Devney v. Devney

886 N.W.2d 61, 295 Neb. 15
CourtNebraska Supreme Court
DecidedOctober 21, 2016
DocketS-15-937
StatusPublished
Cited by72 cases

This text of 886 N.W.2d 61 (Devney v. Devney) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Devney v. Devney, 886 N.W.2d 61, 295 Neb. 15 (Neb. 2016).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 10/21/2016 09:08 AM CDT

- 15 - Nebraska Supreme Court A dvance Sheets 295 Nebraska R eports DEVNEY v. DEVNEY Cite as 295 Neb. 15

Clarence W. Devney, appellee, v. Elizabeth A. Devney, appellant. ___ N.W.2d ___

Filed October 21, 2016. No. S-15-937.

1. Statutes: Appeal and Error. To the extent an appeal calls for statutory interpretation or presents questions of law, an appellate court must reach an independent conclusion irrespective of the determination made by the court below. 2. Divorce: Appeal and Error. In actions for dissolution of marriage, an appellate court reviews the case de novo on the record to determine whether there has been an abuse of discretion by the trial judge. This standard of review applies to the trial court’s determinations regarding division of property. 3. Judges: Words and Phrases. A judicial abuse of discretion exists if the reasons or rulings of a trial judge are clearly untenable, unfairly depriv- ing a litigant of a substantial right and denying just results in matters submitted for disposition. 4. Statutes. Statutes which effect a change in the common law are to be strictly construed. 5. Contracts: Marriage. All postnuptial agreements were void at com- mon law. 6. Estates: Divorce: Property Settlement Agreements: Waiver. The lan- guage of Neb. Rev. Stat. § 30-2316(d) (Reissue 2008) contemplates the waiving of the spouse’s rights of inheritance only. It makes no reference to agreements allocating property rights upon separation or divorce. 7. Divorce: Property Settlement Agreements. An agreement between a husband and wife concerning the disposition of their property, not made in connection with the separation of the parties or the dissolution of their marriage, is not binding upon the courts during a later dissolution proceeding under Neb. Rev. Stat. § 42-366 (Reissue 2008). 8. Marriage: Property Settlement Agreements: Public Policy. Post­ nuptial property agreements are against the public policy of Nebraska because of the deleterious effect such agreements have on marriages. - 16 - Nebraska Supreme Court A dvance Sheets 295 Nebraska R eports DEVNEY v. DEVNEY Cite as 295 Neb. 15

9. Marriage: Property Settlement Agreements: Statutes. Nebraska has no statutory authority supporting property agreements postnuptially. 10. Marriage: Property Settlement Agreements: Public Policy. Post­ nuptial property agreements are void as statutorily unauthorized, and such agreements both were prohibited under common law and violate the public policy of Nebraska. 11. Contracts: Public Policy. Any contract which is clearly contrary to public policy is void. 12. Courts: Divorce: Property Settlement Agreements: Appeal and Error. A district court abuses its discretion by relying exclusively on void portions of an agreement to make property distributions in a dis- solution proceeding, such reliance being clearly untenable.

Appeal from the District Court for Saunders County: M ary C. Gilbride, Judge. Vacated in part, and in part reversed and remanded with direction. Michael B. Lustgarten, of Lustgarten & Roberts, P.C., L.L.O., for appellant. Frederick D. Stehlik and Zachary W. Lutz-Priefert, of Gross & Welch, P.C., L.L.O., for appellee. Heavican, C.J., Wright, Miller-Lerman, Cassel, Stacy, K elch, and Funke, JJ. Funke, J. NATURE OF CASE This matter commenced as a petition for dissolution of mar- riage between Clarence W. Devney and Elizabeth A. Devney. The district court dissolved the marriage between the parties and divided the parties’ assets and debts. In doing so, the dis- trict court found that a postnuptial property agreement entered into by the parties was valid and enforceable and that the divi- sion of the marital estate was fair and reasonable. Elizabeth appeals from both of these findings. The main issue presented is whether a property agree- ment in a postnuptial agreement that was not attendant upon the spouses’ separation or divorce is valid in Nebraska. - 17 - Nebraska Supreme Court A dvance Sheets 295 Nebraska R eports DEVNEY v. DEVNEY Cite as 295 Neb. 15

We conclude that such property agreements remain void in Nebraska. Accordingly, the district court erred in enforcing the property agreement provision of the parties’ postnuptial agree- ment. For the reasons set forth herein, we reverse in part, and vacate in part, the judgment of the trial court and remand the cause with direction.

BACKGROUND Clarence and Elizabeth were married in August 1998. No children were born of their marriage, but each party had chil- dren from previous marriages, all of whom have reached the age of majority. Clarence commenced a marital dissolution proceeding in April 2014. After a trial, the court issued its decree in September 2015. At trial, Clarence sought to enforce the parties’ postnuptial agreement. Clarence and Elizabeth executed the postnuptial agreement in January 1999, 5 months after their marriage. The parties had discussed a prenuptial agreement with Clarence’s attorney to protect the interests of their children from previ- ous marriages but failed to execute one before the marriage. Instead, the parties included a clause in the postnuptial agree- ment stating that the agreement was effective as of August 1998 and enforceable as if it were a prenuptial agreement. The parties created the postnuptial agreement to address “the disposition of their respective assets upon the death of either party or in the event that the parties should terminate their marriage.” In the event of Clarence’s death, Elizabeth waived her statutory rights in his estate, such as homestead allowances, exempt property, family allowances, and the right of election of her statutory share of Clarence’s augmented estate; but she was entitled to receive the marital residence and the residuary of Clarence’s estate, excluding specific legacies in his will. In the event of Elizabeth’s death, Clarence waived his statutory rights in her estate as well, but was entitled to receive the residuary of her estate, excluding specific legacies in her will. - 18 - Nebraska Supreme Court A dvance Sheets 295 Nebraska R eports DEVNEY v. DEVNEY Cite as 295 Neb. 15

If the marriage were dissolved, each party waived and relin- quished all interest in the other spouse’s premarital property, identified in exhibits A and B of the postnuptial agreement. Elizabeth was entitled to 50 percent of the assets acquired by the parties after the marriage. Exhibits A and B were purported to be lists of the parties’ premarital assets and debts and the values of the same. Clarence’s attorney, Ronald L. Eggers, drafted the post- nuptial agreement and represented him through the execu- tion. Elizabeth was not represented by an attorney. Eggers testified that he would have clearly explained the agreement’s “Representation by Counsel” section to Elizabeth, informing her that he did not represent her and that she was free to obtain her own counsel. Clarence purchased the marital residence 7 years before the parties married, for $130,000. Prior to the marriage, few improvements were made to the marital residence, and the residence had an assessed tax value of just over $103,000. Elizabeth moved into the marital residence after the parties married. During the marriage, the parties made substantial improvements throughout the residence. At trial, Clarence esti- mated the home to be worth about $310,000; Elizabeth had the home appraised at $330,000. When the parties married, the debt against the marital residence was $90,000; it had been reduced to $18,000 by the time of trial.

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Bluebook (online)
886 N.W.2d 61, 295 Neb. 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/devney-v-devney-neb-2016.