Kathryn M. Cox v. John Cox

CourtCourt of Appeals of Washington
DecidedJune 10, 2019
Docket77634-7
StatusUnpublished

This text of Kathryn M. Cox v. John Cox (Kathryn M. Cox v. John Cox) 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.

Bluebook
Kathryn M. Cox v. John Cox, (Wash. Ct. App. 2019).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

In the Matter of the Marriage of ) ) No. 77634-7-1 KATHRYN M. COX, ) ) DIVISION ONE Appellant, ) ) UNPUBLISHED OPINION and ) ) JOHN JOSEPH COX, ) ) Respondent. ) FILED: June 10, 2019 ) LEACH, J. — In this marriage dissolution proceeding, Kathryn Cox

challenges the trial court's refusal to enforce a postnuptial agreement, its

distribution of property and debts, and its maintenance award. She also claims

that the court should have imposed a restraining order against John Cox.1

Substantial evidence supports the trial court's findings underpinning its

conclusion about the postnuptial agreement. And the trial court did not abuse its

discretion by awarding each party 50 percent of the marital estate and awarding

Kathryn 10 years of maintenance consisting of 50 percent of John's gross annual

1 For purposes of clarity, this opinion refers to Kathryn Cox as Kathryn and John Cox as John. No. 77634-7-1/ 2

salary and bonus. Last, the trial court acted within its discretion to decline

consideration of Kathryn's request at trial for a restraining order. We affirm.

FACTS

John and Kathryn married in 1986 and have four adult children. John is a

commercial real estate professional. Since 2009, John has worked as a senior

vice president of Alexandria Real Estate Equities (AREE), a publicly traded real

estate investment trust. Kathryn has not worked outside of the home since their

first child's birth. John experienced alcoholism and mental health issues

throughout the marriage. Both parties testified about John's emotional, financial,

and physical abuse of Kathryn.

In December 2006, John moved out of the family home. The next year he

filed for dissolution. The parties agreed to dismiss that lawsuit the following year

and participated in counseling. But John did not return to the family home. He

moved around with no fixed address. He often stayed with friends. He also tried

to address his alcohol and mental health issues.

In January 2011, John stopped seeing his mental health care provider and

stopped taking his medications. In February 2011, Kathryn presented John with

a postnuptial agreement (Agreement). John signed the Agreement in March

2011 without modifications and without consulting an attorney.

-2- No. 77634-7-1/3

In May 2016, Kathryn filed for legal separation. John filed a

counterpetition for dissolution. Kathryn filed for summary judgment, asking the

trial court to enforce the Agreement. The trial court denied this request. After a

five-day trial, the trial court found the Agreement unenforceable because it was

substantively and procedurally unfair. The trial court divided the parties' property

and debts, awarded Kathryn spousal maintenance, and denied her request for a

restraining order. Kathryn asked the court to reconsider its decision. The trial

court declined this request but granted her request to clarify certain decree

provisions and entered a second amended dissolution decree in October 2017.

Kathryn appeals.

ANALYSIS

Postnuptial Agreement

Kathryn challenges the trial court's refusal to enforce a postnuptial

agreement between her and John. A court conducts a two-step analysis to

determine the enforceability of a postnuptial agreement.2 The court first decides

if the agreement is substantively fair to the spouse not asking to enforce it.3 If it

is, the court will enforce it.4 If the agreement is substantively unfair to the spouse

not asking to enforce it, the court determines if the agreement is procedurally fair

2 Inre Marriage of Bernard, 165 Wn.2d 895, 902, 204 P.3d 907 (2009). 3 Bernard, 165 Wn.2d at 902. 4 Bernard, 165 Wn.2d at 902. -3- No. 77634-7-1 /4

and, if it is, the agreement is valid and binding.5 The party seeking enforcement

of the agreement has the burden of proof.8 A court determines fairness based on

the circumstances at the time the parties signed the agreement.7

To be substantively fair, the agreement must make reasonable provision

for the spouse not asking for enforcement.8 Factors the court may consider to

decide this question include provisions disproportionate to the means of each

spouse, limits on the creation of community or separate property, preclusion of

the distribution of one spouse's separate property to the other, prohibitions or

limits on maintenance, and limits on inheritance.8 Substantive fairness is a

question of law an appellate court reviews de novo unless the trial court resolved

factual disputes to interpret the meaning of the contract.1° An appellate court

accepts the trial court's resolution of factual disputes unless they are not

supported by substantial evidence.11

The court determines whether the agreement is procedurally fair by asking

"(1) whether the spouses made a full disclosure of the amount, character, and

value of the property involved and (2) whether the agreement was freely entered

5 Bernard, 165 Wn.2d at 902-03. 6 Bernard, 165 Wn.2d at 902. 7 Bernard, 1654 Wn.2d at 904. 8 Bernard, 165 Wn.2d at 902. 9 Bernard, 165 Wn.2d at 904. 10 Bernard, 165 Wn.2d at 902; Mountain Park Homeowners Ass'n v. Tydinqs, 125 Wn.2d 337, 341, 883 P.2d 1383 (1994). 11 Bernard, 165 Wn.2d at 903. -4- No. 77634-7-1 / 5

into on independent advice from counsel with full knowledge by both spouses of

their rights."12 This procedural fairness analysis involves mixed issues of policy

and fact; appellate review is de novo but done in light of the trial court's

resolution of the facts.13 An appellate court reviews challenged findings of fact

for substantial evidence.14 "'Substantial evidence is evidence sufficient to

persuade a fair-minded person of the truth of the declared premise.'"15

Here, the trial court decided that the Agreement was substantively and

procedurally unfair. It made extensive factual findings in support of this

conclusion. The court made the following findings in support of its conclusion

that the Agreement was substantively unfair to John:

1) Regardless of whether Petitioner was aware of the legal and financial consequences that the Agreement would have imposed upon Respondent had the Agreement been implemented as written in March 2011 (The court declines to make findings as to the extent of Petitioner's subjective understanding or her specific intent with respect to the Agreement's terms.), the court finds that the terms of the Property Settlement Agreement are substantively unreasonable because they are severely overreaching and grossly disproportionate in favor of Petitioner; and that had the Agreement been implemented in March 2011, the effects of the Agreement would have been devastating legally and financially for Respondent.

12 Bernard, 165 Wn.2d at 902-03. 13 Bernard, 165 Wn.2d at 903. 14 Bernard, 165 Wn.2d at 903. 15 Bernard, 165 Wn.2d at 903 (quoting In re Marriage of Hall, 103 Wn.2d 236, 246,692 P.2d 175 (1984)). -5- No. 77634-7-1/6

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Related

In Re the Marriage of Hall
692 P.2d 175 (Washington Supreme Court, 1984)
In Re the Marriage of Landry
699 P.2d 214 (Washington Supreme Court, 1985)
Mt. Park Homeowners Ass'n, Inc. v. Tydings
883 P.2d 1383 (Washington Supreme Court, 1994)
Mansour v. Mansour
106 P.3d 768 (Court of Appeals of Washington, 2004)
In Re Marriage of Langham
106 P.3d 212 (Washington Supreme Court, 2005)
Rabey v. Department of Labor and Industries
3 P.3d 217 (Court of Appeals of Washington, 2000)
In Re Marriage of Rockwell
170 P.3d 572 (Court of Appeals of Washington, 2007)
In Re Marriage of Bernard
204 P.3d 907 (Washington Supreme Court, 2009)
Robel v. Roundup Corp.
148 Wash. 2d 35 (Washington Supreme Court, 2002)
In re the Marriage of Langham
153 Wash. 2d 553 (Washington Supreme Court, 2005)
In re the Marriage of Bernard
165 Wash. 2d 895 (Washington Supreme Court, 2009)
Rabey v. Department of Labor
101 Wash. App. 390 (Court of Appeals of Washington, 2000)
In re the Marriage of Mansour
126 Wash. App. 1 (Court of Appeals of Washington, 2004)
In re the Marriage of Rockwell
170 P.3d 572 (Court of Appeals of Washington, 2007)
In re the Marriage of Morris
309 P.3d 767 (Court of Appeals of Washington, 2013)
In re the Marriage of Larson
313 P.3d 1228 (Court of Appeals of Washington, 2013)
In re the Marriage of Valente
320 P.3d 115 (Court of Appeals of Washington, 2014)
In re the Marriage of Harrington
935 P.2d 1357 (Court of Appeals of Washington, 1997)

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