Marriage of Horstmann, In re

• Decision Date: 22 March 1978
• Docket Number: No. 60593,60593
• Citation: 263 N.W.2d 885
• Parties: In re the MARRIAGE OF Donna Lee HORSTMANN and Randall George Horstmann. Upon the Petition of Donna Lee HORSTMANN, Appellee, and concerning Randall George HORSTMANN, Appellant.
• Court: Iowa Supreme Court

Page 885

263 N.W.2d 885

In re the MARRIAGE OF Donna Lee HORSTMANN and Randall George Horstmann. Upon the Petition of Donna Lee HORSTMANN, Appellee, and concerning Randall George HORSTMANN, Appellant.

No. 60593.

Supreme Court of Iowa.

March 22, 1978.

Charles A. Barker, Iowa City, for appellant.

William F. Sueppel, Iowa City, for appellee.

Considered by MOORE, C. J., and MASON, RAWLINGS, LeGRAND and REYNOLDSON, JJ.

MASON, Justice.

This is an appeal by Randall George Horstmann from the economic provisions of a decree terminating the marital relationship existing between him and petitioner, Donna Horstmann.

We set out in chronological order the legal proceedings giving rise to this appeal. March 5, 1976, Donna Horstmann filed a petition for dissolution of her marriage with Randall Horstmann. December 10, trial was had in this matter. December 20, the parties entered into a number of stipulations. March 10, 1977, the trial court filed its findings of fact, conclusions of law and decree. Respondent appealed from the decree challenging the $18,000 property distribution, the one dollar a year token alimony and the seventy-five dollar a week child support provisions of the decree.

October 31, 1969, Donna and Randall were married while in their junior year at the University of Iowa. Randall completed his undergraduate course of study and in 1973 obtained a masters degree at the University. The couple then moved to Des Moines because Randall had decided to attend law school at Drake University. In 1976 he received his law degree and was later admitted to the bar. At the time of trial he was in his first of two years as lawclerk to a federal district court judge. He had just received a.$1000.00 cost of living increase which raised his take-home pay from $383.00 to $400.00 every two weeks or $900.00 a month.

During the term of the marriage Randall worked part time earning a total of $9196.00. At the time of trial he owed $450.00 on his Master Charge, $5680.00 to his parents, $7000.00 to a bank and $1500 to Drake University. It was stipulated he was to pay these debts.

Donna did not complete her formal education. In 1970 she gave birth to the couple's only child. Between 1973 and 1975, while Randall was attending law school, Donna worked at a bank in Des Moines. During the term of the marriage she earned $15,760.00 which was contributed by her to pay the family's living expenses. At the time of trial she owed $13,900.00 on a mobile home she had purchased after the couple separated. She was then employed at a bank in Iowa City. Her take-home pay was $405.00 a month but she would soon receive a raise of unknown amount. She testified the most she could ever hope to earn at her present job was $600.00 a month.

During the marriage the couple had been assisted financially by their parents. Randall's parents not only loaned him money but also provided free use of a mobile home for the family for four years. Donna's parents supplied the family with all the meat they used, bought Donna a car worth $3300.00 and provided the family with other money totaling $10,514.00.

From July of 1975 when the couple separated until October 28, 1976, Randall contributed $350.00 toward the support of Donna and the child. On that date the court ordered Randall to pay Donna $100.00 every two weeks and $250.00 as temporary attorney fees. At trial Donna's attorney established Randall had earned over $5,000.00 during this period and had also borrowed $2,000.00. He had paid no rent. He had not been required to pay tuition at Drake because he was editor-in-chief of the law review.

Prior to trial each party submitted a financial statement and affidavit to the court. Donna itemized the expenses necessary to support herself and the child. Her expenses totaled $740.00 (originally listed at $765.00 but amended at trial) which meant she needed $335.00 a month above her salary to maintain herself and the child.

In his statement Randall itemized his expenses as $524.00 a month. It was also noted he had ordered a new car for which he would have to pay $166.00 a month. This car would replace a 1969 car he owned.

During the trial in this matter Donna testified to the following:

"Q. All right. In terms of property settlement, what is the property in this marriage? A. There is Randy's education, basically.

"Q. All right. And what are you asking for in terms of that? A. Approximately eighteen thousand dollars.

"Q. How did you compute that? A. Okay. I took my income over the last three years that I've contributed to the family, the lump sums of money that my mother has contributed around five thousand, and then the ten thousand that she they gave me in checks for babysitting, health insurance, Randy's clothing, my clothing, my daughter's clothing, et cetera.

"Q. And what did you take away from that to get down to the eighteen thousand? Did you deduct Randy's earnings? A. Okay. Yes. I deducted Randy's earnings, around nine thousand dollars.

"Q. Is this based on the fact that little, if any, of the funds from Randy's family, the Hills Bank loan or the Drake University loan went into family income? A. That is true."

Randall testified after his two years as a lawclerk were over he hoped to obtain employment with the United States Department of Justice. He believed his starting salary with the Department would be approximately the same as his current salary. He thought the salary increased about.$1000.00 a year to a maximum salary of $26,000.

He explained monthly payments totaling $100.00 on the loans to the bank and the university would not have to begin until May of 1977. No testimony was elicited as to repayment of the $5680.00 loan from his parents.

March 10, 1977, the trial court issued its findings of fact, conclusions of law and decree which were filed March 18. In its conclusions of law the court made the following pertinent remarks:

" * * *

"During the marriage Petitioner and her family gave assistance to Respondent in his continuing his education and obtaining his legal training leading to a law degree and admission to the bar. This obtaining becoming a lawyer through the efforts of both the parties is similar to the building of a business through the joint efforts of both parties that has good potential for the future. It is an asset of the marriage to be considered in the property division.

"It is to be noted that due to Respondent's attending school all of their married life together, that even with the loans obtained and the contribution of both parents (including use of a mobile home by his parents from 1969-73), that their joint average annual income while together was not high. Had Respondent been working at a full-time job, it is likely that their joint income would be higher with an attendant increase in living standards. Petitioner's earnings were substantially higher during their married life together. While a substantial financial sum and meat was (sic) contributed by her parents during the marriage, it was because Petitioner was their daughter and this could really be considered to be a de facto advance on her inheritance. It is true sums were borrowed for which Respondent is liable. However, all of their assets substantially contributed to making up deficiencies in income and educational expenses due to the fact that Respondent was a full-time student rather than a full-time employee during the marriage. In addition, Petitioner was deprived of his companionship and services when Respondent, out of necessity, had to study long hours. No savings were accumulated.

"These sacrifices would be acceptable if Petitioner could reap the future benefits of these sacrifices in the way of increased income and a satisfying life style as a result of his education and legal training. This situation is unlike a joint business venture that failed although both parties contributed money and effort to the venture. It is not analogous to a situation where both parties held full-time jobs that didn't pay enough for them to accumulate any assets, or where one party held a job and the other took care of the child, or where one or both of the parties could not obtain employment; and in all of these situations, neither one is likely to be better off in the future as a result of the employment situation and sacrifices during the marriage.

"Naturally there is no guarantee that Respondent would have had a good paying job during the time he was in law school or that his practice of law will be a financial success."

In its decree the court dissolved the marriage and awarded Donna custody of the child. It then ordered Randall to pay Donna $18,000 of which $1500 plus accrued interest thereon would be due January 1, 1978, $1500 plus accrued interest due January 1, 1979, $3000 plus accrued interest each successive year until paid in full.

It awarded Donna $1.00 a year alimony in order to preserve the issue of alimony. The first payment thereon would be due December 31, 1977. It then divided up the debts and personal property of the parties as they had agreed in their stipulation.

The court next ordered Randall to pay Donna $75.00 a week in child support beginning March 25, 1977, and continuing until the child attains the age of eighteen, dies or becomes self supporting, whichever event shall first occur. It also made other orders which are not at issue here.

Respondent asserts the following issues are presented for review:

1. Is a law school education and admittance to the bar an asset of a marriage to be considered in a property division?

2. Did the trial court err in awarding alimony to the petitioner?

3. Did the trial court err in awarding an excessive amount of child support to the petitioner?

I. "Review of a decree granting dissolution of marriage, determining property rights and ordering alimony payments is de novo. It is our duty to examine the whole record and adjudicate rights anew on those propositions properly presented, provided...