Chekuri v. Nekkalapudi

2019 Ark. App. 221, 575 S.W.3d 572
CourtCourt of Appeals of Arkansas
DecidedApril 17, 2019
DocketNo. CV-18-594
StatusPublished
Cited by5 cases

This text of 2019 Ark. App. 221 (Chekuri v. Nekkalapudi) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chekuri v. Nekkalapudi, 2019 Ark. App. 221, 575 S.W.3d 572 (Ark. Ct. App. 2019).

Opinion

BART F. VIRDEN, Judge

Appellant Lakshiminarayana Chekuri appeals the divorce decree entered by the Pulaski County Circuit Court dividing property and awarding rehabilitative alimony to appellee Madhuri Nekkalapudi. On appeal, appellant argues that the trial court erred in (1) awarding appellee $ 68,415.50, which represented one-half of the amount appellant spent after the parties had separated; (2) equally dividing the funds that appellant spent after the parties had separated and the funds in appellant's retirement account; and (3) awarding appellee rehabilitative alimony. We affirm in part and reverse in part and remand for further proceedings.

I. Factual and Procedural Background

The parties were married in India on February 12, 2015, as a result of an arrangement by their families. They did not live together the first month of their marriage. In March 2015, appellant moved back to Arkansas to finish his residency at UAMS and his PhD courses at the University of North Texas. Appellee stayed in India, where she finished medical school. She moved to Arkansas in May 2015. From May 2015 to December 2015, the parties lived together for approximately five and a half months. During the marriage and up to the date of the parties' separation, appellant worked at UAMS as a resident earning $ 4,800 to $ 5,000 a month. Appellee did not work. Six months after the parties separated, appellant accepted a job at Mercy Clinic in Joplin, Missouri, earning an annual salary of $ 250,000 and receiving a $ 30,000 bonus. He was also working toward his doctoral degree at the University of North Texas.

In December 2015, appellee moved to Virginia to attend a Kaplan course to obtain her American medical degree. She intended to return to Arkansas after she completed the course in May 2016; however, on April 21, 2016, appellant filed for divorce. On that same day, the trial court entered a restraining order enjoining the parties from selling or otherwise disposing of any property belonging to the parties.

On October 24, 2016, the trial court held a hearing. At the hearing, appellee testified that she is a United States citizen but that appellant is not. She stated that appellant had asked her to sponsor him for a green card. Appellee further testified that appellant had verbally and physically abused her beginning in June 2015. She explained that her father currently paid for her living expenses but that he expected her to pay him back. Thereafter, the trial court entered a temporary order directing appellant to pay appellee $ 2,500 a month in alimony.

On August 3, 2017, the trial court held a final hearing. Appellee testified that she was living with her parents and that she was working for her father while completing the Kaplan program. She stated that her monthly income was $ 540, that her monthly expenses totaled $ 4,407, and that her debt exceeded $ 100,000. She testified *575that she had not completed the necessary examinations to obtain her American medical degree. She further noted that she had not sought other employment in the past six months. Appellee stated that appellant had agreed to financially support her while she obtained her American medical degree. She further testified that she had possession of the $ 25,000 necklace that appellant had given her as a customary wedding gift. Appellee introduced appellant's bank statements into evidence, which showed that he had made cash withdrawals of $ 3,670 in 2013, $ 4,402 in 2014, $ 20,645 in 2015, and $ 86,420 in 2016.

Appellant testified that he worked at Mercy Hospital, his annual salary was $ 270,504, and his monthly expenses totaled $ 18,559. He noted that he hoped to complete the PhD program by the end of the year. He denied having any financial accounts in India, and he explained that he had transferred money to India around the time of his marriage to cover expenses for the wedding. Appellant further testified that he had transferred $ 86,000 in 2016 to repay a loan. He noted that for wedding gifts, he had given appellee a $ 25,000 gold necklace and an $ 18,000 gold ring. He further testified that since their separation, he had spent money on his PhD research, relocation expenses, rent in Joplin, housing expenses in Arkansas, and student and personal loans.

On March 19, 2018, the trial court entered a divorce decree. In the decree, the trial court awarded appellee one-half of appellant's retirement contributions from February 12, 2015, through the date of the decree. Appellant's retirement account totaled $ 21,321.99. The trial court further ordered appellant to pay appellee $ 68,415.50, representing one-half of the marital funds he had spent during the parties' separation, and $ 1,000 a month in spousal support for eighteen months. The trial court further awarded appellee all the jewelry that appellant had given her. Appellant timely appealed from the decree.

II. Discussion

A. Property Division

This court reviews division-of-marital-property cases de novo. Sanders v. Passmore , 2016 Ark. App. 370, 499 S.W.3d 237. With respect to the division of property in a divorce case, we review the trial court's findings of fact and affirm them unless they are clearly erroneous or against the preponderance of the evidence. Id. A finding is clearly erroneous when the reviewing court, on the entire evidence, is left with the definite and firm conviction that a mistake has been made. Id.

Appellant first argues that the trial court erred by awarding appellee one-half of the marital funds that he spent during their separation. He recognizes that he spent all the money he had earned during the separation but asserts that Arkansas law allows him to do so. He argues that appellee was entitled to the funds only if she proved that he spent the money with the intent to defraud her. He asserts that appellee did not prove fraud and that the trial court did not make a finding of fraud.

Arkansas law does not require parties to a divorce to account for every sum spent during a marriage. Chism v. Chism , 2018 Ark. App. 310, 551 S.W.3d 394. Our courts have held that a spouse has the right to transfer his or her property, with or without consideration, as long as the spouse does so in good faith and without the intent of defrauding the other spouse. Skokos v. Skokos , 332 Ark. 520, 968 S.W.2d 26 (1998) ; Wainwright v. Merryman , 2014 Ark.

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Bluebook (online)
2019 Ark. App. 221, 575 S.W.3d 572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chekuri-v-nekkalapudi-arkctapp-2019.