In Re the Marriage of Richards

472 N.W.2d 162, 1991 Minn. App. LEXIS 625, 1991 WL 103050
CourtCourt of Appeals of Minnesota
DecidedJune 18, 1991
DocketC7-90-2426
StatusPublished
Cited by25 cases

This text of 472 N.W.2d 162 (In Re the Marriage of Richards) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota 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 Richards, 472 N.W.2d 162, 1991 Minn. App. LEXIS 625, 1991 WL 103050 (Mich. Ct. App. 1991).

Opinion

OPINION

PETERSON, Judge.

Appellant challenges the trial court’s modification of spousal maintenance. Appellant argues the trial court should have made specific findings on respondent’s motive for causing a decrease in income by retiring early, and on her motion for attorney fees. We agree, and remand this case to the trial court for further proceedings consistent with this opinion.

FACTS

The facts of this case are not in dispute. The appellant, Nancy, is 57 years old, and the respondent, Robert, is 58 years old. The parties were married in 1954 and divorced on February 25, 1987. They have no minor children and Robert has since remarried.

Throughout the marriage, Robert worked at 3M and Nancy worked as a homemaker. The parties enjoyed a comfortable standard of living, including a large home in Stillwater, various securities and real estate holdings, and numerous vacations. Nancy raised the children and supervised the household in lieu of developing marketable skills and a personal employment and credit history. Nancy currently suffers from a variety of debilitating ailments.

Upon divorce the court awarded each party approximately $87,400 in cash and property. Robert’s 3M pension, valued at $50,556, was awarded to him “free and clear” and Nancy was awarded $37,300 in cash for her interest in Robert’s pension. The court further awarded Nancy $1800 per month in permanent spousal maintenance based on Robert’s gross 1986 income of $5872 per month.

Following the divorce, Nancy obtained a part-time job as a hospital secretary where she earns $585 net per month. She lives in a $70,000 home with $18,000 in equity. Her investments are worth $41,500 and she has savings of $20,000, all of which is being saved for retirement as she has no pension in addition to social security.

Robert continued working at 3M and his gross monthly income rose to $7404. The value of Robert’s pension rose significantly due to generous restructuring of the plan by 3M following the divorce. Under the plan, Robert is permitted to retire early; however, “normal” retirement is at age 65. Robert will turn 65 on February 1, 1998.

On June 26,1990 Robert filed a motion to terminate spousal maintenance based on an anticipated decrease of income following his early retirement on September 1, 1990. The trial court found that Robert’s gross *164 monthly post-retirement income would be $3771 as compared to a gross monthly income of $5872 at the time of the divorce. The court found that Robert’s post-retirement expenses would be $3345 monthly. The court also found that Nancy’s current gross monthly income was $637 and that her monthly expenses were $2664.

The trial court found that a substantial change of circumstances would occur when Robert’s cash receipts decreased following retirement, and that his cash receipts would be derived primarily from property rights previously awarded to him. The court concluded the change rendered the original maintenance award unreasonable and unfair, and ordered modification pursuant to Krusckel v. Krusckel, 419 N.W.2d 119 (Minn.App.1988).

In accordance with Krusckel, the court awarded Nancy no part of Robert’s $3771 pension income, and decreased Nancy’s maintenance to $841 per month, the full amount of Robert’s nonpension income. The court made no specific findings on Robert’s motive for retiring early and entered no specific order or findings on Nancy’s motion for attorney fees.

ISSUES

I. Did the trial court err by modifying maintenance without making specific findings on the obligor’s motives for retiring early and sustaining a substantial decrease of income?

II. Did the trial court err in setting maintenance without considering a substantial increase in the obligor’s monthly pension payments since the time of the divorce?

III. Did the trial court err by refusing to award attorney fees without making specific findings on statutory criteria involving the motives and financial positions of the parties?

ANALYSIS

I.

A court may modify spousal maintenance upon a showing of substantially increased or decreased earnings of a party that makes the terms of the original decree unreasonable and unfair. Minn. Stat. § 518.64, subd. 2 (1990). All orders and decrees in family court proceedings shall contain particularized findings of fact sufficient to support the determination of maintenance. Stich v. Stich, 435 N.W.2d 52, 53 (Minn.1989).

In this case, the trial court decreased maintenance pursuant to Kruschel v. Kruschel, 419 N.W.2d 119 (Minn.App.1988). In Krusckel the court decreased maintenance upon the obligor’s voluntary retirement. Even though the obligor’s post-retirement pension income was the same as his previous wage income, the court held that the shift from wage income to income generated from property rights previously awarded to him was a substantial change of circumstances. The court reasoned that the change made the original decree unreasonable because property awards are final, and payment of maintenance from pension income would improperly modify the original property award. Id. at 122. See Minn. Stat. § 518.64, subd. 2 (all divisions of real and personal property shall be final). The obligor’s motive for retiring early was not at issue in Krusckel.

Nancy concedes that the rule of Krus-chel applies to this case. However, Nancy argues the trial court erroneously modified support in this case because the court failed to make specific findings on Robert’s motives for retiring early. Nancy contends that Robert deliberately retired early in order to avoid or reduce spousal maintenance, and she clearly raised and argued this issue before the trial court. Nancy produced two affidavits from adult sons of the parties stating that Robert told them he was retiring early partly to avoid paying maintenance. Robert did not expressly deny those statements. Instead, Robert stated he was retiring because of unfavorable changes in his position and because of subtle but persistent pressure from a youth-oriented management.

Where an obligor voluntarily creates a change of circumstances, the trial court should consider the obligor’s motives. *165 If the change was made in good faith, then the obligee should share in the hardship as if the parties had remained together. Giesner v. Giesner, 319 N.W.2d 718, 720 (Minn.1982). In Giesner, an obligor moved to reduce maintenance because he used all of his assets to start his own business after losing his job. The court stated the rule above and remanded the case for consideration of the obligor’s subjective intent along with the other modification factors listed in Minn.Stat. § 518.64, subd. 2. Following Giesner,

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Bluebook (online)
472 N.W.2d 162, 1991 Minn. App. LEXIS 625, 1991 WL 103050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-richards-minnctapp-1991.