Michael Sheldon v. Karen Sheldon

Court of Appeals of Texas·Decided November 22, 2013·No. 03-11-00803-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-11-00803-CV

Michael Sheldon, Appellant

v.

Karen Sheldon, Appellee

FROM THE DISTRICT COURT OF WILLIAMSON COUNTY, 425TH JUDICIAL DISTRICT NO. 10-0757-F425, HONORABLE MARK J. SILVERSTONE, JUDGE PRESIDING

MEMORANDUM OPINION

Michael Sheldon appeals the trial court’s judgment in a post-divorce suit for division

of property not divided by the Agreed Final Divorce Decree. In three issues, he challenges the trial

court’s exclusion of expert testimony, division of property, and award to Karen of certain property

alleged to be his separate property. For the reasons that follow, we affirm the trial court’s judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Michael and Karen1 were married in 1986.2 Two daughters were born during the

marriage, but both were over 18 years of age when Karen filed for divorce in 2010. Through

discussions based in part on a spreadsheet drafted by Michael outlining the marital assets, Michael

1 We refer to the parties by their first names for clarity. 2 The facts stated herein are taken from the record on appeal. We accept as true the facts stated in the parties’ briefs unless another party contradicts them. See Tex. R. App. P. 38.1(g). and Karen reached an oral agreement concerning the division of marital property and obtained an

Agreed Final Divorce Decree. In relevant part, the decree awarded each party a 50% interest in

Michael’s employee savings plan, identified as “the Emerson Employee Savings Investment Plan,”

and the furniture, furnishings, fixtures, goods, art objects, collectibles, appliances, and equipment

in his or her possession. In addition, the decree awarded the marital home to Michael. In a separate

agreement not incorporated into the decree, Michael agreed to pay Karen $320,411.64 in cash and

a promissory note for approximately $108,000. Michael made the payments as agreed, and Karen

applied a portion of the cash payment to the purchase of a new home. Neither party appealed the

divorce decree.

Suit for Post-divorce Division of Property Filed

In the process of obtaining a Qualified Domestic Relations Order (QDRO)

recognizing Karen’s right to receive a portion of Michael’s benefits payable under the employee

savings plan, see I.R.C. § 414(p); 29 U.S.C. § 1056(d)(3)(B)(i), Karen discovered that Michael had

an additional employer pension plan, identified as “the Emerson Electric Co. Retirement Plan for

Salaried Employees of Fisher Controls” (the pension plan), valued at approximately $500,000.

Karen sought a second QDRO pertaining to the pension plan and filed suit seeking a post-divorce

division of the benefits under the pension plan. See Tex. Fam. Code § 9.201(either former spouse

may file suit to divide property not divided in divorce decree). Disputes arose between the parties,

and Karen amended her petition to request division of additional property, including the parties’

antique cars, lawn tools and equipment, a “college fund” designated for the parties’ daughters,

proceeds from a pending lawsuit, a coin collection, a 16-foot trailer, horses, and antique furniture

2 “to be designated for the parties’ children.” Michael filed a counter-petition seeking division of

additional marital property, including Karen’s financial account containing the $320,411.64 cash

payment, the home Karen purchased using those funds, horses and a horse trailer, proceeds from

loans to Karen’s sister and Michael’s brother, and the college fund. Michael also sought to have

declared as his separate property the antique cars, the lawn tools and equipment, any proceeds from

the pending lawsuit, the coin collection, the 16-foot trailer, and the antique furniture. Michael

subsequently filed a motion for continuance and request for an appraisal of the marital home that had

been awarded to him in the divorce decree. In the motion, Michael stated that Karen claimed the

marital home had a value of $550,000 but that he had obtained an appraisal valuing the home as of

the date of the divorce at $457,000. He requested that the court appoint an appraiser to appraise the

home or accept his current appraisal of $457,000 as the value of the home. Immediately prior to the

final hearing, the trial court denied Michael’s motion for continuance and request for appraisal.

Final Hearing

At the final hearing, the trial court heard the testimony of Karen and Michael

concerning their agreement that was incorporated into the divorce decree and the assets they sought

to be divided. Karen testified that she and Michael had an agreement to divide the marital assets and

offered into evidence what she stated was the final version of the spreadsheet Michael prepared

outlining their assets. The spreadsheet listed Michael’s cash assets, Karen’s cash assets, and joint

assets to be divided. There was a separate listing for the college fund. The marital home was valued

at $550,000, including a tractor valued at $10,000. Three antique cars were listed, and their values

3 were followed by question marks.3 There was a listing for “horse stuff,” but there was no stated

value. There was a listing for furniture with a stated value of $10,000 followed by a question mark,

but there was no listing for antique furniture. There were no listings for lawn equipment and tools,

any pending lawsuit proceeds, or loans to family members.

Karen testified that at the time the divorce decree was signed, she was living in the

marital home, Michael was living in an apartment, and the lawn equipment and tools, the antique

cars, “everything” was in her possession. She stated that for her interest in the home, she received

cash and other items. She testified as to the parties’ agreed value for the antique cars and the parties’

agreement and her request to the court as to the division of the other assets. She testified that she

hoped that the horses and horse trailer would “certainly [go to their] daughters” and that the antique

furniture “eventually, hopefully, will go to my daughters.” On cross-examination, Karen disputed

certain values Michael assigned to assets divided in the divorce decree and was unable to place

values on some of the previously-divided assets.

Concerning the value of the marital home, Karen referred to the spreadsheet and

testified that she and Michael had agreed on a value of $550,000. She offered into evidence emails

from a realtor offering to put the house on the market for $600,000–640,000, from a second realtor

stating the home could be “competitively priced in the $550–575,000 range,” and from Michael

referring to a value of “$560,000 or $600,000.” Karen testified that Michael had expressed an

opinion that the home was worth $1.2 million, revised to $640,000 after they decided it would go

3 Two of the cars were valued at $30,000 and $15,000, but the value of the third car is unreadable in the record.

4 to him. She testified that another realtor had valued the house at close to the tax appraisal value,

which was $404,000, but indicated it would increase to $500,000 within a few years, and that the

house was insured for approximately $300,000 because Michael “didn’t like to pay insurance.”

Michael testified that he and Karen “could never come to an agreement,” that on a

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