Marriage of Schwartz v. Linders

426 N.W.2d 97, 145 Wis. 2d 258, 1988 Wisc. App. LEXIS 444
CourtCourt of Appeals of Wisconsin
DecidedMay 18, 1988
Docket87-1592
StatusPublished
Cited by6 cases

This text of 426 N.W.2d 97 (Marriage of Schwartz v. Linders) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriage of Schwartz v. Linders, 426 N.W.2d 97, 145 Wis. 2d 258, 1988 Wisc. App. LEXIS 444 (Wis. Ct. App. 1988).

Opinion

BROWN, P.J.

This is an appeal from a trial court ruling which held in part as follows: the fact that certain property, now part of the marital estate, was originally inherited, may not be considered in deciding whether to depart from an equal division of the marital property. We disagree and hold that sec. 767.255, Stats., allows trial courts to consider the bygone inherited status of the property when deciding property division. The trial court also held that "needs” is not a proper criterion in establishing a division of property. Based on sec. 767.255(9) in general and sec. 767.255(3), (4) and (6) in particular, we do not agree. We reverse and remand with directions.

The salient facts are uncomplicated. The parties are Stephen H. Schwartz and Alice M. Linders. The marriage was of short duration, lasting almost exactly five years. There were no children of this marriage. Both parties have children from previous marriages. The parties lived together as husband and wife for approximately three years. Ms. Linders was employed *260 full-tirqe during the marriage. On the date of trial, her income was about $40,000 per year.

During the course of the marriage, Mr. Schwartz inherited approximately $279,919 from his deceased mother. With some of that amount, Mr. Schwartz opened a Merrill-Lynch cash management account titled in both parties’ names and valued on the date of trial at $133,364. Additionally, he testified that he used inherited funds for the down payment on two homes and the purchase of Ms. Linders’ automobile. Further, he funded two IRA accounts with inherited funds. The trial court found that all of this was commingled into the marital estate and had lost its separate character. Mr. Schwartz does not contest that finding and we will not discuss its propriety.

Mr. Schwartz argued at trial that even if inherited property is commingled and must be considered as part of the divisible marital estate, the trial court may consider its prior inherited status in deciding whether to effect an unequal division of the marital estate. Mr. Schwartz asserted that an unequal division was appropriate here because the marriage was of short duration, Ms. Linders was a non-homemaker spouse, she contributed little to the marriage financially, and she commands a salary and benefits which can sustain her economically. Noting that a very substantial portion of the marital estate emanates from his previously inherited property, Mr. Schwartz concluded that to divide the estate equally would amount to a financial windfall to Ms. Linders without any justification on the grounds of economic partnership.

The trial court reviewed what it considered to be the applicable case law and concluded that it had no discretion to consider making an unequal division based on the fact that the bulk of the estate was *261 initially inherited property. In particular, the trial court stated:

As stated in the brief of the petitioner, the fact that property was inherited is not a factor to be considered in departing from equal division of the marital property. Counsel for petitioner cited Anstutz v. Anstutz, 112 Wis. 2d 10 (Ct. App 1982) [sic 1983] for this rule. This court believes that this is a very hard law. But, the court decision of the Court of Appeals must be followed. [Emphasis in original.]

The above conclusion of law by the trial court is the focus of the main issue on appeal.

The trial court’s conclusion was based upon its reading of Anstutz v. Anstutz, 112 Wis. 2d 10, 331 N.W.2d 844 (Ct. App. 1983). In that case, the wife received between $24,000 and $26,450 as part of the marital estate while the husband received $12,450 plus the assumable debts of the parties. The husband appealed claiming that the trial court abused its discretion in awarding the unequal division. The Anstutz court agreed, surmising that the trial court might have felt it necessary to give an unequal division because the wife had put her $5000 inheritance into a down payment on the parties’ homestead and that giving an unequal division was the only way to recompense her. Id. at 11-12, 331 N.W.2d at 845. The appellate court noted that if the inheritance funds were not commingled, the proper course would be to return the present value of the inheritance to the heir rather than including the property in the marital estate and then dividing the estate unequally. Id. at 12, 331 N.W.2d at 845. The Anstutz court wrote:

*262 The fact that property was inherited is not a factor to be considered in departing from equal division of the marital property. Rather, the statutes envision return of the inheritance or property paid for with inherited funds to the heir prior to division of the marital property.

Id. at 12, 331 N.W.2d at 845-46.

The trial court in this case seems to read the above passage, particularly the first sentence, as a ruling that a trial court may never consider whether certain marital property was at one time inherited. That passage, however, cannot be considered in a vacuum, but rather should be scrutinized in light of the facts in that case. Anstutz stands for the proposition that if inherited property has not been commingled, the trial court should not attempt to cure the seeming inequity by including the disputed property in the marital estate only to then effectuate an unequal division to make the division fair. See id. Instead, the trial court should separate the inherited property in the beginning and make clear that the property belongs to the spouse who inherited it.

We conclude that if inherited property has been commingled, Anstutz is inapplicable. There is no law saying that the court must ignore that property was once inherited. In fact, sec. 767.255, Stats., seems to suggest the opposite. Section 767.255(2) compels trial courts to consider the property brought to the marriage by each party. Surely, this cannot be limited to property brought to the marriage at its inception but must also include property brought to the marriage at any time which might be subject to division. Additionally, sec. 767.255(12), the "catchall” provision, requires trial courts to consider other factors as the *263 court may in each individual case determine to be relevant.

We hold that a trial court has a statutory imprimatur to consider the prior inherited status of divisible property. Whether that can result in an unequal division of the property depends upon the facts of each case. It is enough to say that if the marriage is of short duration, and the trial court feels that one spouse will receive a windfall without having participated much in the economic partnership of the marriage, then the once inherited stature of divisible property may be a cogent reason for dividing an estate unequally.

Property division rests within the sound discretion of the trial court. Torgerson v. Torgerson, 128 Wis.

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Bluebook (online)
426 N.W.2d 97, 145 Wis. 2d 258, 1988 Wisc. App. LEXIS 444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriage-of-schwartz-v-linders-wisctapp-1988.