In Re the Marriage of Webb

426 N.W.2d 402, 1988 Iowa Sup. LEXIS 184, 1988 WL 74428
CourtSupreme Court of Iowa
DecidedJuly 20, 1988
Docket86-1157
StatusPublished
Cited by24 cases

This text of 426 N.W.2d 402 (In Re the Marriage of Webb) 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.

Bluebook
In Re the Marriage of Webb, 426 N.W.2d 402, 1988 Iowa Sup. LEXIS 184, 1988 WL 74428 (iowa 1988).

Opinion

SNELL, Justice.

On August 11, 1986, the parties to this appeal, Kenneth and JoAnn Webb, were granted a dissolution of their marriage. The district court, as part of the dissolution decree, divided the parties’ property including a business consisting of seventeen nursing homes. Kenneth has appealed and JoAnn cross-appealed, both challenging the disposition of the nursing homes and associated property. Our review is de novo. Iowa R.App.P. 4. Although we are not bound by the district court’s findings of fact, we give them weight, especially when considering the credibility of witnesses. Iowa R.App.P. 14(f)(7).

I. The Appeal.

A. The prenuptial agreement. Kenneth first maintains that he is entitled to the challenged property by virtue of an ante-nuptial agreement allegedly entered into by the parties in 1974. He says it provided that he was entitled to the property he brought into the marriage and all the accretions thereto. He contends that JoAnn would be entitled under the agreement to $10,000, a new car and the property she brought into the marriage. The agreement was not produced at trial. Several witnesses, however, testified to having been told of the agreement’s existence and of various portions of its contents. Kenneth argues that the agreement was destroyed by JoAnn in the fall of 1984 while the dissolution was pending.

Iowa Code section 622.32 provides that, in general, no evidence of contracts made in consideration of marriage is competent unless in writing and signed by the party charged. Clearly, however, this statute relates to the allowable manner of proving oral contracts. See, e.g., Recker v. Gustafson, 279 N.W.2d 744, 748 (Iowa 1979). It does not, we think, operate to bar proof, oral or otherwise, of an allegedly destroyed written contract. Moreover, in this case no proof has been made that the marriage served as consideration for the antenuptial agreement. See 3 Williston on Contracts § 485 at 499 (3rd ed. Jaeger 1960) (“The distinction must be drawn between promises of which the consideration is either marriage or promise of marriage and those promises which are made in contemplation of marriage or are conditional on marriage but for which marriage is not the consideration.”); Restatement (Second) of the Law of Contracts § 124 comment c at 310 (1981).

Our law provides that, in cases in which the destruction of documents has been demonstrated, secondary evidence is allowable. See Standard Oil Co. v. Stubbs-Auckland Oil Co., 221 Iowa 489, 493, 265 N.W. 121, 123 (1936). The former existence, execution, loss and contents of the document, however, must be demonstrated by clear, satisfactory and convincing evidence. Craig v. Welch, 231 Iowa 1009, 1014, 2 N.W.2d 745, 747 (1942). We think the proffered evidence falls short of this standard. No one except for Kenneth testified to having witnessed the agreement’s execution. No one except Kenneth testified to having nonhearsay knowledge of the document’s contents. JoAnn flatly denied its existence. The district court, armed with its observation of the witnesses, expressly credited JoAnn’s testimony as opposed to Kenneth’s and that of his witnesses. We give the district court’s credibility assessment weight, Iowa R.App.P. 14(f)(7), as that court has the opportunity to observe the demeanor of the witnesses as they testify and to formulate an appropriate impression of the witnesses’ credibility based upon that demeanor. In re Mar *405 riage of Vrban, 359 N.W.2d 420, 423 (Iowa 1984).

B. Alimony. Kenneth argues that the nursing home business should not be divided and that it be awarded to him in its entirety. One corporation manages the nursing homes owned by the other corporations. This organization effects great economies through mass purchasing. Goods and services for the homes are all purchased through the management company which also employs the nursing home administrators. A preferable result of this dissolution, Kenneth claims, would be to award all of the nursing homes to him, recognizing his greater knowledge, experience and skill related to the operation of nursing homes. According to Kenneth, JoAnn should receive the antenuptial agreement property and a lump sum alimony of one million dollars payable over a six-year period.

We note that the combined income from all the homes over a recent seven-month period exceeded $930,000. Apart from that, however, we do not view this as an appropriate case for resolving the parties’ financial affairs by means of an alimony award. Alimony, of necessity, perpetuates a strand of matrimonial association. The parties have elected to sever those ties; the courts should, wherever practicable, accommodate their decision completely.

We recognize that the economies achieved through the management of seventeen homes may be less in a smaller operation. We do not believe, however, this is a sufficient reason to subject one party to the uncertainties of alimony payments so that the other party can own all of the income producing property as an operating unit. Even after division, as provided by the district court, the numbers and size of the nursing homes operated by each party is considerable.

C. The equitable distribution. In reviewing a district court’s property division, we are guided by the criteria set out in Iowa Code section 598.21(1) (1985). We reaffirm our rejection of any rule based upon a percentage division of the property. E.g., In re Marriage of Wiedemann, 402 N.W.2d 744, 749 (Iowa 1987). We are not bound to achieve a precisely equal division in awards of marital property. E.g., In re Marriage of Andersen, 243 N.W.2d 562, 564 (Iowa 1976). In general, the division of property is based upon each marital partner’s right to a just and equitable share of the property accumulated as a result of their joint efforts. E.g., In re Marriage of Hitchcock, 309 N.W.2d 432, 437 (Iowa 1981). The controlling mandate is that courts achieve an equitable and just award under the circumstances. E.g., In re Marriage of Hoak, 364 N.W.2d 185, 194 (Iowa 1985).

The parties were married in 1974, the second marriage for each. No children were bom to the marriage. The marriage lasted ten years; Kenneth was fifty at the time of trial, JoAnn forty-six.

JoAnn has a bachelor of science degree in elementary education and music from Mankato State University. She taught these subjects for approximately ten years prior to her marriage to Kenneth. At that time, she had minimal assets and a remainder interest in a farm. During the marriage she obtained a license as a nursing home administrator.

Kenneth had worked as a vacuum cleaner salesman, a hospital purchasing agent and a nursing home administrator. In about 1967, he leased a nursing home facility in Humboldt, Iowa.

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Bluebook (online)
426 N.W.2d 402, 1988 Iowa Sup. LEXIS 184, 1988 WL 74428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-marriage-of-webb-iowa-1988.