Overland v. Overland

• Decision Date: 17 January 2008
• Docket Number: No. 20070070.,20070070.
• Parties: Brenda R. OVERLAND, Plaintiff and Appellee v. Kevin G. OVERLAND, Defendant and Appellant.
• Court: North Dakota Supreme Court

744 N.W.2d 67

2008 ND 6

Brenda R. OVERLAND, Plaintiff and Appellee v. Kevin G. OVERLAND, Defendant and Appellant.

No. 20070070.

Supreme Court of North Dakota.

January 17, 2008.

Paul M. Probst, Probst Law Firm, Minot, N.D., for plaintiff and appellee.

Tom P. Slorby, Slorby Law Office, Minot, N.D., for defendant and appellant.

SANDSTROM, Justice.

[¶ 1] Kevin Overland appeals from a divorce judgment, arguing the district court inequitably divided property in favor of his ex-wife, Brenda. Overland. He also argues the district court's award of spousal support was erroneous. We affirm the property distribution, and reverse and remand the issue of spousal support.

I

[¶ 2] Kevin and Brenda Overland were married on January 1, 1999, and had no children during the marriage. Brenda Overland sued for divorce in February 2006 on the grounds of irreconcilable differences. The case was tried in September and November 2006. The district court issued a partial judgment granting the divorce in December 2006. At the time of the divorce, Brenda Overland was 47 years old, earning $24,000 yearly, and Kevin Overland was 51 years old, with an annual income of $64,000.

[¶ 3] The parties entered into a limited property settlement agreement, which the district court accepted. The court divided the remaining property and debt in its January 2007 findings of fact, conclusions of law, and order for final judgment. The court found the remaining marital estate contained assets of $321,040 and debt of $155,744 for a net marital estate of $165,296.

[¶ 4] Brenda Overland was awarded property worth $104,402, less debt of $22,665, and Kevin Overland received property worth $27,138, less debt of $18,381. Each party also received one-half of the net proceeds of $74,802 from the sale of their home.

[¶ 5] The court found Brenda Overland entered the marriage with approximately $100,000 in the bank, retirement assets, and no debt. The court found Kevin Overland came into the marriage with very few assets and some debt. The court found the marriage was of relatively short duration, approximately 8 years. The court also found Brenda Overland was generous with her money, and Kevin Overland benefited from her generosity.

[¶ 6] Brenda Overland was awarded spousal support in the amount of $500 per month for sixty months. The court found Brenda Overland left the marriage with her retirement assets, limited personal property, debt, and no money in the bank, except for her portion of the home sale proceeds. The court found Kevin Overland came out of the marriage ahead of" where he was at the start. The court found an award of spousal support would offset, to some degree, the financial damage Brenda Overland suffered during the marriage, and would somewhat restore her to her pre-marriage condition.

[¶ 7] The district court had jurisdiction under N.D. Const. art. VI, § 8, and N.D.C.C. § 27-05-06. Kevin Overland's appeal is timely under N.D.R.App.P. 4(a). This Court has jurisdiction under N.D. Const. art. VI, §§ .2 and 6, and N.D.C.C. § 28-27-01.

II

[¶ 8] Kevin Overland argues the district court erred in dividing the marital estate that remained following the parties' property settlement agreement. Under N.D.C.C. § 14-05-24(1), the district court shall make an equitable distribution of the property and debts of the parties after granting a divorce. When a court distributes marital property, all of the parties' assets must be considered to ensure the division is equitable. Dvorak v. Dvorak, 2005 ND 66, ¶ 21, 693 N.W.2d 646. "After including all of the parties' marital assets, the district court must consider the Ruff-Fischer guidelines in its distribution of the parties' assets." Kostelecky v. Kostelecky, 2006 ND 120, ¶ 12, 714 N.W.2d 845. The Ruff-Fischer guidelines require the court to consider:

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.

Id. (quoting Bladow v. Bladow, 2003 ND 123, ¶ 7, 665 N.W.2d 724).

[¶ 9] There is no fixed formula for dividing marital, property, but the district court must equitably divide the property on the basis of the circumstances of the particular case. Nelson v. Nelson, 1998 ND 176, ¶ 6, 584 N.W.2d 527. A district court's division of property does not need to be equal to be equitable, but any substantial disparity must be explained. Kostelecky, 2006 ND 120, ¶ 13, 714 N.W.2d 845. A district court's determinations regarding property division are considered findings of fact and will not be reversed unless they are clearly erroneous. Hogan v. Hogan, 2003 ND 105, ¶ 14, 665 N.W.2d 672. "A finding is clearly erroneous only if it is induced by an erroneous view of the law, if there is no evidence to support a finding, or if, although there is some evidence to support it, on the entire evidence, we are left with a firm conviction a mistake has been made." Schoenwald v. Schoenwald, 1999 ND 93, ¶ 7, 593 N.W.2d 350 (quoting Hogue v. Hogue, 1998 ND 26, ¶ 24, 574 N.W.2d 579). Findings of fact are adequate if they provide us with an understanding of the district court's factual basis used in reaching its decision. State v. Bergstrom, 2006 ND 45, ¶ 15, 710 N.W.2d 407.

[¶ 10] Kevin Overland argues Brenda Overland's premarital ownership alone should not have resulted in her receiving a majority of the remaining marital property. Premarital ownership, standing alone, will not justify a wide disparity in property distribution. Fischer v. Fischer, 349 N.W.2d 22, 25 (N.D.1984). There must be additional factors to support the trial court's distribution of the property. Id.

[¶ 11] In dividing the remaining marital estate in this case, the district court awarded Brenda Overland assets of $104,402 and debt of $22,665, plus one-half of the proceeds from the sale of the parties' home. Kevin Overland was awarded assets of $27,138 and debt of $18,381, plus one-half of the sale proceeds from the home. Specifically, Brenda Overland was awarded her vehicle, all of her retirement assets, which accumulated prior to the marriage, and household goods. She was also responsible for her own credit card debt. Kevin Overland was awarded household goods, and was responsible for his credit card debt and the remaining debt on the parties' camper. The court split the home proceeds in half because Brenda Overland made the down payment from her savings, and Kevin Overland made the monthly mortgage payments. The court applied the Ruff-Fischer guidelines, and found: (1) the conduct of the parties during the marriage, (2) when and how the property, was accumulated, and (3) the attitude of the parties toward the property and its accumulation favored an unequal division of property in favor of Brenda Overland.

[¶ 12] In evaluating the conduct of the parties, the court found Kevin Overland was the cause of much of the couple's problems. The court found that his long work hours, alcohol use, and extensive entertainment of clients were not conducive to a long-term marriage, and his refusal to address those issues with Brenda Overland led to the divorce.

[¶ 13] When the district court looked at when and how the property was accumulated, it found Kevin Overland came into the marriage with very few assets. Brenda Overland came into the marriage with significant retirement assets and approximately $100,000 in the bank. The money was proceeds she received from the sale of a home and business prior to the marriage. Because the marriage was relatively short, that factor favored Brenda Overland.

[¶ 14] Finally, the court found the attitude of the, parties toward the property and its accumulation favored Brenda Overland. The court stated, "Brenda was generous with her money, and Kevin was a frequent object of that generosity." She put the earnest money down on their home in Minot, along, with the down payment of approximately $23,000. She used $7,500 of her savings to pay off Kevin Overland's boat, make a down payment on a camper, and give him money while he was between jobs. She also purchased most of the household furnishings from her savings.

[¶ 15] The district court found the remaining Ruff-Fischer factors favored neither party. The court recognized the division of the remaining property resulted in a severe split in favor of Brenda. Overland; however, after applying the Ruff-Fischer guidelines, it found the division to be fair and equitable in light of the marriage; The court did not base its property distribution solely on Brenda Overland's premarital ownership of property. It made specific findings under the Ruff-Fischer guidelines and found three of them favored an unequal division of property in favor of Brenda Overland. On the basis of the facts and circumstances of this case, the district court's division of the remaining marital property was not clearly erroneous.

III

[¶ 16] Kevin Overland argues the district court erred in awarding Brenda Overland spousal support. Section 14-05-24.1, N.D.C.C., allows a district court to award spousal support to a party for any period of time. Spousal support determinations are findings of fact, and the district court's spousal support decision will not be set aside unless it is clearly erroneous. Kostelecky, 2006 ND 120, ¶ 14, 714 N.W.2d 845. In awarding spousal support, the district court must consider the relevant factors under the Ruff-Fischer guidelines. Id. Spousal support awards must also be made in consideration of the needs of the spouse seeking support and of the supporting spouse's needs and ability to pay. Christianson v. Christianson, 2003 ND 186, ¶ 17, 671 N.W.2d 801.

[¶ 17] In awarding spousal...