Lorenz v. Lorenz

• Decision Date: 10 April 2007
• Docket Number: No. 20060068.,20060068.
• Citation: 2007 ND 49,729 N.W.2d 692
• Parties: Rhonda Rene LORENZ, Plaintiff and Appellant v. Mark Andrew LORENZ, Defendant and Appellee.
• Court: North Dakota Supreme Court

729 N.W.2d 692

2007 ND 49

Rhonda Rene LORENZ, Plaintiff and Appellant v. Mark Andrew LORENZ, Defendant and Appellee.

No. 20060068.

Supreme Court of North Dakota.

April 10, 2007.

Paul M. Probst, Probst Law Firm, Minot, ND, for plaintiff and appellant.

Robert S. Thomas, Thomas & Thomas, Minot, ND, for defendant and appellee.

CROTHERS, Justice.

[¶ 1] Rhonda Lorenz appeals from a judgment granting her a divorce from Mark Lorenz, dividing the parties' marital estate, denying her request for spousal support, awarding her custody of the parties' minor child, and granting Mark Lorenz visitation. By this opinion and that of the Chief Justice, we affirm that portion of the judgment distributing the property and debt of the parties. By Justice Maring's opinion and the concurrence of Justice Kapsner and the Chief Justice, we reverse that portion of the judgment denying spousal support and remand to the trial court for the purpose of awarding temporary spousal support.

I

[¶ 2] Rhonda and Mark Lorenz were married in April 1994 and have one child together. Rhonda Lorenz has another child from a previous marriage, and that child lived with the parties during their marriage. Mark Lorenz served in the United States Air Force during the marriage and was stationed at the Minot Air Force Base. Rhonda Lorenz also served in the Air Force, but left the service, and began pursuing a medical degree studying in Grenada, England, and other locations outside of Minot. She completed her degree in 2004 and returned to Minot.

[¶ 3] In September 2004, Rhonda Lorenz sued Mark Lorenz for divorce. After a trial, the court granted the parties a divorce, awarded Rhonda Lorenz custody of the parties' child, granted Mark Lorenz visitation, and divided the parties' marital estate. The court established a visitation schedule and ordered the parties to equally share the visitation transportation expenses if they resided more than 60 miles apart. The court valued the parties' marital assets at approximately $213,824 and their marital debt at $448,649. The court awarded Rhonda Lorenz $136,824 in marital property, including the parties' Minot home, and apportioned her $402,045 of the marital debt, including $250,000 for her medical school loans and the first and second mortgages on the Minot home. The court awarded Mark Lorenz $77,000 in marital property, including the parties' interest in a house Mark Lorenz had inherited from his mother in Lewiston, Idaho. Mark Lorenz was allocated $46,288 of the parties' marital debt. Mark Lorenz received a net award of $30,712, and Rhonda Lorenz received a net award of negative $265,221. The court ordered Mark Lorenz to pay Rhonda Lorenz $2,000 per year for five years to more equalize the property award. The court denied Rhonda Lorenz's request for an equitable share of Mark Lorenz's military retirement pension and denied Mark Lorenz's request for an equitable share of Rhonda Lorenz's military pension if she returned to military service. The court denied each party's request for spousal support.

II

[¶ 4] Rhonda Lorenz argues the district court's property division is clearly erroneous because it is inequitable, the court treated her medical school loans as separate personal debt, and the court did not consider Mark Lorenz's military retirement pension as marital property. Rhonda Lorenz also claims the court incorrectly allocated the Lewiston, Idaho, residence to Mark Lorenz, and contends insufficient evidence supports the court's finding there is a mortgage on the Lewiston property.

[¶ 5] "We review a district court's determinations regarding the division of property as findings of fact, and we will not reverse unless the findings are clearly erroneous." Dvorak v. Dvorak, 2005 ND 66, ¶ 20, 693 N.W.2d 646. "`A finding of fact is clearly erroneous if it is induced by an erroneous view of the law, if there is no evidence to support it, or if, although there is some evidence to support it, on the entire evidence the reviewing court is left with a definite and firm conviction a mistake has been made.'" Kostelecky v. Kostelecky, 2006 ND 120, ¶ 8, 714 N.W.2d 845 (quoting Olson v. Olson, 2002 ND 30, ¶ 7, 639 N.W.2d 701). "`A [district] court's findings of fact are presumptively correct, and we view the evidence in the light most favorable to the findings.'" Striefel v. Striefel, 2004 ND 210, ¶ 8, 689 N.W.2d 415 (quoting Reineke v. Reineke, 2003 ND 167, ¶ 12, 670 N.W.2d 841).

[¶ 6] The district court must ascertain the value of the marital estate after including all of the parties' assets and debts, whether obtained separately or inherited. Steckler v. Steckler, 519 N.W.2d 23, 25 (N.D.1994). After all assets and debts have been included in the marital estate, the court applies the Ruff-Fischer guidelines to equitably distribute the property. Ulsaker v. White, 2006 ND 133, ¶ 10, 717 N.W.2d 567. The Ruff-Fischer guidelines include:

The respective ages of the parties, their earning ability, the duration of the marriage and conduct of the parties during the marriage, their station in life, the circumstances and necessities of each, their health and physical condition, their financial circumstances as shown by the property owned at the time, its value at the time, its income-producing capacity, if any, whether accumulated before or after the marriage, and such other matters as may be material. The [district] court is not required to make specific findings, but it must specify a rationale for its determination.

Id. The property division does not need to be equal to be equitable and a substantial disparity must be explained. Brandner v. Brandner, 2005 ND 111, ¶ 7, 698 N.W.2d 259. Generally, a long-term marriage supports an equal division of the marital estate, but economic fault and a party's dissipation of assets can be relevant factors to consider. Id.

[¶ 7] The district court found the parties' marital property was worth $213,824. The court awarded Rhonda Lorenz $136,824 in property, which included the parties' Minot home worth $110,000, vehicles, household goods, and financial assets. The court awarded Mark Lorenz $77,000 in property, including the parties' interest in the Lewiston, Idaho, property worth $45,000, vehicles, household goods, and financial assets. The court's findings addressed the parties' marital debt:

The parties have accumulated significant debt totaling some $448,649. Of this total debt, $250,000 is Rhonda's medical school loans, which Rhonda has agreed it's equitable that this debt should be apportioned to her. The Court concurs. This still leaves $198,649 of debt to be equitably apportioned between the parties. The parties agree that some of the accumulated credit card debt was for living costs and other expenses relating to Rhonda's medical school education. However, there was no breakdown as to what amount of credit card debt was directly related to Rhonda's education and what was for other purposes. In apportioning this $198,649 of debt, the Court took into account that at present, the parties are earning about the same gross monthly income. While Mark also receives certain military subsistence income, those sums may be reduced because of the divorce process. The Court further took into account that Mark will have a child support payment obligation of $781 per month. Finally, the Court also took into consideration that while the parties' incomes are close now, it is more likely than not that as Rhonda continues in the medical profession, her income will increase significantly. While Mark's income may also increase, it is more likely than not that Rhonda's income will rise more quickly and to higher levels than Mark's in the future.

The evidence was that the parties' second mortgage from Homecoming Financial on the marital residence property was used to pay off some of both Rhonda's educational costs and expenses and other marital expenses and debt. The Court finds it equitable that Mark equally share in such debt. However, because this debt is against the marital residence awarded to Rhonda, this debt will be apportioned to Rhonda; and Mark will be apportioned the $15,492 debt on the AT & T Universal Card (which sum is approximately one-half of the balance on the second mortgage of the marital residence).

The Court finds that the total accumulated marital debt of the parties is 4448,649 [sic].

The amount of such debt apportioned to Rhonda: $402,045.00*

The amount of such debt apportioned to Mark: $46,288.00

*The $402,045 apportioned to Rhonda includes the $250,000 of her medical school loans, which both parties and the Court, under the facts of this case, agree should be the sole responsibility of Rhonda.

Mark Lorenz received a net award of $30,712, and Rhonda Lorenz received a net award of negative $265,221. The court's findings explained the unequal distribution:

Even taking into account the support Mark gave Rhonda so that she could pursue her medical education, such as financial support, and that Mark solely provided for their child . . . and Rhonda's child . . . for several years in Rhonda's absence, which is difficult to place a money value on, the Court believes that it is equitable that there be an adjustment to account for this substantial difference.

The court identified a difference of $30,712 between the parties' net property awards, after excluding the $250,000 medical school loans allocated to Rhonda Lorenz, and ordered Mark Lorenz to pay Rhonda Lorenz $2,000 per year for five years to make the property distribution equitable.

A

[¶ 8] Rhonda Lorenz claims the district court treated her student loan debt as personal debt and not marital debt, and therefore the court's findings were made under an erroneous view of the law. She argues there is no evidence to support the court's finding that she unconditionally agreed to assume the student loan debt.

[¶ 9] We must understand the basis for the district court's decision before we can decide whether the findings of...