Croft v. Croft

240 S.W.3d 651, 2007 Ky. App. LEXIS 422, 2007 WL 3226329
CourtCourt of Appeals of Kentucky
DecidedNovember 2, 2007
Docket2006-CA-001403-MR
StatusPublished
Cited by8 cases

This text of 240 S.W.3d 651 (Croft v. Croft) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Croft v. Croft, 240 S.W.3d 651, 2007 Ky. App. LEXIS 422, 2007 WL 3226329 (Ky. Ct. App. 2007).

Opinion

OPINION

DIXON, Judge.

Appellant, Adrianna Croft, appeals from an order of the Caldwell Circuit Court restoring nonmarital property, dividing marital property and denying maintenance in this dissolution proceeding. For the reasons set forth herein, we reverse and remand for further proceedings.

Adrianna and Dimitri Croft were married on October 18, 1997. No children were born of the marriage. Dimitri was self-employed as a backhoe operator and Adrianna was employed as a loan and trust operator until 1998, when she was diagnosed with multiple chemical sensitivity. The Social Security Administration determined her to be permanently disabled on April 1,1998.

During the marriage, the parties acquired several pieces of property, including two lots located in Salem, Kentucky, and 20 acres of land located in Livingston County. The house and adjoining lot where the parties lived was also located in Salem, Kentucky, and was purchased by Dimitri prior to the marriage for $18,000; however, the remaining balance on the mortgage was not paid in full until 1999, two years after the parties were married. Adrianna testified that several improvements to the residence were undertaken and completed during the marriage, including new appliances, wallpaper and *653 paint to the interior of the home, as well as a new exterior deck and landscaping.

The parties separated in September 2005. On April 20, 2006, the trial court entered an interlocutory decree dissolving the marriage and reserving other issues for adjudication. Following an evidentiary hearing, the trial court entered a final order on May 9, 2006, addressing property division and Adrianna’s claim for maintenance. The trial court awarded the house and lot located in Salem, Kentucky, to Dimitri as his nonmarital property and the other two lots in Salem to Adrianna. Further, the court ordered the 20 acres in Livingston County to be sold with the proceeds equally divided.

In addition, each party was awarded the personal property that was currently in his or her possession. Finally, the trial court denied Adrianna’s claim for maintenance. Adrianna thereafter appealed to this Court. A cross-appeal filed by Dimitri was subsequently dismissed by this Court on October 19, 2006, as untimely.

Adrianna’s first claim of error concerns the award of the Salem house and lot to Dimitri as nonmarital property. After reviewing the evidence presented, we agree that the trial court abused its discretion in failing to find that the property had both marital and nonmarital components.

The record establishes that Dimitri purchased the house and lot in question in 1996 for $18,000. However, the balance of the mortgage was not paid until 1999, after the parties were married. At the eviden-tiary hearing, both parties presented appraisals indicating that the value of the property, at the time of the parties dissolution, was between $28,000 and $29,000. Further, Adrianna testified that during the marriage, appliances and fixtures in the house were replaced, the interior was painted and wallpapered, and a deck and landscaping were added to the exterior.

Thus, Adrianna claims that the increase in value should be considered marital property-

KRS § 403.190, Disposition of Property, provides, in relevant part, as follows:

(2) For the purpose of this chapter, “marital property” means all property acquired by either spouse subsequent to the marriage except:
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(e) The increase in value of property acquired before the marriage to the extent that such increase did not result from the efforts of the parties during marriage.
(8) All property acquired by either spouse after the marriage and before a decree of legal separation is presumed to be marital property, regardless of whether title is held individually or by the spouses in some form of co-ownership such as joint tenancy, tenancy in common, tenancy by the entirety, and community property. The presumption of marital property is overcome by a showing that the property was acquired by a method listed in subsection (2) of this section.

(Emphasis added).

The burden of proof is on the party claiming that the increase in value is to be considered nonmarital, and he must satisfy that burden by “clear and convincing” evidence. Brosick v. Brosick, 974 S.W.2d 498 (Ky.App.1998). “KRS 403.190(3) ... creates a presumption that any such increase in value is marital property, and therefore, a party asserting that he or she should receive appreciation upon a nonmarital contribution as his or her nonmarital property carries the burden of proving the portion of the increase in value attributable to the nonmarital contribution. By virtue of the KRS 403.190(3) presumption, the failure to do so will result in the in *654 crease being characterized as martial property.” Travis v. Travis, 59 S.W.3d 904, 910-11 (Ky.2001).

KRS 403.190(2)(e) carves out an exception to what is considered “marital property” for “[a]n increase in value of property acquired before the marriage to the extent that such increase did not result from the efforts of the parties during marriage.” (Emphasis added). Therefore, conversely an increase in value of property that did result from the efforts of the parties during marriage should be considered marital property. In Goderwis v. Goderwis, 780 S.W.2d 39 (Ky.1989), the Kentucky Supreme Court held that if non-marital property increases in value during the marriage, the trial court must determine the reason for the increase. If the increase is attributable to general economic conditions, it is considered nonmarital. However, “[a]n increase in value of non-marital property during marriage which is the result of a joint effort of the parties establishes the increase in value of the nonmarital property as marital property.” Id. at 40.

Undisputed testimony from both parties detail improvements made to the house, including the addition of new appliances throughout the house, as well as the addition of a new structural outdoor deck space. These improvements cannot be discredited as attributable reasons for the increase in value of the property.

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Cite This Page — Counsel Stack

Bluebook (online)
240 S.W.3d 651, 2007 Ky. App. LEXIS 422, 2007 WL 3226329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/croft-v-croft-kyctapp-2007.