In re Marriage of Rocksvold and Orvella

CourtCourt of Appeals of Iowa
DecidedDecember 5, 2018
Docket18-0196
StatusPublished

This text of In re Marriage of Rocksvold and Orvella (In re Marriage of Rocksvold and Orvella) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa 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 Rocksvold and Orvella, (iowactapp 2018).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 18-0196 Filed December 5, 2018

IN RE THE MARRIAGE OF EMILY ROCKSVOLD AND ANDREW ORVELLA

Upon the Petition of EMILY ROCKSVOLD, Petitioner-Appellant,

And Concerning ANDREW ORVELLA, Respondent-Appellee. ________________________________________________________________

Appeal from the Iowa District Court for Winneshiek County, John J.

Bauercamper, Judge.

Emily Rocksvold appeals, and Andrew Orvella cross-appeals, from the

decree dissolving their marriage. AFFIRMED AS MODIFIED ON APPEAL;

AFFIRMED ON CROSS-APPEAL.

Erik W. Fern of Berry Law Firm, Decorah, for appellant.

Crystal L. Usher of Nazette, Marner, Nathanson & Shea, LLP, Cedar

Rapids, for appellee.

Heard by Vogel, P.J., and Vaitheswaran and McDonald, JJ. 2

VAITHESWARAN, Judge.

Parties to a divorce decree appeal and cross-appeal from the property

distribution, spousal support, custody, visitation, and attorney-fee provisions of the

decree.

I. Background Facts and Proceedings

Emily Rocksvold and Andrew Orvella married in 2011 and divorced in 2017.

They had one child, born in 2012.

Rocksvold was thirty-nine years old at the time of trial. She obtained a

Bachelor of Science degree in geology and held various jobs over the years. When

she met Orvella, she was working for an environmental and geotechnical

consulting and engineering firm in Minnesota as an environmental scientist. She

earned $48,000 a year “plus quarterly bonuses based on billable hours.” The

position carried health and retirement benefits. Shortly before her marriage to

Orvella, Rocksvold resigned her position. In a letter of resignation, she stated her

decision was precipitated in part by her wish to better support Orvella and his 2000-

acre farming operation. She testified to Orvella’s assurances that he would be

able to support her, as well as her child from another relationship, on his income

of approximately $150,000 annually.

Following the marriage, Rocksvold worked briefly in her field. At the time of

trial, she was employed as a substitute para-educator in two local school systems.

Orvella graduated from high school in 2004 and attended a college of

business for one year. After that point, he began farming with his father. He

entered the cattle business for a year but returned to crop farming. At the time of

trial, he worked as a truck driver. 3

Rocksvold filed the dissolution petition in 2015. Until the filing, she served

as primary caretaker of the child. After the filing, the district court granted the

parents temporary joint physical care of the child. The court also ordered Orvella

to pay temporary spousal support of $700 per month as well as child support.

Two-and-a-half years elapsed between Rocksvold’s filing of the petition and

trial. During that period, Rocksvold filed several motions to compel disclosure of

Orvella’s income and assets. Some were resolved by agreement and others were

granted by the court.

Following trial, the district court divided the parties’ assets and liabilities but

declined to award Rocksvold a cash equalization payment. The court also

declined to award her spousal support. The court granted Rocksvold physical care

of the child and ordered visitation with Orvella. Orvella was ordered to pay $1500

towards Rocksvold’s trial attorney fees.

II. Cash Equalization Payment

Rocksvold contends the district court acted inequitably in declining to grant

her a cash equalization payment. She seeks $200,000, payable in annual $50,000

increments. She grounds the request on Orvella’s transfer and removal of assets

following her filing of the dissolution petition and his failure to fully disclose his

assets.

“A court may generally consider a spouse’s dissipation or waste of marital

assets prior to dissolution when making a property distribution.” In re Marriage of

Kimbro, 826 N.W.2d 696, 700 (Iowa 2013). “The dissipation doctrine applies when

a spouse’s conduct during the period of separation ‘results in the loss or disposal 4

of property otherwise subject to division at the time of divorce.’” Id. at 700–01

(citation omitted).

Rocksvold established that Orvella dissipated assets. A certified public

accountant she retained as an expert witness prepared a report finding that Orvella

reported “a $499,362 reduction in net worth” during a period after Rocksvold filed

her petition. The expert opined that the reduction did “not appear reasonable since

there were no reported losses from sales of fixed assets and/or any other evidence

of an ‘event’ which would cause such a substantial decrease in net worth over such

a short period of time.” The expert cited several instances of underreported assets.

At trial, the expert first noted issues with Orvella’s cash flow. He stated

there was “something significantly wrong with the numbers that were reported on

Mr. Orvella’s 2015 tax return.” Specifically, he failed to report “approximately

$350,000 of income.” As for Orvella’s net worth, the expert reaffirmed his earlier

conclusion that Orvella’s reduction in net equity occurred after Rocksvold filed her

dissolution petition. When asked if “it appear[ed] that” Orvella had “inaccurately

reported his financial condition,” the expert responded, “I think I can go farther than

saying . . . it appears. Mr. Orvella, in my opinion, has definitely misstated his

financial position.” He testified he was “[v]ery confident” in his conclusion.

The district court found “the appraisal method and conclusions of

[Rocksvold’s] expert to be the most credible evidence on financial issues.” We

give weight to this finding. In re Marriage of Hoffman, 867 N.W.2d 26, 32 (Iowa

2015). We also give weight to the court’s finding that Orvella lacked “credibility

regarding many of his financial transactions.” Id. Based on these findings, we

conclude Roksvold was entitled to a cash property settlement. 5

We turn to the amount. Rocksvold’s expert opined that “the most

appropriate net worth to consider” in the face of Orvella’s underreporting was

$425,637. Rocksvold’s request for $200,000 figure is slightly less than fifty percent

of Orvella’s adjusted net worth. Given the relatively short duration of the marriage

and Orvella’s ownership of the lion’s share of assets brought into the marriage, we

conclude Rocksvold’s proposed figure is too high. A lesser amount is more

equitable.

The primary asset jointly purchased during the marriage was a home. The

couple filed a pretrial stipulation listing the fair market value of the home as

$200,000 and the mortgage as $144,420. This left equity of $55,580. In light of

Orvella’s significant non-disclosures and dissipation of assets, we modify the

dissolution decree to provide that Orvella shall pay Rocksveld the entire home

equity of $55,580 as a cash property settlement within 180 days of the filing of

procedendo.

III. Alimony

Rocksvold contends the district court acted inequitably in declining to grant

her any spousal support. She requests an award of $1500 per month for three

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Related

In Re the Marriage of Francis
442 N.W.2d 59 (Supreme Court of Iowa, 1989)
In Re the Marriage of Hansen
733 N.W.2d 683 (Supreme Court of Iowa, 2007)
In Re the Marriage of Berning
745 N.W.2d 90 (Court of Appeals of Iowa, 2007)

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In re Marriage of Rocksvold and Orvella, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-marriage-of-rocksvold-and-orvella-iowactapp-2018.