Lund v. Lund

CourtCourt of Appeals of Arizona
DecidedJanuary 12, 2016
Docket1 CA-CV 14-0446-FC
StatusUnpublished

This text of Lund v. Lund (Lund v. Lund) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lund v. Lund, (Ark. Ct. App. 2016).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

In re the Marriage of:

MARY ANN LUND, Petitioner/Appellant,

v.

RICHARD J. LUND, Respondent/Appellee.

No. 1 CA-CV 14-0446 FC FILED 1-12-2016

Appeal from the Superior Court in Maricopa County No. FC2010-003216 The Honorable Thomas L. LeClaire, Retired Judge The Honorable Jay R. Adleman, Judge

AFFIRMED IN PART; REVERSED IN PART; REMANDED WITH INSTRUCTIONS

COUNSEL

Horne Slaton & Sannes, PLLC, Scottsdale By Sandra L. Slaton, Kristin M. Roebuck Counsel for Petitioner/Appellant

Law Office of Scott E. Boehm, PC, Phoenix By Scott E. Boehm Counsel for Respondent/Appellee LUND v. LUND Decision of the Court

MEMORANDUM DECISION

Presiding Judge Kenton D. Jones delivered the decision of the Court, in which Judge Peter B. Swann and Chief Judge Michael J. Brown joined.

J O N E S, Judge:

¶1 Mary Ann Lund (Wife) appeals the family court’s orders dissolving her marriage to Richard Lund (Husband) and denying her motions for a new trial and to amend the decree. For the reasons that follow, we affirm in part, reverse in part, and remand with instructions.

FACTS1 AND PROCEDURAL HISTORY

¶2 Husband and Wife were married in November 1991. Wife filed a petition for dissolution of marriage in May 2010. By that time, the parties had accumulated substantial assets in the form of real and personal property, investment and retirement accounts, and fractional ownership interests in various entities involved in real estate development.

¶3 Husband and Wife entered into a settlement agreement in October 2011 that purported to resolve all issues. However, in August 2012, the family court rejected that agreement, determining it was “so lacking in specificity” regarding the identity, nature, and extent of the parties’ assets it did not represent a fair and equitable distribution of the community property. On its own motion, the court appointed a special master “to determine the value, liabilities, percentage of ownership, and other necessary determinations to establish the community’s business interests and assets.”

¶4 The parties participated in discovery, hired experts, and, in March 2013, presented evidence and testimony before the special master who thereafter issued written findings and conclusions regarding the nature and extent of the parties’ business assets. The family court then held

1 “[W]e view the evidence in the light most favorable to supporting the decision below.” Cooper v. Cooper, 167 Ariz. 482, 487 (App. 1990) (citing Johnson v. Johnson, 131 Ariz. 38, 44 (1981)).

2 LUND v. LUND Decision of the Court

oral argument on the parties’ objections to the special master’s findings and conclusions and a one-day trial on remaining matters.

¶5 In December 2013, the family court entered a final decree dissolving the marriage and incorporating many of the special master’s findings and conclusions. Husband then filed a motion to amend the decree to reflect proper allocation of retirement account funds and proceeds from the sale of the parties’ home, as well as maintenance of and payment for their children’s health insurance, which the court granted. Wife also filed a motion to amend the decree and for a new trial on the same bases presented within this appeal, which the court denied. Wife timely appealed, and we have jurisdiction pursuant to Arizona Revised Statutes (A.R.S.) sections 12- 120.21(A)(1),2 -2101(A)(1), and (A)(5)(a).

DISCUSSION

I. Allocation of “Real Property”

¶6 Wife first argues the family court’s order addressing “any other real property” was not a true “division” of the property and violated A.R.S. § 25-318. The order states:

Any other real property owned by the parties shall be held equally, and titled as determined by the parties by mutual agreement, and held or sold as determined by the parties upon mutual agreement.

We review the disposition of property for an abuse of discretion, which may occur when the family court commits an error of law. Kohler v. Kohler, 211 Ariz. 106, 107, ¶ 2 (App. 2005) (citing Fuentes v. Fuentes, 209 Ariz. 51, 56, ¶ 23 (App. 2004)).

¶7 As an initial matter, the parties agree the above-referenced provision is intended to address four investment properties held “via layers of limited liability companies that are [owned, in part, by] community entities.”3 Because the community’s fractional ownership interest is not in

2 Absent material changes from the relevant date, we cite a statute’s current version.

3 These interests include a 4.85% interest in a residential condominium project in Flagstaff known as Biltmore Pines valued at $282,000, an 8.3% interest in an industrial condominium project in San Diego, California

3 LUND v. LUND Decision of the Court

title to the property, but in the entities holding that title, the decree is in error in referring to these assets as “real property” interests.4 See Burkett v. Mott by Maricopa Cnty. Pub. Fiduciary, 152 Ariz. 476, 478 (App. 1986) (including documents of title and securities within the definition of “incorporeal personal property”); Ariz. Tractor Co. v. Ariz. State Tax Comm’n, 115 Ariz. 602, 604 (App. 1977) (holding a partnership interest is intangible personal property) (citing Blodgett v. Silberman, 277 U.S. 1, 11 (1928), and In re Finkelstein’s Estate, 245 N.Y.S.2d 225, 229 (1963)).

¶8 Addressing the merits of Wife’s argument,5 we look to A.R.S. § 25-318(A), which provides the family court “[i]n a proceeding for dissolution of the marriage . . . shall . . . divide the community, joint tenancy and other property held in common equitably, though not necessarily in kind.” (Emphasis added.) See also Martin v. Martin, 156 Ariz. 452, 456 (1988) (“[T]he court must equitably divide the community, joint tenancy and other property held in common.”) (emphasis added). Our supreme court has also acknowledged that physical assets may not always be readily divisible by the court or available for distribution. Id. at 458. That being the case, Arizona law requires an equitable, rather than equal, division, and the

known as Otay Mesa valued at $90,176, a 2.6% interest in undeveloped land in Flagstaff known as Butler and Fourth valued at $36,400, and a 50% interest in undeveloped land in Peeples Valley known as Envoy/Peeples valued at $35,000.

4 For this reason, we find no merit in Wife’s argument, premised upon the purported violation of A.R.S. § 25-318(F) (requiring the decree to “specifically describe by legal description any real property affected”), that the decree is unenforceable for vagueness. 5 Husband urges us to reject this argument based upon the doctrines of waiver or invited error because the family court’s order reflected an agreement of the parties to an equal-share allocation of the investment properties. While we share Husband’s concern that Wife does not challenge the nearly identical order “that the Riverside property [held in an entity of which the community owns a 16% interest] be split equally and retained by the parties by mutual agreement and disposed of by mutual agreement of the parties,” in our discretion, we address the merits of Wife’s contention. See Stop Exploiting Taxpayers v. Jones, 211 Ariz.

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