Loeb v. Loeb

324 S.E.2d 33, 72 N.C. App. 205, 1985 N.C. App. LEXIS 3040
CourtCourt of Appeals of North Carolina
DecidedJanuary 2, 1985
Docket8315DC1177
StatusPublished
Cited by37 cases

This text of 324 S.E.2d 33 (Loeb v. Loeb) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loeb v. Loeb, 324 S.E.2d 33, 72 N.C. App. 205, 1985 N.C. App. LEXIS 3040 (N.C. Ct. App. 1985).

Opinion

*207 BECTON, Judge.

This case deals with the inclusion of property acquired by gift from a third party in an equitable distribution of marital property.

The parties were married in 1961 and lived together until their separation in March 1981. During the course of their marriage, the plaintiff husband, Ben F. Loeb, Jr., worked as an attorney, first with a private law firm in Tennessee, then with the State of North Carolina. From 1964 until 1981, the defendant wife, Anne N. Loeb, generally did not work outside the home. The parties have two children.

The husband contributed his entire income to the support of the family and the accumulation of the parties’ savings and assets. The parties handled their finances exclusively through joint savings and joint checking accounts. Over the years the wife’s mother, Mrs. Nelson, gave the parties joint title to several tracts of real property in Tennessee as tenants by the entirety, and cash gifts individually that were deposited in their joint savings and joint checking accounts.

During their marriage, the parties acquired the following: (1) joint title to a 196-acre farm in Tennessee (by deed from Mrs. Nelson); (2) joint title to a 36-acre farm in Tennessee (by deed from Mrs. Nelson); (3) joint title to an interest in a lot and building in Paris, Tennessee (by deed from Mrs. Nelson); (4) joint title to a residential lot in Chapel Hill (purchased with funds from their joint checking and savings accounts); (5) title in the wife’s name alone to a condominium in Chapel Hill (purchased for cash, consisting of the proceeds from (a) a signature note in the wife’s name, (b) a money market certificate in the wife’s name, which was purchased with funds from a joint account, (c) stocks and bonds in the wife’s name (purchased with the proceeds from stock originally held jointly or in the husband’s name); (6) AT&T stock held in the wife’s name (purchased with funds from the parties’ joint checking account); (7) Commercial Bank Stock held in the wife’s name (purchased with funds from the parties’ joint checking account); (8) certificates of deposit at Orange Savings and Loan in both parties’ names (purchased with funds from the parties’ joint savings and checking accounts); (9) a certificate of deposit at Home Federal Savings and Loan in both parties’ names *208 (purchased with funds from the parties’ joint savings and checking accounts); (10) a money market certificate at NCNB in the husband’s name (purchased with funds from the parties’ joint savings and checking accounts); (11) a house and lot in Chapel Hill (purchased with proceeds from the sale of the parties’ first marital home in Chapel Hill, which, in turn, had been purchased with funds from joint savings and checking accounts); (12) a voluntary retirement account in the husband’s name alone; (13) title in the wife’s name alone to a 96-acre farm in Tennessee (by deed from her parents); (14) the husband’s North Carolina State Employees’ Retirement Account. The trial court made specific findings on the monetary value of each item listed above; these are included in the record on appeal.

On 30 September 1982 the husband instituted an action for absolute divorce from the wife and asked for an equitable distribution of the marital property. The Equitable Distribution Act (the Act), as codified at N.C. Gen. Stat. Sec. 50-20, applies to all actions for absolute divorce instituted on or after 1 October 1981. G.S. Sec. 50-20 (Supp. 1983). The absolute divorce was granted on 13 December 1982. The equitable distribution issue was tried in April 1983; the Order dividing the parties’ marital property was entered on 3 June 1983. The trial court found that (1) items 1-12 were marital property; (2) item 13 was the wife’s separate property; and (3) item 14 was the husband’s separate property. It then distributed the marital property equally between the parties according to value, awarding the wife items 1-3 and 5-7, and awarding the husband items 4 and 8-12. Because of a slight discrepancy in the value of their respective property, the trial court ordered the husband to make a distributive award to the wife in the amount of $4,577 “to render an equal and equitable distribution.”

After the trial, but before the entry of the Order, the wife filed a motion for a new trial or for leave to reopen the evidence. The motion was denied on 14 July 1983. The wife appeals from the 3 June 1983 Order and the 14 July 1983 denial of her motion.

I

Under the Act, the trial judge, before equitably dividing the parties’ property, must distinguish between “marital property,” as defined in G.S. Sec. 50-20(b)(1) and “separate property,” as *209 defined in G.S. Sec. 50-20(b)(2). See Alexander v. Alexander, 68 N.C. App. 548, 315 S.E. 2d 772 (1984). “Separate property” is not subject to equitable distribution. G.S. Sec. 50-20(c); S. Sharp, Equitable Distribution of Property in North Carolina: A Preliminary Analysis, 61 N.C.L. Rev. 247, 249 (1983). The wife assigns error to the trial court’s classification of the Tennessee tracts of land given to the parties jointly by the wife’s mother during the course of the marriage as “marital property.” We find no error.

Under the original version of G.S. Sec. 50-20(b)(1), which was in effect at the time the husband filed for absolute divorce, “marital property” was defined as “all real and personal property acquired by either spouse during the course of the marriage and presently owned, except property determined to be separate property in accordance with subdivision (2) of this section.” G.S. Sec. 50-20(b)(1) (Supp. 1981). “Separate property,” in pertinent part, included “all real and personal property acquired by a spouse ... by bequest, devise, descent, or gift during the course of the marriage.” G.S. Sec. 50-20(b)(2) (Supp. 1981).

In construing the provisions of a statute, we find the legislative intent controlling. Jolly v. Wright, 300 N.C. 83, 265 S.E. 2d 135 (1980). The language of the statute itself and the purpose behind the legislation supply the strongest indicia of the legislative intent. State ex rel. Utilities Comm’n v. Public Staff, 309 N.C. 195, 306 S.E. 2d 435 (1983); In re Kirkman, 302 N.C. 164, 273 S.E. 2d 712 (1981). The introductory provision of the Act reveals its equitable purpose: “Upon application of a party, the court shall determine what is the marital property and shall provide for an equitable distribution of the marital property between the parties . . . .” G.S. Sec. 50-20(a) (Supp. 1981). The Act reflects a trend nationwide towards recognizing marriage as “a partnership, a shared enterprise to which both spouses make valuable contributions, albeit often in different ways.” Sharp, supra, at 247.

Guided by the legislative intent, we hold that the language of the Act, both in the original version and as amended, see G.S. Sec. 50-20 (Supp. 1983), creates a presumption that all property acquired by the parties during the course of the marriage is “marital property.” Accord Painter v. Painter, 65 N.J. 196, 320 A. 2d 484 (1974) (similar statutory language); see Sharp, supra, at 250 *210

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jessee v. Jessee
713 S.E.2d 28 (Court of Appeals of North Carolina, 2011)
Friend-Novorska v. Novorska
507 S.E.2d 900 (Court of Appeals of North Carolina, 1998)
Kamran Rahbaran v. Sara Rahbaran
Court of Appeals of Virginia, 1997
Sara Rahbaran v. Kamran Rahbaran
494 S.E.2d 135 (Court of Appeals of Virginia, 1997)
In re Autry
444 S.E.2d 239 (Court of Appeals of North Carolina, 1994)
Fox v. Fox
441 S.E.2d 613 (Court of Appeals of North Carolina, 1994)
Godley v. Godley
429 S.E.2d 382 (Court of Appeals of North Carolina, 1993)
Freeman v. Freeman
421 S.E.2d 623 (Court of Appeals of North Carolina, 1992)
Cobb v. Cobb
420 S.E.2d 212 (Court of Appeals of North Carolina, 1992)
Lewis v. Lewis
389 S.E.2d 638 (Court of Appeals of North Carolina, 1990)
McGinley v. McGinley
565 A.2d 1220 (Supreme Court of Pennsylvania, 1989)
Cameron v. North Carolina State Board of Dental Examiners
382 S.E.2d 864 (Court of Appeals of North Carolina, 1989)
McLean v. McLean
374 S.E.2d 376 (Supreme Court of North Carolina, 1988)
Tiryakian v. Tiryakian
370 S.E.2d 852 (Court of Appeals of North Carolina, 1988)
Armstrong v. Armstrong
368 S.E.2d 595 (Supreme Court of North Carolina, 1988)
Morris v. Morris
367 S.E.2d 408 (Court of Appeals of North Carolina, 1988)
McLean v. McLean
363 S.E.2d 95 (Court of Appeals of North Carolina, 1987)
Dunlap v. Dunlap
354 S.E.2d 734 (Court of Appeals of North Carolina, 1987)
Armstrong v. Armstrong
354 S.E.2d 350 (Court of Appeals of North Carolina, 1987)
Johnson v. Johnson
346 S.E.2d 430 (Supreme Court of North Carolina, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
324 S.E.2d 33, 72 N.C. App. 205, 1985 N.C. App. LEXIS 3040, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loeb-v-loeb-ncctapp-1985.