Bradley v. Bradley, WD 65002.

• Decision Date: 30 June 2006
• Docket Number: No. WD 65002.,WD 65002.
• Citation: Bradley v. Bradley, 194 S.W.3d 902 (Mo. App. 2006)
• Parties: Gary Richard BRADLEY, Appellant, v. Terri Lynn BRADLEY, Respondent.
• Court: Missouri Court of Appeals

194 S.W.3d 902

Gary Richard BRADLEY, Appellant, v. Terri Lynn BRADLEY, Respondent.

No. WD 65002.

Missouri Court of Appeals, Western District.

June 30, 2006.

COPYRIGHT MATERIAL OMITTED

Gary R. Bradley, Lexington, MO, Appellant acting pro se.

Brett A. Emison, Esq., Lexington, MO, Respondent.

Before: LOWENSTEIN, P.J., ELLIS and NEWTON, JJ.

HAROLD L. LOWENSTEIN, Judge.

The issue at the heart of this case involves the proper valuation date of marital profit-sharing accounts ("Qualified Domestic Relations Order"). As the reader will note, extensive gaps in time exist among the following dates: trial (July 9, 2002), the dissolution decree with valuation and division of assets (March 31, 2003), and the dates of the Orders for the accounts in question (March 31, 2004, July 13, 2004, and December 21, 2004). Gary Bradley¹ appeals from a trial court judgment amending the entry of three qualified domestic relations orders (QDROs) entered pursuant to a dissolution decree of the marriage of Gary (Husband) and Terri Bradley (Wife).² The amended QDROs value the investment property at the date of their entry,³ rather than the date of trial, July 9, 2002, or the date of the decree, March 31, 2003. A timeline of relevant events is contained in footnote nine. This court reverses the portion of the judgment that values the profit-sharing accounts on the date of actual decree, March 31, 2003, and remands the case with instructions to hear evidence of values of the accounts on the date of entry of the QDROs, March 31, 2004, and then, to consider the economic circumstances at the time the division of property is to become effective, as required under section 452.330.1(1), and, if necessary, to modify the division of marital property.

Facts

Husband and Wife were married in 1985. The couple separated on March 15 2001. Husband filed for dissolution, although the record does not indicate the date on which he did so. On July 9, 2002, the trial court entered an order dissolving the marriage but continued the matter for the reception of further evidence on the issues of property valuation and division. The trial court then appointed a Special Master to divide those disputed items of the parties' personal property. On March 31, 2003, the trial court issued a decree dissolving the marriage and dividing the marital property.⁴

This appeal involves three of Husband's profit-sharing accounts: a Piper Jaffray account, an American Century account, and a Waddell & Reed account (hereinafter collectively referred to as "the accounts").⁵ Husband administered these accounts. On March 15, 2004, the Special Master submitted a Fourth Supplemental Report, which recommended that the valuation date of the accounts be the date of the original Judgment Entry Decree of Dissolution of March 31, 2003. So, one year after the decree of dissolution, March 31, 2004, the three QDROs were issued. The one year delay apparently resulted from the parties' disagreement over "language" contained in the proposed QDROs; however, the exact nature of the disagreement is not clear from the record.⁶ The QDROs provided that "immediately after entry of this order, the Plan shall pay directly to Alternate Payee, Terri Lynn Bradley, [the allotted percentage] of the value of the plan as of the date of the dissolution of marriage on March 31, 2003."

Soon after, Wife filed her objections to Fourth Supplemental Master's Report in addition to a motion to set aside the court's order approving Fourth Supplemental Master's Report and the QDROs entered on March 31, 2004. Wife argued that the proper date of valuation of the accounts should be the date that the accounts are actually segregated, rather than the date of the judgment. On May 18, 2004, the trial court held a hearing, wherein the parties argued the issue of the date of valuation. No evidence was presented.⁷ On July 13, 2004, the trial court granted Wife's motion, set aside its order approving the Fourth Supplemental Master's Report and the QDROs entered March 31, 2004. The trial court entered three amended QDROs on July 13, 2004, which maintained the proportions, but included the gains and losses in those proportions since March 31, 2004, effective on the date of actual segregation.⁸ Husband appeals the trial court's modification of the QDROs, claiming: (1) the trial court lacked jurisdiction to modify them, or (2) in the alternative, the modification was not supported by substantial evidence because the trial court failed to value all marital property at the time of actual segregation in addition to considering the economic circumstances of the parties at the time.⁹

Standard of Review

The trial court's decision must be affirmed unless no substantial evidence exists to support the decision, the decision is against the weight of the evidence, or the decision erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). This court must accept as true the evidence and reasonable inferences therefrom in the light most favorable to the trial court's judgment and disregard all contrary evidence and inferences. Ward v. Ward, 34 S.W.3d 288, 290-91 (Mo.App.2000).

Analysis

I. Jurisdiction

Husband first contends the trial court lacked subject matter jurisdiction to modify the QDROs. Subject matter jurisdiction exists only when a court has the right to proceed to determine the controversy at issue or grant the relief requested. Garcia-Huerta v. Garcia, 108 S.W.3d 684, 686 (Mo.App.2003). Generally, the distribution of marital property constitutes a final order and is not subject to modification. § 452.330.5, RSMo.2000; Miles v. Miles, 43 S.W.3d 876, 878-89 (Mo.App. 2001). Section 452.330.5 allows a trial court to modify its order to distribute marital property in two limited circumstances which involve QDROs. Only the second exception is relevant in this case, which permits modification of a judgment dividing marital property in order to "effectuate the expressed intent of the [court's order regarding distribution of property]." Miles, 43 S.W.3d at 879 (citing in part § 452.330.5); Young v. Young, 152 S.W.3d 887, 888-89 (Mo.App.2005). If a QDRO is involved, the trial court, under the statute, has jurisdiction to revise the terms to effectuate the intent of the order.

In the present case, the dissolution decree dated March 31, 2003, which followed the parties' separation agreement, ordered "[Husband's] interest in the [Piper Jaffrey account to be] divided via in a [QDRO] and [Wife] shall receive 43.65% of account balance and [Husband] shall receive 56.35%." Similar provisions were made for the American Century and Waddell & Reed accounts with their respective allocations. The judgment did not assign values to these accounts, nor did it state a date of valuation with respect to these accounts. The next paragraph of the decree stated, "[t]his Court shall retain jurisdiction over the subject matter until all [QDROs] have been approved by the plan administrators and the proceeds have been divided pursuant to the terms of the parties' agreement."¹⁰ Notably, there is no indication in the record that either party objected to the trial court's retention of jurisdiction.¹¹ The initial QDROs, dated one year later on March 31, 2004, stated in relevant part, "[I]mmediately after entry of this order by the Court, the Plan shall pay directly to [Wife], [allocated percentage] of the value of the plan as of the date of dissolution of marriage on March 31, 2003."

On July 13, 2004, the trial court set aside its order approving the Fourth Supplemental Master's Report and set aside the QDROs, stating that it did so in order to effectuate the court's intention that the "segregation, or allocation to each party, of these assets would be accomplished as soon as practicable after entry of the Judgment, using March 31, 2003, as the date for the establishment of values of the assets."

An examination of the March 31, 2003, judgment, together with the original QDROs, show that the trial court envisioned the investment properties to be divided as soon as possible, and set the date of valuation on March 31, 2003, under the belief that the investments would in fact be divided "immediately after entry" of the trial court's March 31, 2003, judgment. Because the actual segregation did not occur, at a minimum, until after March 31, 2004 (the date the initial QDROs were entered), the trial court modified the valuation date of the QDROs to effectuate its intent that the accounts be divided "immediately after entry" of its judgment. This intent is also evidenced by the trial court's statement of retention of jurisdiction. This court concludes the trial court had jurisdiction under section 452.330.5 to modify the QDROs, and, therefore, Husband's claim that the trial court erred when it modified the QDROs for the purpose of achieving "equitable results," will be denied. See In re Marriage of Gardner, 973 S.W.2d 116, 126-27 (Mo.App. 1998).

II. Valuation Date

Having found the trial court had jurisdiction to modify the QDROs, this court must next determine whether it erred when it valued the accounts as of the date of actual segregation. Husband contends that the proper date of valuation is the date of trial or, if a substantial delay occurred between the trial (July 9, 2002) and the date of the decree (March 31, 2003), then the valuation should be made on or near the date of the decree.

In a dissolution proceeding, the date of trial is the proper date for valuing marital property. Taylor v. Taylor, 736 S.W.2d 388, 391 (Mo. banc 1987). However, "[v]aluation of property should be reasonably proximate to the date the division is to be effective." In re Marriage of Gustin, 861 S.W.2d 639, 644 (Mo.App. 1993). "If the effective date of the distribution is not reasonably proximate to the date of valuation, the court should hold another hearing to establish a valuation as close to the effective date of the division as possible." Id. This is...