Kelly v. Kelly

575 S.W.2d 672, 264 Ark. 865, 1979 Ark. LEXIS 1268
CourtSupreme Court of Arkansas
DecidedJanuary 22, 1979
Docket78-187
StatusPublished
Cited by25 cases

This text of 575 S.W.2d 672 (Kelly v. Kelly) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly v. Kelly, 575 S.W.2d 672, 264 Ark. 865, 1979 Ark. LEXIS 1268 (Ark. 1979).

Opinion

John A. Fogleman, Justice.

This is a divorce action in which appellant Rezona Kelly was granted a divorce in a suit against appellee Donnie Kelly. She asserts error in that portion of the decree awarding Mr. Kelly an interest in real property, the record title to which was in her and her mother, Wilma Styron. She also contends that the award of alimony and child support was totally insufficient. We find no reversible error.

The property in question was a lot on North 50th Street in Fort Smith. After the sale of a dwelling house owned by appellant and appellee as tenants by the entirety, appellant and her mother caused a house to be moved from either Booneville or Greenwood and placed on the lot on North 50th Street. The chancery court held that Mr. Kelly was entitled to credit for $1,753.25, stating that it represented one-half the money expended by the parties on this residence, but vested all other interest in the house and lot and the right of possession in appellant. Mr. Kelly first contended in the trial court that the title was held in a resulting trust of which he was the beneficiary. Mrs. Kelly argues that the divorce statutes do not provide for an award of property of the wife to the husband. She contends that the trial court did not declare a resulting trust, but merely imposed a lien on the property for the stated amount. We are inclined to agree with appellant that the decree should have merely given appellee a lien on the property to the extent of the amount fixed. Appellee contends here that the chancellor imposed a lien on the property for the amount stated to be paid when and if the house is sold in the future. We are unable to find these provisions in the decree, but take the record of the chancellor’s findings and the decree to indicate such an intention.

Mrs. Kelly asserts that there cannot be a resulting trust because appellee did not furnish the entire purchase price for this property, relying on Gordon v. Claridy, 142 Ark. 184, 218 S.W. 195. She is correct in this contention, since we cannot say that it was shown by clear, cogent and convincing evidence that, before the title vested, Kelly paid or advanced moneys on the basis of an agreement between the parties that he was to have a definite interest or a determinate aliquot part of the property, or that he should own an interest in the land corresponding to the amount contributed by him. Harbour v. Harbour, 207 Ark. 551, 181 S.W. 2d 805.

There is evidence, however, that Kelly made substantial advancements for the house and for other improvements on the lot. The parties had jointly owned a house in which they resided, which was sold and at least part of the proceeds invested in the purchase of the house that was moved. This appears to have been accomplished by repayment to Mrs. Styron, who advanced at least $10,600 on the purchase of the house that was moved onto the lot and for necessary expenditures in improving it. The amount repaid to her is disputed. A part of this repayment came from a $2,000 deferred purchase money note of the buyers of the house the parties had jointly owned, at the rate of $50 per month. These payments have been and are being made directly to Mrs. Styron, beginning in February or March, 1975. Appellee testified that he had paid $100 per month from his salary on the debt to Mrs. Styron from February 1975 through October 1977. Mr. Kelly testified that a two-car garage had been built on the property at a cost of approximately $2,500, that he had paid $600 for carpet, $300 for repair of a porch and patio, and a minimum of $500 for paneling. He stated that $4,500 of the proceeds of sale of the jointly owned house also went to Mrs. Styron, but admitted that it might be true that she received as little as $1,763.50. In addition, it is admitted that he performed some labor in improving the house, even though appellant attempted to belittle the extent and value of that work.

Mrs. Styron testified that she received around $1,700 from the proceeds of sale of the house jointly owned by her daughter and son-in-law. She did not contradict appellee’s testimony about other payments. Mrs. Kelly testified that the $1,700 went for a stove and dishwasher. According to her, the total payments to her mother amounted to $3,506.31. Her testimony that a part of this money came from her unemployment compensation check of $94 per week is not very satisfactory or convincing. She denied that $2,500 was invested in the garage, $600 in carpet and did not know about the cost of the repair of the porch and patio, but, for some reason not made clear, claimed credit for one-half of that expense. To say the least, there is clear and convincing evidence that Mrs. Styron has been paid $3,506.31. The findings announced by the chancellor indicate that she arrived at the amount allowed appellee by taking one-half of this admitted total payment.

Appellant relies upon the presumption that any contributions by a husband to improve his wife’s property are a gift to the wife, citing Fine v. Fine, 209 Ark. 754, 192 S.W. 2d 212. She recognizes however, that this is a rebuttable presumption, citing Stephens v. Stephens, 226 Ark. 219, 288 S.W. 2d 957. In this case, we are unable to say that the chancellor erred in finding that the presumption had been rebutted.

The parties had owned and lived in two residences jointly. Mr. Kelly testified that the money paid on these houses was his. He said that he did not consent to buy and move the house to the lot on North 50th Street at first, but eventually did agree to move there after the house had been moved. He said that he insisted, but that Mrs. Kelly never agreed, that the title to the property be put in their joint names when the indebtedness on the house was paid. He said that she first agreed, but later refused, saying that he made her feel insecure. Mr. Kelly said that he had not demanded that title to the property be placed in their joint names at the very outset, because he did not think it would be right to do so when they owed appellant’s mother so much for the purchase of the house and the cost of moving it. Appellant had been employed when the parties were married, but had voluntarily left her employment before the house was moved. Appellee had insisted that she go back to work, but she refused, at least until their children were older. Mrs. Kelly denied that he had made any such request.

We find the evidence sufficient to rebut the presumption of a gift. It is quite clear that this case is somewhat different from those in which the husband pays the purchase price for property but causes the title to be taken in the wife’s name or in their joint names. This case is, as appellant recognizes, governed by cases in which the husband has advanced or expended money in improving the wife’s property, such as Spruill v. Spruill, 241 Ark. 808, 410 S.W. 2d 606. In such cases, this court has found the presumption to be rebutted when the evidence shows that not to do so would violate the principles of equity and good conscience. Stephens v. Stephens, supra; Spruill v. Spruill, supra. Here, as in Spruill, appellee took no action toward putting the title to the tract in his wife. Even if he had done so, the presumption might be rebutted on consideration of evidence of antecedent or contemporaneous declarations and matters fairly connected with the transaction or facts which existed so soon thereafter as to form part of the transaction. Della v. Della, 98 Ark. 540, 136 S.W. 927; Poole v. Oliver, 89 Ark. 578, 117 S.W. 747; Johnson v. Johnson, 115 Ark. 416, 171 S.W. 475; Parks v.

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Bluebook (online)
575 S.W.2d 672, 264 Ark. 865, 1979 Ark. LEXIS 1268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-v-kelly-ark-1979.