Marriage of Smith, In re
| Decision Date | 16 March 1995 |
| Docket Number | No. 94-237,94-237 |
| Parties | In re the MARRIAGE OF Jennifer M. SMITH, Petitioner and Respondent, and Richard A. Smith, Respondent and Appellant. |
| Court | Montana Supreme Court |
Marcelle C. Quist, Carolyn S. Parker, Quist Law Firm, Bozeman, for appellant.
Kent M. Kasting, Kommers, Kasting & Roth, Bozeman, for respondent.
Richard Smith (Richard), appeals from the Findings of Fact and Conclusions of Law entered on December 20, 1993, by the Eighteenth Judicial District Court, Gallatin County, apportioning the marital estate. We affirm.
Richard raises ten issues on appeal, however we have consolidated them into four issues and restate them as follows:
1. Was the District Court's distribution of the marital property in this case clearly erroneous?
2. Whether the District Court's failure to award maintenance was clearly erroneous?
3. Whether the District Court failed to apply the law in a gender neutral fashion?
4. Whether the District Court abused its discretion in failing to grant Richard additional time for discovery?
Richard and Jennifer Miller Smith (Jennifer), were married in 1984. Prior to the marriage, Jennifer was the beneficiary of two trusts, the Alma Decker Irrevocable Trust (Alma Decker Trust) and the Jennifer Miller The Jennifer Smith Trust was created when Jennifer was eighteen, to receive the income from the Alma Decker Trust that was distributed to Jennifer. Like the Alma Decker Trust, it was managed by an independent corporate trustee, which managed the trust assets, and was paid a fee for its services. Jennifer is the trustor and beneficiary of this trust. Richard has never been a beneficiary of this trust and did not make any monetary contributions to the trust.
Smith Revocable Trust (Jennifer Smith Trust). The Alma Decker Trust is a trust established by Jennifer's grandmother in the early 1960's. Jennifer is a discretionary beneficiary under the Alma Decker Trust, and since the trust's inception, the trustee has always been an independent, corporate trustee. The trustee has the exclusive power and duty to invest and manage the trust assets, and exclusive discretion to distribute income and corpus [270 Mont. 266] under the trust to the trust's beneficiaries. The trustee is paid a fee for its services. Richard was never a beneficiary under this trust, did not contribute any monies to this trust, nor were any marital monies ever contributed to this trust
The value of the Alma Decker Trust on September 30, 1993, (approximately one month before trial), was approximately $1,800,000. The value of the Jennifer Miller Trust on this same date was approximately $282,500. While the value of the trusts increased over the course of the eight year marriage, Richard did not demonstrate that his actions in any way maintained or increased the value of the trusts.
Shortly after the parties married, they opened the High County Anglers, a retail fly fishing and guide services business. Jennifer contributed the initial capitalization for the business with money from the Jennifer Smith Trust. The business never generated a profit, and never paid either party a salary, but did pay for the parties' health insurance premiums and Richard's truck payments. The store closed in October 1987, but the corporate account stayed open and the parties deposited their fly fishing guide earnings into the account. In 1992, the funds of the account were distributed equally between the parties. Jennifer has never been reimbursed the capitalization money she contributed to the business.
During the course of the marriage Richard earned $26,227, and Jennifer earned $1,632, from third-party employers. Jennifer contributed over $550,000 to the parties' living expenses with monies from the Jennifer Smith Trust. The parties had three bank accounts: a household account, to pay for daily living expenses; a large expenditure account, for payment of expenses such as taxes, furniture, home improvements, and other larger one time expenses; and the High Country Anglers' account. With the exception of $2,382.68, which Richard deposited into the household account, all sums deposited into the household account and the large expenditure account came from distributions from the Jennifer Smith Trust.
The parties purchased a residence in Bozeman in November 1986. The purchase price was $99,900, and Jennifer contributed $50,000 in cash from her revocable trust. The balance was paid with a $50,000 loan from the Alma Decker Trust. The monthly loan payments were to be paid equally by Richard and Jennifer. Based upon the original contributions and the parties' agreement, Jennifer received 75% ownership interest, and Richard received 25% ownership interest. Richard never paid his one half of the monthly loan payment. Beginning December 1986, the loan payment has been made by the Jennifer Smith Trust. In addition, Jennifer expended over $65,000 on home improvements, maintenance, and taxes on the home from her revocable trust.
The distribution of marital property in a dissolution action is governed by § 40-4-202, MCA. Under this statute, the district court is vested with broad discretion to distribute the marital estate in a manner which is equitable to each party according to the circumstances of the case. In re Marriage of Maedje (1994), 263 Mont. 262, 265, 868 P.2d 580, 582. This Court's standard of review in marital property distribution cases is whether the district court's findings of fact are clearly erroneous. If substantial credible evidence supports the court's findings and judgment, we will not change the trial court's decision unless the court abused its discretion. Maedje, 868 P.2d at 583.
Richard presents several arguments which all essentially contend that the trial court's distribution of the marital estate was clearly erroneous because the court failed to award him any portion of Jennifer's gifted or inherited property, and failed to award him maintenance. However, after considering the record, we do not find that the court abused its discretion.
Section 40-4-202, MCA, provides that in dividing marital property a court may equitably apportion the parties' property and assets "belonging to either or both, however and whenever acquired." In distributing pre-marital property or its increased value, property acquired by gift, or inheritance, the court must consider the contributions of the non-acquiring spouse. The court must consider:
(a) the nonmonetary contribution of a homemaker;
(b) the extent to which such contributions have facilitated the maintenance of this property; and
(c) whether or not the property division serves as an alternative to maintenance arrangements.
Section 40-4-202, MCA.
Because the District Court concluded that Richard was not entitled to any of Jennifer's pre-marital property, it had to find that he "made no contribution" to justify the court's distribution as equitable. Marriage of Turner (1983), 206 Mont. 292, 295, 670 P.2d 568, 570. In regards the two trusts, the court found that Richard had failed to demonstrate that his actions in any way maintained or increased the value of the corpus of the trusts. The court also found that Richard never had any contact with the corporate trustees, regarding any aspect of the trusts, did not contribute anything to the trusts, and no marital monies were ever contributed to the trusts. We conclude that these findings demonstrate that Richard made no contribution to the trusts.
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