Cooper v. Cooper

635 P.2d 850, 130 Ariz. 257, 1981 Ariz. LEXIS 241
CourtArizona Supreme Court
DecidedOctober 20, 1981
Docket15068
StatusPublished
Cited by39 cases

This text of 635 P.2d 850 (Cooper v. Cooper) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper v. Cooper, 635 P.2d 850, 130 Ariz. 257, 1981 Ariz. LEXIS 241 (Ark. 1981).

Opinion

GORDON, Justice:

The appellant, Stephen G. Cooper (husband), appeals from those portions of a decree of dissolution of marriage that pertain to the distribution of property and award of spousal maintenance. Taking jurisdiction pursuant to A.R.S.Const. Art. 6, § 5(3) and Rule 19(e), Rules of Civil Appellate Procedure, 17A A.R.S., we reverse in part and affirm in part.

Appellant Stephen Cooper presents three issues to us on appeal: whether the trial court erred in characterizing a savings account as the sole and separate property of his wife, Elana Kellogg Cooper; whether it was error to award one half of the proceeds of a promissory note to the wife; whether the trial court abused its discretion by awarding spousal maintenance to the wife. Appellee wife also raises for our consideration a request that we award her reasonable attorney’s fees and costs. We will relate the necessary facts as we address each issue.

THE SAVINGS ACCOUNT

The trial testimony and exhibits demonstrate that when the parties were married in 1971, the wife had a savings account in her name containing approximately $3,200.00. During the marriage the balance reached as high as $8,000.00 and dropped as low as $3,000.00. At the time of trial the balance in the account was $7,500.00. Deposits to the account were made partially of child support payments from the wife’s former husband, although the amount actually placed in the account is not clear. The wife also deposited into the account checks made out to her by Cooper from his earnings. Some of these checks were for expenses, and some were repayment of a loan made by the wife to the husband. Yet another series of checks from the husband, some of which may have been deposited in the savings account, was declared by him to be a monthly gift to the wife for expenses during the year before the dissolution proceedings. The trial court determined that the account was the sole and separate property of the wife. The husband contends the account was community property.

We begin with the proposition that “[a]ll property, real and personal, of each spouse, owned by such spouse before marriage, and that acquired by gift, devise or descent, and also the increase, rents, issues and profits thereof, is the separate property of such spouse.” A.R.S. § 25-213. Of equal importance to our determination is the principle that “[a]ll property acquired by either husband or wife during the marriage, except that which is acquired by gift, devise or descent, is the community property of the husband and wife.” A.R.S. § 25-211.

We must also consider that “[wjhere community property and separate property are commingled, the entire fund is presumed to be community property unless the separate property can be explicitly traced.” Porter v. Porter, 67 Ariz. 273, 281, 195 P. 132, 137 (1948); accord Guthrie v. Guthrie, 73 Ariz. 423, 242 P.2d 549 (1952); Bourne v. Lord, 19 Ariz.App. 228, 506 P.2d 268 (1973). Finally, the burden is upon the person claiming that the commingled funds, *260 or any portion of them, are separate to prove that fact and the amount by clear and satisfactory evidence. Porter, supra; Bourne, supra.

Although we review the record in the light most favorable to upholding the decision of the trial court regarding the nature of the property as community or separate, Sommerfield v. Sommerfield, 121 Ariz. 575, 592 P.2d 771 (1979), we cannot concur in the trial court’s finding that the savings account was the sole and separate property of the wife considering the principles enunciated above. We believe instead that the commingling of monies from the husband’s salary for community expenses rendered the account community property and that the wife did not sustain her burden of demonstrating which portion of the monies in the account retained their separate character. For this reason, on remand, the trial court will award one-half of the savings account involved to each party.

THE PROMISSORY NOTE

In 1973, the husband sold a home in Indiana that he owned from a previous marriage. He deposited the proceeds from the sale in an Indiana checking account which was his separate property. Subsequently he bought a house in the Phoenix area using as a down payment funds from the Indiana account. He maintains the down payment came exclusively from the proceeds of the sale of the Indiana house. He testified that the Phoenix house was purchased in both his and his wife’s name but claims that to have been only for the purpose of obtaining financing. He also testified that over the course of his marriage to appellee he deposited money in the Indiana account from his salary. The house was subsequently sold, and the proceeds of the sale were represented by a promissory note payable at $64.00 per month.

Appellant objects to the trial court’s award of one-half of the proceeds of the promissory note to each party. He contends that because the house was purchased with a down payment from his sole and separate property, the house became his sole and separate property and thus the proceeds of its sale should also be his sole and separate property. We agree, however, with the trial court’s award.

We do not believe that the husband in this instance sustained his burden of proving that the funds used for the down payment were his sole and separate property. Guthrie, supra; Porter, supra; Bourne, supra. As indicated, he testified that he commingled community funds from his salary in the account from which he made the down payment. Furthermore, he produced no records in court to trace the separate funds and their disposition in the transaction in question.

Even if the husband satisfactorily demonstrated that the down payment came exclusively from his sole and separate funds, we have held that “where title to real property is taken in the names of both husband and wife, even though the source of funds for the purchase of the property is separate property of one spouse, a presumption arises that the parties intended to own the property as community property.” Sommerfield, supra, 121 Ariz. at 577-78, 592 P.2d at 773-774; accord Becchelli v. Becchelli, 109 Ariz. 229, 508 P.2d 59 (1973). The presumption can be overcome, Becchelli, supra, but to do so would be of no consequence in a case such as this where the purchase was made from funds not clearly established to have been separate.

The trial court acted within its discretion, therefore, in awarding half the proceeds of the sale to each party.

SPOUSAL MAINTENANCE

Appellant challenges an award to the wife of spousal maintenance of $250.00 per month for one year.

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Bluebook (online)
635 P.2d 850, 130 Ariz. 257, 1981 Ariz. LEXIS 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-cooper-ariz-1981.