Foley v. Foley, 15970

• Decision Date: 31 August 1988
• Docket Number: No. 15970,15970
• Parties: Robert J. FOLEY, Plaintiff and Appellant, v. Judith A. FOLEY, Defendant and Appellee.
• Court: South Dakota Supreme Court

Page 42

429 N.W.2d 42

Robert J. FOLEY, Plaintiff and Appellant, v. Judith A. FOLEY, Defendant and Appellee.

No. 15970.

Supreme Court of South Dakota.

Argued April 25, 1988.

Decided Aug. 31, 1988.

Barbara Anderson Lewis of Woods, Fuller, Shultz & Smith, P.C., Sioux Falls, for plaintiff and appellant.

Lois Ann Rose of Rose & Piersol, Sioux Falls, for defendant and appellee.

SABERS, Justice.

Husband appeals trial court finding that original decree awarded alimony and determination that alimony award be modified.

Facts

Robert (Husband) and Judith (Wife) Foley were divorced in 1981. In 1987, Wife petitioned the trial court ¹ for modification of the alimony award. Husband contended that the periodic payments awarded to Wife under the 1981 divorce decree were not alimony, and if such payments were alimony, no change of circumstances had occurred to justify modification.

The trial court determined that the periodic payments were, in part, alimony and that Wife had proven sufficient change in circumstances to justify modification. The trial court ordered Husband to pay alimony of $250 per month for five years, terminable upon Wife's remarriage or death. The trial court also denied Husband's motion to stay payment of this alimony award pending appeal.

Husband claims the trial court erred in determining that the periodic payments were alimony, that a change of circumstances supporting modification had occurred, that the motion to stay payment on appeal should be denied, and that the parties should each pay one-half of the mortgage payments until the marital home was sold.

1. DID 1981 DECREE AWARD ALIMONY TO WIFE?

Husband claims the facts support the conclusion that the periodic payments at issue were either property settlement, child support or "lump sum or gross" alimony awarded in lieu of property.

The most relevant portions of the 1981 Findings of Facts and Conclusions of Law are Conclusions of Law # 4 and # 5 which state: ²

4.

The defendant wife is entitled to and shall be awarded the following sums to be paid by plaintiff as support and maintenance for the children and herself:

a. the house payment, consisting of principal, interest and insurance, presently in the sum of $518.00 per month;

b. for utilities, food, and necessaries, the sum of $176.00, per month;

that said sums be payable to the Clerk of Courts, ... that one-half of said total sum shall be payable on the first (1st) day of each month and one-half on the fifteenth (15th) day of each month, until the youngest child reaches the age of 18 or finishes high school, whichever happens last.

5.

That the title to the family home ... shall remain in joint tenancy and provided that defendant wife should be awarded the possession thereof until the youngest child completes his high school education or becomes age 18, whichever happens last; or until such time as the defendant might remarry; and provided further, that upon the happening of any such event, the property be sold and that after the payment of the expenses of sale, the defendant be awarded seventy percent (70%) and the plaintiff be awarded thirty percent (30%) of the proceeds remaining.

A. Property Settlement

Husband argues that the periodic payments awarded to Wife are property settlement which are not subject to modification. Rousseau v. Gesinger, 330 N.W.2d 522 (S.D.1983); Holt v. Holt, 84 S.D. 671, 176 N.W.2d 51 (1970). He claims that the payments were intended to build equity in the marital home in which Wife had a 70% interest. Neither party treated the payments as alimony for federal income tax purposes. Husband contends that the 1981-82 proposed stipulation on tax treatment of the payments was drafted solely for the purpose of acquiring a more advantageous tax treatment. Additionally, Wife wanted the stipulation to require Husband to increase the amount of the payments to offset any tax liability to her. Husband relies on Malcolm v. Malcolm, 365 N.W.2d 863 (S.D.1985) to support his argument. However, he fails to note that much of the analysis of the agreement in Malcolm relates to the interpretation of a contract, which was the document at issue. In the instant case, the trial court was attempting to interpret and effectuate the provisions of the original court's judgment of divorce.

Wife responds that if the periodic payments were property settlement then the trial court did not award any child support. She claims this is not the case and that Husband's argument is refuted by the very words of the decree: "support and maintenance for the children and the defendant [Wife]." She refers the court to the findings and conclusions which identify and divide the marital assets. She argues that the percentages of equity in the home awarded each party were adjusted after the trial court determined that Husband's military pension was not a marital asset. If the periodic payments were property settlement, she argues, then it would have been logical for the trial court to adjust those payments.

B. Gross or Lump Sum Alimony or Child Support

Husband claims that, if payments are not a property settlement, they are an award of "gross or lump sum alimony." This court stated in Holt that "unqualified" awards of gross or lump sum alimony are subject to the same finality applied to property divisions. The reason is that "lump sum" alimony is frequently given in lieu of property. Husband contends these payments were for a definite period and were not subject to termination upon Wife's death or remarriage, therefore, the payments were lump sum alimony.

Husband claims alternatively that if the payments are neither property settlement nor lump sum alimony, then they are child support which appropriately terminates upon the youngest child's emancipation or graduation, whichever is later.

Wife argues that although the decree does not use the words "alimony" or "child support," the 1987 trial court was correct in determining that the decree provided for such awards. She asserts that the terms utilized by Judge Christensen are consistent with the terms used in the alimony and child support statutes, SDCL 25-4-41 and 25-7-7. She also claims an award of alimony is consistent with the facts in this case and the factors to be considered by the trial court: Husband was found to be at fault; the parties had disproportionate earning capacities; and the temporary support of $800 per month was only reduced by $106 to final support of $694 even though the number of children covered went from four down to one. She contends that the Findings of Fact, specifically # 16, that Wife needs support and Husband is capable of paying support for Wife, are consistent with an award of alimony. Finally, she disagrees with Husband that the decree's provisions are so ambiguous that it is necessary to refer to the correspondence between the parties' counsel and the court.

This court has frequently urged trial courts to make findings of fact and conclusions of law and has discouraged appealing parties from relying upon memorandum opinions or extraneous materials when such findings and conclusions are made. Cf. Lien v. Lien, 420 N.W.2d 26, 28 (S.D.1988). Therefore, it was not inappropriate for Judge Kean to rely upon Judge Christensen's Findings and Conclusions in determining what was awarded to Wife in 1981. In reviewing that determination, this court need not go beyond the original decree.

The trial court found the periodic house payments were alimony because continued payment was conditioned upon occupancy of the residence and no remarriage by Wife. Husband claims that a fair reading of Conclusions of Law # 4 and # 5 show that only Wife's possessory interest in the home was conditioned upon remarriage; the payments were to terminate only upon the youngest child's emancipation or graduation.

It appears from Conclusions # 4 and # 5 of the original decree, that the monthly payments of $694 per month are terminable only upon the graduation or emancipation of the youngest child. Wife's possessory interest in the house is terminable upon remarriage or the child's emancipation/graduation. Therefore, if Wife had remarried prior to the child's emancipation/graduation, the payments would have continued, even though the house would be sold. Although this provision initially appears consistent with an award of child support, it is inconsistent with the Conclusion awarding the payments, in part, for Wife's support and with Finding # 16, and # 10, which states that Wife "needs the possession thereof."

If the 1981 decree had simply awarded monthly support payments to Wife and the child without direction as to the expenditure of those sums, then the economic situation at that time would have required Wife to move from the marital home and to pay rent for other housing. By directing the support money back into the home, the decree intended to accomplish two goals: support for the Wife and unemancipated child(ren) and increase the value of the marital asset.

The end result of the provisions of the 1981 decree is the same as if the trial court had awarded Wife 70% of the marital home as property settlement and ordered Husband to pay $694 per month child support and alimony until the child graduated or was emancipated. Therefore, we cannot say that the trial court was clearly erroneous in finding that "the portion of the periodic support payments directed to be applied to the house is construed as alimony."

2. A CHANGE IN CIRCUMSTANCES

SDCL 25-4-41 allows the trial court to modify support orders "from time to time." ³ No modification of an alimony award can be made unless there is a change of circumstances from those which existed at the time of the original decree. Lambertz v. Lambertz, 375 N.W.2d 645 (S.D.1985). The burden of proving such a change in circumstances is on the party seeking modification. Wegner v. Wegner, 391 N.W.2d 690 (S.D.1986). The trial court's decision to modify an award of alimony is reviewed on appeal under the...