Sands v. Sands
Decision Date | 23 March 1993 |
Docket Number | 93864,Nos. 93860,s. 93860 |
Parties | Judy SANDS, Plaintiff-Appellee, v. Gerald F. SANDS, Defendant-Appellant. |
Court | Michigan Supreme Court |
This is a divorce case in which the defendant husband attempted to conceal assets of the marital estate. The circuit court divided the marital assets equally between the parties, but directed the defendant to pay seventy percent of the plaintiff wife's attorney fees, in light of the defendant's "devious and deceptive conduct" during the circuit court proceedings.
The Court of Appeals found that the circuit court erred in dividing the assets equally. It said that the defendant must forfeit his interest in assets that he attempted to hide. We affirm that judgment in the present case, but caution that in each individual divorce case the circuit court must equitably divide assets on the basis of the facts. There is no automatic rule of forfeiture.
The parties were married in 1961. The plaintiff filed a complaint for divorce in 1984. This case concerns the distribution of the parties' real and personal property.
It would be difficult to exaggerate the contentiousness of these proceedings. The record is immense, and the circuit judge has entered countless orders since the complaint for divorce was filed. The defendant has been held in contempt at least five times, and has been jailed several times for refusing to comply with the court's orders.
Following a lengthy trial, the circuit court entered a judgment of divorce. The judgment provided that the property would be divided equally. The plaintiff was to receive $200 a week in alimony. 1 1] Further, the court ordered the defendant to pay seventy percent of the plaintiff's attorney fees, saying that most of the litigation had been caused by the defendant's wrongdoing.
The defendant appealed the divorce judgment and several of his contempt citations. 2 The plaintiff cross appealed the divorce judgment.
The defendant persuaded the Court of Appeals to set aside one of his contempt citations, but the Court otherwise denied relief. In response to the plaintiff's cross appeal, the Court modified the distribution of marital assets. It remanded the case to circuit court, which is to award to the plaintiff all marital assets that the defendant attempted to conceal. 3 192 Mich.App. 698, 482 N.W.2d 203 (1992).
The defendant applies to this Court for leave to appeal.
The Court of Appeals noted the recurring problem of unreported or underreported marital assets, 4 and it characterized the present case as "a prime example of the burden one spouse's reprehensible behavior can impose upon not only the wronged spouse but also the court system." 192 Mich.App. p. 704, 482 N.W.2d 203.
The Court of Appeals said that, "[u]nder the circumstances revealed by the extensive record," it was "an abuse of discretion for the trial court not to have taken some sort of punitive action in light of Mr. Sands' persistent attempts to conceal assets." Id. The Court explained:
"This is in accord with the maxim that one who seeks the aid of equity must come in with clean hands. Stachnik v Winkel, 394 Mich 375, 382-384; 230 NW2d 529 (1975). The doctrine of 'clean hands' rests on the proposition that the court will not be the abettor of inequity. Id. at 382 . Thus, we find it inappropriate for the court to award Mr. Sands any share of assets that he attempted to conceal. Once a spouse intentionally has misled the court or the opposing spouse regarding the existence of an asset, that spouse should be estopped from receiving any part of that property.
In deciding a divorce action, the circuit court must make findings of fact and dispositional rulings. On appeal, the factual findings are to be upheld unless they are clearly erroneous. Beason v. Beason, 435 Mich. 791, 460 N.W.2d 207 (1990). A dispositional ruling, however, "should be affirmed unless the appellate court is left with the firm conviction that [it] was inequitable." Sparks v. Sparks, 440 Mich. 141, 152, 485 N.W.2d 893 (1992). 5
In Sparks, the circuit court determined that one party's sexual infidelity had caused the failure of the marriage. Expressing the view that it is appropriate " 'to punish some people in a divorce,' " the circuit court awarded twenty-five percent of the marital assets to the party who had caused the divorce, and seventy-five percent to the other party. Id., p. 162, 485 N.W.2d 893.
This Court held in Sparks that the circuit court had "erred in assigning disproportionate weight" to the single factor of "fault." We explained that "the division of property is not governed by any set rules," and that "[t]he determination of relevant factors will vary depending on the facts and circumstances of the case":
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