Emelda Akukoro v. Kerry Akukoro

Court of Appeals of Texas·Decided December 19, 2013·No. 01-12-01072-CV·Published

Opinion

Opinion issued December 19, 2013

In The

Court of Appeals For The

First District of Texas

NO. 01-12-01072-CV

EMELDA AKUKORO, Appellant V. KERRY AKUKORO, Appellee

On Appeal from the 245th District Court Harris County, Texas Trial Court Cause No. 2011-62330

MEMORANDUM OPINION

Emelda Akukoro appeals the trial court’s final decree of divorce. She

challenges (1) the trial court’s grant of Kerry Akukoro’s claims for equitable

reimbursement, (2) the trial court’s failure to offset those claims with her own claims for reimbursement, (3) the trial court’s failure to file findings of fact and

conclusions of law, and (4) the trial court’s grant of Kerry’s motion for nunc pro

tunc judgment. We affirm.

Background

Pre-trial events

In October 2011, Kerry filed for divorce from Emelda. The trial court

entered a temporary restraining order and an order setting a hearing for temporary

orders. Among other things, the temporary restraining order prohibited both

parties from “[s]elling, transferring, assigning, mortgaging, encumbering, or in any

other manner alienating any of the property of Petitioner or Respondent, whether

personalty or realty, and whether separate or community, except as specifically

authorized by this order,” and “[m]aking withdrawals from any checking or

savings account in any financial institution for any purpose, except as specifically

authorized by this order.” It provided that each party was authorized “[t]o make

expenditures and incur indebtedness for reasonable and necessary living expenses

for food, clothing, shelter, transportation, and medical care,” “[t]o make

expenditures and incur indebtedness for reasonable attorney’s fees and expenses in

connection with this suit,” [t]o make withdrawals from accounts in financial

institutions only for the purposes authorized by this order,” and “[t]o engage in acts

2 reasonable and necessary to conduct [their] usual business and occupation.” In

November 2011, Emelda answered and filed a counter-petition for divorce.

On December 19, 2011, the trial court signed partial agreed temporary

orders. The orders appointed Kerry and Emelda Temporary Joint Managing

Conservators of their four children, and provided that Emelda would have the

exclusive right to designate the primary residence of the children. Emelda was

also awarded exclusive and private use and possession of the couple’s house while

the divorce case was pending. The orders directed Kerry to pay Emelda monthly

child support. The orders also provided that Kerry and Emelda would each receive

50% of any income from an investment business they co-owned, Genuine Export,

Inc., and made various provisions regarding the operation of a co-owned home

health business, Blessed Home Health Services, Inc. (“Blessed Home”). The

orders contained the same prohibitions as the temporary restraining order regarding

disposing of property and making withdrawals from accounts.

After entry of the temporary orders, the parties entered into three

agreements. The Mediated Settlement Agreement encompassed all issues related

to the care of the children. 1 The parties’ first Rule 11 agreement provided that

1 This Mediated Settlement Agreement is not in the record. 3 Kerry would pay Emelda $125,000 for her ownership interest in Blessed Home. 2

On July 23, 2012, the parties entered into a second Rule 11 agreement, in which

they agreed that (1) all real estate and the amounts in all bank accounts would be

divided 50/50, (2) each person would keep the vehicles that were held in their own

name, and (3) each person would keep the personal property in their possession.

This agreement specified the amounts in each bank account, and noted that a Bank

of America account ending in 1710 held in Emelda’s name contained $61,126 and

a Wells Fargo Account ending in 8513 held in Emelda’s name contained $20,572.

It also specified that these accounts had contained $107,466.06 and $59,681.14,

respectively, in November 2011, subsequent to the trial court’s entry of the

temporary restraining order. The agreement also specified that the trial would be

limited to proving up the divorce and to the “equitable reimbursement claims of

both parties.”

Trial

Trial was held in October 2012. At trial, Kerry contended that his separate

estate had three bases for reimbursement. First, Kerry introduced evidence that, on

November 4, 2011, after the trial court had entered its temporary restraining order,

2 This Rule 11 agreement is not in the record; however, the parties agree that both parties complied with its terms and there is no challenge to this agreement on appeal. 4 the 1710 account contained $107,466.06 in community funds. As of February 6,

2012, the 1710 account contained only $61,126. Second, Kerry introduced

evidence that, on November 30, 2011, the 8513 account contained $59,681.14 in

community funds. As of January 31, 2012, the 8513 account contained only

$20,572. Kerry contended that Emelda had wasted the difference—a total of

$85,449.20—because she could not show the withdrawals were for reasonable and

necessary living expenses. Kerry requested that he receive reimbursement of half

of the amount that Emelda withdrew from the 1710 account, $23,170, and half of

the amount that Emelda withdrew from the 8513 account, $19,470.

Third, Kerry testified that he had paid $2,000 per month from January 2012

to October 2012 towards the mortgage on the couple’s house, which included

approximately $1,215 towards the monthly payment plus approximately $785

towards principal to catch up the arrearages in the account based on an agreement

with the bank. Kerry requested that he be reimbursed one half of the total amount

he paid towards the mortgage, $10,000.

Kerry’s claims for reimbursement totaled $52,640. Kerry requested that

the trial court award him 100% of the interest in the house and 100% of his

retirement account, instead of the 50% of each of these as allocated in the July 23,

2012 Rule 11 agreement, in order to make this reimbursement. The parties had

5 agreed in their second Rule 11 agreement that their equity in the home totaled

$56,000, and therefore Emelda’s 50% interest was worth roughly $28,000. The

after-tax value of 50% of Kerry’s retirement account was approximately $25,000.

Accordingly, these two items combined totaled approximately $53,000.

Emelda testified that she received $8,000 to $10,000 per month in each of

November and December 2011 and January and February 2012 from Blessed

Home, and then received a lump sum of $125,000 when she sold her interest in the

business. She also testified that she received $2,000 per month in child support

from Kerry. She agreed that Kerry paid all of the expenses associated with their

house.

Regarding her expenses, Emelda testified that she spent no more than $4,000

on family expenses per month. She testified that although she was awarded sole

possession of the couple’s house during the pendency of the case, she moved in

January 2012 to another location, where she prepaid $14,000 for a year’s worth of

rent. She also testified that she incurred $49,669 in legal expenses related to the

divorce prior to the date of trial.

Emelda testified that she understood the withdrawal and spending

prohibitions in the temporary orders, but that she had used the $85,449.20

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