Gates v. Gates

664 N.W.2d 231, 256 Mich. App. 420
CourtMichigan Court of Appeals
DecidedJuly 1, 2003
DocketDocket 236158
StatusPublished
Cited by128 cases

This text of 664 N.W.2d 231 (Gates v. Gates) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gates v. Gates, 664 N.W.2d 231, 256 Mich. App. 420 (Mich. Ct. App. 2003).

Opinions

Wilder, J.

Defendant Jeanné M. Gates appeals as of right from á judgment of divorce. We affirm in part, reverse in part, and remand.

In the judgment of divorce, the trial court divided the substantial marital estate, awarding $741,608 to plaintiff Ricky L. Gates and $395,775 to defendant. To equalize the award, the trial court ordered plaintiff to pay defendant $175,000, reducing plaintiffs award to $566,608, and increasing plaintiffs award to $570,775. The trial court also awarded defendant $200 a week in rehabilitative spousal support for a five-year period, as well as $5,500 in attorney fees.

Defendant first challenges the trial court’s valuation of the marital property. In reviewing a trial court’s property division in a divorce case, we must first [423]*423review the trial court’s findings of fact. Draggoo v Draggoo, 223 Mich App 415, 429; 566 NW2d 642 (1997), citing Sparks v Sparks, 440 Mich 141, 151; 485 NW2d 893 (1992). “If the trial court’s findings of fact are upheld, [we] must decide whether the dispositive ruling was fair and equitable in light of those facts. The dispositional ruling is discretionary and should be affirmed unless [we are] left with the firm conviction that the division was inequitable.” Id. at 429-430, citing Sands v Sands, 442 Mich 30, 34; 497 NW2d 493 (1993); see also McNamara v Horner (After Remand), 255 Mich App 667; 662 NW2d 436 (2003).

The goal in distributing marital assets in a divorce proceeding is to reach an equitable distribution of property in light of all the circumstances. McNamara v Horner, 249 Mich App 177, 188; 642 NW2d 385 (2002). The division need not be mathematically equal, but any significant departure from congruence must be clearly explained by the trial court. Id. The trial court’s disposition of marital property is intimately related to its findings of fact. Id.

Defendant argues that the trial court’s valuation of certain assets was clearly erroneous and that the trial court’s dispositional ruling was inequitable. Defendant first argues that the trial court’s failure to consider her financial position in awarding the martial home to her was error. However, defendant’s contention is refuted by the trial court’s findings of fact on the record.

In awarding the marital home to defendant, the trial court stated:

Regarding the Fairfield Drive home, I have established as best I can a value of $44,000, and I’m going to award the same to the defendant. I came up with that number based [424]*424upon both the appraisals that have been done of the property together with the potential sale that was available a year ago. I will address later in my decision some of the repairs that need to be done on the marital home to either allow the plaintiff [sic] and the boys at the present time to remain there or for her to sell it if she chooses to do so.

Our Supreme Court has held that the following factors are to be considered in the division of property, whenever relevant to the circumstances of the particular case:

(1) duration of the marriage, (2) contributions of the parties to the marital estate, (3) age of the parties, (4) health of the parties, (5) life status of the parties, (6) necessities and circumstances of the parties, (7) earning abilities of the parties, (8) past relations and conduct of the parties, and (9) general principles of equity. [Sparks, supra at 159-160.]

Our Supreme Court noted, however, that:

It is not desirable, or feasible, for us to establish a rigid framework for applying the relevant factors. The trial court is given broad discretion in fashioning its rulings and there can be no strict mathematical formulations. But, as we have recognized before, while the division need not be equal, it must be equitable. Just as the final division may not be equal, the factors to be considered will not always be equal. Indeed, there will be many cases where some, or even most, of the factors will be irrelevant. But where any of the factors delineated in this opinion are relevant to the value of the property or to the needs of the parties, the trial court shall make specific findings of fact regarding those factors. It is hoped that this requirement will result in greater consistency and provide for more effective and meaningful appellate review. [Id. at 158-159 (citations omitted).]

Contrary to defendant’s assertion, a review of the record indicates that the trial court considered the life status, earning abilities, and general principles of [425]*425equity when dividing the marital property, and equitably distributed the property based on those considerations. In its opinion, the trial court noted the difficulty it had in equitably dividing the property: “Finding a way for Mr. Gates to stay in business and to continuing [sic] to generate the sort of income that has supported so well the parties and their children, while giving to Mrs. Gates a fair and certain portion of the estate, already is remarkably difficult.”

The trial court also found plaintiff at fault in the ultimate breakdown of the marriage, but declined to award defendant’s requested sixty percent of the marital estate. As an alternative, the trial court used defendant’s requested values where appropriate; required plaintiff to continue making the lease payments on defendant’s vehicle; and, to account for the monies spent by plaintiff on his girlfriend, made an adjustment in the amount plaintiff was required to pay defendant to equalize the property division.

As our Supreme Court noted in Sparks, supra at 162, “[t]he most effective appellate review obviously would result from more thorough fact finding . . . .” However, in the instant case, the trial court articulated its findings regarding four of the relevant factors, and equitably distributed the marital property in light of all of the circumstances of the case. The trial court’s findings of fact are not clearly erroneous, and we affirm its equitable distribution of the marital property.

Defendant next argues that the trial court erred in adjusting the value of Gates Ireland, Inc., because of postvaluation events, in contradiction of the parties’ stipulated value. Defendant further argues that the trial court erred in refusing to adjust the value and [426]*426valuation date of stock and the Bay Harbor yacht and golf memberships. The parties stipulated that the value of Gates Ireland, Inc., was $313,500, “assuming Acorn debt is valid.” (Emphasis added.) The parties also stipulated that the value of the Bay Harbor yacht membership was $10,000 and that the value of the Bay Harbor golf membership was $20,800.

By the time of trial, Acorn Window Systems had filed for bankruptcy, and plaintiff was uncertain whether Gates Ireland, Inc., would be able to collect the $366,000 debt. Plaintiff’s one-half interest in the $366,000 debt was $183,000. Plaintiff asked the court to adjust the stipulated $313,500 value of Gates Ireland, Inc., by the $183,000 owed by Acorn, with the proviso that he and defendant would equally share any amount collected from Acorn. The trial court granted plaintiff’s request and valued Gates Ireland, Inc., at $130,500 and awarded each party one half of the one-half share of the debt currently owed Gates Ireland, Inc., by Acorn.

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Bluebook (online)
664 N.W.2d 231, 256 Mich. App. 420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gates-v-gates-michctapp-2003.