Catalfumo v. Catalfumo

• Decision Date: 31 December 1997
• Docket Number: Nos. 96-0259,96-0337,s. 96-0259
• Citation: 704 So.2d 1095
• Parties: 23 Fla. L. Weekly D92 Barbara CATALFUMO, Appellant/Cross-Appellee, v. Daniel S. CATALFUMO, Appellee/Cross-Appellant.
• Court: Florida District Court of Appeals

Page 1095

704 So.2d 1095

23 Fla. L. Weekly D92

Barbara CATALFUMO, Appellant/Cross-Appellee, v. Daniel S. CATALFUMO, Appellee/Cross-Appellant.

Nos. 96-0259, 96-0337.

District Court of Appeal of Florida,

Fourth District.

Dec. 31, 1997.

Rehearing and Rehearing En Banc

Denied Feb. 20, 1998.

Brenda M. Abrams of Abrams, Abrams & Etter, P.A., Miami, and Lewis Kapner, P.A., West Palm Beach, for appellant/cross-appellee.

Joel M. Weissman and Stephanie A. Russo of Weissman, Manoff & Yaffa, P.A., West Palm Beach, for appellee/cross-appellant.

DELL, Judge.

These consolidated appeals follow a final judgment of dissolution of marriage. In case number 96-0337, Barbara Catalfumo contends that the trial court abused its discretion when it determined the date of filing the petition for dissolution as the valuation date for equitable distribution, denied prejudgment interest, denied permanent periodic alimony, and awarded an inadequate amount of child support and attorney's fees. In case number 96-0259, Daniel Catalfumo contends that the trial court erred when it granted Mrs. Catalfumo's motion for rehearing and amended the final judgment to include, among other things, her entitlement to the residence and $1,735.00, the cash value of a life insurance policy. Mr. Catalfumo has failed to demonstrate reversible error in case number 96-0259.

In case number 96-0337, we affirm the valuation date for equitable distribution purposes, the amount of child support awarded, the denial of alimony, and the amount of attorney's fees awarded. We reverse the denial of prejudgment interest and remand with directions to award Mrs. Catalfumo prejudgment interest on the equitable distribution award of $1,120,672.00, commencing on the date of filing the petition for dissolution of marriage.

The parties married on March 26, 1977. Neither party brought any significant assets into the marriage. Mrs. Catalfumo quit school to work part-time in a business with Mr. Catalfumo. She also worked part-time as a dental assistant. During the course of the marriage, Mr. and Mrs. Catalfumo operated various businesses. Eventually, they became involved in a building and construction business and used their home as an office and as a showcase for prospective buyers or builders.

In 1982, with the birth of their first child, Mrs. Catalfumo stopped working as a dental assistant. In 1986, after the birth of their second child, Mr. Catalfumo told her that he needed "more space." That same year, the parties separated and divided their assets. Thereafter, Mrs. Catalfumo operated a shoe store that was liquidated for no significant gain. Mr. Catalfumo continued to operate a number of businesses. The parties did not divide nor determine the value of the businesses operated by him. From April, 1986 until the present, Mrs. Catalfumo has not had any direct involvement in Mr. Catalfumo's business ventures. In 1987, Mrs. Catalfumo filed for dissolution of marriage.

The dissolution proceedings lasted more than seven years. During that period, Mrs. Catalfumo attended nursing school, and in 1993, she began working as a nurse. After the parties separated, Mr. Catalfumo prospered in the construction business. The properties he developed and the businesses he operated accumulated a total value far in excess of the value of those in existence at the time the petition was filed. The record contains testimony that at the time of the final hearing, the estimated net value of the businesses operated by Mr. Catalfumo was approximately $22,000,000.00.

Throughout the seven year separation, Mr. Catalfumo paid Mrs. Catalfumo $1,500.00--$1,600.00 per month to support the children, and a larger amount while she attended school. He paid for the children's private school tuition, books, uniforms, summer camps, vacations, and medical insurance. He also purchased at least one life insurance policy for Mrs. Catalfumo and the children in the amount of $1,000,000.00.

On October 5, 1994, in addition to attorney's fees already paid by Mr. Catalfumo on behalf of Mrs. Catalfumo, the trial court granted Mrs. Catalfumo's motion for temporary relief and ordered Mr. Catalfumo to pay $50,000.00 in attorneys' fees and $5,000.00 in accountant's fees. The court stated that it intended this award to be sufficient to pay the amounts owed and to take the case through trial.

In June, 1994, Judge Wennet granted Mr. Catalfumo's motion to set the date of filing as the valuation date for equitable distribution. His order provided that the parties could present further argument on this question. On October 24-27, and December 5, 1994, the trial court conducted hearings on the equitable distribution, prejudgment interest, child support, and other disputed financial issues. Consistent with Judge Wennet's previous order, Judge Gross heard additional testimony and argument concerning the valuation date.

Mrs. Catalfumo argued that because the parties were still married at the time of the hearings, it was unfair to ignore the appreciation in value of Mr. Catalfumo's businesses during the period between filing and trial. Mrs. Catalfumo reasoned that she helped increase the properties' values by caring for the children and allowing Mr. Catalfumo to use her share of the marital estate to finance his business ventures. Mr. Catalfumo argued that the valuation date for equitable distribution should be closer to the time of filing for dissolution. He asserted that the court should look at properties in existence at the time of filing and value them as of that date. He did not dispute, however, that if a specific asset was directly related to a subsequently developed property, it should then be included as a marital asset.

The court reaffirmed 1987 as the valuation date for equitable distribution of the parties' assets and further determined that in 1987, the corporations in which Mr. Catalfumo had an interest were valued at $2,303,302.00. The court made provisions in its order for consideration of proposals by either party to determine the value and the equitable distribution of assets not covered in the order. The court also found that for purposes of awarding child support, Mr. Catalfumo's net monthly income was $20,634.00.

During October, 1995, the trial court conducted a final hearing and thereafter issued its final judgment. The court awarded primary residential custody to Mrs. Catalfumo and ordered Mr. Catalfumo to pay $2,914.00 per month in child support, bear all expenses reasonably related to the children's schooling, and keep a life insurance policy with each child as an irrevocable beneficiary. The court also stated, "As and for equitable distribution, the Husband shall pay to the Wife in complete satisfaction of all her claims the sum of $1,120,672." The court denied Mrs. Catalfumo's claim for alimony, but granted her application for post-judgment attorney's fees and costs and ordered Mr. Catalfumo to pay $18,112.50 to her attorneys for the period between the equitable distribution order and the final judgment.

Mrs. Catalfumo contends that the trial court abused its discretion when it used the date of filing the petition for dissolution, rather than the date of trial, as the valuation date for equitable distribution. Section 61.075(6), Florida Statutes (Supp.1988), requires the valuation date to be the date of filing the petition "unless the trial judge determines that another date is just and equitable under the circumstances." However, this case was filed prior to the effective date of that section. The proper valuation date under case law preceding the enactment of section 61.075 is "either the petition filing date or the hearing date in cases where the value of the parties' property had significantly increased in value between the filing and trial dates, unless the trial court found sufficient justification for using some other date." Nicewonder v. Nicewonder, 602 So.2d 1354, 1357 (Fla. 1st DCA 1992).

Mrs. Catalfumo relies on Perlmutter v. Perlmutter, 523 So.2d 594 (Fla. 4th DCA 1987), rev. denied, 531 So.2d 1354 (Fla.1988), to support her argument that the trial date is the appropriate date to value marital assets when a lengthy amount of time has elapsed between filing the petition and the date of trial. In Perlmutter, this court aligned itself with conclusions reached in Wegman v. Wegman, 123 A.D.2d 220, 509 N.Y.S.2d 342 (1986). In Wegman, the court stated:

In many cases valuation of marital assets as of a date as close to the time of trial as practicable will result in an award which is fair to both parties. As has heretofore been pointed out, there frequently may be a substantial lapse of time between the date of commencement of the action and the date of trial.... Under such circumstances, the valuation of assets close to the time of trial may result in the formulation of an award consistent with the purpose of equitable distribution and insure that each spouse receives a fair share of the family assets accumulated while the marital relationship endured.

However, in other cases circumstances may exist which would justify the use of a valuation date closer to the time of commencement of the action. As we have already mentioned, a sharp increase in the value of a marital asset due solely to the efforts of the owner spouse might be such a circumstance. Similarly, a dramatic reduction in value due to dissipation or wasteful conduct of the owner spouse might justify the use of a date earlier than the date of trial. These examples, of course, are not exclusive. Furthermore, recognition may be given to the principal which is the basis of the Equitable Distribution Law, namely, that the concept of "economic...