Matheson v. Matheson

2024 Ohio 2477
CourtOhio Court of Appeals
DecidedJune 28, 2024
Docket23CA012011, 23CA012012
StatusPublished
Cited by2 cases

This text of 2024 Ohio 2477 (Matheson v. Matheson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matheson v. Matheson, 2024 Ohio 2477 (Ohio Ct. App. 2024).

Opinion

[Cite as Matheson v. Matheson, 2024-Ohio-2477.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF LORAIN )

MARIA MATHESON C.A. Nos. 23CA012011 23CA012012 Appellant/Cross-Appellee

v. APPEAL FROM JUDGMENT JAMES MATHESON ENTERED IN THE COURT OF COMMON PLEAS Appellee/Cross-Appellant COUNTY OF LORAIN, OHIO CASE No. 19DU086106

DECISION AND JOURNAL ENTRY

Dated: June 28, 2024

SUTTON, Presiding Judge.

{¶1} Plaintiff-Appellant/Cross-Appellee, Maria Matheson, appeals the judgment of the

Lorain County Court of Common Pleas, Domestic Relations Division. Defendant-Appellee/Cross-

Appellant, James Matheson, appeals the same judgment. For the reasons that follow, this Court

affirms, in part, and reverses, in part.

I.

Relevant Background

{¶2} In Matheson v. Matheson, 9th Dist. Lorain No. 22CA011881, 2023-Ohio-1709, ¶ 9

(“Matheson I”) we remanded this matter to the trial court to: “(1) calculate the specific amount of

marital debt, and (2) state which marital debt must be paid with $200,000.00 in equity from the

sale of the parties’ marital home.” On remand, the trial court addressed these issues stating:

Based upon the facts above and Mrs. Matheson’s testimony, the [c]ourt finds that as of the filing of the complaint for divorce on May 16, 2019, the parties’ marital debt was approximately $100,000.00. 2

During the divorce, [Mr.] Matheson attempted to pay off debt by obtaining loans and using the loan proceeds to reduce said debt. * * * Specifically, [Mr.] Matheson obtained six new loans from various lenders after this action was filed, which added to the parties’ existing debts and complicated the case as it pertained to the issue of dividing the marital debts.

However, as of November 10, 2021, when the trial commenced, no remaining marital debt existed because [Mr. Matheson] made a series of unilateral financial maneuvers including obtaining further loan debt to pay off prior debts which included the $100,000.00 of marital debt at the time of the filing of the complaint for divorce.

The [c]ourt will note [Mr. Matheson’s] actions of obtaining more debt was in violation of the [c]ourt’s mutual restraining orders dated May 20, 2019, and occurred throughout the divorce litigation including obtaining loans during the actual trial in the fall of 2021 and the winter of 2022.

As such, the [c]ourt finds that there is no marital debt because [Mr. Matheson] had paid the entirety of the marital debt that existed when the case began during the divorce litigation. The [c]ourt further finds that [Mr.] Matheson’s custom of obtaining compounding debt while the case was pending (including obtaining loans during the trial) should be to his detriment and his sole responsibility. Consequently, [Mr.] Matheson will be solely responsible for the remaining outstanding BHG, Best Egg, and Lightstream loans.

Additionally, the trial court equally divided the $330,000.00 in equity from the sale of the marital

residence between both parties, less the money Mrs. Matheson owed to the guardian ad litem and

Mr. Matheson’s attorney.

{¶3} Mrs. Matheson appeals raising two assignments of error for our review. Mr.

Matheson cross-appeals raising one assignment of error for our review. To aid our analysis, we

will first address Mr. Matheson’s cross-appeal. 3

II.

Cross-Appeal

ASSIGNMENT OF ERROR

THE TRIAL COURT ERRED AS A MATTER OF LAW AND ABUSED ITS DISCRETION IN DIVIDING THE PARTIES’ MARITAL DEBT ON REMAND FROM THIS COURT.

{¶4} Mr. Matheson’s sole assignment of error addresses the allocation of the parties’

debt.

{¶5} R.C. 3105.171(B) states:

In divorce proceedings, the court shall * * * determine what constitutes marital property and what constitutes separate property. In either case, upon making such a determination, the court shall divide the marital and separate property equitably between the spouses, in accordance with this section. For purposes of this section, the court has jurisdiction over all property, excluding the social security benefits of a spouse other than as set forth in division (F)(9) of this section, in which one or both spouses have an interest.

“Although the allocation of debt is not specifically addressed by the statute, the division of property

also includes marital debt.” Yousef v. Iskander, 9th Dist. Summit No. 29703, 2021-Ohio-3322, ¶

6, citing Mullen v. Mullen, 9th Dist. Summit No. 28083, 2017-Ohio-77, ¶ 11, citing Smith v. Smith,

9th Dist. Summit No. 26013, 2012-Ohio-1716, ¶ 8. “If the trial court finds sufficient evidence

supports the existence of the alleged debts, it must classify such debts as marital or separate in

nature, determine the amount of the debts, and consider the debts in dividing the marital and

separate property equitably between the spouses pursuant to R.C. 3105.171.” Habtemariam v.

Worku, 10th Dist. Franklin No. 19AP-47, 2020-Ohio-3044, ¶ 58.

{¶6} “Because the determination of whether property is marital or separate is a fact-

based determination, we review a trial court's decision under a manifest-weight-of-the-evidence

standard.” Kolar v. Kolar, 9th Dist. Summit No. 28510, 2018-Ohio-2559, ¶ 30, citing Morris v. 4

Morris, 9th Dist. Summit No. 22778, 2006-Ohio-1560, ¶ 23. When reviewing the manifest weight

of the evidence, the appellate court “weighs the evidence and all reasonable inferences, considers

the credibility of witnesses, and determines whether in resolving conflicts in the evidence, the

[finder of fact] clearly lost its way * * *.” Eastley v. Volkman, 132 Ohio St.3d 328, 2012-Ohio-

2179, ¶ 20, quoting Tewarson v. Simon, 141 Ohio App.3d 103, 115 (9th Dist.2001). “Only in the

exceptional case, where the evidence presented weighs heavily in favor of the party seeking

reversal, will the appellate court reverse.” Boreman v. Boreman, 9th Dist. Wayne No. 01CA0034,

2002-Ohio-2320, ¶ 10.

{¶7} Further, “[a] trial court enjoys broad discretion in fashioning an equitable division

of marital property.” Wilson v. Wilson, 9th Dist. Summit No. 30538, 2023-Ohio-3521, ¶ 15,

quoting Stepp v. Stepp, 9th Dist. Medina No. 03CA0052-M, 2004-Ohio-1617, ¶ 10. “We review a

property division in a divorce proceeding to determine whether the trial court abused its

discretion.” Id. An abuse of discretion is more than an error of judgment; it means that the trial

court was unreasonable, arbitrary, or unconscionable in its ruling. Blakemore v. Blakemore, 5 Ohio

St.3d 217, 219 (1983). When applying this standard, a reviewing court is precluded from simply

substituting its own judgment for that of the trial court. Pons v. Ohio State Med. Bd., 66 Ohio St.3d

619, 621 (1993).

{¶8} Here, the trial court determined there was no marital debt, as of the date of the

parties’ divorce, due to Mr. Matheson’s ongoing financial tactics of taking out compounding loans,

for more than what was owed, and accumulating additional debt. Mr. Matheson, in direct

contravention of the trial court’s May 20, 2019 mutual restraining orders, took out several

additional loans at a time in which he was prohibited, by court order, from doing so. As such, the

trial court determined Mr. Matheson is “solely responsible for the remaining outstanding BHG, 5

Best Egg, and Lightstream loans.” At trial, Mr. Matheson submitted Exhibits E, F, and G, which

are self-created lists of his alleged current debt, along with his attempt to show how he used the

BHG and Sofi loans, without any corroborating evidence to support his numerical calculations.

Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Williams v. Williams
2025 Ohio 1319 (Ohio Court of Appeals, 2025)
Mercer v. Mercer
2024 Ohio 4827 (Ohio Court of Appeals, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
2024 Ohio 2477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matheson-v-matheson-ohioctapp-2024.