In Re Shaw

66 B.R. 399, 1986 Bankr. LEXIS 5183
CourtUnited States Bankruptcy Court, N.D. Ohio
DecidedOctober 7, 1986
Docket19-10313
StatusPublished
Cited by3 cases

This text of 66 B.R. 399 (In Re Shaw) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Shaw, 66 B.R. 399, 1986 Bankr. LEXIS 5183 (Ohio 1986).

Opinion

MEMORANDUM OP OPINION AND ORDER

RANDOLPH BAXTER, Bankruptcy Judge.

This matter is before the Court upon the objection of the Debtor, Allen W. Shaw, to a proof of claim filed by his former spouse, Jana R. Shaw, and the objection to confirmation of Plan filed by Jana R. Shaw. Due notice of the hearing was made upon all parties entitled thereto.

Pursuant to the requirements of Rule 7052 of the Bankruptcy Rules of Procedure, the following constitutes the findings of this Court:

The Debtor, Allen W. Shaw, caused to be filed his petition under Chapter 13 proceedings in September of 1985, seeking, inter alia, to discharge a certain indebtedness which resulted from an earlier divorce proceeding adjudicated in the Domestic Relations Division of the Common Pleas Court of Cuyahoga County (Shaw v. Shaw, No. D152422, June 15, 1985). During the course of the Chapter 13 proceedings, the Debtor’s former spouse, Jana R. Shaw, and her attorney objected to the confirmation of Debtor’s Plan and filed proofs of claims for debts classified by Jana R. Shaw as nondischargeable alimony. These claims, purportedly, were predicated upon the terms of the divorce decree and an alleged in-court (Domestic Relations) settlement, and concern a $2,000.00 fee to be paid to the attorney of Debtor’s former spouse.

*400 In his dispute of the subject claims, the Debtor contends that the in-court settlement agreement, which was submitted to the Domestic Relations Court by his former spouse, did not embody the true agreement of the parties. He further contends that should this Court determine that the separation agreement does correctly reflect the terms agreed to by the parties therein, his disputed financial obligation is nevertheless dischargeable under the Bankruptcy Code, per § 523.

The pivotal issue before the Court for determination is whether there is an enforceable embodiment of terms relating to nondischargeable alimony rights set forth in the Separation Agreement. In approaching this issue, the Court’s attention is principally directed to the requirements of 11 U.S.C. § 523, wherein a debt is non-dischargeable only if it is specifically excepted under one of the subsections of § 523. In the adducement of evidence supporting its position, Rule 4005 of the Bankruptcy Procedural Rules places the burden of proving the objection on the party seeking nondischargeability. Such burden is to be proved by a fair preponderance of the evidence. In Re Wightman, 36 B.R. 246, 250 (Bankr.D.N.D.1984). Therefore, in the matter at bar, it is incumbent upon Jana Shaw, Debtor’s former spouse, to establish by the requisite burden of proof that her debt is within one of the statutory exceptions. 1

It is well-established that for a debt to be nondischargeable under § 523(a)(5), the subject indebtedness must be for or in the nature of alimony or support. The agreement for such maintenance or support can not be wholly unrelated to one of the aforesaid documents. If it is, liability for the maintenance or support will be deemed dis-chargeable.

Our approach to a determination of this issue is further guided by the long-standing maxim that dischargeability is to be determined by the substance of the liability, as opposed to its form. See, Pepper v. Litton, 308 U.S. 295, 60 S.Ct. 238, 84 L.Ed. 281 (1939), Further, the scope of the Court’s determination of this matter is confined to whether the supporting documentation expressed any duty of support. In examining these supporting documents to ascertain the intent of the parties, the applicable test is whether the payment obligation is directly referrable to a matrimonial obligation for alimony, maintenance or support. See, Golden v. Golden, 411 F.Supp. 1076 (S.D.N.Y.1976); affirmed, 535 F.2d 213 (2d Cir.1976); See, also, In Re: Spong, 661 F.2d 6 (2d Cir.1981); In Re Hill, 26 B.R. 156 (Bankr.S.D.Ohio 1983).

The disputed payment obligations in the matter at bar concern the attorney fees for the Debtor’s former spouse’s attorney, child support obligations, and certain alleged alimony obligations. 2 First the Court will address the Creditors’ contentions that the Debtor owed certain sums which represented alimony, to which the Debtor seeks a discharge. The Judgment Entry of Divorce, which was decreed by the State court and signed by the parties’ respective counsel, was prepared by the former spouse’s lawyer and provided at page 4 that the Debtor would pay his former spouse’s attorney the sum of $2,000.00 in $100.00 installments, “as and for alimony and property division.” It is further noted at the end of said Judgment that the Debt- or’s counsel signed the Judgment with a reserved comment which read “Objection to substance[,] signature to form only.” The testimony received at the hearing of this matter further presented controverted evidence regarding the objection of the Debt- or to the judgment’s substance. Subse *401 quent to the journalization of the divorce decree, but prior to this Court hearing the present matters, the Debtor caused to be filed in the State court a motion to have his former spouse appear and show cause why she should not be held in contempt for misrepresenting terms of the Separation Agreement which merged into the final decree of divorce. 3

The underlying Separation Agreement that was executed between the Debtor and his former spouse was exhibited to the Court and was examined. The Separation Agreement contained several sections. As an expression of the parties’ assent to each of the sections thereof, they affixed their respective initials thereto. Of particular note, it is remarkable that of the several items initialed, there was no initial by either party at the section entitled “Separate Maintenance And Support (Alimony),” at page 2 of the Separation Agreement. Even the handwritten page which was inserted by the parties between pages 2 and 3 of the Separation Agreement (referred to by the parties as page 2.5), is significant and reads:

“husband will pay Sohio, May Co, Shell & AMCO if accounts are still open, or balances outstanding. All debts pd or to be pd by husbands, are paid as a form of alimony, & husband shall not discharge said obligation, in bankruptcy court.”

Again, an examination of page 2.5 of the Separation Agreement where the above-quoted entry was entered does not contain the initials of either the Debtor nor of his former spouse as an expression of their assent to this later insertion. Even the testimony of Jana Shaw, upon examination, revealed that the Debtor did not agree to the inserted language which appears above. On the other hand, also at page 2.5, the Debtor and his former spouse both affixed their signatures to another handwritten entry pertaining to a division of financial responsibilities for the college education of their minor child.

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Cite This Page — Counsel Stack

Bluebook (online)
66 B.R. 399, 1986 Bankr. LEXIS 5183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-shaw-ohnb-1986.