Burrows v. Burrows

1994 OK 129, 886 P.2d 984, 52 A.L.R. 5th 843, 1994 Okla. LEXIS 150, 1994 WL 666146
CourtSupreme Court of Oklahoma
DecidedNovember 29, 1994
Docket82913
StatusPublished
Cited by37 cases

This text of 1994 OK 129 (Burrows v. Burrows) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burrows v. Burrows, 1994 OK 129, 886 P.2d 984, 52 A.L.R. 5th 843, 1994 Okla. LEXIS 150, 1994 WL 666146 (Okla. 1994).

Opinions

KAUGER, Justice:

The dispositive issue presented on certio-rari is whether the trial court erred in granting summary judgment in favor of a father who claimed a homestead exemption in defending an action for fraudulent conveyance to prevent the collection of past-due alimony and child support. We find that, under the facts presented here, the father’s attempt to convey property subject to a homestead exemption to avoid payment of past-due support alimony and child support may be fraudulent pursuant to 24 O.S.1991 § 116.1

FACTS

In November of 1983, Edwin Burrows (the father) married LaDonna Lea Burrows (the mother). Subsequently, the couple had a child. Through loans secured from a local bank, they built a home on forty acres of land in Pontotoc County, Oklahoma, which was owned by the father prior to the marriage. On June 10, 1991, the couple divorced; and the mother was awarded custody of their child, support alimony, and child support. The father was awarded the home and the [986]*986forty acres.2 He was also ordered to pay child support, the child’s accrued medical expenses and support alimony.3

Following the divorce, three judgments were secured against the father in an effort to obtain the money owed as a result of the divorce.4 On January 15, 1992, the mother began garnishment proceedings to recover a portion of the money from an employer of the father.5 The father moved to quash the garnishment and requested a hearing. On February 12, 1992, a hearing was held; and the mother was allowed to retain the proceeds she was successful in recovering.

On February 16,1992, the father conveyed the forty acres he was granted in the divorce decree to his parents, W.E. and Jewell Burrows (parents) for $5,151.04, the amount remaining on his mortgage debt on the property. In exchange for the conveyance, the parents agreed to allow the father to remain on the property rent-free for his lifetime. Subsequently, the mother sued the father and his parents alleging that: 1) the father had three judgments against him for past-due support alimony, child support, and attorney’s fees totaling $6,713.48; 2) he was behind on current child support in the amount of $5,577.49; 3) the father’s only asset was his home and the forty acres in Pontotoc County, Oklahoma; 4) he transferred the property for inadequate consideration6 to his parents for the purpose of defrauding his ex-wife and hindering the collection of the debt; and 5) the parents knew that their son was insolvent and faced a lien being filed against him when he sold them the property.

The father and his parents moved for summary judgment arguing that the property he conveyed was his homestead and that it was exempt from the claims of creditors and from a fraudulent conveyance action.7 Prior to the conveyance, the father did not file for [987]*987homestead exemption with the county assessor.8 The parents have their own homestead located on other property in the same county.

The trial court entered summary judgment for the father and his parents. The mother appealed and the Court of Appeals held that: 1) the property was the father’s homestead when he conveyed it to his parents;9 2) a homestead is exempt from the collection of debts owed to general creditors including alimony and child support debts; and 3) because the property was the father’s homestead when he conveyed it to his parents, the transfer may not be set aside as fraudulent.10 We granted certiorari on July 7, 1994.

UNDER THE FACTS PRESENTED HERE, THE FATHER’S ATTEMPT TO CONVEY PROPERTY SUBJECT TO A HOMESTEAD EXEMPTION TO AVOID PAYMENT OF PAST-DUE SUPPORT ALIMONY AND CHILD SUPPORT MAY BE FRAUDULENT PURSUANT TO 24 O.S.1991 § 116.

On November 15,1993, the father and his parents moved for summary judgment arguing that the property he conveyed to his parents was his homestead and that pursuant to 31 O.S.1991 § l,11 it was exempt from attachment, execution, or other forced sale. They relied on Oklahoma State Bank v. Van Hassel, 189 Okla. 48, 114 P.2d 912, 914 (1941) for the proposition that a homestead may be freely conveyed and that the purchaser takes free of any judgment lien or debts of the seller.

We find that Van Hassel is distinguishable from the instant case on its facts and is not [988]*988dispositive of the issue of whether a homestead exemption may be used to defeat alimony and child support judgments. Van Hassel involved a bank creditor attempting to set aside the transfer of a homestead in order to collect on a past-due note. Here, the father conveyed his property to his parents to evade payment of alimony and child support to the family in which the homestead originated.12

The purpose of the Act is to allow a creditor the opportunity to invalidate the transfer of assets made by a debtor if the transfer has the effect of placing assets out of reach of present and future creditors.13 Spouses, to the extent they are asserting fraudulent conveyance claims against the other spouse attempting to collect for alimony and child support, may utilize the Act.14 The determinative question is whether the homestead exemption can be used to defeat past-due alimony and child support claims under the facts presented. The mother cites Breedlove v. Breedlove, 100 Nev. 606, 691 P.2d 426, 428 (1984) for the proposition that property cannot be transferred under the guise of a homestead exemption to defeat child support and alimony judgments.

In Breedlove, a couple divorced and the father was ordered. to pay child support. Subsequently, the father defaulted on his child support payments and the mother obtained a judgment for child support arrear-ages and attorney’s fees. In an effort to frustrate the mother’s attempts to execute on the judgment, the father filed for a homestead exemption. The Nevada Supreme Court held that: 1) public policy requires an exception to the homestead laws in cases where a party is seeking to enforce a child support award against the homesteader; and 2) it would be unfair to permit the homestead to be used as a shield to insulate a father from being forced to pay support owed to his children.

The Court recognized that facially the Nevada homestead laws seemed to provide protection against a creditor unless the creditor falls within an express statutory exception and a mother seeking alimony and child support does not. However, it noted that applying the statutory exceptions in a technical fashion would contravene the Legislature’s intent and the purpose of the homestead law. The Court found that: 1) homestead laws were designed for making families secure in their home from creditors they are unable to pay; 2) when an ex-wife or child attempts to enforce court-ordered support, the rationale behind the homestead exemption no longer applies because the policy of protecting the family would no longer be served by such an [989]*989application; and 3) a former family member attempting to enforce a support judgment is not the sort of creditor which the homestead laws seek to defeat.

We find the Breedlove reasoning persuasive.15

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Cite This Page — Counsel Stack

Bluebook (online)
1994 OK 129, 886 P.2d 984, 52 A.L.R. 5th 843, 1994 Okla. LEXIS 150, 1994 WL 666146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burrows-v-burrows-okla-1994.