Dunn v. Dunn

811 S.W.2d 336, 35 Ark. App. 89, 1991 Ark. App. LEXIS 425
Court of Appeals of Arkansas·Decided July 3, 1991·No. CA 90-400·Published·Cited by 12 cases

Opinion

James R. Cooper, Judge.

The appellant and the appellee in this domestic relations case were married on August 5, 1972. On September 19, 1989, the appellant filed for divorce and a temporary order was entered requiring the appellee to pay the appellant $24,000.00 from the parties’ joint savings account, $473.00 per month temporary support and $350.00 as a temporary attorney’s fee. On February 23, 1990, the final divorce decree was entered and provided, in pertinent part, for the appellee to pay the appellant an additional $6,000.00 from their joint savings account and further specified that the appellee’s disability income was not marital property. The appellant subsequently filed motions to amend the decree with regard to the disability income determination and the division of the savings account; however, the chancellor declined to modify his earlier determinations. From that decision, comes this appeal.

The appellant first argues that the chancellor erred in ruling that the apppellee’s long-term disability insurance was non-marital property, and second, that the chancellor erred by failing to divide the parties’ joint bank account equally. Having determined that the appellant’s first argument is meritorious, we do not reach the merits of her second argument and we reverse and remand.

On appeal from a chancery court case, we consider the evidence de novo, and we will not reverse the chancellor unless it is shown that the lower court’s decision is clearly contrary to a preponderance of the evidence. Kerby v. Kerby, 31 Ark. App. 260, 792 S.W.2d 364 (1990). Furthermore, we recognize that the chancellor is given broad powers to distribute all of the parties’ property in a divorce action, non-marital as well as marital, in order to achieve an equitable division. Ark. Code Ann. § 9-12-315; Smith v. Smith, 32 Ark. App. 175, 798 S.W.2d 442 (1990).

Our review of the record shows that the parties had been married eighteen years and, at the time of their divorce in 1990, the appellee and the appellant were 55 and 59 years old, respectively. When the couple married in 1972 the appellee was employed by Pepsi Cola Bottling Company where he remained employed during the marriage. The appellee testified that, in 1984, he underwent bypass surgery and that he quit working and elected to collect disability benefits in 1987. The appellee explained that these benefits were paid pursuant to a company-sponsored long-term disability plan carried by Massachusetts Mutual. The appellee stated that the disability sick pay insurance plan was a non-contributory plan provided by the company to its executives in lieu of workers’ compensation and that the plan was not tied to workers’ compensation but paid benefits based on disability regardless of the circumstances of the disability provided that the disabled person was an employee. The appellee testified that, in addition to these benefits, he had a retirement plan with disability coverage (MEI pension plan). He testified that he was not receiving disability benefits provided under his pension plan. 1

The first argument concerns the characterization of property. All property acquired during the marriage is marital property unless it falls under an exception to the statutory definition of marital property. See Ark. Code Ann. §9-12-315 (b) (1987); Day v. Day, 281 Ark. 261, 663 S.W.2d 719 (1984).

In considering whether or not the property at issue was acquired during the marriage, we recognize that the determinative factor is the time that the right to the property was acquired, Wright v. Wright, 29 Ark. App. 20, 779 S.W.2d 183 (1989) (citing Bunt v. Bunt, 294 Ark. 507, 744 S.W.2d 718 (1988)); Liles v. Liles, 289 Ark. 159, 711 S.W.2d 447 (1986), and under the facts presented here, we find that the appellee’s right to the disability benefits accrued during the marriage and therefore, the property was acquired during the marriage.

The appellee argues that the disability benefits he is receiving are sick pay, but, as noted, he testified that these benefits are derived from a non-contributory disability insurance plan which was provided by the company, for its executives, in lieu of workers’ compensation. Under these circumstances, we think that the long-term disability plan under which the appellant was receiving benefits was consideration he received from the company in return for his services as a company executive. His coverage under the plan was consideration earned during the marriage. See generally Young v. Young, 288 Ark. 33, 701 S.W.2d 369 (1986) (finding that a noncontributory pension plan was marital property as it was consideration of employment which was earned during the marriage.) Furthermore, his right to claim these benefits was contingent upon a subsequent disability which also occurred during the marriage.

The occurrence of the appellant’s disability during the marriage caused the appellee’s eligibility for the disability benefits to become an enforceable right. We therefore find that the appellee’s entitlement to the benefits accrued during the marriage and that his right to the benefits is certain even though the amount of these benefits is not.

The appellee also asserts that the benefits are not marital property because they were not acquired during the marriage in that they were not vested. He cites Day v. Day, 281 Ark. 261, 663 S.W.2d 719 (1984), for the proposition that a vested pension is one which cannot be terminated unilaterally by the employer without terminating the employment relationship. Despite his assertion, we fail to see circumstances under which the appellee’s employer could terminate the appellee’s status as an employee. The appellee argues that he could return to work and the benefit would cease, however, we do not find the possibility that he might choose to return to work and cause the benefit to cease to be the equivalent of his employer having the right to unilaterally terminate the benefit. Nor do we think that the appellee can defeat his entitlement to the benefits by choosing not to enforce his right to them.

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Dunn v. Dunn, 811 S.W.2d 336, 35 Ark. App. 89, 1991 Ark. App. LEXIS 425 (Ark. Ct. App. 1991).

811 S.W.2d 336 (Dunn v. Dunn) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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