Gabaig v. Gabaig

717 P.2d 835, 1986 Alas. LEXIS 314
CourtAlaska Supreme Court
DecidedApril 11, 1986
DocketS-502, S-92 and S-715
StatusPublished
Cited by33 cases

This text of 717 P.2d 835 (Gabaig v. Gabaig) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gabaig v. Gabaig, 717 P.2d 835, 1986 Alas. LEXIS 314 (Ala. 1986).

Opinion

OPINION

COMPTON, Justice.

This opinion is the result of three cases arising out of the marriage and divorce of Albert (Husband) and Dorothy (Wife) Ga-baig. In one case, Husband attacks the sufficiency of the evidence in a fraudulent conveyance action. In another, Husband challenges the trial court’s property division and valuation, and its award of alimony and attorney’s fees. In the last discussed, Husband appeals from the trial court’s award of temporary spousal support and attorney’s fees to enable Wife to prosecute her divorce action.

I. FACTUAL AND PROCEDURAL BACKGROUND

Wife and Husband were married in California in 1970. At that time, Wife was 44, Husband 48. Both have college degrees. It was the second marriage for both. Wife has three children from her first marriage. Husband has a son, Charles Gabaig, from his first marriage.

*837 At the time of the marriage, Husband had approximately $60,000 cash, two cars and some stock. Wife had a house in California (Granada Hills home), a new car, $3,000 and a little stock.

Shortly after the marriage, Wife transferred her interest in the Granada Hills home to Husband and Wife as joint tenants. When the newlyweds bought a second home, they took title as joint tenants. Husband provided the down payment and Wife made the monthly payments. Notwithstanding the form of title, Wife apparently received the proceeds from the sale of the Granada Hills home and Husband kept the proceeds from a subsequent sale of the second house.

In 1971 Husband’s father gave Husband a gift of real estate (Parthenia No. 1). Although Wife was under the impression that this was a gift to both of them, the grant deed named only Husband as grantee. Later that year, Husband’s father died, leaving Husband a half interest in two pieces of realty (Parthenia No. 2 and gas station property) and more than $44,-500 cash. Both testified that Husband received one-half of a $2 million estate. Wife’s father died the same year; she received $15,000 in insurance proceeds.

In 1972 Husband and Wife moved to Alaska. They eventually bought a lot and began building a home in Anchorage. They contributed equally to the $12,500 purchase price of the lot and a $60,000 building fund, taking title as tenants in common. This investment took substantially all of Wife’s resources. They moved into the still-unfinished house in 1975.

Wife filed for divorce in 1976, apparently because she was disturbed by the amount of time and money Husband spent with his son Charles, ignoring Wife and her son Jeff. The complaint was later withdrawn.

In 1977 the parties decided to return to California. They sold the Anchorage home to Bob Schnell for approximately $90,000; Wife received about $45,000 of the proceeds. Unbeknownst to Wife, Husband provided the money used by Schnell to purchase the home. The trial court found that the funds used by Husband were marital property. Schnell held title only momentarily; he immediately conveyed the land to Husband’s son Charles. When Wife discovered the truth in 1982, she began a fraudulent conveyance action to have the 1977 transfer set aside. Judge Serdahely determined that the transfer was fraudulent and ordered issuance of a clerk’s deed to Husband and Wife as tenants in common. Husband appealed. These facts gave rise to the first appeal discussed in this opinion.

As above stated, the parties returned to California. In 1978 they entered into a postnuptial agreement. Under the agreement, Husband’s separate property included Parthenia Nos. 1 and 2, the gas station property, and all property acquired by inheritance, which was the bulk of the property acquired during the marriage. Wife’s separate property included all gifts and inheritances from her parents and premarital property. The parties acknowledged that they had general knowledge of the value of the other’s property and had the opportunity to seek independent counsel. Husband agreed to provide reasonable support for Wife in the event of legal separation or divorce.

Wife testified that she was pressured into signing the agreement. Husband threatened her with divorce and abandonment and accused her of wanting his money. Although Husband’s attorney advised her to seek independent counsel, Husband forbade her to do so, continuing his threats of divorce and refusing to alter the proposed agreement in any way. Wife surrendered and signed the agreement. Husband testified this was untrue.

Later that year, Husband told Wife he had repurchased the Anchorage home but placed it in Charles’ name for business reasons. They returned to Alaska.

In 1981 Wife demanded that the house be put in their names and that the postnuptial agreement be set aside. Husband went to California and put all his assets into a “Gabaig Family Trust.” Trust income is *838 payable to Husband. Upon Husband’s death, Charles is the primary income and principal beneficiary, but the trustee has discretion to pay up to 50% of the income to Wife. Husband has the power to revoke the trust.

Wife filed for divorce in 1982, but again dismissed the complaint. According to Wife, Husband promised to return the home to their names, tear up the post-nuptial agreement and amend the trust. Husband denied making any such promises. Even though Husband had a power of attorney from Charles, he told Wife he could not obtain title to the Anchorage home without Charles’ consent, which Charles refused. Wife filed this suit for divorce in July 1982, whereupon Husband quit the residence, recorded the power of attorney, and transferred the Anchorage home to Don Marino. 1 These facts gave rise to the second appeal discussed in this opinion.

In 1983 Wife received an interim award of $15,000 attorney’s fees and $2,500 per month spousal support. That order was reduced to judgment, but Husband did not pay it. He appealed the judgment. These facts lead to the third appeal discussed in the opinion. 2

Judge Carlson granted judgment of divorce, finding the postnuptial agreement invalid because of fraud, duress and estop-pel. He further concluded that Husband used marital assets to finance the 1977 sale of the Anchorage home. He awarded Wife $2,000 per month alimony, 1/3 the value of Husband’s property, and 2/3 actual attorney’s fees. Husband was ordered to dissolve the Gabaig Family Trust and convey the assets to a professional trustee approved by the court. When Husband did not dissolve the trust as ordered, Judge Carlson rendered judgment for Wife for $612,000 plus interest.

II. DISCUSSION

THE FRAUDULENT CONVEYANCE ACTION

A. Did the Trial Court Clearly Err in Finding that the 1977 Conveyance to Schnell was Fraudulent?

This case arose when Wife sued to set aside the 1977 conveyance of the Anchorage home. A conveyance intended to hinder, delay or defraud creditors or other persons in their lawful suits is void. AS 34.40.010. 3 Existence of a fraudulent intent is a question of fact, often proven by circumstantial evidence. First National Bank of Fairbanks v. Enzler,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hall v. Hall
426 P.3d 1006 (Alaska Supreme Court, 2018)
Merdes & Merdes, P.C. v. Leisnoi, Inc.
410 P.3d 398 (Alaska Supreme Court, 2017)
Hockema v. Hockema
403 P.3d 1080 (Alaska Supreme Court, 2017)
Alaska Stock, LLC v. Pearson Education, Inc.
975 F. Supp. 2d 1027 (D. Alaska, 2013)
Gefre v. Davis Wright Tremaine, LLP
306 P.3d 1264 (Alaska Supreme Court, 2013)
Shaffer v. Bellows
260 P.3d 1064 (Alaska Supreme Court, 2011)
Lockhart v. Draper
209 P.3d 1025 (Alaska Supreme Court, 2009)
Estate of Gaspar v. Vogt, Brown & Merry
2003 SD 126 (South Dakota Supreme Court, 2003)
DeNuptiis v. Unocal Corp.
63 P.3d 272 (Alaska Supreme Court, 2003)
Kaiser v. Sakata
40 P.3d 800 (Alaska Supreme Court, 2002)
Crittell v. Bingo
36 P.3d 634 (Alaska Supreme Court, 2001)
Zito v. Zito
969 P.2d 1144 (Alaska Supreme Court, 1998)
Wahl v. Wahl
945 P.2d 1229 (Alaska Supreme Court, 1997)
Markham v. Markham
909 P.2d 602 (Hawaii Intermediate Court of Appeals, 1996)
Pittman v. Pittman
652 So. 2d 1105 (Mississippi Supreme Court, 1995)
Foster v. Foster
883 P.2d 397 (Alaska Supreme Court, 1994)
Bowling v. Ansted Chrysler-Plymouth-Dodge, Inc.
425 S.E.2d 144 (West Virginia Supreme Court, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
717 P.2d 835, 1986 Alas. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gabaig-v-gabaig-alaska-1986.