In Re Marriage of Pahlke

507 N.E.2d 71, 154 Ill. App. 3d 256, 107 Ill. Dec. 407, 1987 Ill. App. LEXIS 2295
CourtAppellate Court of Illinois
DecidedMarch 23, 1987
Docket84—2015, 85—0074, 85—2246 cons.
StatusPublished
Cited by26 cases

This text of 507 N.E.2d 71 (In Re Marriage of Pahlke) 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 Pahlke, 507 N.E.2d 71, 154 Ill. App. 3d 256, 107 Ill. Dec. 407, 1987 Ill. App. LEXIS 2295 (Ill. Ct. App. 1987).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

This is the second appeal concerning the disposition of the marital property in the divorce proceedings between the petitioner, Norma Pahlke, and the respondent, Frazer Pahlke. In our earlier decision we affirmed a preliminary order of the trial court which held that the sale of the marital residence by Frazer to third-party defendant, Ute Schmidt, was a sham transaction and granted temporary possession of the home to Norma. (In re Marriage of Pahlke (1983), 120 Ill. App. 3d 1009, 458 N.E.2d 1141.) Frazer now appeals from the final judgment entered in the marriage dissolution proceedings contending that the trial court (1) abused its discretion in dividing the marital property unequally in favor of Norma; (2) abused its discretion in awarding Norma maintenance and child support; (3) improperly required Frazer to pay the major portion of Norma’s attorney fees and the attorney fees for the minor children; and (4) erred in awarding Norma prospective attorney fees to defend Frazer’s appeal. Frazer and Ute Schmidt both argue on appeal that the final judgment of the trial court declaring the sale of the parties’ marital residence to be a sham transaction was against the manifest weight of the evidence.

The parties were married in May 1964. Four children were born to the marriage. In August 1982, Norma filed a petition for dissolution of marriage. Prior to trial the parties entered into a stipulation that each of them would have custody of two of the four minor children of the parties. Frazer was 44 years old at the time of trial and Norma was 42 years old.

At trial, Frazer testified that in 1976 he purchased the marital residence in Glenview, Illinois, for $93,500. $24,000 of the purchase price was loaned to him by his mother, Lillian Pahlke. Title to the home was placed in a land trust with Frazer as the beneficiary and Norma as the contingent beneficiary. Without informing Norma, Frazer sold the marital home in April 1982 to Ute Schmidt for $90,000. Thereafter, Norma filed a petition seeking imposition of a constructive trust in her favor on the marital residence.

At a preliminary hearing in August 1982, the trial court entered an order granting the petition and declaring the sale of the residence to be a sham and awarding temporary possession of the residence to Norma. On review, this court affirmed the trial court’s finding that the sale was a sham transaction “where the third party and'the husband may have acted in collusion to deprive the wife and children of the marital home.” (120 Ill. App. 3d 1009, 1015, 458 N.E.2d 1141, 1146.) We further affirmed the award to Norma of temporary possession of the marital residence and vacated that portion of the order creating a constructive trust.

Frazer further testified that at the time he sold the marital residence, he sold other items of personal property to Ute Schmidt which the parties had acquired during the marriage, including a piano, a lawnmower, and a freezer. Frazer had earned approximately $23,000 in 1983 from his employment as an environmental engineer. He had a pension benefit through his employer with a vested monthly pension benefit in the amount of $324 at age 65. The value of the accrued pension at the time of trial was $5,200. Frazer also owned a truck which he purchased in May 1982 for $16,400. He stated that during the marriage, his wife suffered from periods of depression, schizophrenia, and unhappiness.

Norma testified that she was employed as a staff nurse in a nursing home earning approximately $18,000 per year. She stated that she had several outstanding medical and dental bills both for herself and her children. She further testified that she owed her mother the sum of $15,000 at the time of trial. She had borrowed these funds in a three-to-four-month period after she had moved back into the marital residence and when she was unemployed. She stated that $11,000 of the $15,000 was paid directly to the clerk of the court in order to forestall foreclosure action on the marital home.

Ute Schmidt testified that she worked at Northwestern University as a librarian. She heard that Frazer was selling his home from fellow employees. When she first saw the home, both the interior and exterior of the building were in very poor condition. Frazer told her that the purchase price was $120,000. At a second meeting, a few weeks later, Frazer accepted her offer of $90,000 for the home. She prepared the real estate contract and the closing statement and obtained the figures on the mortgage and taxes from Frazer.

A judgment for dissolution was entered in July 1984. Norma was awarded the marital home, and Frazer was given a lien on the home of $10,000 to be repaid upon the first to happen of the sale of the home, the remarriage of Norma, or upon their youngest child reaching the age of 18. Norma was awarded all the furniture then in the marital home, and Frazer was required to return any marital furniture in his possession to the marital residence. Norma was also awarded the 1975 Chevrolet of the parties. The court entered a judgment in favor of Ute Schmidt and against Frazer in the amount of $41,284.16. Frazer was required to pay Norma $300 per month in child support for the two minor children in her custody as well as $150 per month in maintenance. Frazer was required to maintain his present life insurance with his four children designated as irrevocable beneficiaries and to maintain hospitalization insurance for the four minor children. He was also made responsible for all extraordinary medical and dental expenses. Both parties were ordered to be responsible for the college education of the minor children, commensurate with their financial ability to pay.

Both Norma’s attorney and the attorney for the minor children, filed a petition seeking payment of attorney fees. Norma’s attorney argued that Frazer should be required to pay Norma’s attorney fees as a result of his financial misconduct in this case since it was he who caused the sham sale of the marital residence necessitating a preliminary appeal in these proceedings. The trial court entered an order requiring Frazer to pay $17,000 of the $18,000 in attorney fees incurred by Norma. Frazer was further required to pay $5,337 of the total fees incurred of $6,337 by the minor children’s attorney. The trial court found that, while Frazer’s income had been reduced from $35,000 to $23,000 a year as a result of a depressed economy, he had the ability to improve his income. The trial court further found that Norma had done a good job rehabilitating herself, but that her economic future did not appear secure.

We first turn to the argument raised for the second time on appeal by Frazer and Ute Schmidt that the determination of the trial court declaring the sale of the marital residence to be a sham transaction was against the manifest weight of the evidence. On remand, the trial court found that the sale by Frazer to Ute was a sham transaction and that the testimony of Frazer and Ute was not credible. Frazer and Ute contend that the conveyance was an arms’ length transaction in the ordinary course of business and the sale of the residence was an attempt to conserve equity and prevent Norma from dissipating the marital estate.

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Bluebook (online)
507 N.E.2d 71, 154 Ill. App. 3d 256, 107 Ill. Dec. 407, 1987 Ill. App. LEXIS 2295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-pahlke-illappct-1987.