In Re the Marriage of Cole

763 P.2d 39, 234 Mont. 352, 1988 Mont. LEXIS 311
CourtMontana Supreme Court
DecidedOctober 20, 1988
Docket88-254
StatusPublished
Cited by23 cases

This text of 763 P.2d 39 (In Re the Marriage of Cole) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Marriage of Cole, 763 P.2d 39, 234 Mont. 352, 1988 Mont. LEXIS 311 (Mo. 1988).

Opinion

MR. JUSTICE HUNT

delivered the Opinion of the Court.

The husband in a dissolution action appeals from a decree of the Eighteenth Judicial District Court, Gallatin County. We affirm the District Court and remand for a determination of reasonable attorney’s fees incurred by the wife on this appeal.

The issues raised on appeal are:

1. Whether the District Court properly considered the factors delineated in the Montana maintenance statute, Section 40-4-203, MCA, when it awarded maintenance to the wife.

2. Whether the maintenance award is based on substantial credible evidence.

The parties were married on July 18, 1975. Shortly after the marriage, in January, 1976, the husband, his brother and his father formed a farming partnership. The husband and his brother each received a 25 percent share in the business and their father retained the remaining interest.

Prior to December 29, 1987, the partnership was indebted to Norwest Bank of Billings in the amount of approximately $574,000, plus $55,000 interest. On December 29,1987, one day before the dissolution hearing that is the subject of this appeal, the partners restructured their loan with the bank. The agreement does not increase the amount of the original debt but gives the partners the authority to borrow additional funds up to a total approximate debt of $748,000.

The loan agreement allows the partners to take draws of $5,500 per month, with $2,500 going to the father and the husband and his *354 brother splitting equally the remaining $3,000. No other salaries are drawn by the partners and no bonuses are given. The loan agreement requires that all profits be applied toward the debt or the purchase of new equipment.

The District Court found that the husband’s share of the partnership was a minority interest in a closely-held family business and for that reason was not saleable to an outside buyer.

The District Court valued the partnership at $1,019,733, and the husband’s 25 percent share at $254,933. The court then reduced the value of the interest by 30 percent to take into account the share’s nonmerchantability, the partnership’s high debt load and a discount for machinery. The court concluded that, after the 30 percent reduction, the husband’s interest equaled $178,453. The court found that his share of the debt was $158,440.

The husband also owns a 50 percent interest in 105 acres of farmland. He and his brother purchased the land in 1985 with a $130,000 loan. Unfortunately, land values dropped. The husband’s interest in the land, $50,000, is presently valued at less than his share of the debt, $64,000. The partnership farms the land, although it pays no rent for the acreage.

The wife is 34 years old. She has a degree in home economics from Montana State University. During the marriage, she regularly worked outside the home in addition to her duties as homemaker. She has been employed as a teacher, travel agent, employment counselor and door-to-door salesperson. She has also engaged in business ventures, although with little success. Her earnings have averaged approximately $4.00 per hour. In 1987, she earned $5,203 selling cable television subscriptions in Colorado and Nevada.

The wife filed a petition for dissolution of marriage on October 7, 1986. A one day hearing was held on December 30, 1987. The District Court issued its findings of fact and conclusions of law on February 24, 1988.

The trial court awarded the parties joint custody of their one son, Wesley, age 10. The court gave temporary physical custody of the son to the husband while the wife moved to another area to look for a new job. Once the wife is settled, she may apply to the court for physical custody of the child. The husband has agreed to pay child support of $250 per month in the event physical cústody of the child is given to the wife. The wife is not required to pay child support while Wesley resides with the husband.

The court divided the property of the parties, awarding the wife *355 assets valued at a total of $12,975. The award included a 1985 Jeep and camper, a 1953 Chevrolet limousine, and various household furnishings. The wife was also ordered to pay $9,250 in liabilities, leaving her with a net of $3,725.

The court granted the husband his entire interest in the partnership as well as his interest in the 105 acres of land. In addition, the husband was awarded several household items, a 1981 BMW, and the family home. The court found that the home had a value of $48,000 but was mortgaged at $52,231. The total value of the assets awarded to the husband equaled $290,403. The husband was ordered to assume liabilities of $293,671, including the partnership debt and the mortgages on the house and the farmland. Subtracting the liabilities from the assets, the husband received a negative net of $3,268.

The District Court also ordered the husband to pay maintenance to the wife in the sum of $500 per month for 10 years. The husband contends this award of maintenance was improper because the District Court failed to consider the factors set out in Section 40-4-203, MCA, and because the award was not based on substantial credible evidence.

Our standard of review in dissolution cases is limited. We will not disturb a District Court’s judgment that is based on substantial credible evidence unless a clear abuse of discretion is shown. In Re the Marriage of Stewart (Mont. 1988), [232 Mont. 40,] 757 P.2d 765, 767, 45 St.Rep. 850, 852. Although the District Court in the instant case failed to make findings specifically tailored to the elements delineated in Section 40-4-203, MCA, it did not abuse its discretion in making the maintenance award. It is evident from the findings that the lower court considered the proper factors in granting the wife maintenance and that the award was based on substantial credible evidence.

An award of maintenance may be granted only if the spouse seeking maintenance meets the requirements of Section 40-4-203(1), MCA. In Re the Marriage of Johnsrud (1977), 181 Mont. 544, 548, 572 P.2d 902, 905. That section provides:

“(1) In a proceeding for dissolution of marriage or legal separation or a proceeding for maintenance following dissolution of the marriage by a court which lacked personal jurisdiction over the absent spouse, the court may grant a maintenance order for either spouse only if it finds that the spouse seeking maintenance:
*356 “(a) lacks sufficient property to provide for his reasonable needs; and
“(b) is unable to support himself through appropriate employment or is the custodian of a child whose condition or circumstances make it appropriate that the custodian not be required to seek employment outside the home.”

Maintenance payments supplement the property division.

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

Related

Marriage of Labeau
2015 MT 174N (Montana Supreme Court, 2015)
In Re the Marriage of Rudolf
2007 MT 178 (Montana Supreme Court, 2007)
In Re the Marriage of Hanni
2000 MT 59 (Montana Supreme Court, 2000)
Marriage of Dunn
Montana Supreme Court, 1997
Marriage of Harrison
Montana Supreme Court, 1997
In Re the Marriage of Chew
888 P.2d 428 (Montana Supreme Court, 1995)
In Re the Marriage of Corey
880 P.2d 824 (Montana Supreme Court, 1994)
Marriage of Burris v. Burris
852 P.2d 616 (Montana Supreme Court, 1993)
In Re the Marriage of Newton
844 P.2d 47 (Montana Supreme Court, 1992)
In Re the Marriage of Dorville
836 P.2d 588 (Montana Supreme Court, 1992)
In Re the Marriage of Tahija
833 P.2d 1095 (Montana Supreme Court, 1992)
In Re the Marriage of Sacry
833 P.2d 1035 (Montana Supreme Court, 1992)
In Re the Marriage of Jacobson
825 P.2d 561 (Montana Supreme Court, 1992)
In Re the Marriage of Greenlee
816 P.2d 1073 (Montana Supreme Court, 1991)
In Re the Marriage of Dunn
809 P.2d 571 (Montana Supreme Court, 1991)
In Re the Marriage of Sullivan
794 P.2d 687 (Montana Supreme Court, 1990)
In Re the Marriage of Ernst
793 P.2d 777 (Montana Supreme Court, 1990)
Marriage of Ernst
Montana Supreme Court, 1990
In Re the Marriage of Jones
788 P.2d 1351 (Montana Supreme Court, 1990)
In Re the Marriage of Anderson
783 P.2d 1372 (Montana Supreme Court, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
763 P.2d 39, 234 Mont. 352, 1988 Mont. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-cole-mont-1988.