In re the Marriage of Shanks

805 N.W.2d 175, 2011 Iowa App. LEXIS 653, 2011 WL 2694710
CourtCourt of Appeals of Iowa
DecidedJuly 13, 2011
DocketNo. 09-1267
StatusPublished
Cited by19 cases

This text of 805 N.W.2d 175 (In re the Marriage of Shanks) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa 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 Shanks, 805 N.W.2d 175, 2011 Iowa App. LEXIS 653, 2011 WL 2694710 (iowactapp 2011).

Opinion

SACKETT, C.J.

Randall J. Shanks appeals and Teresa E. Shanks cross-appeals from a July 24, 2009, order dividing property and establishing alimony. Randall and Teresa contend the property division is contrary to the provisions of a premarital agreement. Randall contends the alimony and attorney fee awards to Teresa are not equitable. We affirm as modified.

BACKGROUND. Randall and Teresa were married in Jamaica on April 23, 1998. This was a second marriage for both parties. They executed a premarital agreement ten days before their marriage. On November 23, 2004, Randall filed a petition seeking dissolution of the marriage. He requested, among other things, that the district court order specific performance of the parties’ premarital agreement. Teresa contended the agreement should not be enforced. Trial was bifurcated and the first portion addressed the validity of the premarital agreement and the district court denied enforcement of it. In the second trial the district court addressed division of property, alimony, and attorney fees. Appeal was taken to the supreme court from the findings of both judges.1 The case was transferred to this court and on March 14, 2007, we affirmed both decisions in an unpublished decision. In re Marriage of Shanks, No. 06-0557, 2007 WL 750643 (Iowa Ct.App. Mar. 14, 2007).

Randall sought further review which the supreme court granted. On December 12, 2008, that court filed a decision. In re Marriage of Shanks, 758 N.W.2d 506 (Iowa 2008). The court noted that premarital agreements executed on or after January 1, 1992, are subject to the requirement of the Iowa Uniform Premarital Agreement Act (IUPAA) codified in Iowa Code chapter 596.2 Id. at 511. The court concluded the premarital agreement was voluntarily executed, conscionable, and enforceable. Id. at 512-19. It affirmed the dissolution of the marriage, vacated our decision, affirmed in part and reversed in part the district court, and remand to the district court for further proceedings consistent with its opinion. Id. at 519.

[177]*177The matter returned to the district court. It came on for trial on May 13, 2009. On July 29, 2009, the district court filed its order. It recognized the premarital agreement and divided the parties’ equities according to what it determined were its terms. It also fixed alimony for Teresa, fixed costs, and required Randall to pay additional attorney fees. On August 19, 2009, Randall filed a notice of appeal. Teresa cross-appealed. The matter was transferred to this court.

SCOPE OF REVIEW. Dissolution proceedings are equitable actions that we review de novo. Iowa R.App. P. 6.4. Premarital agreements are construed in the same manner as ordinary contracts. In re Marriage of Spiegel, 553 N.W.2d 309, 316 (Iowa 1996) (superseded by statute as recognized by Shanks, 758 N.W.2d at 510-11).

DIVISION OF PROPERTY. Both parties challenge the property division made by the district court. Randall challenges the valuation and division of joint property. Teresa argues that she should have twenty percent of the proceeds from the sale of the parties’ marital residence.

A. Joint Property. The premarital agreement provided that Teresa be entitled to fifteen percent of the property purchased by the parties with funds from their joint checking account if the marriage lasted more than five and less than ten years. The marriage lasted six and one-half years. The district court valued property purchased jointly at $80,370.15 and determined fifteen percent of this property was $12,056. The court found Teresa had received joint property worth $33,160. The court required her to reimburse Randall in the amount of $21,104.

Randall contends that the jointly owned property was valued at $67,015 and Teresa’s fifteen percent of that amount should be $10,052.25. He also contends that Teresa had jointly owned property in her possession worth $47,472.75, so Teresa should reimburse him in the amount of $37,472.75. Randall contends Teresa came into the marriage with $27,850 in assets and the district court decision means she leaves the marriage with $99,457.64 in assets, a 257% increase in value. Teresa contends the district court correctly valued the parties’ joint assets.

The dispute on this issue focuses mainly on values placed by the district on property it considered jointly owned, on whether jewelry should be considered joint property or be treated as a gift, and on whether Teresa should be charged with funds she took from Randall’s office account to pay for repairs of her daughter’s car prior to separation.

Valuation is difficult and trial courts are given considerable leeway in resolving disputes as to valuations. See In re Marriage of Dennis, 467 N.W.2d 806, 808 (Iowa Ct.App.1991). We will not disturb the district court’s valuation of assets if it is within a permissible range of the evidence. In re Marriage of Sullins, 715 N.W.2d 242, 251 (Iowa 2006) (citing In re Marriage of Bare, 203 N.W.2d 551, 554 (Iowa 1973)). Here, the district court’s valuations are within the permissible range of the evidence and we find no reason to disagree with its valuations. We find its treatment of the other issues equitable and not in violation of the premarital agreement. We affirm on this issue.

B. Proceeds from Sale of Residence. Teresa contends the district court should have given her the “share of the marital homes to which she is entitled under the premarital agreement.” Teresa contends the district court did not correctly handle the equity in the personal residence. The parties had three homes over the course of the marriage and at the time of the dissolution hearing the third home [178]*178had been sold. They appeared to have sold one home and put the proceeds in the second and then sold the second and put the proceeds in the third.

Teresa admits, as the district court found, that the premarital agreement did not require the parties’ homes to be put in both parties’ names. While the premarital agreement required her to put money in the first home that was being constructed at the time of the marriage, she acknowledges she did not have documentary proof she put money in the home. The district court appears to have given her credit for decorating the homes, and valued these services at $3000, but the court did not find she had put money in the homes, and did not give her a share of the proceeds.

The premarital agreement provided that Teresa should put $15,000 from the sale of her home in the home the parties were constructing at the time of marriage, and then she should make monthly payments of $500 on the mortgage. She did not do this. The premarital agreement provided that the homestead would be owned eighty percent by Randall and twenty percent by Teresa. However the percentages were to be applied only after the respective parties were compensated for their contributions to the property and any encumbrances on the property were paid.

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Bluebook (online)
805 N.W.2d 175, 2011 Iowa App. LEXIS 653, 2011 WL 2694710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-shanks-iowactapp-2011.