Comninellis V. Comninellis
| Decision Date | 11 March 2003 |
| Docket Number | No. WD 60844.,No. WD 60828.,No. WD 60774.,WD 60774.,WD 60828.,WD 60844. |
| Citation | 99 S.W.3d 502 |
| Parties | Pamela S. COMNINELLIS, Appellant-Respondent, v. George COMNINELLIS; and GNC Holdings, Respondent-Appellants, Olympic Industries and Impex International, Respondent. |
| Court | Missouri Court of Appeals |
Thomas E. Hankins, Gladstone, MO, for appellant-respondent.
John G. Dorsey, Claycomo, MO, for respondent.
James D. Boggs, Kansas City, MO, for respondent-appellant.
Before ROBERT G. ULRICH, P.J., EDWIN H. SMITH and PAUL M. SPINDEN, JJ.
George Comninellis (Husband) appeals the trial court's judgment dissolving his marriage to Pamela Comninellis (Wife) and distributing property. He claims that the trial court erred in (1) characterizing certain property as marital property, specifically the lot and foundation located at 612 N.W. 40th Terrace and the subsequent insurance proceeds paid by State Farm as a result of the house being destroyed by fire; (2) failing to set aside certain property as Husband's separate property, namely a commercial building and a Chris Craft yacht; and (3) awarding corporate assets of Husband's business to Husband as nonmarital property. The judgment of the trial court is affirmed in part, reversed in part and remanded to the trial court with directions.
Husband and Wife were married on March 4, 1983. No children were born of the marriage. At the time of the marriage, Husband owned a printing business named Olympic Industries, Inc. It was later renamed GNC Holdings, Inc. Husband was the sole shareholder of the business. Wife worked as an airline stewardess for various airlines for most of the marriage. In March or April of 1983, Husband and Wife moved into a house located at 612 N.W. 40th Terrace. This house was purchased by and titled in the name of Olympic Industries, Inc. Olympic Industries, Inc. purchased a homeowner's insurance policy designating Husband as the insured. The house was destroyed by fire on December 29, 1999. State Farm issued a check payable to Husband for the loss of the house. Husband deposited the check into an account titled in his name. Later, Husband transferred the insurance proceeds into an account titled in the corporation's name. Husband sold the business name and assets in 1996. The corporation was administratively dissolved in 1999.
The couple separated on August 1, 2000, and Wife filed her petition for dissolution of marriage on December 5, 2000. In her petition, Wife requested maintenance. Wife filed an Amended Petition for Dissolution of Marriage on March 16, 2001, to join the corporation as a party to the proceeding. The trial court entered its decree of divorce and division of property on November 14, 2001. Husband filed an appeal on December 5, 2001. Both Wife and the corporation appealed on December 13, 2001. In its judgment of dissolution, the trial court first set aside Husband's separate nonmarital property consisting of corporate assets including corporate bank accounts totaling $184,347.34; a Lincoln Towncar titled in the corporation's name valued at $5,000; and an apartment located in Limnos, Greece, valued at $15,000. Wife did not receive any separate property. The court then divided the marital property and debt. Wife was awarded the real property located at 612 N.W. 40th Terrace valued at $25,000; the fire insurance proceeds for the house totaling $223,000; bank accounts totaling $31,932.13; a Mercedes valued at $20,000; an American Airlines 401k plan worth $735.76; a $228,000 judgment against Husband; and she was ordered to pay $26,552 in debt plus her attorney's fees totaling $7,500. Husband was awarded the commercial property located at 1436 N. Burlington valued at $430,000; a yacht valued at $105,000; two cars valued at $5,675; bank accounts totaling $108,801.50; and he was ordered to pay $222 in debt plus his attorney's fees. The trial court denied Wife's claim for maintenance. This appeal by Husband and cross-appeal by Wife and the corporation followed.
The trial court judgment in a dissolution proceeding will be affirmed on appeal unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976); Childers v. Childers, 26 S.W.3d 851, 853 (Mo. App. W.D.2000). A judgment will not be reversed unless it is against the weight of the evidence and then only with caution and a firm belief that the judgment is wrong. Kennedy v. Kennedy, 969 S.W.2d 310, 313 (Mo.App. W.D.1998). The "weight of the evidence" refers to the probative value of the evidence and not the quantity of the evidence. In re Marriage of Lewis, 808 S.W.2d 919, 922 (Mo.App. S.D.1991). The evidence in the record is reviewed in the light most favorable to the trial court's decision and all evidence contrary to the judgment is disregarded. Evans v. Evans, 45 S.W.3d 523, 526 (Mo.App. W.D.2001). The burden of demonstrating error is on the party challenging the divorce decree. Childers, 26 S.W.3d at 853.
The trial court has broad discretion in distributing property and an appellate court will interfere with the trial court's judgment only if the division is so unduly weighted in favor of one party as to constitute an abuse of discretion. Miles v. Werle, 977 S.W.2d 297, 301 (Mo.App. W.D. 1998). The trial court's decision regarding property division will not be reversed absent an abuse of discretion. Cohen v. Cohen, 73 S.W.3d 39, 53 (Mo.App. W.D.2002). An abuse of discretion occurs when a trial court's ruling is clearly against the logic of the circumstances then before the court and is so arbitrary and unreasonable as to indicate indifference and a lack of careful judicial consideration. Id. If reasonable persons can differ about the propriety of the trial court's action, it cannot be said that the trial court abused its discretion. In re Marriage of Medlock, 990 S.W.2d 186, 189 (Mo.App. S.D.1999).
In Husband's first point on appeal, he
claims that the trial court erred in awarding certain property acquired during the marriage as Wife's marital property, specifically the remains of the house located at 612 N.W. 40th Terrace and the insurance proceeds paid from the house being destroyed by fire. Husband claims that the trial court erred in finding that the house was marital property because it was purchased by and titled in the name of the corporation. He argues that the house was nonmarital property even though it was purchased during the marriage. Husband claims that he and Wife leased the house from the corporation for seventeen years. He contends that no evidence has been presented to justify piercing the corporate veil and treating the house as marital property. As to the insurance proceeds, Husband claims that the trial court erred in awarding the proceeds to Wife because the proceeds were treated as separate property by Husband and never commingled with marital property. Husband's final argument is that the trial court's characterization of the house and insurance proceeds as marital property directly conflicts with its finding that other property acquired by the corporation subsequent to the marriage is nonmarital property.
Property acquired during a marriage is presumed to be marital property. § 452.330.3, RSMo 2000; Ansley v. Ansley, 15 S.W.3d 28, 35 (Mo.App. W.D.2000). Husband, as the party claiming that the property is nonmarital property, bears the burden of proving the property is separate property by clear and convincing evidence. King v. King, 66 S.W.3d 28, 36 (Mo.App. W.D.2001). Under the source of funds doctrine, whether property is characterized as marital or nonmarital depends on the source of funds used to purchase the property. McGilley v. McGilley, 951 S.W.2d 632, 638-39 (Mo.App. W.D.1997) (citing Hoffmann v. Hoffmann, 676 S.W.2d 817, 825 (Mo. banc 1984)). The doctrine requires courts to set aside a spouse's separate property in dissolution cases and property is deemed separate or marital based on the source of funds financing the purchase.
The trial court first found that the house, which was acquired during the marriage, was marital property. Husband claims that the house was nonmarital property not subject to division by the trial court because it was purchased by and titled in the name of the corporation. Wife contends that the property was acquired during the marriage with marital funds. The evidence showed that a check for the purchase price of the house was drawn on the corporation's business checking account. Husband testified that the funds in the corporation's checking account consisted of corporate profits earned before the marriage and funds he inherited from his father prior to the marriage. Husband's argument that the account contained profits from the business earned before the marriage is supported by the fact that Husband and Wife were only married a few weeks prior to the purchase of the house. A reasonable conclusion from this evidence is that Husband could not have earned enough money within the first 30-45 days of the marriage to pay for the house. As to Husband's argument that the account also contained funds acquired from an inheritance, Section 452.330.2(1), RSMo 2000, provides that property acquired by gift, bequest, devise, or descent is not marital property. That the house was nonmarital property is reinforced by the fact that the house was titled in the corporation's name. Although nonmarital property may lose its character as such if there is evidence of an intent to contribute the property to the community, no such evidence exists here. True v. True, 762 S.W.2d 489, 492 (Mo.App. W.D. 1988).
The trial court also set aside to Wife the insurance proceeds representing reimbursement for the destruction of the house by...
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