Folberth v. Folberth

2022 Ohio 3384
CourtOhio Court of Appeals
DecidedSeptember 26, 2022
DocketCA2021-05-047 & CA2021-05-049
StatusPublished
Cited by1 cases

This text of 2022 Ohio 3384 (Folberth v. Folberth) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Folberth v. Folberth, 2022 Ohio 3384 (Ohio Ct. App. 2022).

Opinion

[Cite as Folberth v. Folberth, 2022-Ohio-3384.]

IN THE COURT OF APPEALS

TWELFTH APPELLATE DISTRICT OF OHIO

BUTLER COUNTY

PETER JAMES FOLBERTH, :

Appellee and Cross-Appellant, : CASE NOS. CA2021-05-047 CA2021-05-049 : - vs - OPINION : 9/26/2022

PAMELA GAIL FOLBERTH, :

Appellant and Cross-Appellee. :

APPEAL FROM BUTLER COUNTY COURT OF COMMON PLEAS DOMESTIC RELATIONS DIVISION Case No. DR19-01-0008

The Lampe Law Office, and Thomas S. Sapinsley; Stagnaro Hannigan Koop, Co., LPA, and Michaela M. Stagnaro, for appellee and cross-appellant.

Traci Combs-Valerio, LLC, and Traci Combs-Valerio, for appellant and cross-appellee.

PIPER, J.

Procedural History

{¶1} On January 8, 2019, James Folberth ("Husband") filed an amended complaint

for divorce against Pamela Folberth ("Wife") in the Butler County Court of Common Pleas,

Domestic Relations Division. Wife answered and counterclaimed on January 31, 2019. Butler CA2021-05-047 CA2021-05-049

The parties resolved significant issues through stipulations, including ownership of the

marital residence, property inventories, and, for purposes of this appeal, significant financial

accounts that accrued interest, dividends, and other gains.

{¶2} The issue of the amount of spousal support Husband was to provide Wife was

not resolved through stipulation or settlement. The trial court held several hearings between

August and November 2019. After taking the matter under advisement, the trial court ruled

on the remaining disputed issues, set the amount of spousal support, and entered a final

decree of divorce on April 19, 2021. Wife filed an appeal and Husband filed a cross-appeal.

The appeals were consolidated. Subsequently, Wife moved to dismiss her appeal. On

December 15, 2021, this court issued an entry reinstating Husband's pending claims. As a

result, this appeal only addresses Husband's assignment of error.

Relevant Facts

{¶3} Husband and Wife married on July 31, 1999. Prior to their marriage, the parties

entered into an antenuptial agreement. Under the terms of the agreement, the parties

agreed to waive claims to each other's separate property held at the time of their marriage

including any appreciation upon those assets as stated in paragraph 3.02. Paragraph 3.03

of the agreement provided:

In the event of a legal separation or a termination of the parties' marriage by annulment, divorce, or dissolution proceeding in a court of competent jurisdiction, this agreement shall thereupon be conclusive as to the ownership of the property listed in Exhibit A, and neither party shall take, demand, claim or receive any such property listed in Exhibit A in a division of property or as spousal support and maintenance.

Paragraph 3.05 of the agreement further addressed spousal support in the event of a

termination of the marriage by providing:

This agreement does not preclude spousal support, if appropriate, in the event the parties ever divorced; however, this

-2- Butler CA2021-05-047 CA2021-05-049

agreement is not intended to create a right to spousal support if none exists at the time the parties ever divorced.

The agreement also specified that any assets acquired after the marriage should be

designated as marital property:

All assets acquired after the marriage, including interest, dividends and appreciation earned on such after acquired assets, shall be designated as marital property unless specifically excluded herein or designated as non-marital property by statute.

{¶4} Husband filed his complaint for divorce nearly 20 years later. Since their

marriage, the parties have accumulated more assets. At the time the parties entered into

the antenuptial agreement, Husband listed net assets in the amount of $1,748,344, while

Wife had net assets in the amount $215,300. By the time of their divorce, the trial court

calculated that Husband retained $3,573,759 in assets while Wife retained $1,139,986.1

{¶5} Although the parties had reached agreement on a number of issues, they were

not able to resolve the issue of spousal support. A portion of testimony was spent focusing

on Husband's financial maneuverings. This included the introduction of testimony

concerning Husband's separate assets that have since evolved from the assets listed in

"Exhibit A" in the antenuptial agreement. Initially, there was discussion below about the

need to obtain expert testimony concerning the valuation or tracing of the accounts below.

There is no dispute that the identity of the accounts listed in "Exhibit A" have changed in

the two decades since the parties were married. The record reflects that, over the years,

Husband moved some marital assets into different accounts while preserving much of his

own separate accounts. There was also evidence that Husband controlled the parties'

finances and that Wife's business had operated at a loss in certain years, which was then

1. The trial court noted that $708,785 of Wife's amount is either in a retirement account or consists of business assets that must be maintained so that she can earn income until retirement.

-3- Butler CA2021-05-047 CA2021-05-049

claimed as a business loss on their joint income tax returns. Despite some uncertainty

below, the parties determined there was no longer a need for expert testimony after they

entered into their stipulations. In relevant part, the parties agreed that several accounts

should be shared while others should remain Husband's separate property. The parties'

stipulated ownership interests and approximate valuations of the accounts are listed below:

Husband's interest Property2 Wife's interest 100% Ameriprise 0154 0% ($1,602,621.31) 100% Ameriprise 6918 0% ($1,202.18) 65% Ameriprise 5754 35% ($488,525.92) 50% Ameriprise 4190 50% ($131,635.06) 50% Huntington Bank 5776 50% ($52,368.80) 50% Raymond James 1914 50% ($84,430.20)

{¶6} In addition to these accounts, the parties also entered into a stipulation regarding

Husband's pension from Northrup Grumman that was to be divided by a Qualified Domestic

Relations Order ("QDRO").

{¶7} At the time of the final hearing, both parties were 62 years old and had no

significant health problems. Husband testified that he retired in 2015 and was no longer

employed in any capacity. Husband has an engineering degree and previously worked as

an engineer for Northrop Grumman and BIT Systems. Husband's income is derived from

his interest and dividends on investments, along with his monthly pension from Northrop

Grumman. When considering Husband's income, the trial court noted that there were

irregularities in some of the transactions that had occurred over the years. The trial court

2. The value of these accounts has likely changed. The trial court listed these values in the property division, which neither party disputes.

-4- Butler CA2021-05-047 CA2021-05-049

found that the most reliable evidence for determining investment income came from the

parties' tax returns. The trial court also noted that Husband has a trust that provides income.

The trial court stated that review of the 2016 tax return revealed that Husband received

gross income in the amount of $37,001 in dividends. The trial court also noted that Husband

failed to include all schedules in his 2017 and 2018 tax returns and that it was unable to

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Cite This Page — Counsel Stack

Bluebook (online)
2022 Ohio 3384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/folberth-v-folberth-ohioctapp-2022.