McKee v. McKee

CourtCourt of Appeals of Tennessee
DecidedMay 23, 2000
DocketM1997-00204-COA-R3-CV
StatusPublished

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

Bluebook
McKee v. McKee, (Tenn. Ct. App. 2000).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT NASHVILLE

PETER GREGG McKEE v. PENNY MARIE PEARSALL McKEE

Appeal from the Chancery Court for Maury County No. 96-493 Jim T. Hamilton, Chancellor

No. M1997-00204-COA-R3-CV - Decided May 23, 2000

This appeal involves the financial aspects of a marriage that lasted less than ten years. Both parties sought a divorce and vigorously joined issue over the classification of their property, the division of the marital estate, and the wife’s demands for spousal support and attorney’s fees. Following a bench trial, the Chancery Court for Maury County declared the parties divorced. The trial court also awarded the parties their separate property, distributed 37% of the marital estate to the wife, and declined to award the wife spousal support. On this appeal, the wife takes issue with the trial court’s classification and division of the property and its refusal to award her either spousal support or attorney’s fees. While the trial court erred in the classification of the marital property, we have determined that its division of the marital estate, once corrected, is equitable. We have also determined that the trial court should have granted the wife short-term spousal support but properly denied her request for attorney’s fees.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Modified and Affirmed

KOCH , J., delivered the opinion of the court, in which TODD , P.J., M.S., and CANTRELL, J., joined.

Robert L. Holloway, Jr., Columbia, Tennessee, for the appellant, Penny Marie Pearsall McKee.

Thomas W. Hardin and Darren J. Scoggins, Columbia, Tennessee, for the appellee, Peter Gregg McKee.

OPINION

Peter Gregg McKee and Penny Marie Pearsall McKee were married in Michigan in July 1987. Mr. McKee was fifty years old and had been married once before. Ms. McKee was thirty- eight and had already been married twice. The parties had no children together, although both parties had adult children from their earlier marriages. Both parties had college degrees. Mr. McKee was an engineer who had worked for General Motors in Michigan since 1963, and Ms. McKee had worked as a teacher and as an administrative assistant with Pepsi Cola. Mr. McKee’s annual income at the time of the divorce was approximately $146,000. Ms. McKee earned approximately $23,000 per year when she was last employed full-time outside the home. Mr. McKee’s net worth at the time of the marriage was approximately $390,000; while Ms. McKee had a negative net worth.1 By the time of the divorce, the parties’ combined net worth was approximately $1.6 million.

The parties moved to Tennessee in 1998 when Mr. McKee transferred to the Saturn Corporation in Spring Hill. Ms. McKee did not seek full-time employment following the move to Tennessee. She asserted at trial that Mr. McKee discouraged her from seeking work outside the home. Mr. McKee, however, testified that Ms. McKee declined to pursue any employment opportunities or to return to school because she did not wish to be away from her pet dogs for more than four hours a day. At one point, Ms. McKee attempted to sell her homemade wall hangings but this venture was not successful. She also took work cleaning houses on a part-time basis.

The marriage began to deteriorate in the early 1990's, and the parties began to sleep in separate rooms. Mr. McKee testified that Ms. McKee was dissatisfied with the physical aspects of the parties’ relationship but declined to seek help from a marriage counselor. He also stated that Ms. McKee assaulted him on two occasions and that she displayed more affection for the family dogs than for him. By September 1995, the parties had separated and were living in separate homes. Ms. McKee eventually had two sexual affairs with other men during the parties’ separation.

In August 1996, Mr. McKee filed suit for divorce in the Chancery Court for Maury County alleging irreconcilable differences. He amended his complaint six months later to add the ground of inappropriate marital conduct. Ms. McKee responded to the complaint in February 1997. While admitting that the parties had irreconcilable differences, she denied inappropriate marital conduct and counterclaimed for divorce both on irreconcilable differences and on inappropriate marital conduct. The trial court conducted a bench trial in May 1997. By the time of trial, Ms. McKee had moved to Cashiers, North Carolina where she worked as an administrative assistant at the Chatooga Club earning approximately $1,200 per month. The trial court filed its judgment on June 5, 1997. The judgment (a) declared the parties divorced in accordance with Tenn. Code Ann. § 36-4-129(b) (Supp. 1999), (b) awarded the parties their separate property, (c) valued the marital estate at $687,890 and awarded Ms. McKee 37% of the marital property,2 (d) granted each party custody of two of the parties’ four dogs, (e) denied Ms. McKee’s request for spousal support, and (f) directed the parties to be responsible for their own attorney’s fees. Ms. McKee has appealed from this judgment.

I. CLASSIFICATION AND DIVISION OF THE PROPERTY

1 Mr. McKee’s net worth eight months after the parties married was $398,640. Ms. McKee had debts in excess of $13,000 at the time of the marriage. Mr. McKee paid off these debts. 2 Even though the June 5, 1997 judgment states that Ms. McKee was awarded 35% of the marital property, the value of the property Ms. McKee actually received amounted to 37% of the identified and valued marital estate.

-2- Ms. McKee asserts that the trial court erred in its classification of their marital property and in the manner in which it divided the marital property. As we will detail below, we have determined that the trial court misclassified as marital property (1) the husband’s interest in the parties’ North Carolina house, (2) portions of an IRA in Mr. McKee’s name, and (3) portions of the value of Mr. McKee’s General Motors 401k account. We have also determined that the evidence supports the trial court’s conclusion that awarding Ms. McKee 37 % of the marital property is equitable. Accordingly, we find that Ms. McKee is entitled to receive 37% of the revised value of the marital estate.

A. Classification of the Separate Property

In divorce proceedings, separate property is not part of the marital estate subject to division under Tenn. Code Ann. § 36-4-121 (1996). See Cutsinger v. Cutsinger, 917 S.W.2d 238, 241 (Tenn. Ct. App. 1995). Accordingly, when it comes to dividing a divorcing couple’s property, the first order of business is to identify and distribute the separate property, if any, to each party. See Anderton v. Anderton, 988 S.W.2d 675, 679 (Tenn. Ct. App. 1998).

Separate property includes (1) property owned by a spouse before marriage, (2) property acquired in exchange for property acquired before marriage, (3) income from and appreciation of property owned by a spouse before marriage, and (4) property acquired by a spouse at any time by gift, bequest, devise, or descent. See Tenn. Code Ann. § 36-4-121(b)(2). If either spouse makes a gift of separate property to the marital estate, the property is transmuted into marital property. See McClellan v. McClellan, 873 S.W.2d 350, 351 (Tenn. Ct. App. 1993); Batson v. Batson,

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Hawkins v. Hawkins
883 S.W.2d 622 (Court of Appeals of Tennessee, 1994)
Sherrill v. Sherrill
831 S.W.2d 293 (Court of Appeals of Tennessee, 1992)
Batson v. Batson
769 S.W.2d 849 (Court of Appeals of Tennessee, 1988)
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748 S.W.2d 424 (Tennessee Supreme Court, 1988)
Kincaid v. Kincaid
912 S.W.2d 140 (Court of Appeals of Tennessee, 1995)
Shackleford v. Shackleford
611 S.W.2d 598 (Court of Appeals of Tennessee, 1980)
Loyd v. Loyd
860 S.W.2d 409 (Court of Appeals of Tennessee, 1993)
Cohen v. Cohen
937 S.W.2d 823 (Tennessee Supreme Court, 1996)
Crain v. Crain
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