Ghai v. Ghai

913 N.E.2d 508, 182 Ohio App. 3d 479
CourtOhio Court of Appeals
DecidedMay 26, 2009
DocketNos. CA2008-09-089 and CA2008-10-091
StatusPublished
Cited by1 cases

This text of 913 N.E.2d 508 (Ghai v. Ghai) 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
Ghai v. Ghai, 913 N.E.2d 508, 182 Ohio App. 3d 479 (Ohio Ct. App. 2009).

Opinion

Hendrickson, Judge.

{¶ 1} Defendant-appellant and cross-appellee, Jennifer Ghai, appeals a decision of the Clermont County Court of Common Pleas, Domestic Relations Division, dividing property and awarding spousal support in a divorce case. Plaintiffappellee and cross-appellant, Krishan Ghai, cross-appeals. For the reasons outlined below, we affirm in part, reverse in part, and remand.

{¶ 2} Jennifer and Krishan were married on November 22, 1997. The marriage produced no children. On April 16, 2007, Krishan filed a compliant in divorce. Following a final hearing, the magistrate released a decision on divorce on May 28, 2008. Both parties timely filed objections to the magistrate’s [483]*483decision. In a ruling issued on July 22, 2008, the trial court sustained Krishan’s objection as to the classification of the Subaru vehicle as a marital asset and also modified the magistrate’s decision to reflect that the court retained jurisdiction over the spousal support award. The trial court affirmed the remainder of the magistrate’s decision. The court issued a final divorce decree on August 29, 2008. Jennifer timely appeals, raising two assignments of error. Krishan cross-appeals, raising seven assignments of error.

{¶ 3} Appellate review of trial court determinations in domestic relations cases generally entails the abuse-of-discretion standard. Booth v. Booth (1989), 44 Ohio St.3d 142, 144, 541 N.E.2d 1028. An abuse of discretion implies that the court’s decision was unreasonable, arbitrary, or unconscionable, and not merely an error of law or judgment. Blakemore v. Blakemore (1983), 5 Ohio St.3d 217, 219, 5 OBR 481, 450 N.E.2d 1140. This standard is employed in reviewing orders relating to spousal support, child custody, and division of marital property. Booth at 144, 541 N.E.2d 1028. “Since it is axiomatic that a trial court must have discretion to do what is equitable upon the facts and circumstances of each case, it necessarily follows that a trial court’s decision in domestic relations matters should not be disturbed on appeal unless the decision involves more than an error of judgment.” (Citation omitted.) Id. We are mindful of these considerations in addressing the following assignments of error.

{¶ 4} Assignment of Error No. 1:

{¶ 5} “The trial court erred by failing to award wife one-half of the appreciation in the marital residence.”

{¶ 6} Jennifer disputes the trial court’s conclusion that she was entitled to only one-half of the mortgage pay-down on the parties’ marital residence at 5 Maple Leaf Drive (“marital residence”) during the marriage. Jennifer argues that she should have been awarded one-half of the appreciation on the marital residence, less Krishan’s down payment.

{¶ 7} In a divorce action, the trial court must classify assets as marital or nonmarital and equitably divide the property between the spouses in accordance with the provisions of R.C. 3105.171. R.C. 3105.171(B). “Marital property” includes all real or personal property or interest in real or personal property that was acquired by either or both of the spouses during the marriage, as well as all income and appreciation on separate property resulting from the labor, monetary, or in-kind contribution of either or both of the spouses that occurred during the marriage. R.C. 3105.171(A)(3)(a)(i) through (iii). Marital property is distributed either equally or equitably between the parties, subject to the circumstances and the discretion of the trial court. R.C. 3105.171(C)(1).

[484]*484{¶ 8} Conversely, “separate property” includes any real or personal property or interest in real or personal property that was acquired by one spouse before the marriage, passive income and appreciation acquired from separate property by one spouse during the marriage, and gifts and inheritances. R.C. 3105.171 (A)(6)(a)(i) through (iii), (vii). Separate property must be disbursed to its owner, unless the trial court chooses to make a distributive award from such property. R.C. 3105.171(D).

{¶ 9} The characterization of the parties’ property is a factual inquiry and will not be reversed when supported by some competent, credible evidence. Barkley v. Barkley (1997), 119 Ohio App.3d 155, 159, 694 N.E.2d 989. The party seeking to have a particular asset classified as separate property has the burden of proof, by a preponderance of the evidence, to trace the asset to separate property. Peck v. Peck (1994), 96 Ohio App.3d 731, 734, 645 N.E.2d 1300.

{¶ 10} Prior to trial, the parties stipulated to the following facts: The marital residence was purchased on December 23, 1996, approximately 11 months before the marriage. The purchase price was $136,000. Krishan tendered a down payment of $46,198.72 from his separate funds. The original mortgage was $91,000.

{¶ 11} The record reveals the following additional evidence: Krishan testified that he and Jennifer lived together in the marital residence prior to the marriage. The marital residence was deeded to “Krishan K. Ghai, an unmarried man and Jennifer Taylor, an unmarried woman.” The marital residence was ordered to be sold by the court prior to tidal. At trial, Krishan requested that he receive $46,198.72 for his down payment plus appreciation on that amount when the property sold, with the remainder of the proceeds divided between him and Jennifer.

{¶ 12} Krishan’s testimony also revealed that the parties installed a pond on the property in the year 2000, using marital savings. The parties built a shed on the property around the year 2001 to house the wildlife on the property. Krishan testified that this shed was a gift from his parents.

(¶ 13} The magistrate’s May 28, 2008 decision found that Krishan paid $46,198.72 from his separate funds and that any appreciation on the property during the marriage was passive because there was no evidence that marital funds or labor were expended during the marriage to make improvements on the residence. The magistrate observed that the parties reduced the mortgage by $56,934.71 during the marriage and ruled that Jennifer was entitled to one-half of the amount that the mortgage principal was paid down during the marriage, or $28,467.36. While the magistrate’s decision appears to have treated the marital residence as a mixed asset, the decision did not explicitly so state.

[485]*485{¶ 14} Jennifer timely objected to the magistrate’s refusal to award her a separate, premarital interest in the marital residence and to the manner in which the equity in the marital residence was distributed. The trial court overruled her objection, finding that there was no evidence to support a finding that Jennifer had any premarital interest in the property or a finding that marital funds or labor were expended to improve the residence. Reflecting the magistrate’s decision, the trial court’s divorce decree held that Jennifer was entitled to receive $28,467.36, one-half of the mortgage pay down. The divorce decree ordered that the remainder of the net proceeds at closing be distributed to Krishan.

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Bluebook (online)
913 N.E.2d 508, 182 Ohio App. 3d 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ghai-v-ghai-ohioctapp-2009.