LaRue v. LaRue

304 S.E.2d 312, 172 W. Va. 158
CourtWest Virginia Supreme Court
DecidedMay 27, 1983
Docket15578
StatusPublished
Cited by103 cases

This text of 304 S.E.2d 312 (LaRue v. LaRue) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaRue v. LaRue, 304 S.E.2d 312, 172 W. Va. 158 (W. Va. 1983).

Opinions

[162]*162MILLER, Justice:

In this appeal from a final divorce action, we are asked to recognize the doctrine of equitable distribution of marital property. The trial court essentially held that the wife was not entitled to her claim for the equitable distribution of the marital assets. We conclude that the trial court erred.

The parties were married in 1950, and their marriage was a traditional one in the sense that Mr. LaRue exclusively handled the family’s financial affairs and Mrs. La-Rue was mainly a homemaker. Their gross income in the last year of marriage, during which Mrs. LaRue did not work, was $43,000. Out of thirty years of marriage, Mrs. LaRue was employed only in the early years of the marriage, and her gross earnings over seven years totaled $51,000. Evidence was presented that Mr. LaRue encouraged his spouse to be a housewife and homemaker, and accordingly she raised two children, cared for the house and the comfort of her family, and entertained her husband’s business associates.

A divorce was granted to the parties in March 1980, based on irreconcilable differences, following a period of eight to ten years of problems. The trial court found inequitable conduct on both sides, but concluded that Mr. LaRue’s abusive conduct “far outweighed” that of his wife. As the parties’ two children were grown, the divorce order awarded Mrs. LaRue only alimony and an allowance for health insurance. The divorce order did not provide for any distribution of the marital assets, and the parties were unable to agree on any division except as to some items of personal property. The appellant petitioned the circuit court to award her a one-half interest in all personal property owned by Mr. LaRue, an undivided one-half interest in all real estate owned by him, a conveyance to her of all real and personal property in the name of and under the control of Mr. La-Rue, and a reservation for Mrs. LaRue of a dower interest in the real property owned by Mr. LaRue. Mrs. LaRue’s petition was denied, on the grounds that she had failed to carry the burden of proving either that a contract existed that marital assets were to be equally owned, or that any of her earnings were invested in any property titled in Mr. LaRue’s name. The court found no grounds to establish a constructive trust in favor of Mrs. LaRue.

Early in the marriage, the parties had owned a home located on East Cove Avenue in Wheeling. The home, which had been titled in both names jointly, was sold for approximately $15,000 in 1962, and the proceeds were reinvested in another home, located on Elm Crest Drive in Wheeling. Prior to January 1972, that home was owned in the name of Mrs. LaRue only. At that time, Mr. LaRue had Mrs. LaRue sign a deed transferring title to his name only. The appellant did not recall signing the deed, but stated that she frequently signed papers at her husband’s request without knowing their nature. The deed was signed at about the time when the marriage began to deteriorate, but was not recorded until November 1979, after the parties separated. Prior to bringing her petition for a division of the marital property, Mrs. LaRue sued to set aside the transfer of the home, but lost because the trial court concluded that she was unable to show fraud or mistake in the transfer.

I.

The concept of equitable distribution of marital property has achieved an almost universal acceptance in the divorce laws of the various states. It originated when courts applied their equitable powers to secure equitable rights for one spouse in property titled or held by the other spouse based on the claim that a resulting or constructive trust should be impressed on the property. The basis for such a claim was that the spouse seeking an interest in the property had made a substantial economic contribution toward the acquisition of the property. Consequently, under the principles of unjust enrichment, it would be unfair to permit the spouse with title or possession to keep the entire interest. This general rule is set out in 27B C.J.S. Divorce § 293:

“Where a wife has made a material contribution to the husband’s acquisition [163]*163of property during coverture, she acquires a special equity in the property so accumulated which equity entitles her, on divorce, to an award in satisfaction thereof; and it is not a necessary prerequisite that the wife show that she has contributed by funds or efforts to the acquiring of the specific property awarded to her, but division may be had even though the wife has not contributed funds or efforts to the acquisition of the specific property awarded to her.” (Footnotes omitted)

Judicial decisions involving these equitable principles have more recently been supplemented and enhanced by various forms of legislative enactments.1 In the eight states having community property statutes, all property acquired after the marriage is deemed to be owned jointly and upon its dissolution or annulment the parties are generally entitled to share equally in it.2

A more common statute, which a majority of states have enacted, permits the court upon the dissolution of a marriage to make an equitable distribution of the marital property based upon a detailed list of factors.3 A third category of statutes, [164]*164used in a few states is more general and provides that an equitable distribution of property may be made by the court without specifying any guidelines.4 Finally, in those few jurisdictions that have no specific statute on equitable distribution, the courts have continued to evolve their concepts of equitable distribution with a broad interpretation of traditional equity principles. We, along with Florida, Mississippi, and South Carolina, are in this category.

South Carolina has judicially created a special equity doctrine. Based on earlier cases, the doctrine is defined in Burgess v. Burgess, 277 S.C. 283, 286 S.E.2d 142, 143 (1982), as:

“A wife is entitled to a special equity in the husband’s property acquired during coverture where the wife has made a material contribution to the acquisition of the property. Simmons v. Simmons, 275 S.C. 41, 267 S.E.2d 427 (1980); Wilson v. Wilson, 270 S.C. 216, 241 S.E.2d 566 (1978).”

Burgess involved a wife who had worked during a portion of her marriage and had contributed her earnings to the support of the family. In Parrott v. Parrott, 292 S.E.2d 182 (S.C.1982), a homemaker wife was involved and the court enlarged its definition of special equity by stating:

“Also, where a spouse has made ‘material contributions’ of industry and labor during marriage to acquisition of property, a special equity or equitable interest favoring that party can be found.” Id. at 183.

The court further held:

“The showing made in the instant case persuades us that a third exception to the rule of title should be recognized in South Carolina: where, as here, one spouse has foregone career opportunities at the behest of the primary wage-earning spouse, and throughout a long marriage has remained in the home to rear children and provide a suitable environment for the family, the homemaker spouse shall have upon divorce an equitable interest in real property acquired by the wage-earner spouse during the marriage.” Id. at 184.

Thus, taken together, Burgess, supra, and

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Bluebook (online)
304 S.E.2d 312, 172 W. Va. 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larue-v-larue-wva-1983.