Pearson v. Pearson

• Decision Date: 18 August 2009
• Docket Number: No. 20080299.,20080299.
• Citation: 2009 ND 154,771 N.W.2d 288
• Parties: Robert Scott PEARSON, Plaintiff and Appellee v. Lois Elaine PEARSON, Defendant and Appellant.
• Court: North Dakota Supreme Court

771 N.W.2d 288

2009 ND 154

Robert Scott PEARSON, Plaintiff and Appellee v. Lois Elaine PEARSON, Defendant and Appellant.

No. 20080299.

Supreme Court of North Dakota.

August 18, 2009.

Alexander F. Reichert, Grand Forks, ND, for plaintiff and appellee.

Patti Jo Jensen, East Grand Forks, MN, for defendant and appellant.

CROTHERS, Justice.

[¶ 1] Lois Pearson appeals from the district court's divorce judgment awarding her rehabilitative spousal support for twenty-four months. We affirm the district court's judgment awarding rehabilitative spousal support and remand for further proceedings after concluding the district court's judgment awarding Lois Pearson rehabilitative spousal support but not awarding, and not articulating any reasons for not awarding, permanent spousal support prevents us from fulfilling our reviewing function.

I

[¶ 2] Robert Pearson and Lois Pearson were married in 1980. The parties separated in July 2007. Two children were born of the marriage, and both are now adults. At the time of trial, both parties were fifty years old. Robert Pearson has a bachelor's degree in business administration and a pilot's license. He is the vice president of Home of Economy, his family's business, which has six stores located in North Dakota. Lois Pearson attended three and a half years of college, but she did not complete a bachelor's degree. Prior to 1989, Lois Pearson worked various part-time jobs, but mainly stayed home caring for the parties' children. Since 1989, Lois Pearson has been employed by Home of Economy. At the time of trial, each party had an ownership interest in Home of Economy with Robert Pearson having a 20 percent interest and Lois Pearson having a .54 percent interest. Robert Pearson and his brother have exercised an option, under his grandmother's will, to purchase their siblings' interest in the Home of Economy business. With the additional stock purchased from his siblings, Robert Pearson will own approximately 30 percent interest in Home of Economy.

[¶ 3] Robert Pearson sought a divorce in February 2008. In July 2008, Lois Pearson requested interim spousal support of $750 per month. The district court granted Lois Pearson interim spousal support of $450 per month beginning July 1, 2008. A trial was held in September 2008. The district court divided the parties' marital estate equally, awarding Robert Pearson and Lois Pearson each property with a net value of $409,930. The district court also ordered Robert Pearson to pay Lois Pearson spousal support in the amount of $1,400 for twenty-four months and expressly retained "jurisdiction over the spousal support issue post-judgment for further review as may be requested as the obligation set forth above approaches termination."

II

[¶ 4] Robert Pearson initiated this action and requested that the court award spousal support obligations to neither party. Lois Pearson answered and requested permanent spousal support only. The district court did not specifically address the request for permanent spousal support. Lois Pearson argues the district court's award of rehabilitative spousal support is clearly erroneous because an analysis of the Ruff-Fischer factors favors an award of permanent spousal support. Lois Pearson also contends an award of permanent spousal support is required because at trial, Robert Pearson agreed she would need "long-term support." Lois Pearson appeals only the duration of the spousal support award, and not the amount of the spousal support award.

[¶ 5] "Under N.D.C.C. § 14-05-24.1, a trial court in a divorce case `may require one party to pay spousal support to the other party for any period of time.'" Reineke v. Reineke, 2003 ND 167, ¶ 6, 670 N.W.2d 841 (quoting Sommers v. Sommers, 2003 ND 77, ¶ 15, 660 N.W.2d 586). An award of spousal support is a "finding of fact which will not be set aside on appeal unless clearly erroneous." Solem v. Solem, 2008 ND 211, ¶ 5, 757 N.W.2d 748. "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, after a review of the entire record, we are left with a definite and firm conviction a mistake has been made." Krueger v. Krueger, 2008 ND 90, ¶ 7, 748 N.W.2d 671.

[¶ 6] The district court must consider the relevant factors under the Ruff-Fischer guidelines when determining if an award of spousal support is appropriate. Overland v. Overland, 2008 ND 6, ¶ 16, 744 N.W.2d 67; Fischer v. Fischer, 139 N.W.2d 845 (N.D.1966); Ruff v. Ruff, 78 N.D. 775, 52 N.W.2d 107 (1952). Factors to consider under 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."

Krueger, 2008 ND 90, ¶ 8, 748 N.W.2d 671 (citing Sommer v. Sommer, 2001 ND 191 ¶ 9, 636 N.W.2d 423). When making a spousal support determination, "the district court is not required to make specific findings on each factor, provided we can determine the reasons for the court's decision." Krueger, at ¶ 8. "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." Overland, at ¶ 16.

[¶ 7] "We have frequently recognized a preference for rehabilitative spousal support, rather than permanent spousal support." Krueger, at ¶ 9. Permanent spousal support may be appropriate "when there is substantial disparity between the spouse's incomes that cannot be readily adjusted by property division or rehabilitative support." Id. (quoting Ingebretson v. Ingebretson, 2005 ND 41, ¶ 9, 693 N.W.2d 1). Rehabilitative spousal support should be awarded when "it is possible to restore an economically disadvantaged spouse to independent economic status," or when the burden of the divorce can be equalized by increasing the disadvantaged spouse's earning capacity. Krueger, at ¶ 9.

[¶ 8] The district court ordered Robert Pearson to pay Lois Pearson $1,400 per month in spousal support for twenty-four months. Lois Pearson argues the district court misapplied the Ruff-Fischer guidelines when analyzing the factors regarding Robert Pearson's conduct during the marriage and regarding the parties' health and physical condition. She also claims the court erred in awarding her rehabilitative spousal support for twenty-four months because proper application of the Ruff-Fischer factors requires an award of permanent spousal support. She further argues Robert Pearson agreed on cross-examination that she was entitled to permanent spousal support so the district court erred in not awarding it.

[¶ 9] The district court analyzed each of the Ruff-Fischer factors and made the following findings:

6. With regard to the Ruff-Fischer guidelines:

Ages of the parties: Both parties are now 50 years old.

Duration of marriage: As indicated above, the parties married in January 1980, but have lived apart since July 2007.

Earning ability of the parties: As indicated in Findings of Fact 1 and 2 above, there is obviously a very wide chasm between the current earning capacities of the parties. In 2007, the Defendant's gross salaried income from employment at the Home of Economy approximated $28,250.00. During the same year, the Plaintiff's gross salaried income approximated $62,750.00. The parties also received interest payments totaling $9,654.00 in 2007 from the Home of Economy. Effective March 2008, the Plaintiff's annual salary was increased to $82,000.00. As indicated above, the vocational evaluation presented during trial indicated that the [Defendant's] annual earning capacity following divorce would approximate $20,800.00. The gap in the parties' respective earning capacities will never be, in this trial court's opinion, much closer.

Conduct of parties: The conduct of neither party is being considered by the court as an issue in this action.

The parties' station in life: The Plaintiff has secure, well-paying employment; the Defendant will, in all probability, no longer be employed in the family business of the Plaintiff post-divorce. In such event, she obviously will need additional training or education to obtain comparable-paying employment in the local area.

Circumstances and necessities of each party: From the financial affidavits filed and testimony presented in this matter, it appears that both parties will have to have a "no frill" monthly budget of approximately $3,000.00 post-divorce. The largest post-divorce monthly financial obligations for the Plaintiff will be his credit card debt, monthly payments on the vehicle for the parties' daughter, rent/utility expenses and maintaining the trailer at the Lake of the Woods, and his attorneys' fees incurred in this action. The largest post-divorce monthly financial obligations for the Defendant will be her credit card debt, monthly payments on her vehicle, rent/utility expenses and maintenance expense on the marital home, and her attorney fees.

Health or physical problems: Neither party appears to have lingering mental health or physical problems which affect their abilities to function day to day or to continue gainful employment after divorce. The Plaintiff has been seeking some therapeutic assistance with issues arising out of this action, and the Defendant has needed the same. The Defendant also has a vision-related problem which is not presently debilitating.

Financial circumstances as shown by property owned at time of divorce/value and income producing capacity: The parties have a joint net worth of approximately $820,000.00. The Home of Economy stock and the marital property near Manvel,...