Rice v. Rice

• Decision Date: 14 April 1977
• Citation: 361 N.E.2d 1305,372 Mass. 398
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

Page 1305

361 N.E.2d 1305

372 Mass. 398

Nancy Ann K. RICE v. John H. RICE.

Supreme Judicial Court of Massachusetts, Berkshire.

Argued Feb. 10, 1977.

Decided April 14, 1977.

Frederick M. Myers, Pittsfield (David O. Burbank, Pittsfield, with him), for John H. Rice.

John I. Robinson, Springfield (Raymond J. Fontana and David J. Martel, Springfield, with him), for Nancy Ann K. Rice.

Before HENNESSEY, C.J., and KAPLAN, WILKINS, LIACOS and ABRAMS, JJ.

HENNESSEY, Chief Justice.

Nancy Ann K. Rice (wife) filed a complaint seeking a divorce from John Rice (husband) which the Probate Court judge granted in June, 1976. The husband appealed from the Probate Court's judgment in so far as it ordered payment of alimony and a division and distribution of property. Both parties applied to this court for direct appellate review, which applications were allowed.

The parties were married for almost twenty-seven years and have two grown children. The wife, age fifty, is a homemaker, has never been employed for wages or salary and has no vocational skills. She has received an annual allowance from her husband of approximately $25,000 and fixed her income requirements at roughly $68,000. The husband, age fifty-seven, has been involved with another woman for several years. He has been employed by the A. H. Rice Company or a successor corporation since 1948, receiving annually close to $50,000 in earned income and approximately $38,000 in unearned income. His net worth exceeds $1,000,000. His assets include agency accounts, bank accounts, a joint interest in some Canadian real estate, a joint interest in the marital home, a 40% ownership interest in Rice Investment Corporation (a personal holding company, the remaining stock of which is owned by his father), and some insurance policies. In addition, the husband has received annually from his parents gifts of $6,000. The wife has a negative net worth and derives her assets entirely from her husband. Before his marriage the husband owned the agency accounts and a 20% ownership interest in the family corporation. About the time of his marriage, he obtained another 20% interest in the family corporation as a gift from his father.

The Probate Court judge ordered that '(b)y way of alimony, past, present and future,' the husband shall furnish to the wife the following support: (1) his interest in the marital home (approximate value $45,500) including its furnishings (value unstated); (2) his interest in the Canadian real estate (his contribution $10,000); (3) $25,000 cash; (4) two agency accounts (approximate value $330,000); (5) $30,000 a year in support payments; (6) status as irrevocable beneficiary for full face value of nine insurance policies on his life (face value $80,000); and (7) $7,500 toward the wife's counsel fees. In effect, this order awards the wife $30,000 of her husband's annual income and approximately half of her husband's assets (and income therefrom).

The husband appeals from this order on the ground that the Probate Court lacks authority under G.L. c. 208, § 34, to order the transfer of his separate property acquired before marriage and as gifts during marriage. In addition, he maintains that the award, be it 'alimony' or 'assignment of property,' was excessive and plainly wrong. We disagree.

1. General Laws c. 208, § 34, as appearing in St.1975, c. 400, § 33, provides that '(i)n addition to or in lieu of a judgment to pay alimony, the court may assign to either the husband or wife all or any part of the estate of the other.' ¹ A party's 'estate' by definition includes all property to which he holds title, however acquired. Therefore, this provision gives the trial judge discretion to assign to one spouse property of the other spouse whenever and however acquired. See Bianco v. Bianco, --- Mass. ---, ---, ^a 358 N.E.2d 243 (1976).

The husband asserts that the legislative history of St.1974, c. 565 (which amended c. 208, § 34), demonstrates a legislative intent to exclude nonmarital property (property not derived from the marital partnership) from the trial judge's assignment authority. However, we do not resort to legislative history and other sources which clarify legislative intent unless the statute at issue is ambiguous. Chouinard, petitioner, 358 Mass. 780, 782, 267 N.E.2d 497 (1971). The language of c. 208, § 34, second sentence, is unambiguous and consistent with the general thrust of § 34, which gives the trial courts a large measure of discretion in settling the financial disputes of parties to a divorce. See Bianco, supra at --- - ---, ^b 358 N.E.2d 243. Moreover, it is not clear that the legislative history of this statute does in fact show a legislative intent to exclude nonmarital property from the court's discretionary authority to handle divorce settlements. ² Therefore,

we conclude that under G.L. c. 208, § 34, the court may assign to one party in a divorce proceeding all or part of the separate nonmarital property of the other in addition to or in lieu of alimony.

2. General Laws c. 208, § 34, empowers the courts to deal broadly with property and its equitable division incident to a divorce proceeding. Bianco, supra at ---, ^c 358 N.E.2d 243. Such broad discretion is necessary in order that the courts can handle the myriad of different fact situations which surround divorces and arrive at a fair financial settlement in each case. See Putnam v. Putnam, --- Mass.App. ---, ---,^d 358 N.E.2d 837 (1977). The statute also requires that before the judge exercise his discretion to award alimony or to assign estate assets he consider all of the criteria enumerated in § 34, third sentence. See note 1, supra. Since § 34, third and fourth sentences (see note 1, supra) define the scope of a trial judge's discretion, Bianco, supra at ---,^e 358 N.E.2d 243, his consideration of factors not enumerated in § 34 would constitute an error of law. Cf. Putnam, supra at --- - ---, ^f 358 N.E.2d 837 (dictum: judge may not award alimony or property

purely on the basis of one spouse's blameworthy conduct). Moreover, because § 34 gives the courts such broad discretion, it is important that the record indicate clearly that the judge considered all the mandatory statutory factors. BIANCO, SUPRA AT --- ,358 N.E.2D 243^G3.

The husband made no motion, as required by Rule 52(a) of the Massachusetts Rules of Domestic Relations Procedure (1975), for findings of fact and conclusions of law by the judge. His right to challenge the result read by the judge is thus doubtful, to say the least. Nevertheless, we have examined the record in this case and we observe that it includes evidence concerning each of the mandatory statutory considerations. Furthermore, it includes no evidence that the judge below considered any impermissible factors in deciding to award the wife approximately half of her husband's estate in addition to $30,000 a year alimony (support payments). Thus the record is supportive of the judge's conclusions. The parties were married for almost twenty-seven years, during which time the wife became accustomed to sharing liberally in an income of about $90,000 a year (her 'station'). She has...