Dana L. Smith v. James L. Smith

Indiana Court of Appeals·Decided July 11, 2013·No. 49A05-1210-DR-554·Unpublished

Opinion

Pursuant to Ind.Appellate Rule 65(D), this Memorandum Decision shall not be regarded as precedent or cited before any court except for the purpose of Jul 11 2013, 8:21 am

establishing the defense of res judicata, collateral estoppel, or the law of the case.

ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:

DAVID P. MURPHY MARGARET LOIS JANSEN David P. Murphy & Associates, P.C. Indianapolis, Indiana Greenfield, Indiana

IN THE

COURT OF APPEALS OF INDIANA

DANA L. SMITH, )

)

Appellant-Petitioner, )

)

vs. ) No. 49A05-1210-DR-554 )

JAMES L. SMITH, )

)

Appellee-Respondent. )

APPEAL FROM THE MARION SUPERIOR COURT The Honorable David L. Dreyer, Judge The Honorable Patrick Murphy, Master Commissioner Cause No. 49D10-1101-DR-2807

July 11, 2013

MEMORANDUM DECISION - NOT FOR PUBLICATION

NAJAM, Judge

STATEMENT OF THE CASE

Dana L. Smith (“Wife”) appeals the trial court’s order denying her motion to correct error following the entry of a decree dissolving her marriage (“Decree”) to James L. Smith (“Husband”). We address three issues on appeal:

1. Whether the trial court’s omission of Exhibit 1 to the Decree constitutes reversible error.

2. Whether the trial court abused its discretion when it divided the marital estate in the Decree.

3. Whether the trial court abused its discretion when it awarded attorney’s fees to Wife.

We affirm, but remand with instructions.

FACTS AND PROCEDURAL HISTORY Husband and Wife were married on January 23, 2004. At the time of the marriage, Wife had a student loan and no assets aside from a car that Husband had purchased for her prior to the marriage. Husband had accumulated substantial assets before the marriage including a home in Indianapolis, a 2003 Silverado, a Yamaha XL 700 Jet Ski, a 1998 Sea Doo, a houseboat (with a $16,000 lien), a 401(k), a Putnam IRA, an American Funds IRA, a GM pension, a family endowment, and cash. Husband’s only debt was the lien on the houseboat. Wife did not work during the marriage, but Husband worked at General Motors until his retirement in 2007.

In 2007, the Social Security Administration determined that Wife had become disabled as of December 2, 2003, shortly before the marriage.1 Based on that

determination, Wife received a lump sum Social Security Disability distribution in the 1 Wife’s disability determination was based on her diagnoses for lumbar degenerative disc disease, fibromyalgia, arthritis in the right hip, migraine headaches, and bursitis in the right shoulder.

amount of $21,759. Wife used this money to purchase a washer and dryer, to pay expenses for her adult son from a prior marriage, and to buy sundry other items. Also during the marriage, Husband gave gifts to Wife. For example, he paid the difference between the trade-in price of the vehicle he had bought for her prior to the marriage and the purchase price of her 2005 Chevrolet Malibu. Husband also paid Wife’s student loans, which were incurred prior to the marriage, and gave her more than $4,800 to use for the benefit of her adult son’s legal expenses. Additionally, Husband paid all of the taxes and expenses necessary to maintain Wife’s car, Husband’s truck, the recreational vehicles, the home, and all other assets he owned prior to the marriage.

On January 24, 2011, Wife filed a petition for dissolution of marriage (“the Petition”). In the Petition, Wife requested an equitable distribution of assets that had accumulated during the marriage.2 Subsequently the parties entered into a preliminary agreement that was approved by the court. Later, in September 2011, Husband agreed to pay Wife $2500 as a partial prejudgment distribution of the marital estate so that Wife could relocate to Florida. As a result, Husband’s attorney prepared a modification of the parties’ preliminary agreement and filed the same with the court. Wife then relocated to Florida, taking with her the Malibu, the washer and dryer, and other furnishings of her choosing from the home.

Of note, in November 2011, Wife filed a motion to amend the Petition in order to add requests for post-dissolution maintenance, attorney’s fees, and funds for medical costs. And, in December, she filed a motion for an order requiring Husband to provide

2 The Petition provides that “during their married life the Parties acquired personal property and other assets and Petitioner [Wife] is entitled to an equitable division thereof.” Appellant’s Brief at 24.

“suit money” and deposition expenses to allow Wife to pursue other legal proceedings. She also filed a motion for a protective order to prevent her from being ordered to produce her bank statements, but on the same date she mailed the same bank statements to Husband’s attorney. Husband’s counsel prepared a response to each filing. The trial court ultimately consolidated the motion to amend with the final hearing, struck the motion for a protective order, and denied the motion for suit money and deposition expenses.

After several continuances, the final hearing was held May 15, 2012, at which Wife withdrew her request for maintenance and for funds for additional medical expenses. At that time, Husband received $4,356 monthly from his GM pension, from which he paid his health care expenses, and Wife received $934 monthly in disability benefits and child support, and her health expenses are covered by Medicare. For the distribution of the marital estate, Wife requested $250,000 from Husband’s 401(k) and $80,000 from his bank accounts, and she agreed to relinquish all claims to the survivorship and the life annuity related to the GM pension. Husband asked the court to divide only the increase in value in the marital estate that had accrued during the marriage, which, according to his valuations, would result in a total distribution to Wife of $55,432 (less the $2500 previously distributed for her relocation). At the close of evidence, the trial court took the matter under advisement. Wife had requested special findings, and the parties subsequently submitted proposed findings of fact and conclusions thereon.

On August 31, 2012, the trial court issued the Decree, which includes findings of fact and conclusions thereon. The Decree provides, in relevant part:

29. The Debts of the Marriage at the time Wife filed the dissolution [petition] were minimal and Husband admitted evidence only of his debt for his tax filing for tax year 2010, which he paid as a single (married separate) filing on his own at $1,105.00 in 2011 (combined state and federal taxes due).

30. The marital residence is located at 8306 Ehlerbrook Road, Indianapolis, Indiana, Marion [County]. Said residence had no mortgage at the time the parties married in 2004[,] and Husband paid all maintenance, repair, taxes and insurance on the residence during the marriage.

31. Husband additionally submitted testimony and evidence that he owned accounts, investments, a truck, recreational vehicles and a houseboat, all owned prior to the marriage, which were paid for at the time of the marriage with the exception of a $16,000 lien on the houseboat.

32. Testimony was given that Husband worked after the parties married and retired sometime in [the Fall of] 2007. Wife did not work during the marriage.

33. Husband testified, prepared and submitted several exhibits, documenting his substantial prior [sic] owned property ([s]ome of said exhibits which were submitted by [Wife’s] counsel). Husband also submitted into evidence a summary exhibit of the value of his Assets owned prior to the marriage.

34. Husband additionally submitted exhibits and evidence of the date of filing values of the same assets, some [of] which had dropped substantially in value due to economic circumstances (E.g. Husband’s GM 401K) and others that had increased in value. (See summary exhibit—Husband’s Marital balance sheet).

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