In Re the Marriage of Mary Jane Stock and Duane Stock Jr. Upon the Petition of Mary Jane Stock, N/K/A Mary Jane Clausen, and Concerning Duane Stock Jr.

Court of Appeals of Iowa·Decided December 24, 2014·No. 13-1944·Published

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 13-1944

Filed December 24, 2014

IN RE THE MARRIAGE OF MARY JANE STOCK AND DUANE STOCK JR.

Upon the Petition of MARY JANE STOCK, n/k/a MARY JANE CLAUSEN, Petitioner-Appellant,

And Concerning DUANE STOCK JR., Respondent-Appellee.

Appeal from the Iowa District Court for Johnson County, Paul D. Miller, Judge.

Mary Jane Stock, now known as Mary Jane Clausen, appeals the district court’s ruling distributing marital proceeds based upon the parties’ 2007 dissolution decree. She contends the court’s denial of her request to be reimbursed by Duane Stock for one-half of the amount she paid towards the parties’ mortgage and its interest while the sale of the marital farm was pending was inequitable. AFFIRMED.

Sasha L. Monthei of Scheldrup Blades P.C., Cedar Rapids, for appellant.

Barbara A. Edmondson of Honohan Epley Braddock & Brenneman L.L.P., Iowa City, for appellee.

Considered by Danilson, C.J., and Doyle and Tabor, JJ.

DOYLE, J.

Mary Jane Stock, now known as Mary Jane Clausen, and Duane Stock married in 1975. They separated in 2005 and have been fighting ever since. Although the parties’ marriage was dissolved in October of 2007, the terms of the dissolution decree and the distribution of marital-property proceeds are still in dispute.

On appeal, Mary Jane contends the court’s distribution of marital proceeds was inequitable because it did not require Duane to compensate her for half of the mortgage payments and interest she solely paid on the parties’ mortgage between the date of the dissolution decree in 2007 to the sale of the property in 2013. Upon our de novo review of the record, we agree with the district court’s well-reasoned order denying Mary’s request and find the court’s ruling to be equitable. Accordingly, we affirm.

I. Background Facts and Proceedings.

The procedural history of the case is well known to the parties, but the timing of certain factual events is critical to the overall equity analysis. We therefore set forth the following undisputed facts.

Following a trial in September 2007, the district court entered its decree dissolving the parties’ marriage on October 30, 2007. The court noted in its decree that Mary Jane had requested that the parties’ farm, which included the marital home, be awarded to her. However, Duane had asked that the farm be sold to pay off the parties’ considerable marital debts. Mary Jane had valued the property at $353,000 and Duane valued the property at $400,000, based upon an offer made by an adjoining landowner, David Hodge. Ultimately, the court

agreed with Duane that the farm should be sold to pay off marital debts, and it expressly valued the property at $400,000. However, the court’s order detailed the following specifics for the sale:

The parties’ [farm] . . . shall be sold. The property shall be placed on the market immediately. If not sold within [ninety] days, the property shall be listed with a realtor of the parties’ choice.

The proceeds from the sale shall first be applied to the mortgage, any back real estate taxes, and any other attendant expenses associated with the real estate. Joint marital debts set out in this decree shall next be paid from the proceeds prior to any division of the proceeds. Any remaining net proceeds should then be paid one-half to each of the parties.

Mary Jane may continue to reside in the home pending its sale. She shall be responsible for the mortgage, insurance, and other related expenses on the property pending its sale. Both parties shall share responsibility for any back taxes on the real estate.

Both parties are ordered to cooperate fully with the sale of the real estate parcels. Neither may unreasonably withhold approval of reasonable offers received. Either party found to have intentionally and unreasonably caused a delay in the sale of either property may be solely financially responsible for additional mortgage payments, taxes or other additional costs incurred because of the delay.

Mary Jane subsequently filed a motion to enlarge the court’s ruling on November 9, 2007, asking the court to rule on issues not relevant here.

A few days later, Mary Jane proffered an agreement to Duane seeking to purchase Duane’s interest in the farm. This proposed agreement valued the property at $400,000, pursuant to the court’s valuation; however, Mary Jane’s proposed agreement provided she would pay to Duane approximately $30,000, his remaining half of the equity in the home after all the marital debts listed to be paid in the dissolution decree were subtracted from the $400,000 valuation. The proposed agreement was silent as to how the parties’ marital debts would be satisfied if Duane accepted her offer, but Mary Jane testified she was “offering to

make those payments and give [Duane] a release from the creditors.” Duane refused Mary Jane’s proposed agreement the same day, explaining he wanted to sell the farm “to whoever will pay the most.” Duane believed at that time the adjoining landowner Hodge “may [have been] willing to pay more than $400,000. Therefore, at [that] point, [Duane was] not willing to execute any agreement with Mary Jane.” Mary Jane rejected Duane’s submission that the property be sold to the highest purchaser, stating “[t]he court valued it at $400,000. This is not a negotiation on price.” Mary Jane’s attorney advised Duane he did not believe Mary Jane would “agree to any sale to a [third] party nor [would] she agree to sell it for more than $400,000.”

The court denied Mary Jane’s post-trial motion on December 4, 2007. On December 6, Duane advised Mary Jane that he did not believe the dissolution decree gave Mary Jane the right to purchase the property for $400,000. Again, Duane indicated he had had discussions with Hodge and that Hodge was “willing to pay more than $400,000.” It was suggested that if Mary Jane wanted to buy the farm, she “submit an offer. That offer [would] then be shared with [Hodge] to see if he wants to raise it, and a two-person auction should be held until such time as one of the parties has been successful.”

On December 10, Mary Jane filed a motion requesting the court enter an order directing that the farm be sold to her pursuant to the terms of her originally proposed agreement, i.e., a purchase price of approximately $30,000 to Duane. On December 19, Mary Jane signed and submitted to Duane the agreement. The cover letter to Duane states the purchase price “subtracts from the debts owed, which Mary Jane is agreeing to either assume and have you released from

or pay.” It also states it “expect[s] they will want to withhold the amount of money that you owe Mary Jane under the terms of the Decree from the $29,799.79 they are paying you.” On December 26, Duane proffered to Mary Jane a revised proposed agreement to purchase the farm. The principal difference was that it provided Mary Jane was to pay the entire purchase price of $400,000 at closing and that the parties’ joint marital debts would be paid from the sale proceeds. On December 31, 2007, Mary Jane filed notice she was appealing the district court’s decree. Duane filed his notice of cross-appeal of the court’s decree the same day.

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In Re the Marriage of Mary Jane Stock and Duane Stock Jr. Upon the Petition of Mary Jane Stock, N/K/A Mary Jane Clausen, and Concerning Duane Stock Jr., (iowactapp 2014).

In Re the Marriage of Mary Jane Stock and Duane Stock Jr. Upon the Petition of Mary Jane Stock, N/K/A Mary Jane Clausen, and Concerning Duane Stock Jr. (In Re the Marriage of Mary Jane Stock and Duane Stock Jr. Upon the Petition of Mary Jane Stock, N/K/A Mary Jane Clausen, and Concerning Duane Stock Jr.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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