Herman v. Goetz

460 P.2d 554, 204 Kan. 91, 1969 Kan. LEXIS 320
CourtSupreme Court of Kansas
DecidedNovember 8, 1969
Docket45,426
StatusPublished
Cited by15 cases

This text of 460 P.2d 554 (Herman v. Goetz) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Herman v. Goetz, 460 P.2d 554, 204 Kan. 91, 1969 Kan. LEXIS 320 (kan 1969).

Opinion

The opinion of the court was delivered by

PIarman, C.:

This is an action to set aside a gift of a $25,000 savings account. Essentially the contest is between the donor’s widow and his sister.

Trial to the court resulted in a judgment for the donee defendant, from which plaintiff has appealed.

Plaintiff Geraldine Herman initiated the action as administratrix of the estate of her late husband, Lloyd G. Herman, and later had herself joined as a plaintiff as his widow. She has continued the action in both capacities.

We highlight pertinent events. In 1961 Lloyd G. Herman was accidentally injured by electricity and as a result both his legs were amputated. For this injury he received a settlement award, out of which he placed $25,000 on deposit in a savings account in a Garden City, Kansas, bank. This amount remained there until he withdrew it in January, 1967, and is the source of the account in dispute here. For some time in 1962 and 1963 Lloyd lived at Nevada, Missouri, with Geraldine as his housekeeper. Both had previously been married and divorced. Geraldine had three children. On June 17, 1964, Lloyd and Geraldine entered into an antenuptial agreement and on August 29, 1964, were married. She had no property other than her clothes and her only job experience had been that of a waitress. Her formal education ended with one year of high school. Prior to the marriage Lloyd purchased a home in Garden City for $8,000, paying $2,000 down and agreeing to pay the balance in monthly payments of $52.27. Later, in 1966, Lloyd and Geraldine bought a rental house nextdoor for $600.00, taking title as joint tenants. Lloyd, Geraldine and her three children lived in the Garden City home. They had social security and Veterans Administration payments aggregating $389.00 per month. Lloyd worked some on a part time basis and Geraldine worked about two years at Woolworths. They maintained a joint checking account in *93 the Garden City bank out of which family expenses were paid. Lloyd continued to maintain the separate savings account in his own name.

Marital trouble arose in late December, 1966, after Lloyd had a heart attack. Geraldine left the home January 11, 1967. On January 15, 1967, she withdrew all the money in the joint checking account. On January 16 Lloyd withdrew his entire savings account. On January 17 he went to Victoria, Kansas, his boyhood home, and there deposited in the Farmers National Bank $25,000 of that money in a savings account in his own name. The account was marked payable on death to Wilfred Herman (Lloyd’s brother) and Helen Goetz (Lloyd’s sister, defendant-appellee herein). Lloyd also put $1,300 in a checking account at the Victoria bank. On January 20 Geraldine commenced divorce proceedings in Finney county, Kansas, and had Lloyd personally served with summons that day. On January 21 Lloyd returned to the Victoria bank with his mother and his sister Helen and had the savings account put in Helen’s name. This account is the target here. On January 24 Lloyd filed his answer and cross-petition in the divorce proceeding, alleging among other things the existence of the antenuptical agreement. On February 8, 1967, Lloyd died as a result of a heart attack. The evidence will be related in more detail when pertinent to the questions involved.

In ruling against appellant the trial court made findings of fact and conclusions of law. In effect it upheld the validity of the antenuptial contract, ruled the transfer of the savings account to appellee was a valid gift inter vivos, that appellant’s rights to a property division as a spouse terminated upon Lloyd’s death and the lis pendens statute (K. S. A. 60-2201 [a]) did not operate to bar the gift.

The court found the antenuptial contract was a valid and binding contract freely and voluntarily entered into prior to the marriage and in consideration of the marriage, that appellant had full knowledge of Lloyd’s property, the agreement was fairly and understandably made, was just and equitable in its provisions, and was free from fraud and deceit.

In essence the agreement provided that during the marriage each party was to continue to have the exclusive use and control of his own property, each was to have the right to sell, convey or transfer *94 his own property as though he or she was unmarried; each released, disclaimed and waived any interest in the property of the other by reason of the marriage, and each agreed such property should pass to heirs at law, devisees or legatees of each as though no marriage were ever consummated. Nothing in it could be construed as encouraging á separation.

Appellant contends the court erred in its findings and conclusions that the agreement was fairly, justly and equitably made and was free from fraud and deceit. Her argument here is that the contract must be inequitable if by reason of it Lloyd could transfer away from his wife a large part of his property. This position does not really come to grips with the question. Appellant recognizes the general rule in this state that persons competent to contract may execute an antenuptial agreement and determine for themselves what rights they will have in each other’s property during their marriage and after its termination by death, and such a contract will be upheld where it is fairly and understandably made, is just and equitable and is not obtained by fraud or overreaching (Dunsworth v. Dunsworth, 148 Kan. 347, 81 P. 2d 9; In re Estate of Schippel, 169 Kan. 151, 218 P. 2d 192).

The consideration for an antenuptial contract may be any valuable consideration, reciprocal stipulations or the marriage alone (Hafer v. Hafer, 33 Kan. 449, 6 Pac. 537; In re Estate of Ward, 178 Kan. 366, 285 P. 2d 1081).

In Gordon v. Munn, 87 Kan. 624, 125 Pac. 1, this court held:

“If the intended wife is competent to make a contract and has a fair and adequate knowledge concerning the future husband’s property when she enters into an antenuptial agreement, which is free from deceit or fraud, it should not be set aside merely because the court or jury find that the provision made for her is in great disproportion to his property.” (Syl. ¶ 5.)

In Watson v. Watson, 104 Kan. 578, 180 Pac. 242, this court referred to and amplified the foregoing by holding:

“An antenuptial contract must be upheld unless some fraud, deceit or unreasonable inadequacy or disproportion appears. If the latter appear, the presumption of fraud is raised, and the burden is on the husband or those claiming under him to show that the wife was fully informed as to his property.” (Syl. ¶ 5.)

Then in In re Estate of Cantrell, 154 Kan. 546, 119 P. 2d 483, this court stated:

“Unreasonable inadequacy of a provision for the intended wife, or disproportion of the share she will receive, cannot be concluded from the con *95 tract alone. What is inadequate or disproportionate can only be determined from a consideration of all the circumstances.

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Cite This Page — Counsel Stack

Bluebook (online)
460 P.2d 554, 204 Kan. 91, 1969 Kan. LEXIS 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herman-v-goetz-kan-1969.