Nicholson v. Wolfe

974 P.2d 417, 1999 Alas. LEXIS 44, 1999 WL 164067
CourtAlaska Supreme Court
DecidedMarch 26, 1999
DocketS-8130
StatusPublished
Cited by40 cases

This text of 974 P.2d 417 (Nicholson v. Wolfe) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nicholson v. Wolfe, 974 P.2d 417, 1999 Alas. LEXIS 44, 1999 WL 164067 (Ala. 1999).

Opinion

OPINION

BRYNER, Justice.

Daniel A. Nicholson appeals the trial court’s division of property. We affirm in part, reverse in part, and remand for further consideration.

I. FACTS AND PROCEEDINGS

Deborah K. Wolfe, now in her early forties, and Daniel A. Nicholson, in his late fifties, began living together in 1985 and were married in 1989. They separated in June 1994 and divorced in June 1996. Throughout their cohabitation, the parties lived in a house owned by Nicholson. Wolfe has been a teacher in Anchorage for over twelve years and earns about $58,600 per year. For the first five years of their cohabitation, Nicholson was in active duty in the Air Force. He retired three days before the wedding and has since received a $2,013 net monthly pension and medical benefits from the federal government. Since his retirement, Nicholson has held various temporary jobs.

In 1993 Nicholson inherited about $32,000 from his mother’s estate, and between $145,-000 and $147,000 from his father’s estate. Nicholson testified that he spent virtually all of the money on personal expenses and on acquiring business assets, in particular by the purchase and improvement of an empty lot on Tudor Road (“the Tudor property”). In June 1995 Nicholson invested $65,000 from his remaining inheritance funds in the Tudor property. He stated that he had intended to operate a trailer park on the property, but discovered after he made the purchase that the parcel was no longer zoned for that use. Wolfe makes no claim to this parcel.

Nicholson started a snowplowing and landscaping business, Northstar, in 1986 and ran the business out of the family home. He purchased much of the equipment for the business with his separate property before and during the marriage. Nicholson stated that he abandoned the business in the fall of 1994, just after the parties separated. In addition, during the marriage, the parties began a wedding consulting and supply company, Perfect Impressions, which they operated out of their home. Although Nicholson performed most of the day-to-day work of these businesses, Wolfe helped out from time to time. Neither business was especially profitable. The parties agree that Perfect Impressions is a non-marital asset belonging to Nicholson, but they contest the ownership of Northstar’s significant assets, which the trial court valued at $73,440.

In the divorce proceedings, the court identified as marital property some of the contents of the marital residence, the Northstar business and its assets, a motor home, *421 Wolfe’s retirement benefits, and an ATV (all-terrain vehicle); the cost of storage for the Northstar assets that had accrued as of separation — $12,756.11—was the sole marital debt. On appeal, Nicholson challenges numerous aspects of the property division.

II. DISCUSSION

A. The Trial Court Did Not Err in Choosing Not to Use Rescission Principles as the Proper Method of Property Division.

Alaska has adopted an equitable distribution system for dividing marital property in divorce actions. 1 This court has created a limited exception to this general rule, however, in Rose v. Rose. 2 In that case, we held that after a relatively brief marriage, in which the parties have “maintained completely separate economic identities,” 3 the trial court may “treat the property division as an action in the nature of rescission.” 4 Nicholson asks us to extend that rule and hold that in circumstances where the Rose criteria are met, the court must apply Rose rescission principles.

Nicholson argues that in his case the trial court should have applied the Rose recission principles rather than the equitable principles employed in most property divisions. 5 We have often recognized the trial court’s broad discretion in determining a just disposition of property based upon the facts in the particular case before it, and have repeatedly held that we will reverse the trial court’s determination only where it is clearly unjust. 6 In Rose, we held that it was not clearly unjust to apply recission principles where there was no significant commingling of assets:

[I]n marriages of short duration, where there has been no significant commingling of assets between the parties, the trial court may, without abusing its discretion, treat the property division as an action in the nature of rescission, aimed at placing the parties in, as closely as possible, the financial position they would have occupied had no marriage taken placel[ 7 ]

Thus, in Rose, we held that the trial court had discretion to apply rescission principles under the circumstances presented; we neither held nor implied that the court was required to apply recission principles. Since Rose, we never have held that it would be clearly unjust to adopt equitable rather than rescission principles, 8 and we decline to do so today. Rose stands for the limited proposition that trial courts have discretion to apply rescission principles in certain circumstances. But since equitable division is the prevailing rule, we decline to hold that a trial court would ever be required to adopt rescission.

B. The Trial Court’s Property Distribution Order Must Be. Remanded in Part for Reconsideration.

1. The trial court’s equal allocation of the marital property was not clearly unjust.

Nicholson contends that although the trial court claimed to be applying the Merrill 9 factors in allocating the marital property . equally between the parties, it “did not prop *422 erly consider” the Merrill factors. Specifically, he argues that the trial court did not appropriately consider the parties’ ages, earning capacities, and financial conditions.

The trial court has broad discretion in fashioning an equitable property distribution. 10 We will reverse an allocation only if it is clearly unjust. 11 In exercising its discretion, the trial court must consider the duration of the marriage, the stations in life of the parties, their ages, physical conditions, earning capacities, conduct of financial affairs during the marriage, and circumstances and needs. 12

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Cite This Page — Counsel Stack

Bluebook (online)
974 P.2d 417, 1999 Alas. LEXIS 44, 1999 WL 164067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicholson-v-wolfe-alaska-1999.