Martin v. Martin

2016 Ohio 7551
Ohio Court of Appeals·Decided October 31, 2016·No. 2015-T-0025·Published·Cited by 3 cases

Opinion

IN THE COURT OF APPEALS

ELEVENTH APPELLATE DISTRICT TRUMBULL COUNTY, OHIO

ERIC MARTIN, : OPINION

Plaintiff-Appellee, :

CASE NO. 2015-T-0025

- vs - :

DENISE M. CARRADINE MARTIN, :

Defendant-Appellant. :

Civil Appeal from the Trumbull County Court of Common Pleas, Domestic Relations Division, Case No. 09 DR 333.

Recommendation: Modified in part, and affirmed as modified.

Eric Martin, pro se, P.O. Box 735, Vienna, OH 44473 (Plaintiff-Appellee).

Charles E. Dunlap, 7330 Market Street, Youngstown, OH 44512 and Stanley Morganstern, 28482 North 77th Street, Scottsdale, AZ 85266 (For Defendant- Appellant).

COLLEEN MARY O’TOOLE, J.

{¶1} Dr. Denise M. Carradine Martin appeals from the judgment entry of the Trumbull County Court of Common Pleas, Domestic Relations Division, granting a divorce between Dr. Carradine Martin and Eric Martin. We modify in part, and affirm as modified.

{¶2} The parties were married in June 1998. Dr. Carradine Martin is a successful chiropractor; Mr. Martin is a financial advisor. Mr. Martin filed for divorce in

September 2009; Dr. Carradine Martin answered and counterclaimed. The proceedings were bitter and lengthy, including multiple interlocutory appeals to this court. February 11, 2015, the trial court filed the judgment entry at issue on appeal. The trial court granted the divorce on the basis of incompatibility. It determined the extent of the parties’ separate property, and divided the marital property.1 The trial court also made an award in Mr. Martin’s favor for financial misconduct by Dr. Carradine Martin, totaling nearly $800,000.

{¶3} Dr. Carradine Martin timely noticed this appeal, assigning nine errors. The first reads: “The Trial Court erred by reserving jurisdiction to in effect modify its division of property award, contrary to law.” In its judgment entry, the trial court held, “the court shall reserve jurisdiction to enter further order to divide the assets of Defendant-Wife for the division of property[.]” Dr. Carradine Martin contends this is an impermissible reservation of jurisdiction to modify the property award. Pettit v. Pettit, 12th Dist. Fayette No. CA2011-08-018, 2012-Ohio-1801, ¶58. Mr. Martin contends it is a permissible reservation of jurisdiction to enforce the property award. Id. We find the clear language of the judgment entry constitutes an attempt to reserve jurisdiction to enforce the award.

{¶4} The first assignment of error lacks merit.

{¶5} Dr. Carradine Martin’s third assignment of error reads: “The Trial Court erred and abused its discretion by failing to limit the distributive award to Appellee to Appellant’s separate property as required by law.” From 2006 through 2009, Dr. Carradine Martin transferred some $854,261.10 to Attorney D. Keith Roland. Attorney Roland would put the funds into his IOLTA accounts. They were then transferred by 1. The marital property was $2,329,040.07.

wire to the firm of Maerki Baumann & Co. in Zurich, Switzerland. Mr. Martin had no idea of this activity. His private investigator discovered the practice during the pendency of the divorce.

{¶6} As a result, the trial court granted an award to Mr. Martin for Dr. Carradine Martin’s financial misconduct, pursuant to R.C. 3105.171(E). The award included $739,390.27 in the Maerki Baumann account as of December 31, 2009; $40,155.07 from Attorney Roland’s IOLTA account; and $10,767.01 from accounts Dr. Carradine Martin kept at Consumers National Bank. In its judgment entry, the trial court described this award as a “distributive award.”

{¶7} Former R.C. 3105.171(E)(3) allowed a trial court to make either a distributive award for financial misconduct by a party regarding marital property, or a greater award of marital property. The statute was amended in September 2010. Former R.C. 3105.171(E)(3) was renumbered (E)(4), and new R.C. 3105.171(E)(5) was added. This allows the court to make the distributive award or award of a greater portion of the marital property for financial misconduct up to three times the value of the property concealed. The parties spend considerable effort in their briefs arguing the applicability of the old or new statutes.

{¶8} We respectfully find this issue irrelevant. The question before this court is the nature of the award made. As Dr. Carradine Martin points out, a distributive award for financial misconduct can only be made from the offending party’s separate property. Dilley v. Dilley, 11th Dist. Geauga No. 2010-G-2957, 2011-Ohio-2093, ¶26-34. The award made in this case was from marital property. Mr. Martin contends any error by

the trial court in naming the award is harmless, since the trial court had the power to make him an award from the marital property.

{¶9} We find Mr. Martin’s argument persuasive. The trial court had the power to make an award for financial misconduct from the marital property, and did so. Calling it a “distributive” award is harmless error.

{¶10} The third assignment of error lacks merit.

{¶11} Dr. Carradine Martin’s fourth assignment of error reads: “The Trial Court erred and abused its discretion in awarding Appellee distributive awards so punitive as to make the entire division of property not only unequal, but grossly inequitable under the entire facts and circumstances of the case.” Dr. Carradine Martin argues that even if she committed financial misconduct, the award in favor of Mr. Martin is inequitable and punitive.

{¶12} Once a finding of financial misconduct is made under R.C. 3105.171(E), the trial court’s decision regarding an award is reviewed for abuse of discretion. Epperson v. Epperson, 6th Dist. Wood No. WD-14-054, 2015-Ohio-2443, ¶41. Regarding this standard, we recall the term “abuse of discretion” is one of art, connoting judgment exercised by a court which neither comports with reason, nor the record. State v. Ferranto, 112 Ohio St. 667, 676-678 (1925). An abuse of discretion may be found when the trial court “applies the wrong legal standard, misapplies the correct legal standard, or relies on clearly erroneous findings of fact.” Thomas v. Cleveland, 176 Ohio App.3d 401, 2008-Ohio-1720, ¶15 (8th Dist.) In this case, the trial court devoted more than 12 pages of its judgment entry to describing Dr. Carradine Martin’s careful concealment of funds in Switzerland, etc., and her repeated attempts through discovery,

and under oath at trial, to obfuscate the matter. Under the circumstances, we cannot find the trial court abused its discretion in making the award it did.

{¶13} The fourth assignment of error lacks merit.

{¶14} Dr. Carradine Martin’s seventh assignment of error reads: “The Trial Court erred and abused its discretion by concluding Appellee’s conduct to have been negligent due to ignorance, or inappropriate at times, but not rising to financial misconduct.” Dr. Carradine Martin argues that Mr. Martin, a financial expert, failed to disclose or properly account for various assets. Mr. Martin rejoins that, ultimately, most of these assets folded into accounts which he did disclose.

{¶15} On this issue, the trial court noted that some of Mr. Martin’s records were unavailable to him, since they were stored at the marital residence, and that he made others available at his attorneys’ office for inspection. The trial court concluded Mr. Martin’s conduct may have been negligent, or even inappropriate, but did constitute financial misconduct under R.C. 3105.171(E). Nothing Dr. Carradine Martin points to convinces us this conclusion was error.

{¶16} The seventh assignment of error lacks merit.

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