In Re the Marriage of Smith

871 P.2d 884, 264 Mont. 306, 51 State Rptr. 277, 1994 Mont. LEXIS 72
CourtMontana Supreme Court
DecidedMarch 24, 1994
Docket93-241
StatusPublished
Cited by26 cases

This text of 871 P.2d 884 (In Re the Marriage of Smith) 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 Smith, 871 P.2d 884, 264 Mont. 306, 51 State Rptr. 277, 1994 Mont. LEXIS 72 (Mo. 1994).

Opinions

JUSTICE HUNT

delivered the Opinion of the Court.

Petitioner/appellant, Jeff Smith, appeals from a final decree of dissolution from the Fourth Judicial District Court, Missoula County, ordering the establishment of a trust fund for the minor child and child support, reassigning custodianship of another trust account for the minor child, evaluating the marital estate, and awarding cash, monthly maintenance, and attorney fees to respondent, Lisa Smith.

We affirm in part, reverse in part, and remand for further proceedings in accordance with the provisions of this opinion.

Appellant raises the following issues on appeal:

1. Did the District Court err when it ordered Jeff to establish a $200,000 trust account for the parties’ minor child?

2. Did the District Court err when it ordered the minor child’s trust account to be set up under the joint control of petitioner and respondent?

3. Did the District Court erroneously evaluate the marital estate?

4. Did the District Court err when it awarded Lisa $500,000 in cash?

5. Did the District Court err when it awarded Lisa $1250 in monthly maintenance in addition to $500,000 in cash?

6. Did the District Court err when it awarded Lisa $1250 in monthly child support?

7. Did the District Court abuse its discretion when it ordered Jeff to pay Lisa’s attorney fees?

The parties married on June 21, 1986, at Buckingham, Virginia. It was Jeff’s third marriage, and Lisa’s second. Jeff is 34 years old and Lisa is 31. The parties have lived in Missoula since 1989. One child was born the issue of the marriage. The parties separated in February 1991 when the child was six months old. Lisa has provided the day-to-day care for the child. Jeff is frequently out of the Missoula area on trips, and during the separation he did not visit the child on [309]*309a regular basis. Lisa testified that the reasonable monthly expenses for her and the child are approximately $2500.

Jeff is a high school graduate. He attended college, but did not receive a degree. He attended outdoorsman school and is a certified dive master, a multi-engine rated pilot, and a licensed hot rod driver. Jeff has worked in Montana as a trapper, started a video business, and has been an entrepreneur. He inherited $1,696,164 in distributions from his mother’s estate, approximately $2.1 million dollars in insurance proceeds, and expects to receive approximately $6 million more from her estate.

Lisa is a high school graduate who also attended outdoorsman school and one adult education class each in art and photography. She has worked as a food preparer in a small cafe, as a farm hand on Jeff’s family horse farm in Virginia, and for a short time as a trapper. She aided her husband in the beginning of a video business and in a communications business. She has been a homemaker and a full-time mother of the parties’ minor child. In addition, she was a hostess for Jeff’s business clients in their home.

Jeff testified that he had intended to set up a trust fund for the child by purchasing an annuity, and that he had already researched the cost of the annuity. Also, prior to her death, Jeff’s mother gifted $20,000 to the parties’ minor child in the form of a check delivered to Montana, naming Jeff as the custodian of that account. Thereafter, Jeff borrowed $15,000 of the gift for his business, Underwater Fantaseas. Jeff maintained that the money had been invested, but the record does not reveal that he has protected the investment. Further, Jeff testified that he planned to sell one-half of the stock in the corporation to his companion for $1000.

ISSUE 1

Did the District Court err when it ordered Jeff to establish a $200,000 trust account for the parties’ minor child?

The District Court ordered Jeff to fund a $200,000 trust for the minor child by the purchase of an annuity. We have held that “there is an abuse of discretion where the court adopts a proposed trust that is beyond the authority of the court to order.” In re Marriage of Alt (1985), 218 Mont. 327, 334-35, 708 P.2d 258, 262. In a dissolution proceeding, § 40-4-202(2), MCA, governs whether a district court may set aside a portion of the marital estate in a trust for the benefit of the parties’ children. Section 40-4-202(2), MCA, provides:

[310]*310The court may protect and promote the best interests of the children by setting aside a portion of the jointly and separately held estates of the parties in a separate fund or trust for the support, maintenance, education, and general welfare of any minor, dependent, or incompetent children of the parties. [Emphasis added].

Here, the court exceeded the authority granted in § 40-4-202(2), MCA, to set up a trust. The record does not establish that the trust was needed for support, maintenance, education, and general welfare of the parties’ minor child until he reached majority. In fact, in addition to a $200,000 trust account, the court awarded Lisa $1250 per month in child support which, Lisa had stated, was the amount of monthly expenses necessary to support the child.

The District Court abused its discretion when it ordered Jeff to establish a $200,000 trust for the minor child, and we reverse on this issue.

ISSUE 2

Did the District Court err when it ordered the minor child’s trust account to be set up under the joint control of petitioner and respondent?

The gift to the parties’ minor child from Jeff’s mother was deposited by Jeff in a separate account and subsequently invested by Jeff in some of his enterprises. Apparently because there was joint custody of the parties’ minor child, the court directed the account be established with both Lisa and Jeff as custodians of the fund. In the decree of dissolution, the court ordered:

The petitioner shall immediately return the $20,000 plus interest he borrowed from the minor child. The money shall be deposited in a savings account in a reputable, secure financial institution. Both parties shall be trustee for the money and the money shall not be borrowed by either party. Prior to the time the child reaches the age of majority, the money [can] be used for educational or unusual expenses for the minor child.

We conclude that this order of the court will protect the interest of the minor child. We affirm on this issue.

ISSUE 3

Did the District Court erroneously evaluate the marital estate?

The District Court found that all assets acquired during the marriage should be included in an equitable distribution of the marital estate. The District Court failed to identify or describe the assets acquired during the marriage, or assign values to them, and [311]*311failed to consider the contingent liabilities associated with those assets. We hold that this was an abuse of discretion. Marriage of Dirnberger (1989), 237 Mont. 398, 401-02, 773 P.2d 330, 332. The court also abused its discretion for failure to follow the provisions of § 40-4-202, MCA.

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

Related

Marriage of Salois and Armstrong
2025 MT 211 (Montana Supreme Court, 2025)
In Re the Marriage of Funk
2012 MT 14 (Montana Supreme Court, 2012)
In Re the Marriage of Bartsch
2007 MT 136 (Montana Supreme Court, 2007)
In Re the Marriage of Grende
2004 MT 36 (Montana Supreme Court, 2004)
In Re the Marriage of Steinbeisser
2002 MT 309 (Montana Supreme Court, 2002)
In Re Petition of Fenzau
2002 MT 197 (Montana Supreme Court, 2002)
Marriage of Magill
2002 MT 128N (Montana Supreme Court, 2002)
Marriage of Danbrook
2001 MT 12N (Montana Supreme Court, 2001)
In Re the Marriage of Rolf
2000 MT 361 (Montana Supreme Court, 2000)
Siefke v. Siefke
2000 MT 281 (Montana Supreme Court, 2000)
Stoneman v. Drollinger
2000 MT 274 (Montana Supreme Court, 2000)
Schmieding v. Schmieding
2000 MT 237 (Montana Supreme Court, 2000)
Marriage of Gochanour v. Gochanour
2000 MT 156 (Montana Supreme Court, 2000)
In Re the Marriage of Davis
1999 MT 218 (Montana Supreme Court, 1999)
In Re the Marriage of Beadle
1998 MT 225 (Montana Supreme Court, 1998)
In Re Marriage of Engen
1998 MT 153 (Montana Supreme Court, 1998)
Marriage of Bishop
Montana Supreme Court, 1996
Marriage of Evans
Montana Supreme Court, 1996
Marriage of Hamilton
Montana Supreme Court, 1995
In Re the Marriage of Nordberg
877 P.2d 987 (Montana Supreme Court, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
871 P.2d 884, 264 Mont. 306, 51 State Rptr. 277, 1994 Mont. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-smith-mont-1994.