Id. She paid the down payment and made all the payments on it, though the husband worked on the property and paid her back half of the down payment. Id. This was not subject to the source of funds rule, the court concluded, in part because the parties failed to keep their financial affairs separate and in part because that property was used as the marital residence: non-marital property "may lose its character as such if there is evidence which clearly shows that there existed an intention to contribute the property to the community." Id. at 492-93.

In Bashore v. Bashore, the parties opened a bank account in both of their names and "contemplated marriage." 685 S.W.2d 579, 582 (Mo. App. 1985). A month after the account was formed, the (future) husband purchased a...