Marriage of Olsen v. Olsen

552 N.W.2d 290, 1996 WL 453335
CourtCourt of Appeals of Minnesota
DecidedOctober 15, 1996
DocketC7-95-2493
StatusPublished
Cited by2 cases

This text of 552 N.W.2d 290 (Marriage of Olsen v. Olsen) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Olsen v. Olsen, 552 N.W.2d 290, 1996 WL 453335 (Mich. Ct. App. 1996).

Opinions

OPINION

RANDALL, Judge.

In an appeal from the judgment and decree of dissolution, Larry G. Olsen challenges the trial court’s designation as non-marital certain lakeshore property gifted by respondent Colleen C. Olsen’s uncle to Larry and Colleen Olsen, as joint tenants, during the marriage of the parties. Alternatively, appellant argues the trial court abused its discretion in refusing to apportion the property. We reverse and remand on the ground that respondent failed to rebut the statutory presumption that the property is marital.

FACTS

The parties’ 24-year marriage was dissolved by judgment entered on August 28, 1995. Both parties are employed full-time. Appellant’s net income is approximately $1,440 per month, and respondent’s net income is approximately $1,000 per month. Both parties waived any claim to spousal maintenance. Appellant was awarded marital assets with a total value of $144,704, including the homestead. Respondent was awarded marital assets totaling $8,452. To equalize the property division, respondent was awarded the sum of $68,126, to be paid by appellant in installments.

The parties also own, as joint tenants, certain undeveloped property on Lake Superior (the North Shore property). The agreed value of the North Shore property is $121,-000. Prior to the transfer to the parties by respondent’s uncle, the property had belonged to various members of respondent’s side of the family since 1880.

Respondent’s uncle, Klemmet Anderson, deeded the North Shore property to the parties as joint tenants in two conveyances in 1989 and 1990, respectively. Klemmet Anderson’s 1990 tax returns show a gift to each party of one-half interest in the North Shore property.

Klemmet Anderson testified he has a close relationship with respondent but does not feel that he knows appellant very well. At the time of the gift, Klemmet Anderson had no knowledge of any marital problems between the parties. Klemmet Anderson testified that he thought that by giving the North Shore property to respondent, it would be “kept in the Anders on family.” Klemmet Anderson acknowledged he understood that the property was conveyed to both parties as joint tenants. He acknowledged that he knew appellant would not only be a co-owner after the deed, but also that he could end up owning the entire property in his own name if respondent predeceased him. Respondent testified appellant’s name was put on the deeds at her direction because she thought that joint tenancy was the proper way for married persons to hold property.

The trial court determined that the North Shore property is respondent’s nonmarital property because Klemmet Anderson’s intent was to transfer the property to respondent alone, notwithstanding the form of title. The court declined to award appellant any part of the value of the North Shore property. This appeal followed.

ISSUE

Did the trial court err in determining that appellant met her burden to show that the North Shore property was a gift to her only, despite the conveyance of the property to the parties as joint tenants?

ANALYSIS

Whether property is marital or non-marital is a question of law that this court may review with independent judgment, but the facts underlying the finding that property is marital or nonmarital will be set aside only if clearly erroneous. Swick v. Swick, 467 N.W.2d 328, 330 (Minn.App.1991), review denied (Minn. May 16, 1991). “Marital property” is property acquired by either party [292]*292during their marriage. Minn.Stat. § 518.54, subd. 5 (1994). In part, the statute defines “nonmarital property” as

property real or personal, acquired by either spouse, before, during, or after the existence of the marriage, which
(a) is acquired as a gift, bequest, devise or inheritance made by a third party to one but not to the other spouse;
(b) is acquired before the marriage * * *.

Id.

The presumption of marital property is overcome by showing that the property is nonmarital. , Id. A spouse claiming that property is nonmarital must prove the necessary underlying facts by a preponderance of the evidence. Johnson v. Johnson, 388 N.W.2d 47, 49 (Minn.App.1986).

Both parties agree that the North Shore property is presumptively marital, because it was acquired during the marriage. The trial court, however, found that the North Shore property was nonmarital, reasoning that Klemmet Anderson meant to make a gift to respondent only, but not to appellant. See Minn.Stat. § 518.54, subd. 5(a) (nonmarital property includes property acquired as a gift made by a third party to one but not to the other spouse).

First we start with the general proposition that evidence regarding the intent of the donor is relevant to the determination of whether the gift was made to one but not to the other spouse. See Nolden v. Nolden, 448 N.W.2d 892, 893-94 (Minn.App.1989) (trial court properly found gift to be nonmarital property where donor testified the gift was intended only for one spouse and not the other). Next we move on to the specifics. The conveyance of the property to the parties as joint tenants constitutes strong evidence of Klemmet Anderson’s intent to give the property to both parties. The designation of both parties as recipients of the gift on Klemmet Anderson’s tax return further corroborates the unambiguous wording of the deed. Klemmet Anderson had the right to give the property to respondent alone. He chose not to do so. When his accountant advised him that it would be to his tax advantage to gift the property to both respondent and appellant, he split the gift for his own benefit.

Respondent presented testimony of her uncle to the effect that his tax accountant “took care of this for him” and that he really does not claim to be an expert in taxes. But respondent concedes that the record shows the tax accountant explained to Klemmet Anderson why he should transfer the property to the couple, rather than to one alone, and that Anderson understood what the tax accountant suggested. The record shows that Anderson went along with the tax preparer’s suggestion and signed the deed, knowing it was to the couple as co-owners, meaning joint tenants. Respondent disingenuously argues that somehow her uncle’s consulting with a tax preparer takes away from the importance of the evidence of the recorded deed that is unambiguously a gift to both parties equally, not to one alone. We conclude the opposite. When a lay person searches out a professional, skilled in the preparation of legal documents, such as a tax accountant or an attorney, the fact that the legal document was prepared by a professional pursuant to the instructions of a client does not denigrate the importance of the document as the client’s intent, but to the contrary, enhances it. Here, the tax accountant suggested to Klemmet Anderson that he would receive an economic advantage by splitting the gift between appellant and respondent. Anderson understood that and authorized the tax preparer to prepare a deed showing the property was to be transferred to the couple as joint tenants. The deed was so prepared. It is to that deed that Klemmet Anderson affixed his signature.

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Related

Marriage of Olsen v. Olsen
562 N.W.2d 797 (Supreme Court of Minnesota, 1997)
Marriage of Olsen v. Olsen
552 N.W.2d 290 (Court of Appeals of Minnesota, 1996)

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Bluebook (online)
552 N.W.2d 290, 1996 WL 453335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-olsen-v-olsen-minnctapp-1996.