Gronneberg v. Gronneberg, 11344
| Decision Date | 12 August 1987 |
| Docket Number | No. 11344,11344 |
| Citation | 412 N.W.2d 84 |
| Parties | ReNae M. GRONNEBERG, Plaintiff and Appellee, v. Bruce L. GRONNEBERG, Defendant and Appellant. Civ. |
| Court | North Dakota Supreme Court |
Schuster, Brothers & Beauchene, Fargo, for plaintiff and appellee; argued by James R. Brothers.
Johnson, Johnson, Stokes, Sandberg & Kragness, Wahpeton, for defendant and appellant; argued by Arthur Warren Stokes.
Bruce L. Gronneberg appeals from the divorce judgment and decree entered by the District Court for the Northeast Judicial District on May 12, 1986, and, apparently, from the court's order denying his motion for a new trial issued on July 24, 1986. We affirm in part, reverse in part, and remand.
ReNae and Bruce Gronneberg were married at Fargo, North Dakota, on March 18, 1972. They have three children, Jason B. Gronneberg, born December 17, 1973; Jeffrey B. Gronneberg, born December 24, 1976; and Jayme B. Gronneberg, born March 8, 1980. Shortly after the marriage, Bruce and ReNae moved to Cooperstown and Bruce began farming with his father, Clarence Gronneberg. ReNae devoted her time to the care and rearing of the three children. As the marriage progressed, problems between Bruce and ReNae developed to the point where they separated in May of 1984 and on June 27, 1984, ReNae filed for divorce claiming irreconcilable differences. ReNae requested custody of their three minor children, child support, spousal support, equitable division of all property, and attorney's fees. On August 13, 1984, the court entered an order granting ReNae temporary possession of the marital home, temporary custody of the three minor children, and temporary support in the amount of $800 per month.
Trial was conducted on September 5 and 6, 1985. On October 25, 1985, the trial court issued an order directing Bruce to produce additional documentation regarding his "ownership rights and leasehold interests and obligations in farm land, farm machinery and farm products" so that the court could determine an "appropriate division of the property of the parties." The court noted that "[a] central dispute between the parties is the extent and nature of defendant's ownership rights and leasehold interests and obligations in farm land, farm machinery and farm products." It is significant to note that the court did not specifically request an accounting of the money market deposit account (hereinafter M.M.D.A.). The court ordered Bruce to "produce all abstracts of titles; and photocopies of leases, rental agreements, or other papers not yet offered in evidence indicating ownership or indebtedness and relating to farm land and equipment and farm products stored on the farm or elsewhere as of the date of trial, September 5, 1985, as between defendant [Bruce] and defendant's father [Clarence] or other leasors or title holders." Bruce, pursuant to the court's directive, provided the court with, among other items, a summarization of grain and sunflower assets in the amount of $93,428.19 and additional farm debts in the amount of $27,760.57.
On March 5, 1986, the court issued its 36-page memorandum opinion. On April 7, 1986, the court issued its memorandum opinion nunc pro tunc as of March 5, 1986.
On May 8, 1986, the court issued its findings of fact, conclusions of law, and order for judgment. Judgment was entered on May 12, 1986.
On June 13, 1986, Bruce filed a motion for a new trial premised on ten specifications of error. 1 The court convened a hearing on the motion for a new trial on July 15, 1986, and issued its findings and order denying Bruce's motion for a new trial on July 24, 1986.
Bruce asserts that the trial court erred in: (1) calculating the net worth of the parties, (2) failing to consider the tax consequences of distributing Bruce's Keogh retirement account to ReNae in making its marital property division, (3) failing to consider the payments of temporary support of $800.00 per month pursuant to the court's order entered on August 13, 1984, in determining the division of marital property, (4) awarding ReNae one-half of Bruce's pre-marital assets, (5) disallowing the lease debt between Bruce and his father, (6) placing custody of the minor children with ReNae, (7) determining the amount of child support to be paid by Bruce, and (8) charging the total costs of the guardian and social services to Bruce.
Bruce initially argues that the trial court erred in calculating the net worth of the parties and as a result made an inequitable division of marital property. He most strongly contests the trial court's inclusion of the M.M.D.A. account of $64,592.00, as of May 26, 1984, in calculating the parties' assets of $446,983.44, as of September 5, 1985. He asserts that the M.M.D.A. account was used primarily for farm operating expenses for the two growing seasons between May 26, 1984, the date of separation, and August 5, 1985, the date he prepared his appraisal of the parties' net worth. He asserts that the depletion of $64,592.00 in the M.M.D.A. account corresponds to the increase of $71,792.06 in the value of grain, as of August 5, 1985. Simply stated he asserts that the M.M.D.A. dollars were converted into bushels of stored grain. He contends that the depletion of the M.M.D.A. account was not focused on at the time of trial and that the trial court, without notice to him, focused on the M.M.D.A. account after trial. He asserts had he known that the trial court was going to question the depletion of the M.M.D.A. account that he could have accounted for the depletion as corresponding to farm operating expenses incurred between the separation and the trial which he claims he did through his testimony at the trial and thereafter in conjunction with his motion for a new trial through the production of numerous photocopies of checks and bank statements.
ReNae responds that the trial court correctly factored in the M.M.D.A. account to arrive at the parties' net worth, claiming that it was a credibility issue whether or not the depletion of the M.M.D.A. account was used for farm operating expenses and other properly deductible expenses. She argues that Bruce's failure to explain the depletion of the M.M.D.A. account pursuant to the court's directive, issued on October 25, 1985, justifies the court's action. In support of her contention, ReNae notes that Bruce borrowed $58,990.00 during that interim for farm operating expenses and therefore should not have had to deplete the M.M.D.A. account.
Our resolution of this issue begins with the testimony and evidence presented at trial and with the trial court's calculation of the parties' net worth as demonstrated in the court's memorandum opinion nunc pro tunc issued April 7, 1986, as of March 5, 1986.
At the trial commencing on September 5, 1985, the court received in evidence defendant's exhibit G over objection of the plaintiff which purported to state the net worth of the parties as of May 5, 1984. Exhibit G follows:
"ASSETS
---------------------
CD's $14,125.60
Checking 8,815.30
Stocks 7,994.55
Keogh 51,455.97
Equipment 60,360.00
Datsun Pickup 3,000.00
Grain 9087 31,804.50
House 67,000.00
1984 Cutlass Olds 10,700.00
Household Furnishings 8,000.00
M.M.D.A. Account 64,592.00 **TOTAL ASSETS** .. $327,847.92
--------------
LIABILITIES
---------------------
Accrued Lease $140,875.20
1984 Tax Liab. Fed. 28,919.00
1984 Tax Liab. State 2,609.00
--------------
$172,403.20
NET WORTH---------------5-26-84 $155,444.72 ..... $155,444.72"
The court earlier in the trial had received in evidence, at ReNae's urging, plaintiff's exhibit 3, which showed the alleged assets as of May 5, 1984, including the M.M.D.A. account, but did not contain the list of alleged liabilities. Exhibit 3 follows:
"FINANCIAL STATEMENT
ASSETS AND LIAB
5-26-84
ASSETS
---------------------
CD'S $14,125.60
Checking 8,815.30
Stocks 7,994.55
Keogh 51,455.97
Equipment 60,360.00
Datsun Pickup 3,000.00
Grain 9087 31,804.50
House 67,000.00
1984 Cutlass Olds 10,700.00
Household Furnishings 8,000.00
M.M.D.A. Account 64,592.00 **TOTAL ASSETS** . $327,847.92"
----------
Still earlier in the trial the court received in evidence defendant's exhibit B which purported to state the assets and liabilities of the parties as of August 5, 1985, shortly before trial. The court received exhibit B with the stipulation that everything was agreed to except the item entitled "Accrued Lease $140,875.20" and except for the net worth. 2 The total assets figure of $327,847.92 was stipulated to as correct. Exhibit B follows:
Counsel for each of the parties had initialed the figure of $58,990.54 for notes and interest on notes as being correct, and the total assets figure as being correct as of August 5, 1985, subject to the dispute over the validity of the alleged accrued rental on the alleged oral lease. 3
During the trial, which focused mainly on the facts surrounding the issue of custody and facts involving the alleged oral lease, counsel for ReNae questioned Bruce, notwithstanding the stipulation referred to herein, concerning the disappearance of the M.M.D.A. account from the August 5, 1985, financial statement (defendant's exhibit B).
Bruce responded by testifying that the M.M.D.A. account was used in paying about $30,000 in income tax, $800 per month in family support (apparently August 1984 through September 1985 for 14 months or $11,200), $15,600 for cash rent for 1984 crop at beginning of 1985, and $400 per month...
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