Holstein v. Holstein

412 S.E.2d 786, 186 W. Va. 385
CourtWest Virginia Supreme Court
DecidedDecember 20, 1991
Docket19835
StatusPublished
Cited by5 cases

This text of 412 S.E.2d 786 (Holstein v. Holstein) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holstein v. Holstein, 412 S.E.2d 786, 186 W. Va. 385 (W. Va. 1991).

Opinions

MILLER, Chief Justice:

This is an appeal from a final order of the Circuit Court of Kanawha County, dated January 16, 1990, which granted the parties a divorce and effected a distribution of their property. The appellant, Elborn Holstein, asserts that the trial court erred in designating certain real property owned by the parties during the marriage as marital property instead of as his separate property and in reserving to the appellee, Mary B. Holstein, the right to receive alimony. We conclude that the circuit court’s decision was correct, and we affirm the judgment of the lower court.

The parties were married in July of 1981 in Pearisburg, Virginia, and resided thereafter in London, Kanawha County. Each party was nearly 50 at the time of the marriage, and no children were born of the union. The parties separated on March 25, 1986, and on April 4, 1986, Mrs. Holstein filed for divorce.

I.

The key dispute in this case is the circuit court’s characterization as marital property [387]*387of a farm in Pendleton County acquired by the parties during the marriage. Mr. Holstein claims that the funds used to purchase the farm came entirely from monies he received in settlement of a personal injury claim and should be considered separate property. Mr. Holstein’s injury occurred before the marriage, but the settlement was not effected until March of 1983. Mr. Holstein immediately placed the settlement money, which amounted to approximately $77,000, in the parties’ joint savings account. In June of 1983, Mr. Holstein placed approximately $82,000 of the savings account funds into joint certificates of deposit. Subsequently, on December 12, 1983, he placed $74,000 from the joint certificates of deposit into the joint savings account. In January of 1984, Mr. Holstein used the $74,000 in the joint savings account to purchase the farm, which was titled in the names of both parties.

We decline to discuss Mr. Holstein’s claim that because the farm was purchased with money that came from the settlement of his premarital personal injury claim, it was his separate property.1 Even if we assume that the entire settlement of $77,-000 was his separate property when he first received it, his subsequent handling of it caused it to become marital property. His conduct demonstrates this point. When Mr. Holstein first received the funds, he placed them in the joint savings account. Several months later, he took the funds in the joint savings account and placed them into joint certificates of deposit. Six months after that, he cashed most of the certificates of deposit and placed these funds in the joint savings account.2 The funds remained in the joint account for approximately one month, at which time Mr. Holstein used them to purchase the farm. Again, Mr. Holstein had the farm titled in both names. The farm was used for marital purposes for two years before the parties separated.

In Syllabus Point 3 of Whiting v. Whiting, 183 W.Va. 451, 396 S.E.2d 413 (1990), we recognized that the definition of “marital property” contained in W.Va.Code, 48-2-l(e)(l) (1986),3 “expresses a marked preference for characterizing the property of the parties to a divorce action as marital property.” We expressly disapproved the practice of tracing the source of the funds used for purchasing jointly titled property for the purpose of determining the character of such property.4 Instead, we stated in Syllabus Points 4 and 7:

“4. Where, during the course of the marriage, one spouse transfers title to his or her separate property into the joint names of both spouses, a presumption that the transferring spouse intended to make a gift of the property to the marital estate is consistent with the principles underlying our equitable distribution statute.
‡ jjc ‡ $ ‡ sfe
[388]*388“7. Under W.Va.Code, 31A-4-33 (1969), where separate funds are deposited in a joint account in the names of both husband and wife, such funds are presumed to be marital property for purposes of equitable distribution.”

Here, it is clear that Mr. Holstein, on no less than four occasions, transferred the proceeds of his personal injury settlement into joint ownership with his wife. These transactions occurred over a nine-month period. There was no showing that Mr. Holstein made these transactions because he “was induced to do so by fraud, coercion, duress, or deception,” factors which we indicated in Whiting would overcome the presumption of a gift to the marital estate. 183 W.Va. at 459, 396 S.E.2d at 421.

We recently discussed a similar situation in Wood v. Wood, 184 W.Va. 744, 403 S.E.2d 761 (1991). During the marriage, Mrs. Wood inherited some money which she placed in jointly titled bank accounts, certificates of deposit, and Treasury bills. Most of this money was later used as the downpayment on the Woods’ jointly titled marital home. In response to Mrs. Wood’s claim that the marital abode was her separate property, we stated: “Given that Mrs. Wood’s inheritance had been placed in jointly titled investments before being used as the downpayment on the jointly titled marital house, we find that the circuit court’s classification of the marital house as marital property was justified.” 184 W.Va. at 751, 403 S.E.2d at 768.

Here, the facts are even more pronounced than in Wood. On four separate occasions, Mr. Holstein transferred the funds he now claims as separate property into joint bank accounts or jointly titled personal or real property, thereby evincing an intent to have the funds treated as marital property. No evidence was adduced below to overcome the presumption that Mr. Holstein intended to make a gift to the marital estate of the settlement of his personal injury claim.

While the circuit court’s ruling came before our decision in Whiting, the court was nevertheless correct in concluding that the funds were marital property. We have repeatedly reaffirmed our adherence to the principle stated in Syllabus Point 3 of Barnett v. Wolfolk, 149 W.Va. 246, 140 S.E.2d 466 (1965):

“This Court may, on appeal, affirm the judgment of the lower court when it appears that such judgment is correct on any legal ground disclosed by the record, regardless of the ground, reason or theory assigned by the lower court as the basis for its judgment.”

Accord McJunkin Corp. v. West Virginia Human Rights Comm’n, 179 W.Va. 417, 369 S.E.2d 720 (1988); Weirton Ice & Coal Co. v. Weirton Shopping Plaza, Inc., 175 W.Va. 473, 334 S.E.2d 611 (1985); N.C. v. W.R.C., 173 W.Va. 434, 317 S.E.2d 793 (1984); Chambers v. Sovereign Coal Corp., 170 W.Va. 537, 295 S.E.2d 28 (1982); Environmental Prods. Co. v. Duncan, 168 W.Va. 349, 285 S.E.2d 889 (1981); Wilkinson v. Searls, 155 W.Va. 475, 184 S.E.2d 735 (1971).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bauer v. Bauer
Nevada Supreme Court, 2015
John Justice v. Holly Justice
Court of Appeals of Tennessee, 2001
Banker v. Banker
474 S.E.2d 465 (West Virginia Supreme Court, 1996)
Hall v. Hall
838 P.2d 995 (New Mexico Court of Appeals, 1992)
Holstein v. Holstein
412 S.E.2d 786 (West Virginia Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
412 S.E.2d 786, 186 W. Va. 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holstein-v-holstein-wva-1991.