Day v. Williams

285 P.3d 256, 2012 WL 3870827, 2012 Alas. LEXIS 122
CourtAlaska Supreme Court
DecidedSeptember 7, 2012
DocketNos. S-13423, S-13433
StatusPublished
Cited by27 cases

This text of 285 P.3d 256 (Day v. Williams) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Day v. Williams, 285 P.3d 256, 2012 WL 3870827, 2012 Alas. LEXIS 122 (Ala. 2012).

Opinion

OPINION

STOWERS, Justice.

I. INTRODUCTION

In this appeal we review the superior court's valuation and distribution of marital property in the divorce of Carolyn Vieve Day and Charlie T. Williams. Day appeals on three grounds: first, she contends that the superior court erred when it found her to be employable; second, she argues that the facts and equities of this case do not support a 50-50 property division; and third, she argues that the superior court should not have included in the marital estate funds that had already been spent by the date of trial. We remand for additional findings on the superior court's 50-50 property division because the court did not make sufficient findings to explain why an equal distribution was justified in the presence of facts that appear to favor a greater distribution to Day. Because we are remanding for further findings as discussed below, the court will have the opportunity to reexamine its findings on Day's employability. Finally, we conclude that it was error for the superior court to include in the marital estate funds that had already been spent by the time of trial.

Williams cross-appeals on three grounds: first, that the superior court erred when it revalued the parties' duplex after divorce; second, that the court should not have applied the active appreciation theory when valuing the land on which the parties' paint business was situated; and third, that the court should not have awarded attorney's fees to Day. We agree with Williams that revaluing the duplex would have been improper, but because it is not clear whether the superior court actually revalued the duplex, we vacate the order to sell the duplex and remand for reconsideration and clarification. We also hold that it was error for the superior court to award Day the duplex without considering whether she would be able to afford to keep or sell the property. As to Williams's remaining two claims, we affirm the superior court's decisions.

II. FACTS AND PROCEEDINGS

A. Facts

Day and Williams were married in May 1993 and permanently separated in April 2007. They have no children.

Prior to marriage the couple signed a prenuptial agreement. The prenuptial agreement stated that in the event of divorce, [259]*259Williams would receive $250,000, Day would receive $15,000, and all other property would be divided equally. The agreement also provided that it would last for only ten years, but if "either party has filed for divorce or dissolution on or before ten years from the date of the execution of this agreement, it shall continue in effect." Day filed for divorce in 2002, less than ten years after the agreement was made, but quickly dismissed the action.

During the marriage, Williams's primary source of income was Valley Paint Center, a business in which he was a majority partner at the time of the marriage and of which he became the sole owner during the marriage. In the years immediately prior to the couple's separation, the business consistently had annual sales receipts between $1.6 and $1.7 million, and was largely responsible for the couple having adjusted gross incomes ranging between $183,520 and $287,963 from 2004-2006.

Although she has an associate's degree in health information management, Day's primary source of income during the marriage was from working in retail: she worked at General Nutrition Center (GNC) for five years and worked for short periods of time at other retail establishments. In 2007, the year the couple separated, Day's adjusted gross income was $22,029 and Williams's was $203,802.

Day began to suffer from medical problems towards the end of the marriage. In 2007 she underwent successful back surgery to correct herniated dises and osteophytes (bone spurs). She also suffered from serious eye problems and underwent a corneal transplant in her right eye prior to trial in 2008. Dr. Harry Geggel, who performed the transplant, testified at trial that "normally it takes up to a year and a half after [a corneal transplant] ... for patients to get some visual usefulness out of the eye." He testified that Day will likely need a corneal transplant in her left eye once the right fully heals.

After the parties separated in 2007, Day remained in the couple's duplex for several months, moving out in September 2007. She then lived with her mother before moving into her own apartment, from which public transportation was not accessible. Day withdrew over $30,000 from a joint account after separation to pay for living expenses, and also withdrew money from the couple's health savings account to pay for medical expenses.

B. Proceedings

In October 2007 Day filed for divorce, asking the superior court to divide the parties' property "in a just and equitable manner." The superior court conducted a bench trial in September 2008, and issued its findings and conclusions and a divorce decree in October 2008.

The court found that because Day initially "filed for divorce prior to the 10-year marriage mark, the prenuptial agreement continued according to [its] terms...." But the court concluded:

[The equities of this case do not warrant strict application of the prenuptial agreement.... The agreement was ... made at a time when both parties agreed that they were each of sound health, approximately the same age and had sufficient job skills to support themselves. While [this was) likely true at the time of marriage, [Day's] current vision issues, which will continue for approximately 18 months to two years, were not foreseen when the agreement was made. Under these circumstances, the agreement is accorded some probative value as to intent but will not be strictly enforced in this case.[1]

The superior court found that when the couple first married, the Valley Paint Center business was worth $82,400, the real property on which the business was located was worth $118,000, and the total value of the asset was $151,000. The court found that at the time of trial the business was worth $170,087, the real property was worth $180,245, and the total value of the asset was $350,332. Applying "active appreciation" analysis, the superior court concluded that $151,000 of the total value of the asset was Williams's separate property and that [260]*260$199,332, the amount by which the value of the asset increased during the marriage, was marital property.

The court found that most of the parties' other assets were marital property and it divided them equally between Day and Williams. Among the assets Day received were the parties' duplex and the money she withdrew from the joint account after separation. The court stated "that a 50-50 distribution of the marital estate ... [was] fair given all of the cireumstances of this case."

The court also determined that Day was not entitled to spousal support, noting that Day had "been living well beyond her reasonable financial needs and resources" and had "not meaningfully pursued] reasonable employment." The court found that "(while [Day's] eye condition will limit her job opportunities, this court is not satisfied that she is unemployable," citing the fact that "she is well-educated and articulate." The court found that Day suffered from medical problems, but noted that she was able to go on a recent seuba diving trip and stated that it was "likely that the stress of the divorcee [had] exacerbated [her] health problems."

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Cite This Page — Counsel Stack

Bluebook (online)
285 P.3d 256, 2012 WL 3870827, 2012 Alas. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/day-v-williams-alaska-2012.