Jeremy a Fogg v. Sheila K Bauer

CourtMichigan Court of Appeals
DecidedMay 12, 2016
Docket325403
StatusUnpublished

This text of Jeremy a Fogg v. Sheila K Bauer (Jeremy a Fogg v. Sheila K Bauer) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jeremy a Fogg v. Sheila K Bauer, (Mich. Ct. App. 2016).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

JEREMY A. FOGG, UNPUBLISHED May 12, 2016 Plaintiff/Counter-Defendant- Appellee-Cross-Appellant,

v No. 325403 Ottawa Circuit Court SHEILA K. BAUER, formerly known as SHEILA LC No. 13-075525-DM K. FOGG,

Defendant/Counter-Plaintiff- Appellant/Cross-Appellee.

Before: HOEKSTRA, P.J., and O’CONNELL and MURRAY, JJ.

PER CURIAM.

Defendant, Sheila Bauer, appeals as of right a judgment of divorce. Plaintiff, Jeremy Fogg, cross-appeals the same judgment. For the reasons stated below, we affirm in part, reverse in part, and remand for a recalculation of child support.

I. FACTS

Plaintiff and defendant were life-long friends and married in 1995. During the marriage, plaintiff worked at Gentex Corporation—a publicly traded corporation founded by defendant’s father Fred Bauer—while defendant raised their two children. Plaintiff and defendant lived in one of the four residences on “the Bauer Compound”—a large parcel of land on Lake Michigan that was owned by defendant’s parents—Fred and Lois Bauer. Plaintiff and defendant lived in the residence rent free and their living expenses were paid by defendant’s parents. The parties and their children enjoyed an extremely high standard of living, due in large part to the generosity of defendant’s parents.

After working for Gentex for nearly 20 years and advancing to a vice president position in the company, plaintiff was forced to resign from Gentex in 2012. While the circumstances surrounding plaintiff’s resignation are not entirely clear, this caused the relationship between the parties to sour. The parties then separated, and plaintiff initiated this action in 2013.

After an eight day bench trial, the trial court distributed the marital estate equally, awarding plaintiff and defendant each $1,690,886. The trial court ordered plaintiff to pay $404 a month in child support, but did not require him to pay spousal support.

-1- Defendant filed a motion for reconsideration of the trial court’s opinion, arguing, among other things, that the trial court erred in calculating the parties’ incomes for purposes of determining child support. The trial court denied defendant’s motion stating that the error was not a sufficient basis to reconsider the calculation in its previous opinion. This appeal ensued.

II. ANALYSIS

A. MARITAL VS SEPARATE PROPERTY

First, the parties raise several issues regarding whether certain property was separate property or marital property and subject to division. Specifically, defendant argues that her premarital Gentex stock was erroneously classified as marital property. Plaintiff, on cross- appeal, contends that the costs of renovating the marital home should have been included in the marital estate for purposes of property distribution. We will address each of the parties’ arguments in turn.

Whether a particular asset is marital or separate is a factual determination that is reviewed for clear error. Cunningham v Cunningham, 289 Mich App 195, 200; 795 NW2d 826 (2010). A finding is clearly erroneous if this Court is left with a definite and firm conviction that a mistake has been made. Id. If a trial court’s findings of fact are upheld, we must then decide whether the dispositive ruling was fair and equitable in light of those facts. McNamara v Horner, 249 Mich App 177, 183; 642 NW2d 385 (2002). “A disposition ruling is discretionary and should be affirmed unless this Court is left with the firm conviction that the division was inequitable.” Id.

In granting a divorce, a trial court may divide all property that came “to either party by reason of the marriage.” Reeves v Reeves, 226 Mich App 490, 493; 575 NW2d 1 (1997), quoting MCL 552.19. When dividing property in a divorce proceeding, a trial court must first determine whether property is a marital asset or a party’s separate asset. Reeves, 226 Mich App at 493. In general, marital assets are subject to division among the parties and a party’s separate assets are not. McNamara, 249 Mich App at 183. Marital assets are assets that are earned or acquired during the marriage, whereas separate assets are assets that are obtained or earned prior to the marriage. Cunningham, 289 Mich App at 201. However, “separate assets may lose their character as separate property and transform into marital property if they are commingled with marital assets and ‘treated by the parties as marital property.’ ” Id., quoting Pickering v Pickering, 268 Mich App 1, 11; 706 NW2d 835 (2005). The conduct of the parties is “the clearest indicia” of whether they intended to treat the asset as marital or separate. Cunningham, 289 Mich App at 209.

1. GENTEX STOCK

As mentioned above, defendant contends that the trial court clearly erred when it found as fact that her premarital Gentex stock was a marital asset. The trial testimony established that defendant acquired 72,000 shares of Gentex stock prior to the marriage and that it was held in defendant’s sole name. At that point, the Gentex stock was separate property. Id. at 201. However, the trial court accepted plaintiff’s testimony which established that defendant transferred her Gentex stock to a joint account so that plaintiff and defendant could sell the Gentex stock to take advantage of lower capital gains tax rates and to have the necessary funds to

-2- make a down payment on a blueberry farm that was intended to be a marital investment. Defendant contends that even though she transferred her Gentex stock to a joint account, it remained separate property because a mere change in title is not dispositive of whether an asset is separate or marital. Id. at 201-202. However, the facts indicate more than just a mere change in title. Plaintiff’s testimony demonstrated that the shares of Gentex stock were intended to be treated as marital property because he testified that defendant deposited her premarital Gentex stock into a jointly held account to accomplish the marital goals of reducing their tax liabilities and purchasing a blueberry farm. Id. at 209. Therefore, the parties’ conduct—the clearest indicia of whether an asset is marital—indicates that the parties intended to treat the Gentex stock as marital property. Accordingly, the trial court’s factual finding that the Gentex stock was marital property was not clearly erroneous.

2. COSTS OF RENOVATING THE MARITAL RESIDENCE

On cross-appeal, plaintiff argues that the trial court clearly erred in finding that the renovations to the marital residence was not a marital asset. We reject plaintiff’s contention because only assets that came “to either party by reason of the marriage” are marital assets and thus subject to division. Reeves, 226 Mich App at 493. Here, the cost of renovating the marital residence, which was not owned by the parties, was an expense, and any increase in value as a result of the renovations is an asset of the owners of the home—Fred and Lois. The parties’ testimony established that they did not own an interest in the marital residence. To the extent defendant argues that the equity of the marital home as a result of the renovations be divided, we will not do so as this Court has no authority to adjudicate the rights of third parties. Thames v Thames, 191 Mich App 299, 302; 477 NW2d 496 (1991). Therefore, the trial court’s factual finding that the expense of renovating the marital home was not marital property subject to division was not clearly erroneous.

3. EQUITABLENESS OF THE PROPERTY DIVISION

Having affirmed that the trial court’s factual findings with regard to the division of property were not clearly erroneous, we must next decide whether the dispositive ruling was fair and equitable in light of those facts.

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Jeremy a Fogg v. Sheila K Bauer, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jeremy-a-fogg-v-sheila-k-bauer-michctapp-2016.