Marriage of Taylor, In re, 2-780A224
| Decision Date | 31 August 1981 |
| Docket Number | No. 2-780A224,2-780A224 |
| Citation | 425 N.E.2d 649 |
| Parties | In re the MARRIAGE OF Jay Coy TAYLOR, Appellant (Respondent Below), and Juanita Marilyn Taylor, Appellee (Petitioner Below). |
| Court | Indiana Appellate Court |
Charles D. Hankey, Indianapolis, for appellant.
Belle T. Choate, Indianapolis, for appellee.
Jay Coy Taylor (Jay) appeals the property distribution in a dissolution decree dissolving his marriage with Juanita Marilyn Taylor (Juanita). Jay raises a number of issues for review; however, because we reverse, we shall address only the following issue:
Did the trial court abuse its discretion in valuing the marital property at the time of separation?
Taylors separated October 1, 1974, at which time they divided their personal assets and belongings. Subsequently, Juanita and Jay became financially independent. Juanita remained in the house owned as tenants by the entireties, maintained the house, paid the mortgage payments, and raised and supported their son. Jay left the marital residence, paid off certain preseparation joint debts, and made some cash payments to Juanita. On June 5, 1979 Juanita filed a petition for dissolution of marriage.
The decree of dissolution awarded the marital residence to Juanita but provided that Juanita should pay $2,000 to Jay as his share of equity in the marital residence. The special findings of fact reveal the trial court calculated the equity in the marital residence using October 1974 values as follows:
Value of house $34,450
Less: mortgage 26,500
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Equity: $ 7,950
As of the date of the final hearing, the house was valued at $56,000 and the mortgage balance was reduced.
Both parties agree that distribution of marital property is a matter within the sound discretion of the trial court. Geberin v. Geberin, (1977) 172 Ind.App. 255, 360 N.E.2d 41. However, Jay argues the trial court abused its discretion in using the 1974 value of the house as a basis for his $2,000 equity award. We agree and hold in using the value of the entireties-owned real estate on the date of separation, October 1974, the trial court erred as a matter of law and hence abused its discretion.
The dissolution of marriage act and case law is silent as to the date of valuation of the marital property. IC 31-1-11.5-11(a) (Burns Code Ed., Supp.1979) speaks only to the property subject to division and therefore valuation, but not to the date of valuation. Therefore we must determine: 1) whether a date certain for valuation is required, and 2) if such a date is required what that date should be.
In a marriage of any duration the possible equitable valuation dates are limitless. Hence, the necessity for a date certain is obvious. Meaningful settlement discussions would be virtually impossible; trials would be lengthened; fees for experts would skyrocket as they assimilate the necessary data to have an opinion on the fair market value of the numerous items of marital property on any number of dates, including, for example, the date of first separation, the date of final separation, the date of filing the petition, the date of filing the cross-petition, and the date of trial. Therefore, the statutory mandate of a just and reasonable division requires the division of marital property be based on values determined as of a date certain.
The dissent would leave the date of valuation to the "equities of the case." We certainly agree valuation of the property is an indispensable part and necessary component of the power to divide. However, we fail to understand the basis for the opinion that the statutory requirement of a just and reasonable division necessarily leads to the conclusion that the trial court may choose the date of valuation based on the evidence that best suits the equities of the case. The factors which the dissent would have the trial court weigh in determining what date of valuation best suits the equities of the case are factors which the trial court should indeed consider. However, the factors are properly considered under the mandate of IC 31-1-11.5-11(a) (Burns Code Ed., Supp.1979) in determining what is a just and reasonable division of the property.
The next step is to determine the date certain. Unquestionably, the selection of the date is a legislative prerogative which unfortunately has not been explicitly exercised. The court, then, must fill the void until the legislature speaks.
Several dates might be selected, but one is the most reasonable the date the dissolution action is commenced. By the terms of IC 31-1-11.5-11(a) (Burns Code Ed., Supp.1979), the parties may acquire separate properties after the date of final separation. While there may have been some ambiguity as to what the date of final separation is, any such uncertainty has been put to rest by legislative clarification. The 1980 General Assembly amended IC 31-1-11.5-11 to specifically define the date of final separation as the date the petition is filed. IC 31-1-11.5-11(a) (Burns Code Ed., Repl.1980) Thus, the date has significance in determining the property within the marital pot. If that date puts a lid on the pot, it is logical to simultaneously determine the value of its contents. If the value of items in the marital pot increases or decreases after the date of final separation due to the conduct of the parties, the trial court may, of course, take this into account under IC 31-1-11.5-11. Valuation of marital property on the date of final separation will also assist the parties in marshalling the evidence and appraisals of property in preparation for the final hearing date.
Were this court entitled to weigh the evidence, we might hold that the trial court did not abuse its discretion in the instant case in dividing the marital property. However, we do not have that alternative. Because the trial court exercised its discretion under a misconception of the law, it is pure conjecture that the trial court would exercise its discretion in the same manner using the proper valuation date. Only the trial court can make that determination and it must be given the opportunity to do so.
Reversed and remanded.
I agree with the majority that "we must determine .... whether a date certain for valuation is required." Slip opinion at 650 (emphasis added). Like the majority, I believe that setting such a date at the time of the filing of the petition for dissolution would be the soundest possible policy. Like the majority, I have been unable to find any authority, binding or persuasive, to suggest that the law requires any such rule. Unlike the majority, I would confine our efforts to construing the statutes as enacted by the legislature.
The courts of this State do have the inherent power, as common law courts, to regulate the proof and trial of actions at common law. But courts of common law have never been empowered to grant divorces. That power rested in medieval times with the ecclesiastical courts, which relied on civil codes, not the common law. See 24 Am.Jur.2d Divorce and Separation § 6, p. 180.
In this country, the task of regulating divorce was taken over not by the courts, but by the legislatures. "The regulation of marriage and divorce has been fully recognized as a matter within the exclusive province of the Legislatures of the States." Sweigart v. State, (1938) 213 Ind. 157, 165, 12 N.E.2d 134, 138. State ex rel. Quear v. Madison Circuit Court, (1951) 229 Ind. 503, 507, 99 N.E.2d 254, 256. "The right to apply for or obtain a divorce is not a natural one, but is accorded only by reason of statute, and the state has the right to determine who are entitled to use its courts for that purpose and upon what conditions they may do so." Berghean v. Berghean, (1943) 113 Ind.App. 412, 416, 48 N.E.2d 1001, 1003.
In short, the prescription of regulations for the issues to be proven in dissolution proceedings is a function of the legislature. This court lacks jurisdiction to exercise that function. Ind.Const. Art. 3 § 1.
The Indiana Legislature has chosen to leave matters which have not been resolved by the Dissolution Act to the discretion of trial courts. Johnson v. Johnson, (1976) 168 Ind.App. 653, 344 N.E.2d 875. Our legislature has commanded that trial courts make a fair and equitable division of the marital estate:
In an action pursuant to section 3(a)(31-1-11.5-3(a)) of this chapter, the court shall divide the property of the parties, whether owned by either spouse prior to the marriage, acquired by either spouse in his or her own right after the marriage and prior to final separation of the parties, or acquired by their joint efforts, in a just and reasonable manner, either by division of the property in kind, or by setting the same or parts thereof over to one (1) of the spouses and requiring either to pay such sum, either in gross or in installments, as may be just and proper, or by ordering the sale of the same under such conditions as the court may prescribe and dividing the proceeds for such sale.
I.C. 31-1-11.5-11(b) (Burns 1980 Repl.)
"First and most elemental in any fair, equitable distribution of property is a knowledge of the totality of the property in which the parties to the divorce hold an interest." Hardiman v. Hardiman, (1972) 152 Ind.App. 675, 682, 284 N.E.2d 820, 824. In order to divide the marital estate properly, the trial court must apprise itself of the value of the marital property. Id. This general principle is most apposite when the trial court divides the property "by setting the same ... over to one (1) of the spouses and requiring either to pay such sum ... as may be just or proper...." I.C....
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Taylor v. Taylor
...District, reversed a lower court decision as to the property distribution in a dissolution decree. In Re Marriage of Taylor, (1981) Ind.App., 425 N.E.2d 649 (Buchanan, C. J., dissenting). We now grant transfer, vacate the opinion of the Court of Appeals, and affirm the judgment of the trial......