Marriage of Gochanour v. Gochanour

2000 MT 156, 4 P.3d 643, 300 Mont. 155, 57 State Rptr. 619, 2000 Mont. LEXIS 155
CourtMontana Supreme Court
DecidedJune 15, 2000
Docket99-172
StatusPublished
Cited by7 cases

This text of 2000 MT 156 (Marriage of Gochanour v. Gochanour) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Gochanour v. Gochanour, 2000 MT 156, 4 P.3d 643, 300 Mont. 155, 57 State Rptr. 619, 2000 Mont. LEXIS 155 (Mo. 2000).

Opinion

JUSTICE NELSON

delivered the Opinion of the Court.

¶1 Virgil Gochanour (Virgil) appeals a Final Decree issued by the Third Judicial District Court, Deer Lodge County, which dissolved his and Barbara Gochanour’s (Barbara) marriage and divided their marital estate. We affirm and remand for further proceedings.

¶2 On appeal, Virgil raises the following two issues, the second of which is divided into seven separate sub-issues:

1. Did the District Court err in concluding that no evidence was presented which supported the execution of an antenuptial agreement?
2. Did the District Court err in the dividing of the property of the parties, thus requiring remand?

FACTUAL AND PROCEDURAL BACKGROUND

¶3 The parties were married on June 3, 1989, after living together for five years. They separated on January 18, 1996. Barbara filed a petition for dissolution of marriage on March 27, 1996. Following an April 22, 1998 hearing, the District Court issued its Findings of Fact, Conclusions of Law, and Final Decree on November 4, 1998. Virgil filed a motion to alter or amend the court’s findings on December 18, 1998, followed by a brief in support on January 13, 1999, which was deemed denied following the passage of 60 days. Virgil filed his notice of appeal on March 18, 1999.

¶4 In addition to the assets Virgil and Barbára brought into the marriage, both parties substantially contributed to the marital estate during the course of their six-year marriage. Further, what is characterized as a “partnership” in operating their small cattle operation commenced prior to their marriage. During the marriage the couple purchased property referred to here as the “Cable Road” and “Highway 48” properties. Ranch equipment was purchased as well, as the cattle operation grew from two head of cattle in the beginning of their partnership to approximately 62 at the time of separation. A ranch *157 account, in Virgil’s name, grew steadily and showed a balance of $97,191.78 at the time of the 1998 hearing.

¶5 Barbara is a licensed practical nurse, employed at the Montana State Hospital where she has worked since 1979. She earned slightly more than $20,000 a year during the marriage, and accumulated a Public Employee’s Retirement System (PERS) account of approximately $33,000. In addition to contributing her income, Barbara testified she worked on the couple’s ranch operation, performing such labor as swathing, fixing fences, and helping with calving — which she often accomplished in the evenings after returning from working at the hospital. She also testified that she performed the majority of the household labor.

¶6 Virgil has been disabled since 1986, following an accident in which he injured his back, and receives monthly Social Security compensation of $1,044 each month. In 1997, he earned $12,888 from Social Security and $3,304 in interest income from a bank account. He also received a lump-sum Workers’ Compensation settlement after his accident, which was used as collateral to finance the purchase of the cattle operation. In addition to his Social Security income, Virgil also worked the ranching-cattle operation properties referred to here as “Cable Road” and “Highway 48,” although he adamantly characterizes such work as a “hobby” which produces no income. He will receive a monthly retirement when he turns 65 of approximately $283.

¶7 At the April 22, 1998 hearing, Barbara and Virgil agreed on very little as to how the marital assets and liabilities should be distributed. Thus, the District Court reached numerous discretionary rulings, most of which are now at issue.

¶8 One key issue decided in Barbara’s favor involved the enforceability of a prenuptial agreement. Virgil alleged that two days prior to their marriage he and Barbara executed a prenuptial agreement, at his insistence. He would testify that he recalled both he and Barbara signing the agreement, which was dated June 1, 1989, at his attorney’s office, and recalled paying his attorney for this particular legal service. At the hearing, it was undisputed that the original agreement could not be found. Barbara would testify that she was never presented with an agreement and never signed one. The court concluded that the unexecuted premarital agreement entered into evidence was unenforceable, and that “[n]o evidence was introduced indicating that the Agreement was executed.”

*158 ¶9 Another critical factor in this dispute is the cancer treatment Barbara underwent during the marriage. Although her insurance paid for most of the treatment, Barbara testified that the out-of-pocket expenses depleted her savings account. She also testified that Virgil paid $2,000 toward her bills and helped pay travel expenses for treatment in Seattle on one occasion. She further testified that $7,000 in medical expenses remain unpaid. The court concluded that Barbara’s medical bills and expenses were marital debt, and Virgil would be responsible for 50 percent of “medical bills incurred from the date of the marriage up to and including the date of final dissolution.”

¶10 As for property, Virgil expended considerable effort in attempting to persuade the District Court that his transfer of interest to his parents during his marriage to Barbara removed certain properties from the marital estate. He also asserted that the ranching operation was his, alone, due primarily to the fact that it was his work-comp settlement that originally secured the loan for the ranching property. He further claimed that during the course of the marriage he accounted for approximately 90 percent of the labor in working the ranch.

¶11 Another point of contention concerned Barbara’s transfer of interest on the Highway 48 property at the time of separation. Virgil claims she came to him, asking for money with which she could purchase a house in Opportunity. Allegedly, he agreed to provide her $8,000, but required that she convey her interest in the Highway 48 property, which at the time was worth approximately $68,000. Barbara contended that her decision to convey this interest in exchange for the $8,000 was made while she was under tremendous stress due to her medical condition and the circumstances surrounding their separation. The court determined that the $8,000 paid to Barbara for her interest in the Highway 48 property was unconscionable. The court set aside the deed, and determined that the $8,000 would be an offset to her share of the marital estate.

¶12 The court further concluded that, pursuant to Montana law, the disposition of the property in this matter need not be equal, but it must be equitable. The court found that Virgil’s ranch account balance grew, in part, due to Barbara’s employment income contributions, which provided the couple with food and living expenses. The court also found that the couple kept much of their respective finances separate, with little co-mingling. For example, Virgil and Barbara each had separate brands for their cattle. The court deter *159 mined that, notwithstanding the various transfers of interest made by Virgil to his parents as well as the various assertions that property was kept separate, Barbara should have a 50-percent interest in all of the property, including the cattle operation.

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Bluebook (online)
2000 MT 156, 4 P.3d 643, 300 Mont. 155, 57 State Rptr. 619, 2000 Mont. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-gochanour-v-gochanour-mont-2000.