In Re Marriage of Dietz

395 N.E.2d 762, 76 Ill. App. 3d 1029, 32 Ill. Dec. 532, 1979 Ill. App. LEXIS 3332
CourtAppellate Court of Illinois
DecidedOctober 11, 1979
Docket78-500
StatusPublished
Cited by21 cases

This text of 395 N.E.2d 762 (In Re Marriage of Dietz) 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 Dietz, 395 N.E.2d 762, 76 Ill. App. 3d 1029, 32 Ill. Dec. 532, 1979 Ill. App. LEXIS 3332 (Ill. Ct. App. 1979).

Opinion

Mr. JUSTICE KARNS

delivered the opinion of the court:

Roberta Dietz McNeill and Kenneth Dietz each appeal from the judgment of the Circuit Court of Jackson County dissolving their marriage and disposing of the property of the parties by assigning nonmarital property and dividing marital property under section 503 of the Marriage and Dissolution of Marriage Act (Ill. Rev. Stat. 1977, ch. 40, par. 503).

The judgment of dissolution was entered on February 7, 1978. The judgment of the court dividing the property of the parties was entered on August 19, 1978. Only the property disposition is assigned as error on appeal. As part of the disposition, Kenneth was ordered to pay Roberta *43,000 as her share of the marital home, which the parties valued at approximately *70,000, and to hold Roberta harmless on notes totaling approximately *7,000 she had co-signed during the marriage evidencing debts incurred in farming operations. The court also ordered the sale of farm machinery and livestock found to be marital property and an equal division of the proceeds. Roberta was denied any interest in 160 acres of farmland owned by Kenneth at the time of the marriage and mortgaged to his mother from whom it was purchased.

On appeal, Roberta asserts an interest in the farmland and also claims exclusive right to the marital home which is situated on the farmland property owned by Kenneth; Kenneth cross-appeals, contesting the amount awarded to Roberta as her share in the home and the division of the farm machinery and cattle. He also objects to relieving Roberta of the debts of the parties. We affirm.

We consider the claims of the parties under the Illinois Marriage and Dissolution of Marriage Act (Ill. Rev. Stat. 1977, ch. 40, par. 101 etseq.) as the proceedings were concluded subsequent to the effective date of the Act. In re Marriage of Marsh (1978), 64 Ill. App. 3d 572, 381 N.E.2d 804.

The Act establishes a presumption that property acquired by either spouse during the marriage is marital property, regardless of the manner of holding title, unless the acquisition occurs through gift, bequest, devise, descent or there is a contrary agreement between the parties. (Ill. Rev. Stat. 1977, cfa. 40, par. 503(b).) The parties here agree that the marital home was built and paid for during the marriage and that they lived in the home as husband and wife. The house was built on farmland that Kenneth acquired in 1963. It appears that each party made materia! contributions to its construction, although the record indicates that the greater portion of the construction cost, estimated at $40,000 to $50,000, came from Roberta’s funds acquired prior to the marriage. Roberta testified that she paid some $43,000 in bills for the home to be built. Kenneth expended considerable labor, according to his testimony, assisting and overseeing the home’s construction. He stated that he also used some of his farm revenue for building expenses. Title to the home was in the husband’s name only as it was built on the farmland he had acquired in his name prior to marriage. As we noted, however, the manner of holding title is of no consequence.

Relying on Coates v. Coates (1978), 64 Ill. App. 3d 914, 381 N.E.2d 1200, Roberta argues that because most of the construction costs came from accounts she acquired prior to marriage, the house should be considered her transmuted separate property. The property settlement in Coates involved rental property which had been purchased by the husband prior to marriage but converted to joint tenancy thereafter solely for the purpose of avoiding claims by an ex-wife. Acknowledging the general rule that a conveyance by one spouse to another during marriage is presumed a gift, the court in Coates nonetheless recognized that the presumption is rebuttable if the conveying spouse maintains physical and financial control of the property. In light of the facts in Coates, the court held that the rental property remained the husband’s separate property.

In In re Marriage of Key (1979), 71 Ill. App. 3d 722, 389 N.E.2d 963, a wife who invested $50,000 of premarital assets in jointly owned land during marriage received upon dissolution an interest of $50,000 in the property. The husband argued that the wife’s nonmarital funds were converted into marital property by way of gift and that the property should be divided equally. The court rejected this argument, citing section 503(a)(2) of the Act (Ill. Rev. Stat. 1977, ch. 40, par. 503(a)(2)), which provides that “property acquired in exchange for property acquired before the marriage ° 0 is not marital property. This provision in the Illinois Act does not appear in section 307 of the Uniform Marriage and Divorce Act, the counterpart to section 503, as promulgated by the Commissioners on Uniform State Laws, although, similar language may appear in the Act as adopted by other States. See Uniform Marriage and Divorce Act §307, Commissioners’ Comment (Unif. Laws Annot. 1979).

The court further concluded, based upon the wife’s testimony, that she never intended to make a gift of that portion of the property acquired with her assets to her husband.

We believe the reasoning of Key is applicable here and that the property acquired with her premarriage funds should not be considered a gift to the husband even though the property on which the home was built was in Kenneth’s name alone. We believe that the effect of section 503(a) (2) of the Act is to destroy the presumption heretofore existing that a transfer or conveyance of property from one spouse to another or into their joint names is presumptively a gift of the property or funds even though the property or funds were acquired before marriage.

Roberta argues that the award of *43,000 was inadequate as it denies to her any appreciation in the value of the home valued by the parties at approximately *70,000 at the time of dissolution; however, Roberta’s claim ignores that this sum must include the value of the land contributed by Kenneth, which we must assume is included in the total value of the house. Her argument also fails to account for the value of Kenneth’s services and contributions to the construction and cost of the home. While Roberta argues that Kenneth’s contribution to the construction of the home was greatly overvalued by the trial court, we cannot say that this determination was against the manifest weight of the evidence when the record as to the source of the parties’ funds is not entirely clear. There was substantial commingling of assets both for home construction costs and farming operations. Furthermore, while Roberta was awarded an equal division of the proceeds of sale of farm machinery and livestock, Kenneth was required to discharge a marital debt of *7,000 which arose as a result of farming operations. We cannot say that the trial court failed to make an equitable division of property as required by section 503 of the Act. An equitable distribution is not necessarily an equal one. Schubert v. Schubert (1978), 66 Ill. App. 3d 29, 383 N.E.2d 566.

Ownership of the 160 acres of farmland is also contested. Kenneth owed his mother *14,500 when the parties married in 1971.

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

Related

In re Marriage of McHenry
Appellate Court of Illinois, 1997
Gatwood v. Commissioner
1989 T.C. Memo. 544 (U.S. Tax Court, 1989)
In Re Marriage of Rundle
438 N.E.2d 229 (Appellate Court of Illinois, 1982)
In Re Marriage of Westphal
426 N.E.2d 303 (Appellate Court of Illinois, 1981)
In Re Marriage of Rogers
422 N.E.2d 635 (Illinois Supreme Court, 1981)
In re Marriage of Emken
411 N.E.2d 599 (Appellate Court of Illinois, 1980)
In Re Marriage of Smith
412 N.E.2d 985 (Appellate Court of Illinois, 1980)
In Re Marriage of Lee
410 N.E.2d 1183 (Appellate Court of Illinois, 1980)
In Re Marriage of Schriner
410 N.E.2d 572 (Appellate Court of Illinois, 1980)
In Re Marriage of Uluhogian
408 N.E.2d 107 (Appellate Court of Illinois, 1980)
In Re Marriage of Scott
407 N.E.2d 1045 (Appellate Court of Illinois, 1980)
In Re Marriage of Woodward
404 N.E.2d 575 (Appellate Court of Illinois, 1980)
In Re Marriage of Atkinson
402 N.E.2d 831 (Appellate Court of Illinois, 1980)
In re Marriage of Preston
402 N.E.2d 332 (Appellate Court of Illinois, 1980)
In Re Marriage of Lloyd
401 N.E.2d 328 (Appellate Court of Illinois, 1980)
In Re Marriage of Amato
399 N.E.2d 1018 (Appellate Court of Illinois, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
395 N.E.2d 762, 76 Ill. App. 3d 1029, 32 Ill. Dec. 532, 1979 Ill. App. LEXIS 3332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-dietz-illappct-1979.