In Re Marriage of Cullman

541 N.E.2d 1274, 185 Ill. App. 3d 1029, 133 Ill. Dec. 836, 1989 Ill. App. LEXIS 991
CourtAppellate Court of Illinois
DecidedJune 29, 1989
Docket1-88-2170
StatusPublished
Cited by5 cases

This text of 541 N.E.2d 1274 (In Re Marriage of Cullman) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Marriage of Cullman, 541 N.E.2d 1274, 185 Ill. App. 3d 1029, 133 Ill. Dec. 836, 1989 Ill. App. LEXIS 991 (Ill. Ct. App. 1989).

Opinion

JUSTICE LINN

delivered the opinion of the court:

Jackie Cullman appeals from portions of the trial court’s judgment in the dissolution of her marriage to Philip. Specifically, she challenges the court’s determination that the marital residence was Philip’s separate, nonmarital property. She further contends that the trial court erroneously limited her recovery of attorney fees by misinterpreting the parties’ prenuptial agreement. Philip cross-appeals from the partial award of attorney fees to Jackie and also from the order denying his motion for fees under section 2 — 611 of the Code of Civil Procedure (Ill. Rev. Stat. 1985, ch. 110, par. 2 — 611).

We reverse in part, affirm in part, and remand.

Background

On October 3, 1979, three days before their marriage, Jackie and Philip executed a prenuptial agreement. Philip’s assets included shares of common stock valued at over one-half million dollars, representing his interest in his family-owned business, Cullman Wheel. He also owned a home in Deerfield, Illinois, valued at $145,000. His total assets were listed as $778,625 and his net as $687,625. Jackie’s assets, including equity in a condominium, totalled $43,000.

The prenuptial agreement specifies that each party’s listed assets were to be considered as his or her nonmarital property. Further, the agreement stated that property acquired “in exchange for” nonmarital property or “acquired with the proceeds from the sale of” non-marital property “and the increase in value of” nonmarital property would retain its nonmarital treatment.

The prenuptial agreement further provided that, if the parties divorced within five years, Jackie would receive $10,000, paid in three equal annual installments, in lieu of any marital rights to maintenance or support. After five years of marriage, but before 10, the sum would increase to $25,000, payable in equal annual installments over five years. After the tenth year of marriage, the agreement would terminate.

At the time the divorce proceedings began the parties had been married for over five years. Jackie filed, on grounds of physical cruelty, and Philip did not contest the action. Jackie did not dispute the validity or general interpretation of the prenuptial agreement. However, she claimed that the house in which the couple were living, placed in joint tenancy, was marital property. The trial court agreed with Philip, however, that the house was his nonmarital property and awarded it to him.

The evidence reveals that when the parties were married in 1979, Philip owned as his nonmarital property the Deerfield house. In 1981 he sold it and put $75,000 of the sales proceeds towards the purchase of the house in Kildeer. Title was taken in the names of Jackie and Philip, in joint tenancy. To obtain the $110,000 balance of the purchase price, the parties acquired a mortgage loan. Both signed the mortgage documents, which included the sale contract, mortgage, note, warranty deed, and bill of sale. The title insurance policy showed both parties as owners.

Jackie testified that she believed that she was an owner of the Kildeer home when they purchased it in May 1981. She did not furnish any of the purchase money but she did pay the fee for the mortgage papers. Philip did not tell her when they purchased the property that he did not intend for her to acquire an interest in the Kildeer home. Nor did he ever tell her that he did not consider her an owner.

Philip testified that he did not intend for her to become a co-owner of the property. He admitted that no one forced him to place title in joint tenancy. He said that there was no particular reason why Jackie’s name was included on the real estate contract.

Philip also testified, over objection, regarding a telephone conversation he allegedly had with his attorney on May 8 or 9, 1981, regarding the effect that the prenuptial agreement might have on the purchase of the Kildeer home. The attorney did not testify.

Philip paid all of the mortgage payments, except for one $1,400 installment that Jackie had supplied. He also paid the taxes, insurance and utilities. Jackie purchased all of the food, household cleaning needs, and linens. She landscaped the property, spending her own money on gardening expenses. She also paid for some house repairs, including electrical work, air-conditioning, and waterproofing the basement. Both parties contributed approximately equal amounts toward purchasing the furnishings. Jackie painted some of the interior rooms of the house.

Jackie and Philip each maintained separate bank accounts. They did not deposit into or withdraw from each other’s accounts, nor did they open joint bank accounts. Jackie paid for the parties’ vacations. She bought her own clothes and paid her own medical bills.

In its order distributing the property the court ruled that the Kildeer residence was Philip’s sole, nonmarital property.

After an evidentiary hearing on Jackie’s request for attorney fees the court determined that the prenuptial agreement provided for each side to bear his own fees and costs. The court did allow Jackie’s fees on the issue of whether the Kildeer property was marital or nonmarital property, however.

PHILIP’S CROSS-APPEAL

Philip had filed a motion for sanctions under section 2 — 611 of the Code of Civil Procedure after Jackie requested the court to award her temporary maintenance. The basis for his motion was that the general waiver clause in the prenuptial clause included temporary maintenance and that, since Jackie clearly had waived maintenance, she should be sanctioned. Additional facts concerning the cross-appeal will be given as part of our analysis of the issues Philip raises.

Opinion

I

When a spouse transfers property acquired before marriage int have made a gift to the marital estate. (In re Marriage of Rink (1985), 136 Ill. App. 3d 252, 257, 483 N.E.2d 316, 320; In re Marriage of Severns (1981), 93 Ill. App. 3d 122, 416 N.E.2d 1235.) The donor spouse may rebut the presumption of gift only with clear, convincing, and unmistakable evidence. In re Marriage of Wingader (1981) , 95 Ill. App. 3d 9, 419 N.E.2d 611; In re Marriage of Wojcicki (1982), 109 Ill. App. 3d 569, 440 N.E.2d 1028.

In the pending case, Philip presumptively transmuted the nonmarital proceeds from the Deerfield home into marital property when he put the Kildeer house in joint tenancy. The Illinois Marriage and Dissolution of Marriage Act (Act) (Ill. Rev. Stat. 1985, ch. 40, par. 101 et seq.) reveals a legislative preference for classifying property as marital. (In re Marriage of Smith (1981), 86 Ill. 2d 518, 529, 427 N.E.2d 1239

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Bluebook (online)
541 N.E.2d 1274, 185 Ill. App. 3d 1029, 133 Ill. Dec. 836, 1989 Ill. App. LEXIS 991, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-cullman-illappct-1989.