In re the Marriage of Peterson

778 P.2d 402, 238 Mont. 470, 1989 Mont. LEXIS 216
CourtMontana Supreme Court
DecidedAugust 23, 1989
DocketNo. 89-176
StatusPublished
Cited by2 cases

This text of 778 P.2d 402 (In re the Marriage of Peterson) 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 Peterson, 778 P.2d 402, 238 Mont. 470, 1989 Mont. LEXIS 216 (Mo. 1989).

Opinion

MR. JUSTICE HARRISON

delivered the Opinion of the Court.

This is an appeal from the First Judicial District Court, Lewis and Clark County. In this marriage dissolution action, the appellant seeks reversal of the trial court’s amended judgment and reinstatement of the original judgment which granted respondent a lesser share in the marital estate. We affirm the trial court’s amended judgment.

The issues on appeal are:

1. Did the District Court abuse its discretion by including premarital assets in the marital estate?

2. Did the District Court award more than 100 percent of the marital estate?

Leah Peterson and Norm Peterson met in early 1986. Sometime during the spring of 1986 the parties opened a joint checking account when they became engaged. Norm moved in with Leah in the home she owned. Leah maintained a separate account from which she made payments for this house and paid household bills.

From the time the parties began commingling funds in the joint checking account, both parties deposited their paychecks in the joint account. Norm’s monthly income was approximately $2,500 and Leah earned about $1,800 per month. After the parties separated Leah withdrew the $1,735 remaining in the joint account, using the monies to pay joint debts nearly equal to the amount she withdrew.

Prior to their marriage the parties decided to build a home on Cloverview Drive in Helena. Norm made a $500 down payment on the lot. To finance the new home, Leah agreed to sell her home in Helena and Norm agreed to sell a house he owned in Browning, Montana. Leah sold her home, receiving $13,400 in equity from the sale and deposited $12,600 in the couple’s joint account. Of this amount, Norm and Leah used $8,000 as a down payment on the Cloverview home. Norm’s house in Browning never was sold.

Also prior to marriage, the couple jointly borrowed $4,000 in order to buy their wedding rings, using a boat and boat trailer owned by Norm as collateral. At this time Norm transferred ownership of the trailer from himself to himself and Leah. He also gifted one-half of the boat to Leah.

Norm received $7,000 from his insurance company for coverage of a wrecked Datsun 280ZX, which money was deposited in the couple’s joint account prior to marriage. This money was used for various expenses including a $2,000 pre-marriage trip taken by [472]*472Norm. Some of the insurance money was also used to make payments on cars the couple purchased after they were married, including a 1984 Buick Skylark which Leah received and on which she also makes payments.

In April 1986, also before the marriage the parties traded a 1980 Honda owned by Leah, having a value of $1,500 for a 1986 Toyota 4 Runner. With the trade the balance owing on the Toyota was $15,000. Norm received the Toyota and continues to make payments on it. Prior to the trade, Leah paid $1,800 to rebuild the motor of the Honda.

On October 3, 1986, Norm and Leah were married in Las Vegas, Nevada.

The troubled marriage was short-lived and the couple separated in January, 1987. Leah filed a petition for Declaration of Invalidity on March 11, 1987, alleging that she had been induced into the marriage by Norm’s fraudulent promises that the parties would share equally in financial contributions to the marriage, he would control his drinking and seek counseling for his temper, and he would sell his house in Browning. In response Norm affirmatively alleged that he too was fraudulently induced to marry because he did not know of the number, nature and extent of Leah’s financial obligations prior to the marriage and that Leah failed to tell him one of her daughters from a former marriage would be living with them. Norm also asked for an annulment, stating that had Leah disclosed the above-listed information to him he would not have married her. In a later pleading Norm requested that the trial court grant an annulment or, in the alternative, a dissolution.

After the parties separated, the Cloverview home sold with the parties receiving a net of $2,236, all of which was kept by Leah. Norm also paid Leah an additional $3,000 in recognition of the fact that down payment for the Cloverview home came from the proceeds of the sale of her home. Since Norm’s Browning property never sold, Leah’s contribution to the Cloverview home was disproportionate.

The boat and trailer, half of which was now owned by Leah, was sold after the parties separated. Of the $6,000 price received, $5,400 remained after a sales commission was deducted. Norm used $4,300 of the proceeds to pay off the loan remaining on the rings and other joint debts.

The annulment/dissolution was originally heard on December 7, 1987. From this trial the District Court judge found it impossible to [473]*473make a decision because of the manner in which evidence was presented. By stipulation, the case then went before a special master, pursuant to Rule 53, M.R.Civ.P.

The special master apportioned the assets and debts of the parties and held that a dissolution rather than an annulment was proper. The special master found Leah’s assets, prior to commingling consisting of her home, the 1980 Honda with new motor, a diamond which went into Norm’s wedding ring, and personal property, to have a value of $18,450. Norm’s assets prior to commingling, including money from insurance, boat and trailer, and various business and real property interests, were valued at $177,950.

The marital estate value was placed at $14,191. Included in the martial estate were:

1. the boat and trailer $ 5,400.00
2. rings (his & hers) 4,520.00
3. proceeds from the couple’s Cloverview home 2,236.00
4. cash from joint checking account $1,735.00
5. equity in the Toyota 300.00
6. equity in the Buick 0.00
TOTAL: $14,191.00

The estate was then divided as follows:

To Norm Value
1. Toyota 300.00
2. Rings in possession 2,100.00
3. Vz interest in boat & trailer (less Vz joint debts paid from proceeds of sale of boat & trailer) 2.700.00 (2.150.00)
TOTAL: $2,950.00
To Leah Value
1. Buick 0.00
2. Cash from joint account (less joint debts paid) 1.735.00 (1.730.00)
3. Rings in possession 2.420.00
4. Vz interest in boat & trailer (less Vz joint debts paid from proceeds) (2.150.00)
TOTAL: $5,211.00

[474]*474In addition to the distribution of the marital assets, the special master decided Norm still owed Leah $550, one-half of the amount remaining from sale of the boat and trailer after payment of joint debts ($5,400 — $4,300 = 1100 — Vz = $550). Also, Norm was to pay Leah another $7,664 to compensate her for selling her home to enable the couple to make a down payment on the Cloverview home. The figure was arrived at by taking:

the amount Leah received for her home $13,400

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Cite This Page — Counsel Stack

Bluebook (online)
778 P.2d 402, 238 Mont. 470, 1989 Mont. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-peterson-mont-1989.