Halbersma v. Halbersma

2007 SD 91, 738 N.W.2d 545, 38 A.L.R. 6th 719, 2007 S.D. LEXIS 157, 2007 WL 2405672
CourtSouth Dakota Supreme Court
DecidedAugust 22, 2007
Docket24290
StatusPublished
Cited by8 cases

This text of 2007 SD 91 (Halbersma v. Halbersma) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Halbersma v. Halbersma, 2007 SD 91, 738 N.W.2d 545, 38 A.L.R. 6th 719, 2007 S.D. LEXIS 157, 2007 WL 2405672 (S.D. 2007).

Opinions

[547]*547SABERS, Justice.

[¶ 1.] Lawrence M. Halbersma (Lawrence) appeals from the property division determination in his divorce from Barbara R. Halbersma (Barbara). The circuit court found that approximately $1.6 million dollars of assets were Barbara’s separate property and excluded it from the marital property. We reverse.

FACTS

[¶ 2.] Lawrence and Barbara were married on October 15, 1955. The young couple started their farming operation with donations from their families. Lawrence’s brother gave them five cows and Barbara’s parents gave them some chickens. Barbara’s father purchased land near White, SD where the couple could operate their dairy operation. They eventually purchased the land from her father. Over time, they increased their land to 600 acres and a net worth of almost one million dollars.

[¶ 3.] Lawrence operated a dairy business and devoted all of his time to this operation. Due to his long hours, Barbara was left to take care of the home and raise their children. She also claims to have helped in the farming/dairy operation,1 but Lawrence disputes this claim. In addition, the couple agreed Barbara would be the one in charge of the family finances. She handled the bills and, when they had money to invest, made their investment decisions.

[¶ 4.] In 1986, Barbara’s parents left her a substantial inheritance. They left her the family homestead near Brandon and other cash assets. In addition to handling the family finances, she also handled this inherited property. However, instead of commingling the inherited property, she kept the property separate. The land near Brandon was being rented and Barbara used the income from the land, along with other inherited funds she invested, to pay the taxes and upkeep on the land. However, for purposes of federal income tax reporting, Barbara and Lawrence filed a joint return. This return included income from the inherited properties and investments. Barbara claims she paid her portion of the federal income tax from her inherited money.

[¶ 5.] From 1986 to 2003, Barbara managed the Brandon property, while Lawrence continued to work on the farm.2 With the children grown and out of the home, Barbara had more time to devote to the management of the property. With Lawrence working long hours on the farm, he was unable to contribute to the maintenance of the Brandon property. He helped a few times, but Barbara usually hired people to complete the work.

[¶ 6.] In 2003, the couple sold their 600 acres in White, SD by a contract for deed and moved to the Brandon home. The next year, Barbara created a revocable trust from inherited funds, which named her children as the beneficiaries. She also created a will that left all of the marital property to Lawrence, while leaving the inherited property to her children.

[¶ 7.] In December of 2005, Barbara sued Lawrence for divorce alleging extreme mental cruelty. Lawrence consented to the divorce being granted on those grounds. The children were adults, there was no request for alimony and no debt to [548]*548divide, so the sole issue was the property division. In particular, Barbara argued the entire inheritance should not be included in the marital estate. Lawrence argued the inherited property should be included as marital property. After the trial, the circuit court found the inherited property should be kept separate. It divided the marital estate, awarding Lawrence approximately $465,073 and Barbara approximately $450,072.3 Barbara also received all of the inherited property, which brought her total to $2,249,851.

[¶ 8.] Lawrence appeals and raises the following issues:

1. Whether the circuit court’s property division was an abuse of discretion.
2. Alternatively, whether the appreciation in value of the inherited properties should have been included as a marital asset.
3. Alternatively, whether Lawrence should have received a disproportionate share of the marital assets.
4. Whether the circuit court erroneously applied the law in its property division pursuant to SDCL 25-4^44.

STANDARD OF REVIEW

[¶ 9.] In a divorce action, a circuit court’s determination regarding division of property is reviewed using an abuse of discretion standard. Novak v. Novak, 2006 SD 34, ¶ 3, 713 N.W.2d 551, 552 (citing Godfrey v. Godfrey, 2005 SD 101, ¶ 11, 705 N.W.2d 77, 80). The property division will not be reversed unless the circuit court’s “discretion is exercised ‘to an end or purpose not justified by, and clearly against, reason and evidence.’ ” Id. We do not decide the question anew, but rather whether “a judicial mind, in view of the law and the circumstances of the particular case, could have reasonably reached such a conclusion.” Id. Findings of fact are reviewed for clear error. Id.

[¶ 10.] 1. Whether the property division decision, which excluded Barbara’s inherited property, was an abuse of discretion.

[¶11.] SDCL 25-4-4 gives the circuit court discretion to equitably divide the marital estate regardless of ownership. The statute provides:

When a divorce is granted, the courts may make an equitable division of the property belonging to either or both, whether the title to such property is in the name of the husband or the wife. In making such division of the property, the court shall have regard for equity and the circumstances of the parties.

SDCL 25-4-44. The circuit court is not bound by any mathematical equation when making an equitable division of property, but there are several factors it is to consider when dividing marital property. Garnos v. Garnos, 376 N.W.2d 571, 572-73 (S.D.1985). They are:

(1) the duration of the marriage;
(2) the value of the property owned by the parties;
(3) the ages of the parties:
(4) the health of the parties;
(5) the competency of the parties to earn a living;
(6) the contribution of each party to the accumulation of the property; and
(7) the income-producing capacity of the parties’ assets.

[549]*549Novak, 2006 SD 34, ¶ 4, 713 N.W.2d at 552 (citing Billion v. Billion, 1996 SD 101, ¶ 21, 553 N.W.2d 226, 232).

[¶ 12.] We have noted that these factors apply and must be examined before deciding whether inherited property should be included in the marital estate. Id.; Billion, 1996 SD 101, ¶ 21, 553 N.W.2d at 232. Therefore, “inherited property ‘is not ipso facto excluded from consideration in the overall division of property.’ ” Novak, 2006 SD 34, ¶ 5, 713 N.W.2d at 553 (citing Billion, 1996 SD 101, ¶ 20, 553 N.W.2d at 232).

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Cite This Page — Counsel Stack

Bluebook (online)
2007 SD 91, 738 N.W.2d 545, 38 A.L.R. 6th 719, 2007 S.D. LEXIS 157, 2007 WL 2405672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halbersma-v-halbersma-sd-2007.