Hicks v. Fielman

421 N.E.2d 716, 1981 Ind. App. LEXIS 1461
CourtIndiana Court of Appeals
DecidedJune 15, 1981
Docket2-579A160
StatusPublished
Cited by33 cases

This text of 421 N.E.2d 716 (Hicks v. Fielman) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hicks v. Fielman, 421 N.E.2d 716, 1981 Ind. App. LEXIS 1461 (Ind. Ct. App. 1981).

Opinions

BUCHANAN, Chief Judge.

CASE SUMMARY

Jeanne L. Hicks (Jeanne) appeals from a summary judgment against her in her intervention as a defendant in a suit between Miriam Callahan Fielman (Fielman) and Associates in Anesthesiology (Associates), in which she sought to have her former husband’s death benefits under the Associates’ profit-sharing plan included in his probate estate in satisfaction of an “alimony” judgment.

We affirm.

FACTS

On April 18, 1977, Dr. Murwyn L. Hicks (Murwyn) and Jeanne L. Hicks were divorced. Only one portion of the decree is material to this cause:

2. That the Agreement concerning the maintenance and custody of the parties’ minor child, division of property rights and payment of attorney fees entered into between the petitioner and respondent is approved by the Court and made a part of this decree, the same as if the terms and provisions thereof were fully recited herein, and each of the parties is ordered and directed by the Court to carry out the terms and provisions of said Agreement.
3. That the wife be and she is hereby awarded an alimony judgment against the husband in the amount of SEVENTY TWO THOUSAND SIX HUNDRED DOLLARS ($72,600.00) payable under the terms of the Property Settlement Agreement enter [sic] in evidence this [sic] action and approved by this Court.

The decree referred to Paragraph 10 of Part II of the property settlement agreement, which said:

10. Respondent [Jeanne] shall have and recover from petitioner [Murwyn] an alimony judgment in the sum of Seventy-Two Thousand Six Hundred Dollars ($72,-600.00) payable at the rate of Six Hundred Dollars ($600.00) per month commencing May 1, 1977, except that in the event petitioner retires from the practice of medicine at age 62 years, the monthly payments shall be reduced to Four Hundred Dollars ($400.00) per month effective the first month following such retirement. In any event, all payments provided for in this paragraph 10 shall cease upon the demise or remarriage of respondent. (emphasis added.)

Eleven other paragraphs in the agreement specifically allocated the Hickses’ property between them, including their bank accounts. Paragraph eight of the agreement provided that

[Murwyn] shall retain as his sole property all of his right, title and interest in and to the Pension Trust and Profit Sharing Trust through Associates in Anesthesiology, Inc.

Finally, the Hickses agreed “that this Agreement embodies a disposition of all the property acquired by the parties prior to [719]*719and during their marriage up to the date of their separation.” (Emphasis added.)

Dr. Hicks was an employee of Associates in Anesthesiology, Inc., and was one of the trustees of the profit-sharing plan set up by the corporation. On September 8, 1977, Murwyn named Miriam Callahan Fielman his primary death beneficiary under the profit-sharing plan. Mrs. Fielman was listed by Murwyn as his wife, though it appears that the two had never married. At all times, Murwyn complied with the maintenance order, until he died on October 23, 1977.

On January 25, 1978, Mrs. Fielman sued Associates in Anesthesiology, and the three doctors who constituted the Associates’ profit-sharing plan committee, and who were the trustees for the plan. The complaint alleged that as death beneficiary, Fielman was entitled to some $91,000 out of the plan and had not been paid.

On March 22, Jeanne filed her motion to intervene as á party-defendant, which was granted on the 23rd. She filed a cross-complaint, the gist of which was that Murwyn had made no payments toward child support or alimony after his death, as a result of which the child support was in a small but increasing arrearage, and the remainder of the $72,600 alimony figure ought to become due and payable.

Jeanne had made the identical claim in the Marion Probate Court, in her January 31, 1978 “Petition for Contempt for NonPayment of Alimony Judgment and Child Support and for Garnishment of Trust Assets for the Payment of Alimony Judgment and Child Support,” filed against Murwyn’s estate. That petition was transferred to the Superior Court, Room 7, and consolidated with the instant case. Murwyn’s probate estate is insufficient to cover her claims.

The record does not clearly show whether the separation agreement, including the alimony provision, attempted to dispose of more property than the Hickses owned at the time of the divorce.

During the pendency of this suit before the trial court, Miriam Callahan Fielman died. Her executor, Frank F. Fielman, Sr., to whom she had been married, was substituted as plaintiff on May 19.

Fielman had moved for summary judgment as early as March 17. A hearing on the motion was held on May 26, and summary judgment was granted on July 3. In partial satisfaction of Jeanne’s motion to correct errors, the motion for summary judgment was reheard on December 14. In its final judgment entered March 1, 1979, the trial court found “that there is no genuine issue as to any material fact and the Motion for Summary Judgment of the Plaintiff [Fielman] is sustained and Judgment entered of record herein.” The remainder of the motion to correct errors was denied.

ISSUE AND SUMMARY OF ARGUMENT

Is a recipient of maintenance a creditor of her former spouse’s estate?

Jeanne claims Murwyn’s death benefits as Murwyn’s creditor in the amount of $72,600.00, of which only $3,600.00 had been paid. She argues that the naming of a death beneficiary in a profit-sharing plan amounts to the exercise of a general testamentary power of appointment: In her view, the naming of Fielman as the death beneficiary was an exercise of that power in favor of a stranger in defraud of Jeanne as a creditor; and Jeanne cites authority for the proposition that in such a case, Equity will require that the money so appointed will go to the creditor and not to the stranger.

Regardless of the vitality of the rule she argues, and regardless of whether we should consider Murwyn’s naming a death beneficiary a fraud upon his creditors, it is essential to Jeanne’s argument that in fact she be a creditor of Murwyn’s estate. If she is not, then her other arguments are immaterial, for they are premised on her being a creditor. Because we conclude she is not a creditor, we do not need to consider whether the death benefits should be swept into Murwyn’s estate for Jeanne’s benefit.

[720]*720DECISION

CONCLUSION — Jeanne is not a creditor of Murwyn’s estate and therefore she may not reach the trust assets.

Paragraph 10 of the Hickses’ separation agreement did not call for a cash property settlement (once known as alimony in gross), but provided instead for maintenance (periodic alimony). Unless an agreement or decree calling for maintenance clearly says otherwise, maintenance payments can not accrue after the death of the person liable for them.

DISCUSSION

Crucial to Jeanne’s status is Section 10 of the Dissolution of Marriage Act of 1973 which provides that “the parties may agree in writing to provisions for the maintenance of either of them .. .. ” AIC § 31-1-11.5-10(a) (West 1979):1

Sec. 10.

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Bluebook (online)
421 N.E.2d 716, 1981 Ind. App. LEXIS 1461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hicks-v-fielman-indctapp-1981.