Mickle v. Mickle

488 S.W.2d 45, 253 Ark. 663, 1972 Ark. LEXIS 1528
Supreme Court of Arkansas·Decided December 18, 1972·No. 5-6137·Published·Cited by 5 cases

Opinion

J. Fred Jones, Justice.

James Mickle filed a petition for divorce against Lois Mickle in the Sebastian County Chancery Court and alleged three years’ separation as his ground for the divorce. Ark. Stat. Ann. § 34-1202 (Repl. 1962). Lois Mickle filed an answer admitting the three years’ separation but she alleged on counterclaim that she was the one entitled to a divorce on the ground of indignities. In her counterclaim Mrs. Mickle prayed that a divorce be granted to her; that she be awarded the custody of their children and one-third of the personal property. The parties entered into a stipulation providing as follows:

“The defendant, Lois Mickle, is entitled to a divorce against the plaintiff, James Mickle on the grounds of personal indignities and Lois Mickle is entitled to the maximum property division allowable to her under Arkansas law, which is one-half of the jointly held property and one-third of the separate property of James Mickle. The defendant, Lois Mickle, is entitled to alimony but the parties cannot agree on the amount of alimony to which she is entitled.”

The chancellor granted a divorce to Mrs. Mickle on her counterclaim and after referring to the above provision of the stipulation the chancellor, under paragraph 8 of the decree, provided in part as follows:

“Lois Mickle is hereby awarded the following assets of James Mickle in kind:
Description of Asset Shares Owned Shares Awarded
By James Mickle To Lois Mickle
Fairfield Bay 56,648 19,546-1/3
# # #
. . . James Mickle will forthwith make the transfer of the assets listed under this paragraph in kind, subject to any existing lien as a result of the initial margin on purchase of said assets.”

Upon appeal to this court we reversed on points of error not important to the present appeal. Mickle v. Mickle, 252 Ark. 468, 479 S.W. 2d 563.

After the record in the original divorce case was lodged in this court and while the appeal thereon was still pending, Mr. Mickle filed a motion in the chancery court designated “Motion to Modify Decree to Add Additional Findings of Fact.” The motion alleged facts concerning the questionable market value of the Fairfield Bay, Inc. stock and in substance alleged that a transfer of one-third of the Fairfield Bay stock from James Mickle to Lois Mickle, as ordered in the decree, might result in Mr. Mickle having to pay income tax on the increased market value of the shares so transferred and that Mrs. Mickle would take the shares without the necessity of sharing in the income tax liability, if any, incidental to the transfer. The motion then alleged in effect, that one-third of the stock in Fairfield Bay, Inc. already belonged to Mrs. Mickle by virtue of being one-third of her husband’s personal property acquired during the marriage; that under the divorce decree she was only awarded the exclusive possession of her separate one-third of the Fairfield Bay stock; that this should be made clear in the divorce decree so that neither party could be expected to pay income tax on the stock transfer from Mr. Mickle to Mrs. Mickle under compulsion of the divorce decree. Mr. Mickle then prayed a modification of the original decree by adding a finding to paragraph 8 as follows:

“...that the one-third interest of Lois Mickle in the Fairfield Bay, Inc. stock arose as a matter of law because acquired by the parties during the existence of the marriage, and that her property interest in the stock shall be made to her in kind by delivering one-third of the shares registered in the name of James Mickle to her.”

As alternative relief prayed in the motion, Mr. Mickle requested that the 19,549 1/3 shares of Fairfield Bay, Inc. stock awarded to Lois Mickle be reduced to such number of shares as would be necessary to pay any income tax which is assessed in connection with the transfer from James Mickle to Lois Mickle. The thrust of Mr. Mickle’s contention is more clearly stated in a letter from his attorneys to the chancellor which stated in part as follows:

“The point we make is that once James Mickle acquired this stock, and having done so at a time when he was married to Lois Mickle, Lois Mickle had a right in either the stock or the proceeds of sale of stock which could not be divested from her except in accordance with applicable legal requirements.
# # #
Under our Arkansas law, it of course would be possible for James Mickle to sell the Fairfield Bay stock, then take the proceeds and transfer them for something else. But regardless of how many transactions he might choose to enter into, starting out with the Fairfield Bay, Inc. stock, Lois Mickle at all times had her right to one-third (1/3) of the Fairfield Bay, Inc. stock or its proceeds.”

On March 30,1972, the chancellor entered the “Modification of Decree” which is the subject of this appeal, and this instrument reads in part as follows:

“(f) The one-third interest of Lois Mickle in the Fairfield Bay, Inc. stock arose as a matter of law because acquired by the parties during the existence of the marriage, (Ark. Stats. 34-1214), and her property interest shall be made in kind to her by delivering one-third of the stocks registered in the name of James Mickle to her.”

On appeal to this court Mrs. Mickle alleges error under the points she has designated as follows:

“The lower court had no jurisdiction to enter an order entitled ‘Modification of Decree’ on March 30, 1972, after the record in case No. 5-5856 had been docketed in the Arkansas Supreme Court and the appeal was pending therein.
The ‘Modification of Decree’ entered by the lower court on March 30, 1972, and filed April 5, 1972, is contrary to the law.
The ‘Modification of Decree’ entered by the lower court on March 30, 1972, and filed April 5, 1972, is contrary to the evidence.”

We find it unnecessary to discuss the first and last points because we are of die opinion that the chancellor’s modification of the decree is contrary to the law as alleged under the second point.

We do not agree with the statement of the law as set out in paragraph (f), supra, where it is stated that “The one-third interest of Lois Mickle in the Fairfield Bay, Inc. stock arose as a matter of law because acquired by the parties during the existence of the marriage, (Ark. Stats. 34-1214).” (Our emphasis). As we construe Ark. Stat. Ann. § 34-1214 (Repl. 1962) as well as Ark. Stat. Ann. § 61-202 (Repl. 1971) in the light of prior decisions, the one-third interest of Lois Mickle in the Fairfield Bay, Inc. stock did not arise as a matter of law because acquired by the parties during the existence of the marriage, but did arise as a matter of law because she was “granted a divorce against the husband.” The pertinent part of § 34-1214 is as follows:

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Mickle v. Mickle, 488 S.W.2d 45, 253 Ark. 663, 1972 Ark. LEXIS 1528 (Ark. 1972).

488 S.W.2d 45 (Mickle v. Mickle) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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