Hornung v. Hornung, Unpublished Decision (4-22-1999)

CourtOhio Court of Appeals
DecidedApril 22, 1999
DocketNo. 73659 and 73667
StatusUnpublished

This text of Hornung v. Hornung, Unpublished Decision (4-22-1999) (Hornung v. Hornung, Unpublished Decision (4-22-1999)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Hornung v. Hornung, Unpublished Decision (4-22-1999), (Ohio Ct. App. 1999).

Opinion

OPINION
This is an appeal and crossappeal from a judgment entry of divorce by Judge Anthony J. Russo. Appellant, Donald E. Hornung, appeals the award of periodic spousal support, the distribution of marital equity, the award of attorney fees, and the failure to make a distributive award, on the basis of gender discrimination and abuse of discretion. Appellee/cross-appellant, Diane M. Hornung, also challenges the distribution of marital assets to Mr. Hornung, the award of his attorney fees, the award of temporary and lifetime spousal support to him, and, additionally, several other financial rulings. For the following reasons we affirm in part, reverse in part and remand.

After living together for three years, Diane M. Hornung, then age 45, and Donald E. Hornung, then age 57, were married in March of 1986. It was the third marriage for Mrs. Hornung and Mr. Hornung's fourth. She was employed as a teacher, owned her home since 1971, and in addition to a STRS account, had a trust fund worth in excess of $6.5 million dollars. Mr. Hornung entered the marriage with approximately $30,000 in securities and, while he had a background as a broker, was unemployed. Throughout the next ten years, Mrs. Hornung provided the finances of the couple as Mr. Hornung's venture into an investment service business was short lived and unsuccessful. Mr. Hornung's income consisted of disability benefits commencing 1988 and social security benefits in 1990.

On June 17, 1993, Mrs. Hornung filed a Complaint of Divorce to which Mr. Hornung filed an Answer and Counterclaim. The trial date of August 12, 1994, was continued due to the discharge of Mr. Hornung's lawyer. The trial scheduled for September, October and December of 1995, finally commenced on January 23, 1996, and was heard over an eleven day period ending April 5, 1996. The decision of Magistrate Sacco was issued on July 18, 1996, to which both parties filed objections. On October 8, 1997, Judge Russo issued a Judgment Entry sustaining, in part, and denying, in part, the Decision of the Magistrate. A dispute arose on the judgment entry prepared by Mrs. Hornung's lawyer at the judge's direction and on November 12, 1997, a final Judgment Entry of Divorce was journalized.

The terms of the divorce and controverted facts and issues of law will be addressed in the assignments of error. Mr. Hornung assigns eight errors, and Mrs. Hornung assigns six errors for our review. Due to similarities in law and fact, some of these issues will be treated together.

I.
Mr. Hornung's first assignment of error states:

I. THE TRIAL COURTS DETERMINATION THAT $6.5 MILLION OF INCREASE IN THE VALUE OF TRUST ASSETS DURING THE MARRIAGE RESULTING FROM MRS. HORNUNG'S REINVESTING TRUST DIVIDEND INCOMES IS THE SEPARATE PROPERTY OF PLAINTIFF IS AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE, CONTRARY TO LAW AND — ERROR TO THE PREJUDICE OF DONALD E. HORNUNG.

Mr. Hornung claims he is entitled to onehalf of the increase in Mrs. Hornung's trust during the course of the marriage, approximately $3.25 million dollars. He contends that the increase in the trust during the marriage resulted from her decision to permit reinvestment of yearly dividends to which she was entitled but did not take from the fund. He suggests that this decision was "labor" and such dividends become "active" income resulting in marital property" subject to reasonable division. He maintains as error the determination that the reinvested dividends, received by Mrs. Hornung from her trust fund, were "passive" income, and, as such, her "separate property".

Marital property includes all real and personal property that currently is owned by either or both of the spouses and acquired by either or both of the spouses during the marriage. R.C.3105.171(A)(3)(a)(i). Separate property is any real or personal property acquired by one spouse prior to marriage. R.C.3105.171(A)(6)(a)(ii). A trial court is to assume that any property acquired during marriage is marital, unless evidence is offered to rebut that presumption. Barkley v. Barkley (1997),119 Ohio App.3d 155, 694 N.E.2d 989. "[A] spouses' premarital property remains separate property as long as it is traceable, regardless of whether it has been commingled with other property." Id.

Marital property is also all "active income, " or any income and appreciation on separate property due to the labor, inkind, or monetary contribution of either of the parties that occurred during the marriage. R.C. 3105.171(A)(3)(a)(iii). Conversely, separate property includes "passive income" and any appreciation acquired from separate property during the marriage. R.C.3105.171(A)(6)(a)(iii). Passive income is defined as "income acquired other than as a result of labor, monetary or inkind contribution by either spouse. R.C. 3105.171(A)(4).

As a general rule, "[p]roperty that is specifically and directly traceable to property outside the marriage" constitutes separate property. Buckles v. Buckles (1988), 46 Ohio App.3d 102,111, 546 N.E.2d 950, 956. During the course of the marriage, however, separate property may be converted to marital property through the process of transmutation. Dunlap v. Dunlap (March 27, 1996), Hamilton App. Nos. C940033, C940050, unreported. In determining if transmutation has occurred, the trial court must consider he following relevant factors:

* * * (1) The expressed intent of the parties insofar as it can be reliably ascertained; (2) the source of the funds, if any, used to acquire the property; (3) the circumstances surrounding the acquisition of the property; (4) the dates of the marriage, the acquisition of the property, the claimed transmutation, and the breakup of the marriage; (5) the inducement for and/or purpose of the transaction which gave rise to the claimed transmutation; and (6) the value of the property and its significance to the parties.

Dunlap, supra.

Once a trial court has classified the property as either marital or separate, review of that determination is limited to the standard of manifest weight of the evidence. Marcum v. Marcum (1996), 116 Ohio App.3d 606, 688 N.E.2d 1085. That standard of review was defined by the court in Barkley, supra, when it stated:

This standard of review is highly deferential and even "some" evidence is sufficient to sustain the judgment and prevent a reversal. A reviewing court should be guided by a presumption that the findings of a trial court are correct, since the trial judge is best able to view the witnesses and observe their demeanor, gestures, and voice inflections, and use those observations in weighing the credibility of the testimony." In Re Jane Doe I (1991),57 Ohio St.3d 135, 566 N.E.2d 1181. See, also, SeasonsCoal Co. v. Cleveland (1984), 10 Ohio St.3d 77,

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

Related

In Re Marriage of Branham
617 N.E.2d 1317 (Appellate Court of Illinois, 1993)
Shaffer v. Shaffer
671 N.E.2d 1317 (Ohio Court of Appeals, 1996)
Barkley v. Barkley
694 N.E.2d 989 (Ohio Court of Appeals, 1997)
Oatey v. Oatey
614 N.E.2d 1054 (Ohio Court of Appeals, 1992)
Buckles v. Buckles
546 N.E.2d 950 (Ohio Court of Appeals, 1988)
Faber v. Queen City Terminals, Inc.
638 N.E.2d 115 (Ohio Court of Appeals, 1994)
Stone v. Stone
122 N.E.2d 404 (Ohio Court of Appeals, 1954)
Birath v. Birath
558 N.E.2d 63 (Ohio Court of Appeals, 1988)
Piscione v. Piscione
619 N.E.2d 1030 (Ohio Court of Appeals, 1992)
Babka v. Babka
615 N.E.2d 247 (Ohio Court of Appeals, 1992)
Marcum v. Marcum
688 N.E.2d 1085 (Ohio Court of Appeals, 1996)
Swartz v. Swartz
673 N.E.2d 972 (Ohio Court of Appeals, 1996)
Layne v. Layne
615 N.E.2d 332 (Ohio Court of Appeals, 1992)
Soley v. Soley
655 N.E.2d 1381 (Ohio Court of Appeals, 1995)
Berish v. Berish
432 N.E.2d 183 (Ohio Supreme Court, 1982)
Blakemore v. Blakemore
450 N.E.2d 1140 (Ohio Supreme Court, 1983)
Seasons Coal Co. v. City of Cleveland
461 N.E.2d 1273 (Ohio Supreme Court, 1984)
Martin v. Martin
480 N.E.2d 1112 (Ohio Supreme Court, 1985)
Holcomb v. Holcomb
541 N.E.2d 597 (Ohio Supreme Court, 1989)
Kunkle v. Kunkle
554 N.E.2d 83 (Ohio Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
Hornung v. Hornung, Unpublished Decision (4-22-1999), Counsel Stack Legal Research, https://law.counselstack.com/opinion/hornung-v-hornung-unpublished-decision-4-22-1999-ohioctapp-1999.