In Re the Marriage of Susan Michelle Thatcher and Ronald Dean Thatcher Upon the Petition of Susan Michelle Thatcher, Anna Carson as for the Estate of Susan Michelle Thatcher

CourtSupreme Court of Iowa
DecidedJune 5, 2015
Docket13–2044
StatusPublished

This text of In Re the Marriage of Susan Michelle Thatcher and Ronald Dean Thatcher Upon the Petition of Susan Michelle Thatcher, Anna Carson as for the Estate of Susan Michelle Thatcher (In Re the Marriage of Susan Michelle Thatcher and Ronald Dean Thatcher Upon the Petition of Susan Michelle Thatcher, Anna Carson as for the Estate of Susan Michelle Thatcher) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In Re the Marriage of Susan Michelle Thatcher and Ronald Dean Thatcher Upon the Petition of Susan Michelle Thatcher, Anna Carson as for the Estate of Susan Michelle Thatcher, (iowa 2015).

Opinion

IN THE SUPREME COURT OF IOWA No. 13–2044

Filed June 5, 2015

IN RE THE MARRIAGE OF SUSAN MICHELLE THATCHER AND RONALD DEAN THATCHER

Upon the Petition of SUSAN MICHELLE THATCHER,

Petitioner,

ANNA CARSON as Executor for the ESTATE OF SUSAN MICHELLE THATCHER,

Appellee,

And Concerning RONALD DEAN THATCHER, Appellant.

On review from the Iowa Court of Appeals.

Appeal from the Iowa District Court for Linn County, Marsha M.

Beckelman, Judge.

Appellant seeks further review of court of appeals decision

dismissing his appeal of district court order granting bifurcated decree of

dissolution of marriage without division of property. DECISION OF

COURT OF APPEALS VACATED; DISTRICT COURT DECREE

REVERSED; PROCEEDINGS ABATED; CASE REMANDED FOR

DISMISSAL.

Kerry A. Finley and Allison M. Heffern of Shuttleworth & Ingersoll,

P.L.C., Cedar Rapids, for appellant. 2

Sherry L. Schulte of Bradley & Riley, P.C., Cedar Rapids, for

appellee. 3

WATERMAN, Justice.

This appeal presents a question of first impression in Iowa:

whether the district court has discretion to end a marriage through a

decree of dissolution without dividing the marital property until a later

judgment. This two-step process is known as a “bifurcated divorce” and

is expressly allowed by statute in other states. Iowa Code chapter 598

(2013) does not expressly permit such bifurcation. Our rules of civil

procedure allow separate trials of issues, but can be superseded by

statute. Iowa Rs. Civ. P. 1.101, 1.914. Iowa Code section 598.21(1)

states, “Upon every judgment of . . . dissolution, . . . the court shall

divide the property of the parties . . . .” The parties disagree whether the

marital dissolution and division of property must be contemporaneous.

In this case, a terminal cancer patient whose death was imminent

filed a motion to bifurcate her dissolution proceeding. Her husband

resisted. The day before her death, the district court entered an order

granting the motion to bifurcate and dissolving the marriage, with the

division of property to “be determined at a later date.” The husband

appealed, and the decedent’s estate, as the substituted appellee, moved

to dismiss the appeal as premature. We transferred the case to the court

of appeals, which held the bifurcation order and decree of dissolution

was not an appealable final judgment and did not meet the conditions for

interlocutory appeal. We granted further review.

We now determine that the decree of dissolution is an appealable

final judgment. For the reasons explained below, we hold section

598.21(1) requires the decree of dissolution to divide the property at the

same time, which prohibits bifurcated divorces. We therefore vacate the

opinion of the court of appeals and reverse the order of bifurcation and

decree of dissolution. This outcome means the parties were married at 4

the time of the wife’s death, and the dissolution proceedings abated. We

remand the case for entry of an order of dismissal. The probate court

will determine the division of the decedent’s property.

I. Background Facts and Proceedings.

Susan and Ronald Thatcher were married on November 10, 1984.

They had one daughter, Lillian, born in 1993. In January 2013, Susan

was diagnosed with cervical cancer. Her doctors told her she had a one-

year life expectancy. Eight months later, on September 13, Susan filed a

petition for dissolution of marriage in Linn County. She wanted to end

their twenty-nine-year marriage and die unmarried. She was fifty years

old. Ronald, age sixty-seven, was employed part-time as a pastor. They

were living apart. Lillian, age twenty-one, was a full-time college student.

Susan’s petition alleged the marriage relationship had broken down and

there was no likelihood the marriage could be preserved. She asked

Ronald to waive the conciliation provisions. Ronald filed his answer on

September 27. Ronald denied the breakdown of the marriage and that

reconciliation services would be ineffective and reserved his right to

counseling.

In November, each party filed an affidavit of financial status.

These disclosed Susan had several life insurance policies, an inherited

farm valued at $100,819, and inherited securities. Ronald cosigned

Lillian’s student loan of $41,000. Ronald and Susan each listed

retirement accounts and bank accounts, and each listed securities

owned jointly worth $76,352. Susan listed medical bills of $75,150, with

insurance claims pending for $37,575. The homestead was valued at

$105,000. The record is silent whether Susan had a last will and

testament. 5

On November 22, Susan filed a motion to bifurcate dissolution.

She “request[ed] that the Court dissolve the marriage of the parties at

this time and that the issue of the property and debts of the parties be

litigated at a later date.” As grounds, she noted her terminal cancer and

that her physicians told her “at this time” her experimental treatments

were not working. She alleged “it is highly unlikely that she will survive

her condition for a trial.” She noted efforts to schedule a settlement

conference, but that Ronald said “he was not available on the dates given

and the next available dates were February of 2014, which is not a

realistic date for [her].” She stated “she would like to have their marriage

dissolved prior to her passing.” Her motion cited no financial reasons or

legal authority to bifurcate the marital dissolution from the property

division.

The motion was set for hearing on November 26. The day before

the unreported hearing, Susan supplemented her motion with

correspondence from her treating physicians stating her life expectancy

was “limited from days to possibly weeks.” Ronald resisted the motion,

arguing there is no legal basis to bifurcate the marital dissolution from a

contemporaneous property division. As an alternative to bifurcation, he

offered to participate in an expedited settlement conference and trial

within two weeks. He stipulated to the breakdown in the marriage and

waived the ninety-day waiting period. He argued bifurcation would

prejudice his rights and complicate resolution of the property issues. In

particular, he argued he would be forced to litigate the property division

in probate court without the opportunity to depose or cross-examine

Susan, lose health insurance and his status as beneficiary on her life

insurance, and lose the right to file a joint tax return for 2013. 6

On November 27, the district court filed a two-page “Order

Granting Motion to Bifurcate and Decree of Dissolution of Marriage.”

The court granted the motion to bifurcate “for the reasons stated in

[Susan’s] motion.” The court also “granted a dissolution of marriage”

and decreed that Ronald and Susan “are returned to their status of

single persons.” The order allowed the parties to transfer one bank

account of approximately $10,000 to their daughter. The order otherwise

provided that “all property and debts of the parties and a division thereof

will be determined at a later date” and prohibited the parties from

transferring assets except for ordinary living expenses and reasonable

legal fees. Susan died the next day.

On December 20, Ronald filed a notice of appeal. We granted an

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