Marriage of Barnett v. Jedynak

200 P.3d 1047, 219 Ariz. 550, 547 Ariz. Adv. Rep. 23, 2009 Ariz. App. LEXIS 1
CourtCourt of Appeals of Arizona
DecidedJanuary 8, 2009
Docket1 CA-CV 07-0558
StatusPublished
Cited by19 cases

This text of 200 P.3d 1047 (Marriage of Barnett v. Jedynak) 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
Marriage of Barnett v. Jedynak, 200 P.3d 1047, 219 Ariz. 550, 547 Ariz. Adv. Rep. 23, 2009 Ariz. App. LEXIS 1 (Ark. Ct. App. 2009).

Opinion

OPINION

OROZCO, Judge.

¶ 1 The issue in this appeal is the extent of the community’s interest in a home Appellee Joshua Cody Barnett (Husband) acquired prior to the marriage. Because we conclude that the formula used by the trial court to calculate the community interest in the property would deprive the community of its full equitable interest in the property, we reverse and remand.

FACTUAL AND PROCEDURAL HISTORY

¶ 2 Husband and Appellant Karry V. Jedynak (Wife) were married April 1, 2004. According to Wife, the couple lived together beginning in September 1999.

¶3 During the marriage, the parties and their children lived in a home Husband purchased in 2002 for $125,000. Wife claims that from October 2003 up to and including the date of their marriage in April 2004, Husband was unemployed and Wife was the sole support of the household and family. The Petition for Dissolution was filed on June 14, 2006.

¶ 4 The decree of dissolution stated that the marital residence was Husband’s separate property, except that the community “has a lien against the property for the value of principal payments made during the marriage by the community and for the increase in value during the marriage.” It ordered that an appraisal be done to determine the property’s current fair market value. The court ordered that once the appraisal was completed, the mortgage balance of $120,130 and other liens be deducted from the fair market value to determine remaining equity. That remaining equity was then to be “divided equally by the parties.”

¶ 5 Husband filed a Motion to Alter or Amend Judgment, arguing that a “value-at-dissolution” formula should be used to calculate the community’s interest in the property, citing Drahos v. Rens, 149 Ariz. 248, 250, 717 P.2d 927, 929 (App.1985). Husband further noted that in Drahos there was no appreciation in value prior to the marriage, but in this case, his home appreciated prior to the marriage. Therefore, Husband argued, the formula applied in Drahos should be adjusted to give Husband full credit for all increase in value prior to marriage as his sole and separate property. Husband then proposed his own formula for determining the community’s interest in the home.

¶ 6 In response, Wife argued Drahos did not apply because she paid the mortgage prior to marriage when Husband was unemployed. She requested an equal division, per the court’s original order.

¶7 Neither party requested oral argument, nor is there any indication in the record that a hearing was held. The trial court granted Husband’s Motion to Alter or Amend Judgment regarding the marital residence. The court directed Husband to “lodge a form of order consistent with the relief [requested].” The trial court signed the order Husband submitted, directing Husband to have two appraisals done — one valuing the property as of the date of the marriage and the other as of August 7, 2006 (the date Wife was served with the petition for dissolution) — and largely adopting Husband’s proposed formula for calculating the community’s interest in the property. The formula adopted by the trial court for determining the community’s lien on the property was:

Where “A” equals the down payment made by Husband, plus principal payments made by Husband prior to marriage, plus the appraised value as of the date of the marriage minus the mortgage balance;
*553 Where “B” equals the appraised value as of the date of marriage;
Where “C” equals the community’s contribution to principal; and
Where “D” equals the value at the date of dissolution, the community’s lien is equal to:
C/[A+C] X[D-B]

¶ 8 Wife timely appealed. The sole issue on appeal is how to determine the community’s interest in the home. We have jurisdiction pursuant to Arizona Revised Statutes (AR.S.) section § 12-2101.B (2003).

DISCUSSION

Sufficiency of Record

¶ 9 As an initial matter, Husband notes that Wife failed to provide transcripts of any hearings. Although in the absence of a transcript, this court may not consider questions pertaining to evidence or findings of fact, this court still considers questions of law raised by the record transmitted to this court. Brousseau v. Fitzgerald, 138 Ariz. 453, 457, 675 P.2d 713, 717 (1984). Where all the essential elements for the determination of the issue raised by Wife are in the record before us, we rely on the record in making our decision. Id. In this ease, there is no indication in the record that a hearing was requested or held on this issue. Therefore, we find the record sufficient for us to consider the issue on the merits.

Standard of Review

¶ 10 The trial court has broad discretion in apportioning community property between the parties at dissolution to achieve an equitable division. Boncoskey v. Boncoskey, 216 Ariz. 448, 451, ¶ 13, 167 P.3d 705, 708 (App.2007). The appellate court will not disturb the trial court’s apportionment of community property in a marital dissolution absent an abuse of discretion. Kohler v. Kohler, 211 Ariz. 106, 107, ¶2, 118 P.3d 621, 622 (App.2005). “An abuse of discretion may occur when a trial court commits an error of law in the process of exercising its discretion.” Id.

Mortgage Payments Prior to Marriage

¶ 11 Wife asserts the community is entitled to an interest in the home’s appreciation prior to the marriage because she supplied the funds to pay the mortgage payments during periods when Husband was unemployed prior to the marriage. She asserts that “even prior to the marriage, the family ... ran as one and separate property and community property were undistinguishable due to the manner in which finances were conducted together.”

¶ 12 Wife does not argue that by cohabitating, the parties created a common-law marriage that imposed community property obligations; even if she did make that argument, Arizona does not recognize common-law marriages unless they are entered into in another state in which they are authorized. Smith v. Mangum, 155 Ariz. 448, 450, n. 1, 747 P.2d 609, 611, n. 1 (App.1987); A.R.S. § 25-111 (2007). “[I]n the absence of an express or implied agreement, no quasi-marital property rights accrue as a result of cohabitation” in Arizona. Mangum, 155 Ariz. at 450, 747 P.2d at 611.

¶ 13 There is no evidence of an express agreement between the parties to acquire the home jointly. Nor did the trial court find any implied agreement to acquire the home jointly.

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Bluebook (online)
200 P.3d 1047, 219 Ariz. 550, 547 Ariz. Adv. Rep. 23, 2009 Ariz. App. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-barnett-v-jedynak-arizctapp-2009.