Nicevski v. Nicevski

909 N.E.2d 446, 2009 Ind. App. LEXIS 999, 2009 WL 1953443
CourtIndiana Court of Appeals
DecidedJuly 8, 2009
Docket02A04-0904-CV-188
StatusPublished
Cited by2 cases

This text of 909 N.E.2d 446 (Nicevski v. Nicevski) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nicevski v. Nicevski, 909 N.E.2d 446, 2009 Ind. App. LEXIS 999, 2009 WL 1953443 (Ind. Ct. App. 2009).

Opinion

OPINION

BAKER, Chief Judge.

Appellant-respondent Krstin Nicevski appeals from the decree of dissolution of his marriage to appellee-petitioner Greta Nicevski. Krstin argues that the trial court erred by including the value of a residence titled in his parents' name in the marital estate and directing him, among other things, to pay Greta $40,000, or half of the value of the residence. Finding that the trial court was without authority to include the residence in the marital estate because Krstin's parents were not joined as necessary nonparties pursuant to Indiana Trial Rule 7(B), we reverse and remand with instructions to revise the decree of dissolution consistently with this opinion.

FACTS

EKrstin and Greta were married on September 3, 1997, and three children were born of the marriage. On May 6, 1999, Erstin's parents entered into a contract for the construction of a home in Allen County and acquired the title to the lot. Krstin's parents signed the settlement statement, procured title insurance in their own names, and paid the settlement charges from their own bank account. They also made payments on the construction contract in June and September 1999. The real estate taxes and drain assessments were in the parents' names and they paid all taxes and assessments from 2001 through 2006. After construction on the residence was finished, Krstin and Greta lived in the house and made rent payments to his parents.

On June 26, 2006, Greta filed a petition to dissolve the marriage. At the July 1, 2008, bench trial on the petition, there was summary testimony given and affirmed under oath by the parties Greta testified that she believed Krstin and his parents had titled the residence in his parents' names solely to deprive her of half of the property's value in the event of a divorce. She testified that $50,000 of the house's value was paid for by Krstin's parents as a gift and that the remaining $80,000 was paid for out of Krstin and Greta's savings. Greta did not, however, offer any evidence or bank statements to support her testimo *448 ny. Greta testified that she and Krstin did not make regular rent payments to his parents. She also testified that she was not at all involved in the couple's finances because they are from Macedonia and that in the Macedonian culture, the wife is frequently uninvolved in the financial aspects of the household. Krstin disputed Greta's version of events, testifying that his parents had purchased the residence with their own money and all transactions involving the real property occurred in his parents' names. He also presented rent receipts establishing that he and Greta had made several rent payments during the time they lived in the residence. Krstin's parents were not joined as nonparties and did not testify at trial.

On July 3, 2008, the trial court entered the decree of dissolution of the marriage. In relevant part, the trial court found and concluded as follows:

8.1 The parties have a substantial equitable interest in [the residence], which the Court finds to have a value of $130,000.00.
8.2 This real estate was placed in nominal ownership of [Krstin's] parents in an attempt to deprive [Greta] of any benefits of ownership in it. The Court finds this to be a fraud.
8.3 The parties have equity of $80,000.00 in [] the above referenced ... residence, and owe $50,000.00 on the residence to [Krstin's] parents.
84A This real estate shall now be the sole and separate property of [Krstin], to [the] extent it is marital property.
# s ok
10.1 [Krstin] shall pay to [Greta], the sum or $40,000.00 by way of property equalization judgment between the parties. Judgment in favor of [Greta] and against [Krstin] in this amount is now entered.

Appellant's App. p. xxii Erstin filed a motion to correct error, which the trial court denied. Krstin now appeals.

DISCUSSION AND DECISION

The disposition of marital assets is within the trial court's sound discretion, and we review the trial court's division of assets for an abuse of that discretion. Bizik v. Bizik, 753 N.E.2d 762, 766 (Ind.Ct.App.2001). In conducting our review, we will consider only the evidence most favorable to the trial court's disposition of the property and will neither reweigh the evidence nor assess witness credibility. Id. The party challenging the trial court's division must overcome a strong presumption that the trial court considered and complied with the applicable statute. In re Marriage of Bartley, 712 N.E.2d 537, 542 (Ind.Ct.App.1999).

Krstin argues that the trial court erred by including the residence in the marital estate and ordering him to make a payment of $40,000-representing one-half of EKrstin and Greta's alleged equity in the home-to Greta We find this court's opinion in In re Marriage of Dall to be instructive. 681 N.E.2d 718 (Ind.Ct.App.1997). In Dall, the Dalls decided to build a home, and the wife's father purchased the lot for $17,250. The father, husband, and wife all helped to construct the home. Father paid all of the contractors and subcontractors and for the building materials. In all, Father and Mother spent approximately $93,000 to construct the home and also provided 90 percent of the lumber used from trees that were grown on their farm. Father and Mother owned the title to the property. When the lot was first acquired, everyone agreed that title would be conveyed to Husband and Wife at some point in the future, but Mother refused to convey title during construction and the *449 parties were unable to agree after that time. Husband and Wife decided to divorce. Following the dissolution hearing, the trial court valued the home at $150,000 and awarded it to Wife.

On appeal, Wife argued that the trial court erred by including the residence in the marital estate. This court agreed, holding that "an equitable interest in real property titled in a third-party, although claimed by one or both of the divorcing parties, should not be included in the marital estate." Id. at 722. More specifically, "we hold that the trial court improperly included the Dallg' residence in the marital estate. Neither Husband nor Wife holds a vested interest in the marital residence, and their purported equitable interest in the property is indeterminate." Id.; see also Vadas v. Vadas, 762 N.E.2d 1234, 1235-36 (Ind.2002) (concluding that "[the holding of Dall promotes predictability, consistency and efficiency by excluding 'remote and speculative' interests from the marital estate").

The Dall court went on to emphasize the particular problem caused by the fact that the Mother and Father were not joined as nonparties:

... the dissolution court cannot delegate or leave to a nonparty the power to decide whether the parties to the marriage have a present vested interest in the real estate and the extent of that interest, if any.

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909 N.E.2d 446, 2009 Ind. App. LEXIS 999, 2009 WL 1953443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicevski-v-nicevski-indctapp-2009.