O'Dea v. Downs

CourtSupreme Court of Delaware
DecidedMay 2, 2025
Docket386, 2024
StatusPublished

This text of O'Dea v. Downs (O'Dea v. Downs) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Dea v. Downs, (Del. 2025).

Opinion

IN THE SUPREME COURT OF THE STATE OF DELAWARE

JAMES P. O’DEA,1 § § No. 386, 2024 Respondent Below, § Appellant, § Court Below: Family Court § of the State of Delaware v. § § File No. CS22-04078 ROSE DOWNS, § Petition No. 22-07695 § Petitioner Below, § Appellee. §

Submitted: April 23, 2025 Decided: May 2, 2025

Before SEITZ, Chief Justice; TRAYNOR and GRIFFITHS, Justices.

ORDER The Court, having considered the briefs and record on appeal, rules as follows:

(1) This appeal arises from a Family Court property division ancillary to

divorce. Before the final property settlement hearing, Husband made several

payments to Wife from two retirement accounts totaling $150,000. At the ancillary

hearing, the Husband testified that the $150,000 payments from Husband

represented Wife’s marital share of two of Husband’s retirement accounts. In a final

ancillary order, the court awarded Wife 50% of the marital assets and liabilities,

including 50% of Husband’s two retirement accounts valued at $236,363. At a 50%

1 The Court previously assigned pseudonyms to the parties pursuant to Supreme Court Rule 7(d). division, Wife was entitled to receive $118,181.50 from Husband’s two retirement

accounts. Husband’s $150,000 payments from the two accounts overpaid Wife

$31,818.50.

(2) On a motion for rehearing, the court refused to credit Husband with the

overpayment. It relied on Husband’s testimony at the ancillary hearing that the

$150,000 payments represented Wife’s marital share of Husband’s two retirement

accounts. If Husband wanted a credit for the overpayment, the court held, he should

have reserved the right to do so during the ancillary proceedings. The court also

held that Husband improperly raised the argument for the first time in a motion for

reargument. Husband has appealed from the denial of his motion for reargument.

For the reasons that follow, we affirm the Family Court’s judgment.

(3) The Family Court entered a final decree of divorce on June 6, 2022, and

retained jurisdiction over ancillary matters.2 On April 13, 2022, the court entered

the parties’ Interim Stipulation, Agreement, and Order (“Interim Order”).3 In the

Interim Order, in a section entitled Access to Marital Funds, the parties agreed that

“Husband has various accounts (bank, investment, etc.) solely in his possession and

control.”4 The funds in those accounts “are believed to at least to some degree have

2 App. to Appellant’s Opening Br. at A-13 (Final Ord. at 2) [hereinafter A-__]. 3 See A-8–11 (Interim Ord.). 4 A-9 (Interim Ord. ¶ 4).

2 a marital component[,]” and Husband agreed to transfer to Wife on agreed dates an

amount totaling $150,000.5 At the time, Husband did not designate the source of the

$150,000 payment from Husband’s assets.6

(4) Before the ancillary hearing, the parties submitted a final ancillary

pretrial stipulation (“Pretrial Stipulation”), which was entered by the court at the

start of the June 13, 2023 ancillary hearing.7 Regarding Husband’s two retirement

accounts, the Pretrial Stipulation stated that the $150,000 paid to Wife should be

attributed to her in the division of marital property.8 Husband was assigned the funds

in the two retirement accounts.9

(5) On May 30, 2024, the Family Court issued a final order resolving the

ancillary proceedings (“Final Order”).10 The court decided that the assets and debts

should be divided equally and ordered Husband to pay Wife $102,176.39 to achieve

5 A-9–10 (Interim Ord. ¶ 4). 6 Id. 7 See A-63–79 (Pretrial Stipulation). 8 A-65 (Pretrial Stipulation at 3). 9 The first retirement account, called the Stifel retirement account, had a $42,500 assigned marital value. Id. The second retirement account, called the UPS retirement account, had a $193,863 assigned marital value. Id. The UPS retirement account is also referred to as the Prudential retirement account. A-35 (Final Ord. at 24). 10 See A-12–56 (Final Ord.).

3 equal division.11 Regarding the retirement accounts, the court first noted the

following from the Interim Order:

Pursuant to the parties’ Ancillary Pretrial Stipulation, the parties agreed that pursuant to their April 13, 2022, Interim Separation Agreement, Husband transferred to Wife $150,000.00. The parties further agreed that Wife is to be attributed with the value of these funds in the Wright chart.12

(6) Next, the court found that, based on Husband’s testimony at the

ancillary hearing, Husband had paid Wife her marital share of the two retirement

accounts:

Within their Ancillary Pretrial Stipulation, the parties agreed that the marital portion of Husband’s Prudential retirement account and Stifel retirement account should be divided. However, at the parties’ Ancillary Hearing, Husband expressed his position that Wife already received her share of these assets when he paid her $150,000.00, pursuant to the parties’ April 13, 2022, Interim Separation Agreement. Specifically, Husband testified that he took $75,000.00 from his Prudential retirement account and $75,000 from his Stifel retirement account in order to pay Wife the $150,000.00 that he owed her under the interim Separation Agreement.13

(7) Thus, for the following reasons, the court refused to credit Husband for

the overpayment:

Based on the foregoing, it does not appear that these assets are actually in dispute, since Wife received her portion of the same when

11 A-35 (Final Ord. at 24). Husband had requested a 60/40 division in his favor, while Wife had requested a 55/45 division in her favor. A-34 (Final Ord. at 23). 12 A-32 (Final Ord. at 21). 13 A-36 (Final Ord. at 25) (emphasis added).

4 Husband paid her $150,000.00 in accordance with the parties’ April 13, 2022, Interim Separation Agreement. The Court recognized that Wife’s portion of Husband’s Prudential retirement account and Stifel retirement account totals $118,181.50. Thus, it appears that Husband has actually overpaid Wife in the amount of $31,818.50. However, Husband has not requested that he be given credit for overpayment to Wife, or that he be reimbursed in the amount of $31,818.50. As such the Court shall not order a distribution with respect to Husband’s Prudential retirement account or Stifel retirement account.14

(8) In the Final Order, the court attributed no value to each of Husband’s

two retirement accounts.15 Husband filed a motion for reargument and claimed, in

part, that the court erred by not crediting the overpayment to Husband.16 According

to Husband, “[t]he $150,000 that Wife received was to go in her column of the

Ancillary Pretrial Stipulation rather than to be considered a division of Husband’s

two (2) retirement account[s].”17 Husband also argued that he should receive a credit

for the tax liability he incurred when he withdrew $150,000 from the two retirement

accounts.18 Although the court granted the motion regarding the tax liability, it

denied the motion to reargue the credit issue, reasoning once again that:

Within its Order of May 30, 2024, the Court determined that Wife received her portion of Husband’s Prudential retirement account and Stifel retirement account, when Husband paid her $150,000 in

14 A-37 (Final Ord. at 26). 15 A-57 (Wright Chart, Attach. to the Final Ord.). 16 A-60–61 (Appellant’s Mot. Rearg. ¶¶ 7–8). 17 A-60 (Appellant’s Mot. Rearg. ¶ 4). 18 A-60–61 (Appellant’s Mot. Rearg. ¶ 8).

5 accordance with the parties’ April 13, 2022 Interim Separation Agreement. The Court also recognized that Wife’s portion of Husband’s Prudential retirement account and Stifel retirement account totaled $118,181.50.

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O'Dea v. Downs, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odea-v-downs-del-2025.