Norwood v. Norwood

2020 Ark. App. 345, 604 S.W.3d 252
CourtCourt of Appeals of Arkansas
DecidedJune 3, 2020
StatusPublished
Cited by3 cases

This text of 2020 Ark. App. 345 (Norwood v. Norwood) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norwood v. Norwood, 2020 Ark. App. 345, 604 S.W.3d 252 (Ark. Ct. App. 2020).

Opinion

Cite as 2020 Ark. App. 345 Reason: I attest to the accuracy and integrity of this document Date: 2021-06-23 10:06:07 ARKANSAS COURT OF APPEALS Foxit PhantomPDF Version: DIVISION III No. CV-18-805 9.7.5

VIRGINIA CHRISTINE NORWOOD Opinion Delivered: June 3, 2020 APPELLANT/CROSS-APPELLEE

V. APPEAL FROM THE HOT SPRING COUNTY CIRCUIT COURT PHILLIP DALE NORWOOD [NO. 30DR-13-38] APPELLEE/CROSS-APPELLANT HONORABLE EDDY R. EASLEY, JUDGE

AFFIRMED ON DIRECT APPEAL; AFFIRMED ON CROSS-APPEAL

WAYMOND M. BROWN, Judge

In this contentious divorce proceeding that has spanned more than five years, both

spouses appeal. Appellant Christine Norwood appeals from the circuit court’s denial of

child support during the pendency of this action for the parties’ now adult son, the court’s

refusal to award her spousal support, and the court’s equal division of marital property.

Appellee Phillip Norwood cross-appeals from the denial of two contempt motions and the

circuit court’s refusal to make an unequal property distribution based on Christine

Norwood’s having transferred money from marital bank accounts to her personal accounts.

We affirm the circuit court’s order.

The parties married in 1979, when Christine was sixteen years old. The parties

separated on February 1, 2013. At the time of separation, only one of the parties’ five

children, Austin, was still a minor, aged fourteen. During the marriage, the parties owned a livestock business, Rising Creek Farms, and a logging company, Norwood Logging, Inc.

Both parties worked in the businesses.

Phillip filed his complaint for divorce on February 6, 2013, asking that the court

make an equitable division of the property rights and debt obligations. Christine filed her

answer and counterclaim seeking custody of Austin, child support, alimony, and an equal

division of the marital property.

A temporary hearing was held in late March 2013. Christine was awarded temporary

custody of Austin and allowed to remain in the marital home. The issue of child support

was held in abeyance. However, no order was entered from this hearing, and no ruling was

issued until the final ruling in the order appealed from.

Other hearings were held in late spring and early summer 2013 that resulted in orders

directing that all property, real and personal, belonging to the parties or their businesses be

sold by the clerk and the net proceeds deposited into the registry of the court.

On June 12, 2013, the court entered a decree granting Christine a divorce but

reserving all other issues pending completion of the final hearing. Although the decree

mentioned that Austin was still a minor, it did not specifically award custody or support to

either party.

The gross proceeds from the auction of logging equipment and the parties’ vehicles

was $1,474,224, with net proceeds after payment of the debts associated with the equipment

and vehicles of $866,087.54. The total proceeds from the sale of the cattle was $170,266.47,

with two loads of cattle under Christine’s control remaining to be sold. The commissioner’s

sale was held, and the parties’ real property sold for $1,103,300. Phillip purchased two tracts

2 totaling 505 acres for $490,000. Christine purchased four tracts totaling 245 acres for

$885,200. Third parties purchased tracts for $142,100.

On September 15, 2014, the circuit court entered an agreed order making a partial

distribution of the funds held in the registry of the court.1 After payment of state and federal

taxes of $69,516 for Phillip and $71,039 for Christine, together with payment of

approximately $15,000 in other debts, $426,833.03 was distributed to Phillip and

$134,081.28 was distributed to Christine.2

Christine filed a motion in October 2015 asking the court to rule on the issue of

temporary support for Austin. The motion asserted that the issue was developed at the

March 2013 temporary hearing and that the court took the matter under advisement. The

motion further alleged that Phillip had not contributed to Austin’s support.

Also, in October 2015, Phillip was found to be disabled by the Social Security

Administration, with the disability dating back to July 2012. He received back pay, and

Christine, on behalf of Austin, who was still a minor, received approximately $20,600 in a

lump-sum child-benefit payment. Christine thereafter received $960 per month from Social

Security.

1 There had been other agreed orders entered directing the court clerk to pay tax debts (state and federal income taxes and real property taxes) for the parties as well as for certain educational expenses for Austin. 2 In its final order, the court explained that the disparity in the distributions was due to the parties’ using funds generated by the auctions to purchase back assets they each wished to keep, primarily real estate.

3 A two-day bench trial was held December 15–16, 2016. On March 18, 2018, the

circuit court entered its final order. In it, the circuit court found (1) that an unequal division

of marital property would not be appropriate; (2) that all proceeds from the sales of the

parties’ property (real and personal) were marital property; (3) that there was no obligation

for past child support because Austin had reached the age of eighteen and had been

supported by both marital funds and Phillip’s disability payments; (4) that Christine had

received a lump sum of approximately $20,000, together with monthly payments of $960

based on Phillip’s disability; (5) that there was insufficient evidence to find that the actions

of either Phillip or Christine had risen to the level of being contemptuous; (6) that there

was insufficient evidence to prove that there were missing assets, trucks, trailers, or other

equipment; and (7) that there was insufficient evidence to find that certain financial

transactions were improper or of a nature that would cause an adjustment to the otherwise

equal distribution of the assets or debts. Christine’s request for alimony was denied.

This appeal and cross-appeal timely followed.

I. Arguments on Appeal

In her brief Christine argues four points on appeal, contending that the circuit court

erred in finding that Phillip was not obligated to pay temporary child support without first

making the findings required by Arkansas Code Annotated section 9-12-312 and by

Administrative Order No. 10; in failing to consider income Phillip earned during the

pendency of the case for child support purposes; in failing to set forth findings to determine

the issue of spousal support and in failing to award spousal support; and in allowing an equal

division of personal property.

4 On cross-appeal, Phillip argues that the circuit court abused its discretion when it

denied both of his contempt motions and that the court clearly erred when it refused to

make an unequal property distribution in Phillip’s favor due to Christine’s having transferred

money from marital accounts to her personal accounts.

Because of some overlap, we discuss the parties’ arguments topically.

II. Standard of Review

Arkansas appellate courts review divorce cases de novo on the record.3 The circuit

court’s findings pertaining to the division of property will not be reversed unless they are

clearly erroneous or against the preponderance of the evidence.4 A finding is clearly

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2020 Ark. App. 345, 604 S.W.3d 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norwood-v-norwood-arkctapp-2020.