In the Matter of the Marriage of: Dan Barth & Kelli Barth

CourtCourt of Appeals of Washington
DecidedDecember 10, 2024
Docket39711-4
StatusUnpublished

This text of In the Matter of the Marriage of: Dan Barth & Kelli Barth (In the Matter of the Marriage of: Dan Barth & Kelli Barth) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington 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 the Matter of the Marriage of: Dan Barth & Kelli Barth, (Wash. Ct. App. 2024).

Opinion

FILED DECEMBER 10, 2024 In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

In the Matter of the Marriage of: ) No. 39711-4-III ) DAN BARTH, ) ) Respondent, ) ) UNPUBLISHED OPINION and ) ) KELLI BARTH, ) ) Appellant. )

LAWRENCE-BERREY, C.J. — In this dissolution appeal, Kelli Barth primarily

argues the trial court erred by mischaracterizing the marital home as community property.

We agree and remand for an evidentiary hearing so the trial court can divide all property

in a just and equitable manner consistent with RCW 26.09.080, and to enter appropriate

findings of fact and conclusions of law consistent with In re Marriage of Miracle, 101

Wn.2d 137, 675 P.2d 1229 (1984). No. 39711-4-III In re Marriage of Barth

FACTS

On August 17, 2016, Kelli Barth, then Kelli Hornbaker, purchased what would

become the marital home for $207,000. Kelli1 paid $40,000 as a down payment, and

financed the balance. The statutory warranty deed was issued in Kelli’s name.

The parties married on September 18, 2016, the same day their son was

prematurely born. Over the next six years, for the most part, Kelli stayed at home and

cared for their child while Dan’s community wages paid the marital home’s expenses.

In June 2022, Dan filed for divorce. Kelli and Dan separated on June 30, ending

the marital community. The parties agreed that the marital home value was $402,000.

The parties also agreed that the marital home was Kelli’s separate property, but Dan

asserted an “equitable interest” in that property. Clerk’s Papers (CP) at 854.

Specifically, Dan asked that Kelli’s $40,000 down payment be awarded to her, but that

the remaining equity be divided equally.

At trial, Dan testified that he was very involved with purchasing the marital home.

He said he was not on the title, the mortgage, and similar documents because he had poor

credit. He further claimed that Kelli had promised to quitclaim the marital home to the

community, but she later refused.

1 In divorce appeals, we regularly refer to the parties by their first names. No disrespect is intended.

2 No. 39711-4-III In re Marriage of Barth

Kelli testified that she looked for homes without Dan, and that he was not very

involved with finding or purchasing the marital home. She denied she had promised to

sign a quitclaim deed. Kelli also testified that Dan had a Discover credit card in his

name, obtained during their marriage, and that $3,000 of the balance was incurred by Dan

to pay his own attorney fees.

The court occasionally stopped Kelli’s attorney during her cross-examination of

Dan, limiting her questioning into Dan’s relationship with his son and details about the

final parenting plan that he and Kelli had agreed to before trial. Part of why the court

limited cross-examination was to ensure that the trial concluded within the allotted two

days.

With respect to the marital home, the court determined that the $40,000 down

payment paid by Kelli was her separate property, but that the remaining equity was

community property, and awarded Dan one-half of that equity, or $108,784.50.2 In

support of its community property determination, the court found:

The home was purchased in [Kelli]’s name because she had stellar credit. [Dan] worked and paid for everything while [Kelli] stayed home with the child and took him to his doctor’s appointments.

2 The marital home’s equity was $257,569.00—the difference between its agreed value ($402,000.00) and the mortgage balance ($144,431.00). The community equity was $40,000.00 less, or $217,569.00. One-half of this amount is $108,784.50.

3 No. 39711-4-III In re Marriage of Barth

[Dan]’s role was every bit as important as [Kelli]’s. To deny equity to [Dan] would be unfair and unequitable.

CP at 930-31.

With respect to the Discover credit card, the trial court deemed the entire $15,222

debt to be a community debt, and awarded it to Dan.

Kelli appeals.

ANALYSIS

Kelli argues the trial court’s property award was not just and equitable. She

emphasizes that the award left her in a worse position than she entered the marriage, yet

left Dan in a much better position. She argues this error is mostly due to the significant

increase in the marital home’s appreciation (from $207,000 to $402,000) over the six-

year marriage, and the trial court’s decision to give this appreciation solely to the

community.

CHARACTERIZATION OF PROPERTY

Kelli contends the trial erred by mischaracterizing most of the marital home’s

equity as community property and Dan’s attorney fee debt as community debt. We agree.

In a dissolution proceeding, the trial court’s characterization of property presents a

mixed question of law and fact. In re Marriage of Schwarz, 192 Wn. App. 180, 191-92,

368 P.3d 173 (2016). We review the factual findings supporting the characterization,

4 No. 39711-4-III In re Marriage of Barth

including time of acquisition, method of acquisition, and the intent of the donor, for

substantial evidence. In re Marriage of Watanabe, 199 Wn.2d 342, 348, 506 P.3d 630

(2022). Substantial evidence is evidence sufficient to persuade a fair-minded person of

the truth of the declared premise. In re Marriage of Crosetto, 82 Wn. App. 545, 553,

918 P.2d 954 (1996). We review the ultimate characterization of the property de novo.

Watanabe, 199 Wn.2d at 348-49.

The character of property as separate or community is determined at the date of

acquisition. In re Estate of Borghi, 167 Wn.2d 480, 484, 219 P.3d 932 (2009). We

presume that any increase in the value of separate property is also separate property.

In re Marriage of Elam, 97 Wn.2d 811, 816, 650 P.2d 213 (1982).

Once the separate character of property is established, it remains separate in the

absence of clear and convincing evidence of its conversion to community property.

Borghi, 167 Wn.2d at 484, 490. When real property is at issue, an acknowledged writing

is generally required to overcome the strong separate property presumption. Id. at 485.

Without evidence sufficient to rebut an applicable presumption, the court must determine

the character of the property according to the presumption. Id. at 484.

1. The marital home

The parties agree that Kelli bought the marital home shortly before marriage.

Even if the home was placed in Kelli’s name because of her “stellar credit,” and even if

5 No. 39711-4-III In re Marriage of Barth

Dan’s community wages paid most of the home’s expenses, these considerations are

insufficient to rebut the strong presumption that purchases of real property prior to

marriage are the purchasing spouse’s separate property. Seldom if ever will disputed

evidence of oral promises be sufficient to counter the strong presumption of separate

property in these instances.

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