Earle v. Earle

901 S.W.2d 140, 1995 WL 155996
CourtMissouri Court of Appeals
DecidedApril 11, 1995
DocketNos. WD 48911, WD 48992
StatusPublished
Cited by2 cases

This text of 901 S.W.2d 140 (Earle v. Earle) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earle v. Earle, 901 S.W.2d 140, 1995 WL 155996 (Mo. Ct. App. 1995).

Opinion

KENNEDY, Judge.

Lawrence D. Earle and Rowena Y. Earle were married in Pennsylvania in 1976. They lived together until 1991, when Lawrence left Rowena. Rowena filed suit, at the beginning asking for legal separation, but later asking for dissolution. Dissolution was granted after trial. In connection with the dissolution, [141]*141the decree set aside to each spouse a few items of non-marital property, allocated a substantial marital estate between the spouses, and gave Rowena judgment for maintenance.

Rowena has appealed. She complains of an inequitable division of marital property, and complains that her maintenance award is too small. There is no issue on the appeal about the extent or the value of marital property.

The parties during their marriage were engaged in various aspects of the proprietary school business. As they started, they served as consultants to various proprietary schools, and as liaison between the schools and the Federal Department of Education. Much of the cost of students’ attendance at these schools came from federal government funding, and it was the parties’ business to facilitate the application for government funding and its prompt collection. Later they got into the business of owning and operating proprietary schools through a corporation with the name of Edudyne, Inc. At one point, Edudyne, Inc., had eight such schools. At the time of trial, that number had been decreased to three. The main marital asset at the time of the dissolution was the stock of Edudyne, which was valued by the court at $850,000. Neither party complains of this valuation.

We here list the marital assets, their valuation, and the spouse to whom they were awarded by the decree:

Property Husband Wife
Residence — Kansas City, Missouri (net of $171,000 mortgage) 84,000
Lot Adjacent to Missouri Residence 10,000
1978 Mercedes Benz 5,000
1988 Lincoln Town Car 8,000
Household furnishings, clothes, etc. 50,000
Mercantile Bank Checking Account 600
3 Boatmen’s Bank IRA Accounts 17,674
I.R.S. Debt-1991 (4,258)
I.R.S. Debt — 1992 (13,232)
Condominium — Pt. Pleasant Beach, NJ (net of $415,000 mortgage) 1 (85,000)
Property Husband Wife
Commercial Real Estate — Ma-tawan, NJ (net of $410,000 mortgage) 2 160,000
1987 Ford Bronco 4,500
Wellcraft Suncruiser Boat 10,000
Edudyne Systems, Inc. Common Stock 850,000
E.I.P., Inc. Common Stock 23,250
Scuba Diving Equipment 3,000
Computer Equipment 900
Tools 500
Stereo Equipment 700
Personal Clothing 1,000
Midlantic Bank IRA Account 9,933
I.R.S. Debt — 1992 (14,096)
I.R.S. Debt — 1993 (21,000)
Credit Card Debt (2,000)
Debt to Edudyne Systems, Inc. (207,884)
TOTALS $733,803 $157,784

Wife was awarded maintenance in the amount of $3,750 per month.

Notwithstanding a 20-year difference in their ages, (Lawrence was the younger), the parties had a compatible and loving marriage from the time they were married in 1976, until shortly before their separation in 1991. They worked closely together in the operation of their business. Husband was the executive head of the business, but Rowena played a major, if secondary, role in its management and development.

In 1984 Rowena had some kind of cerebral incident, described in the testimony as a “brain hemorrhage.” She was hospitalized for ten days, and was three months in recuperating before she returned to work.

In 1991, Rowena had a second hip replacement operation. Earlier, she had had the other hip replaced. She was at the time of the second hip replacement 68 years old, 20 years older than Lawrence. Lawrence left Rowena in their Platte County, Missouri, residence and began living with 34-year-old Lisa; the two of them lived together in San Antonio, Texas, at the time of the trial. Lisa and her mother, Shirley, have been and continue to be highly paid employees of Edu-dyne, Inc., and, since Rowena’s and Lawrence’s separation, have both been placed on the board of directors. Rowena has been removed from the board of directors.

Lawrence and Rowena have a luxury condominium (they bought it in 1989 or 1990 for a purchase price of $650,000) in Point Pleas[142]*142ant Beach, N.J. While they were living together, they divided their living between two residences—the New Jersey condominium and the Missouri residence. At the time of the trial, the New Jersey condominium had sat vacant for two-and-one-half years, while Lawrence paid $6,500 per month on the mortgage. He claimed, and the court found, that the property had a negative equity of $85,000. Lawrence testified he couldn’t live in it or rent it because Rowena had denuded it of its furnishings shortly after the separation. He proposes to sell the property, though. When he does, he will be relieved of the $6,500-per-month mortgage payment, although he will owe the $85,000 deficiency.

The trial court decree gave Rowena 18 percent of the net value of the marital assets. He considered, no doubt, the uncertain future of Edudyne, Inc. Edudyne’s prosperity depends in a large measure upon the availability of Federal grants and loans to students of their schools. These funds were easily obtainable during the 1980’s and Edu-dyne flourished during that period. By the time of trial, though, Edudyne’s business had contracted sharply, and Lawrence was very much worried about its prospects. Its eight schools had been reduced to three. Still, the trial court valued it at $850,000, and neither party challenges that valuation. (The evidence ranged from a low of $401,554 to a high of $3,000,000.)

Wife says it is unfair to give her only 18 percent of the marital estate, and to give husband 82 percent. We have often said that equal division of marital property is not necessary. We have often upheld unequal divisions on the ground that they were equitable as between the parties. See, Mika v. Mika, 728 S.W.2d 280 (Mo.App.1987); Scott v. Scott, 645 S.W.2d 193, 195 (Mo.App.1982); Schwarz v. Schwarz, 631 S.W.2d 694, 695 (Mo.App.1982); Stamme v. Stamme, 589 S.W.2d 50, 53 (Mo.App.1979); In re Marriage of Burris, 557 S.W.2d 917, 918 (Mo.App.1977). In this case, we think the disparity between husband’s and wife’s shares is wider than trial court discretion permits.

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Bluebook (online)
901 S.W.2d 140, 1995 WL 155996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earle-v-earle-moctapp-1995.