Shearn v. Brinton-Shearn

• Decision Date: 04 December 2018
• Docket Number: NO. 01-17-00222-CV,01-17-00222-CV
• Parties: CHARLES EDWARD SHEARN, JR., Appellant v. JENNIFER ANN BRINTON-SHEARN, Appellee
• Court: Texas Court of Appeals

CHARLES EDWARD SHEARN, JR., Appellant v. JENNIFER ANN BRINTON-SHEARN, Appellee

NO. 01-17-00222-CV

Court of Appeals For The First District of Texas

December 4, 2018

On Appeal from the 505th District Court Fort Bend County, Texas

Trial Court Case No. 11-DCV-187297

MEMORANDUM OPINION

Appellant, Charles Edward Shearn, Jr. ("Charles"), challenges the trial court's order entered in favor of appellee, Jennifer Ann Brinton-Shearn ("Jennifer"), granting her motion for enforcement and clarification of the parties' agreed final divorce decree and distribution of certain monies held in a trust account. In four issues, Charles contends that the trial court erred in granting Jennifer's motion and not filing findings of fact and conclusions of law.¹

We affirm.

Background

On May 31, 2012, the parties signed a Mediated Settlement Agreement (the "MSA"). And on September 26, 2012, the trial court signed an agreed final divorce decree, which included "[p]rovisions [for] [d]ealing with [the] [s]ale of [the parties'] [r]esidence."

On June 24, 2016, Jennifer filed a motion, titled "Motion for Declaratory Judgment and for Leave to Disburse Funds in Attorney Trust Account," seeking enforcement and clarification of the parties' agreed final divorce decree and distribution of certain monies being held in a trust account. In her motion, Jennifer asserted that the parties' residence, in accordance with the terms of the agreed final divorce decree, was sold on March 10, 2016. During the time between the signing of the parties' agreed final divorce decree and the sale of the property, Charles secured a home equity loan and paid the property taxes related to the residence from the proceeds of the loan. At the closing of the sale of the residence, the home equity loan was paid in full prior to either party receiving his/her portion of the proceeds, and Charles "asked to be reimbursed for one-half of the property taxes[, which hehad paid prior to the sale of the residence,] by equalizing the net proceeds of the sale." Jennifer objected. Because the parties disagreed as to who bore the responsibility for paying the property taxes under the terms of the agreed final divorce decree, a portion of the proceeds from the sale of the residence, i.e., $60,000, was placed in a trust account so that the sale of the residence could close and "the parties could work out the distribution between themselves."

Jennifer further asserted that, under the terms of the agreed final divorce decree, Charles was responsible for paying 100% of the property taxes related to the residence, while she was responsible for paying "the principal and interest on the mortgage." Thus, according to Jennifer, the entire home equity loan, the proceeds of which had been used exclusively by Charles to pay the property taxes for the residence, should be repaid solely from Charles's share of the proceeds from the sale of the residence. And Jennifer "should receive a greater share of the $60,000[] left over from the net proceeds of the sale" of the residence in order to reimburse her for fifty percent of the property-tax debt. Based on her calculations, "[u]sing the figures from the actual closing settlement statement, and giving [herself] credit for the property taxes (by charging 100% to [Charles],) and giving [Charles] credit for one-half of the costs of physical repairs to the [residence], (by charging 50% to [herself], per the [agreed final divorce] decree)," Jennifer was entitled to $44,750.91 of the $60,000 being held in the trust account. Jennifer requested that the trial court,based on the terms of the parties' MSA and the agreed final divorce decree, clarify that Charles was responsible for paying 100% of the property taxes related to the residence, Jennifer was responsible for paying 50% of the cost of physical repairs to the residence, and her "proposed disbursement" of the monies held in the trust account was correct.

At the hearing on her motion, Jennifer testified that she had previously been married to Charles and they had divorced in September 2012. Prior to the finalization of their divorce, she and Charles entered into the MSA, which was purportedly incorporated into the agreed final divorce decree. The MSA, admitted into evidence at the hearing, provided, in regard to the parties' residence:

Parties to remain tenants in common until property sold with sale[] proceeds to be split 50/50 subject to the specific conditions set forth below[.]

[Jennifer] to have exclusive use and possession[.]

[Jennifer] to pay 100% of bills associated with residence including but not limited to, mortgage, utilities, homeowners' insurance SAVE AND EXCEPT property taxes which [Charles] agrees to pay (without reimbursement of [Jennifer]'s 50% subject to conditions set forth below)[.]

House to be listed no later than July 1st, 2012[.]

Parties to jointly select listing agent who is an MLS Realtor. Absent mutual agreement, parties will use Jan Saunders.

Parties agree that, absent mutual agreement to the contrary, they shall follow the recommendation of the listing agent as to listing price[.]

. . . .

Parties agree that [Charles] will pay 100% of the property taxes until sale provided [Jennifer] cooperates so that [Charles] can access home equity loan in order to pay property taxes. [Charles] agrees to pay 100% of all closing costs and to pay 100% of all interest incurred on same.

Parties agree that agreed upon repairs above $250 and that agreed upon upgrades, if any, necessary for sale shall be accessed from home equity loan.

[Charles] to pay debt service upon home equity loan until house is sold.

[Jennifer] to reimburse to [Charles] from her 50% portion of the sales proceeds, 50% of the actual cost of agreed upon repairs and 50% of agreed upon upgrades.

[Charles] to pay 100% of the property taxes and [Charles] to have 100% tax deduction for mortgage interest and for property taxes until sale[.]

The parties' agreed final divorce decree, also admitted into evidence, stated, in regard to their residence:

1. The parties shall list the property no later than July 1, 2012 with a duly licensed real estate broker having sales experience in the area where the property is located, provided further that the real estate broker shall be an active member in the Multiple Listing Service. In absence of mutual agreement, the parties will use Jan Saunders.

2. The property shall be sold for a price that is mutually agreeable to [the parties]. If the parties are unable to mutually agree on a listing price, they will follow the recommendation of the listing agent as to the listing price.

3. JENNIFER . . . shall continue to make all payments of principal, interest, and insurance on the property during the pendency of the sale,and JENNIFER . . . shall have the exclusive right to enjoy the use and possession of the premises until closing. All maintenance and repairs necessary to keep the property in its present condition shall be paid by JENNIFER . . . . If repairs and upgrades cost above $250[], the parties agree that any upgrades or repairs necessary for the sale of the home will be assessed from the home equity loan.

4. CHARLES . . . shall pay 100% of ad valorem property taxes until the sale provided JENNIFER . . . cooperates so that CHARLES . . . can access a home equity loan in order to pay property taxes. CHARLES . . . shall pay 100% of all closing costs and 100% of all interest associated with any home equity loan. CHARLES . . . shall pay debt service on [the] home equity loan until [the] house is sold. CHARLES . . . shall receive all direct costs of the home equity loan plus 100% of the ad valorem tax payments as an IRS tax deduction to him.

5. The net sales proceeds (defined as the gross sales price less cost of sale and full payment of any mortgage indebtedness or liens on the property and after payment of home equity loan) shall be distributed as follows:

Sales proceeds to be split 50% to [Charles] and 50% to [Jennifer]. [Jennifer] is to reimburse [Charles] from her portion of sales proceeds 50% of actual cost of agreed upon repairs and upgrades.

Jennifer further testified that, pursuant to the MSA and the agreed final divorce decree, she cooperated with Charles in obtaining a home equity loan and he paid the property taxes for the residence from the proceeds of the loan. During the time that she remained in the home, Jennifer made all mortgage and utilities payments, but she did not pay property taxes or "take any income tax deductions for the property taxes" that were paid related to the residence.

The residence was listed for sale in December 2015, and after repairs to the home were made, it sold in March 2016. Jennifer agreed that she was responsible for one-half of the cost of the repairs to the residence. At the closing of the sale, the home equity loan was paid off prior to either party receiving his/her portion of the proceeds, $60,000 related to the payment of the property taxes was placed into the trust account, and the remainder of the proceeds of the sale of the residence were split equally between Jennifer and Charles.

In regard to the $60,000 held in the trust account, Jennifer stated that she was entitled to $44,750.91 and Charles was entitled to $15,249.09. She explained that she was not obligated to pay any portion of the property taxes related to the residence; Charles was "responsible [for paying] 100 percent" of the property taxes related to the residence; the home equity loan, which Charles had exclusively used to pay the property taxes, was improperly repaid by the marital estate, instead of solely from Charles's share of the proceeds from the sale of the residence; and her calculations, related to the division of the monies held in the trust account, took those facts into account. The trial court admitted into evidence Jennifer's calculation of the "Division of Proceeds from Sale of House."

Charles testified that under the terms of the MSA and the agreed final divorce decree, he was "to pay 100...