Darwish v. Darwish

300 N.W.2d 399, 100 Mich. App. 758, 1980 Mich. App. LEXIS 2999
CourtMichigan Court of Appeals
DecidedOctober 22, 1980
DocketDocket 43172
StatusPublished
Cited by12 cases

This text of 300 N.W.2d 399 (Darwish v. Darwish) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darwish v. Darwish, 300 N.W.2d 399, 100 Mich. App. 758, 1980 Mich. App. LEXIS 2999 (Mich. Ct. App. 1980).

Opinion

Cynar, J.

Following trial, a judgment of divorce was entered on June 9, 1978. Defendant’s motion for a new trial was denied on January 2, 1979, and defendant now appeals from the terms of the judgment of divorce.

*760 On appeal, defendant contests the division of certain personal property as well as the determination of his interest in the marital residence and claims the trial court erred in not granting a new trial.

The parties were married on June 2, 1973, and separated in September of 1977. One child, a daughter, was born to the parties on August 13, 1976.

Plaintiff was employed as a secretary by Ford Motor Company. At the time of the divorce proceedings, she had been employed for five years, earning an annual gross income of $15,120. Defendant had been employed with the Wayne County Sheriffs Department for three years before the hearing on the divorce, earning about $14,900 per year.

During the marriage, the parties acquired a home in Dearborn Heights. The home was purchased in January of 1977 for $42,500. A jointly earned sum of $20,000 was used by the parties as a deposit on the house. Defendant’s parents advanced the balance of the amount due and took a mortgage from the parties in the amount of $23,-000 at seven percent interest per annum. Approximately $6,000 had been spent on improvements to the home, in addition to work done gratis by defendant’s father.

The trial court ruled that the objects of matrimony had broken down. Plaintiff was awarded custody of the minor child with rights of reasonable visitation to defendant. Defendant was ordered to pay $55 per week support for the child as well as to pay for the necessary medical, dental, and hospital expenses of the child until she reached the age of 18 years.

The parties were awarded their own automobiles. *761 Plaintiff was awarded certain Ford stock and bonds. Further, plaintiff was awarded a bedroom set, a Panasonic AM transistor radio, a Hamilton dryer, a sofa-type chair, dinnerware and silverware sets, and all wedding gifts. Defendant was awarded a Sony digital clock, a Sony color television set and the garden tools. All other personal belongings of the parties were to be retained by the party having possession.

Plaintiff was awarded possession of the marital residence, subject to certain conditions, and the court ruled that the defendant was entitled to a $12,700 share of the equity in the house, payable under certain conditions. Following the filing of the judgment of divorce on June 9, 1978, plaintiff filed a motion for a new trial. The trial judge signed an order on August 3, 1978, approved for entry by both counsel, which provided that: (1) the court would hold the motion for a new trial in abeyance pending appointment by the court of one Thomas O’Brien as appraiser of the marital home; and (2) the appraisal value would be used to determine the fair market value of the home. Upon fixing the value, the court would provide in the judgment that the plaintiff shall buy the defendant’s interest in the marital home and remortgage the marital home to pay off the first mortgage. The question of support and visitation was ordered submitted to the Friend of the Court for investigation and recommendation. In addition, the order provided that the attorney for defendant was to present a memorandum of law within 30 days concerning the award of Ford stock and bonds. The trial judge wrote a letter to both counsel on September 29, 1978, acknowledging the submission of a memorandum of law dated September 11, 1978, as had been requested, concern *762 ing the Ford stock, and suggested that further proofs be submitted to the court in the event the parties were unable to dispose of the problem between themselves. The lower court records indicate no further disposition relative to the order dated August 3, 1978, or the letter of the trial judge dated September 29, 1978. Defendant’s motion for a new trial was denied on January 2, 1979.

Plaintiff was a participating member in a stock purchase plan provided by her employer, Ford Motor Company, having enrolled in the plan on January 1, 1974. Under said plan, for every dollar contributed by an employee toward the acquisition of Ford stock, Ford Motor Company contributed 50 cents. The plan was available to all Ford salaried employees and was an additional income benefit with a deferred tax benefit. Automatic payroll deductions and plaintiff’s participation in the stock purchase plan would continue until she either retired, terminated her employment, or chose no longer to engage in the program. The fair market value of the stock was estimated to be in excess of $9,000. In addition, the plaintiff acquired seven $25 savings bonds through the payroll deduction plan, which bonds are held by Ford Motor Company until they reach face value.

The trial court, in rendering its property division, awarded the stock and bonds solely to the plaintiff on the apparent reasoning that, if it came out of her paycheck, it was her separate property.

Defendant contends that he contributed to the acquisition and accumulation of the stock because he used his salary to support and maintain the family while at the same time plaintiff’s salary was used to accumulate the stock savings. Defendant further maintains that the defendant’s parents loaned money to the parties to help facilitate the purchase of the stock.

*763 There are no Michigan cases which deal directly with the precise issue of whether stocks and bonds purchased by a party through a payroll deduction plan are a part of the marital estate subject to division upon dissolution of the marriage. However, the rationales of a number of cases are helpful to our analysis of this issue in the case at bar.

In Hutchins v Hutchins, 71 Mich App 361; 248 NW2d 272 (1976), this Court held that the trial court erred and thus abused its discretion when it failed to take into account the husband’s retirement pension in calculating the total assets of the parties subject to distribution. The Court reached its conclusion based upon the premise that the pension benefits were created by deductions from the husband’s salary, which would otherwise have been income of the parties during the marriage. Since the husband received a vested right to the pension plan during the marriage, that vested right became part of the marital estate. The Court in Hutchins did not direct an actual apportionment of that specific pension fund; rather, the amount was to be examined and valued as one element to be included in determining the entire allocable assets of the parties. See also Chisnell v Chisnell, 82 Mich App 699; 267 NW2d 155 (1978), lv den 403 Mich 844 (1978), cert den 442 US 940; 99 S Ct 2881; 61 L Ed 2d 310 (1979).

In Miller v Miller, 83 Mich App 672; 269 NW2d 264 (1978), this Court followed Hutchins, supra, in finding that pension interests funded solely by the employer are also part of the marital estate subject to distribution upon divorce. In both Hutchins and Miller,

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Bluebook (online)
300 N.W.2d 399, 100 Mich. App. 758, 1980 Mich. App. LEXIS 2999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darwish-v-darwish-michctapp-1980.