Marriage of Rudbeck v. Rudbeck

365 N.W.2d 330, 1985 Minn. App. LEXIS 3984
CourtCourt of Appeals of Minnesota
DecidedApril 2, 1985
DocketC8-84-1180
StatusPublished
Cited by9 cases

This text of 365 N.W.2d 330 (Marriage of Rudbeck v. Rudbeck) 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 Rudbeck v. Rudbeck, 365 N.W.2d 330, 1985 Minn. App. LEXIS 3984 (Mich. Ct. App. 1985).

Opinion

OPINION

NIERENGARTEN, Judge.

Jon Rudbeck appeals from the Judgment dissolving his marriage to respondent Carol Rudbeck. We affirm.

FACTS

John and Carol were married on May 15, 1976. They had no children, but Carol has two children from a previous marriage.

John’s occupation involves the purchase of real property, construction of homes thereon and the sale of same. He receives $22,796.52 in annual payments from certain contracts for deed which the parties own, a substantial portion of which is not taxable because they are deemed to be return on principal. John testified that he suffers from severe back pain which substantially affects his ability to earn an income. Independent witnesses, as well as Carol, testified that John has only missed a few days of work, rarely takes medication and has been seen lifting heavy objects.

Carol, on the other hand, worked part-time, and recently full time, at a bakery. Her pay ranged from $3.35 to $4.00 per hour. She now intends to pursue a career as a cosmetologist and will seek training in Tulsa, Oklahoma. The trial court found that Carol requires additional training and financial support to permit her to enter the job market. The court also invalidated certain promissory notes of John payable to his brother, Roger, for a debt allegedly owed because Roger performed more than half of the work in constructing certain homes that the brothers traditionally shared fifty-fifty. John alleges his back problem prevented this sharing but the *332 court disagreed and found the notes to be “fraudulent and without legal effect.”

The court also concluded that a document allegedly signed by Carol transferring her one-half interest in certain property to Roger Rudbeck was forged, based on the testimony of a handwriting expert.

Finally, the court ordered John to pay $500 per month for 24 months as spousal maintenance and to contribute $4,000 towards Carol’s attorneys’ fees.

Five days before their marriage, the parties entered into an antenuptial agreement which attempted to govern the rights and liabilities of the parties if they should happen to get divorced. It did not affect the rights of Carol if John were to die. Carol now argues this agreement is invalid because she did not have the opportunity to consult with an independent attorney and because John did not make a full disclosure of all his assets.

ISSUES

Did the trial court abuse its discretion in:

1. Disregarding the Antenuptial Agreement between the parties?

2. Finding that certain alleged Promissory Notes between John and his brother are “fraudulent and without legal effect”?

3. Finding that Carol’s signature was forged on a document purporting to transfer a marital asset?

4. Dividing the marital property?

5. Awarding Carol spousal maintenance?

6. Ordering John to contribute $4,000 towards Carol’s attorney’s fees?

ANALYSIS

I

II] Antenuptial agreements governing property settlements upon dissolution are valid in Minnesota. Englund v. Englund, 286 Minn. 227, 230, 175 N.W.2d 461, 463 (1970); Hill v. Hill, 356 N.W.2d 49, 53 (Minn.Ct.App.1984), pet. for rev. denied, (Feb. 19, 1985). The current requirements for a valid antenuptial agreement are contained in Minn.Stat. § 519.11 (1984); effective August 1, 1979. Rudbeck’s agreement was entered into before this date and is therefore governed by the common law.

“At common law, a presumption of fraud arises where the parties to an antenuptial agreement stand in a confidential relationship to one another and there is inadequate consideration to support their agreement.” Hill, 356 N.W.2d at 53. It is presumed that the parties stand in a confidential relationship because of their contract to marry. In re Estate of Malchow, 143 Minn. 53, 59, 172 N.W. 915, 917 (1919). Here the consideration was clearly inadequate because Carol would receive only a small portion of what she would otherwise be entitled. Accordingly, there is a presumption of fraud. In order to overcome this presumption, the proponent, not contestant, must “show there was no fraud or concealment, and that [the other party] knew the extent, character, and value of his property and the nature and extent of her rights as his wife and widow.” Slingerland v. Slingerland, 115 Minn. 270, 275, 132 N.W. 326, 328 (1911). In addition to full disclosure of assets, the proponent must prove knowledge of this right to independent legal counsel. Estate of Serbus v. Serbus, 324 N.W.2d 381, 385 (Minn.1982); see Hill, 356 N.W.2d at 53; Minn.Stat. § 519.11, subd. 1 (1984).

First, the agreement itself does not recite compliance with any of the requirements necessary for a valid antenuptial agreement. Second, only John was represented by counsel. The first time Carol saw the contract was in the office of John’s attorney, when she was first asked to sign the document. She signed the agreement only 5 days before their marriage after it was made clear that if there was no signature there would be no marriage. This was sufficient evidence for the trial court to find that Carol “had no meaningful opportunity to consult an attorney prior to signing” the agreement.

*333 Further, John failed to make a full disclosure of his assets. John suggested that Carol had the opportunity to determine the extent of his assets because of all the “stuff laying all over [his] desk.” However, Carol was not a partner in John’s business and didn’t possess a description of all property owned, purchase price, market value and any debts existing against it. The trial court correctly found that John “at no time made a full and fair disclosure of his assets to [Carol] prior to execution of the Antenuptial Agreement.” A trial court’s findings will not be set aside or disturbed “unless clearly erroneous.” Minn.R.Civ.P. 52.01.

II

The trial court held that certain promissory notes between John and his brother Roger were “fraudulent and without legal effect.” The trial court was correct in so holding.

First, prior to the commencement of the dissolution proceedings, none of the notes appear as liabilities on financial statements prepared for the First Bank of Brainerd even though John was required to list debts owing to any relatives and/or friends.

Second, the notes were allegedly executed to compensate Roger for additional work that Roger put in on the homes constructed on John’s property and lots. The evidence, however, makes it clear that John and Roger always helped each other and that the work split was approximately equal. Additionally, John made no attempt to show what work was done by each of them, how many hours were involved and when the work was performed.

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Bluebook (online)
365 N.W.2d 330, 1985 Minn. App. LEXIS 3984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-rudbeck-v-rudbeck-minnctapp-1985.