Raley v. Raley

• Decision Date: 11 December 1985
• Docket Number: No. 15982,15982
• Citation: 338 S.E.2d 171,175 W.Va. 694
• Court: West Virginia Supreme Court
• Parties: , 54 USLW 2391 Ethelyn Lou RALEY v. Ross J. RALEY.

Page 171

338 S.E.2d 171

175 W.Va. 694, 54 USLW 2391

Ethelyn Lou RALEY v. Ross J. RALEY.

No. 15982.

Supreme Court of Appeals of

West Virginia.

Dec. 11, 1985.

Syllabus by the Court

1. "Because equitable distribution based on economic contributions does not involve any substantial departure from our prior law which is contained in Patterson v. Patterson, 167 W.Va. 1, 277 S.E.2d 709 (1981), and related cases, it is available in pending cases where the issue is specifically asserted." Syl. pt. 13, LaRue v. LaRue, 172 W.Va. 158, 304 S.E.2d 312 (W.Va.1983).

2. "The doctrine of equitable distribution permits a spouse, who has made a material economic contribution toward the acquisition of property which is titled in the name of or under the control of the other spouse, to claim an equitable interest in such property in a proceeding seeking a divorce. Because these are economic contributions, the right to claim such equitable relief is not barred because the party seeking them may be found at fault in the divorce action itself." Syl. pt. 2, LaRue v. LaRue, 172 W.Va. 158, 304 S.E.2d 312 (W.Va.1983).

Robyn Ruttenberg, Wheeling, for appellant.

Paul T. Camilletti, Camilletti & Sacco, Wheeling, for appellee.

McGRAW, Justice:

This appeal by Ethelyn Lou Raley from a final divorce decree in the Circuit Court of Marshall County raises the issue of whether distributions from an employee investment or thrift account are income, to be considered in determining the amount of alimony awarded, or, are marital property, subject to equitable distribution. Following a brief discussion of the circumstances presented in this case, we will address this issue.

Ethelyn and Ross Raley were married on September 1, 1948. Their union produced two offspring, both emancipated at the time of the appellant's petition for divorce in January 1978. Prior to a final hearing on the petition, the marital home was sold by mutual consent, and the net proceeds of approximately $48,000.00 were divided equally. Further, by mutual agreement, their personal property was divided equally, with each receiving a car, household furnishings, and other items.

In her complaint, the appellant requested, inter alia, that she "be awarded one-half ( 1/2) of the Continental Oil Company Stock owned by the parties." This stock had been purchased through a voluntary, contributory employee investment or thrift account, titled solely in her husband's name, in which he had participated. Each contribution made to this account was matched dollar for dollar by his employer.

On December 1, 1979, the appellee retired, and a ten year distribution schedule was chosen, with monthly payments of $910.94, or until the value of the account was depleted. The administrator of this account testified that, when this option was selected, the appellee lost all control of the stock. If a surplus in his account exists, however, at the end of this ten year period, he will receive a lump sum distribution of that amount.

In the trial court's divorce decree of February 3, 1983, distributions from the appellee's investment or thrift account were classified as income taken into consideration in its monthly alimony award of $200.00 to the appellant. On May 16, 1983, the appellant filed her petition for appeal from this decree. On May 25, 1983, this Court rendered its decision in LaRue v. LaRue, 172 W.Va. 158, 172 W.Va. 158, 304 S.E.2d 312 (1983), adopting the doctrine of equitable distribution of marital property upon divorce in this jurisdiction. In Syllabus Point 13 of LaRue, this Court held that, "Because equitable distribution based on economic contributions does not involve any substantial departure from our prior law which is contained in Patterson v. Patterson, 167 W.Va. 1, 277 S.E.2d 709 (1981), and related cases, it is available in pending cases where the issue is specifically asserted." ¹ The appellant's claim to an equitable distribution of her husband's investment or thrift account was based on her economic contributions to the household through her twelve years of employment during the marriage as a licensed practical nurse, and her appeal, asserting a right to a portion of that account, was pending at the time of our decision in LaRue.

With respect to what constitutes "marital property" subject to equitable distribution, it has been noted that, "As a general rule, all property acquired during the marriage is marital property, while property owned by the parties prior to marriage, or acquired during the marriage by gift or inheritance is separate property, as is property acquired in exchange for any separate property." ² 24 Am.Jur.2d Divorce and Separation § 878, at 860 (1983) [Footnotes omitted]; see also LaRue v. LaRue, 172 W.Va. 167, 304 S.E.2d at 320-21. Without question, contributions made to the appellee's investment or thrift account was formulation of "marital property," in the same manner as contributions to a savings account, which was divided equally by the court, were acquisitions of "marital property." See In re Marriage of Evans, 85 Ill.2d 523, 530-34, 55 Ill.Dec. 529, 533-34, 426 N.E.2d 854, 858-59 (1981) (vested shares of stock purchased pursuant to husband's employee investment program were marital property for purposes of equitable distribution). Geil v. Geil, 647 S.W.2d 161, 162 (Mo.Ct.App.1983) (husband's accrued vacation pay and savings and investment plan were marital property for purposes of equitable distribution). The character of the account did not change merely because the appellee chose to forego immediate access to the stock in exchange for periodic payments from the value of the account. Certainly, lack of immediate access to the stock made distribution more difficult, but alternatives such as awarding a lump sum or periodic payments based upon the present value of the account or directing that a portion of monthly distributions from the account which represented the appellant's economic contribution to the marriage be paid directly to the appellant were available.

In Syllabus Point 2 of LaRue, supra, this Court held that:

The doctrine of equitable distribution permits a spouse, who has made a material economic contribution toward the acquisition of property which is titled in the name of or under the control of the other spouse, to claim an equitable interest in such property in a proceeding seeking a divorce. Because these are economic contributions, the right to claim such...