Paul Douglas Lauterbach v. Christine Ann Lauterbach

Court of Appeals of Texas·Decided June 2, 2022·No. 13-21-00174-CV·Published

Opinion

NUMBER 13-21-00174-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

PAUL DOUGLAS LAUTERBACH, Appellant,

v.

CHRISTINE ANN LAUTERBACH, Appellee.

On appeal from the 267th District Court of Calhoun County, Texas.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Benavides and Tijerina Memorandum Opinion by Chief Justice Contreras

Appellant Paul Douglas Lauterbach appeals from the trial court’s entry of a final

judgment in his divorce from appellee Christine Ann Lauterbach. By five issues, Paul

argues that the trial court erred by: (1–3) improperly dividing Paul’s retirement accounts; (4) awarding Christine attorney’s fees; and (5) denying Paul’s motion for new trial. We

affirm as modified in part and reverse and remand in part.

I. BACKGROUND

In February 2020, after nearly twenty-three years of marriage, Paul filed for divorce

from Christine, and Christine filed a counter-petition. 1 Both parties expected to enter into

a written agreement concerning the division of their marital estate. Paul filed an “inventory

and appraisement of all assets and liabilities.” Christine did not.

Before the trial court held a final divorce hearing in November 2020, the parties

agreed to a proposed division of marital property, which they labeled and referred to as

Exhibit A. At the November hearing, Christine testified that Exhibit A represented a fair

and just division of the parties’ community estate. Most relevant to this appeal, Christine

acknowledged and agreed to: (1) a 50/50 split of the funds in Paul’s Merrill Lynch IRA

retirement plan after $90,000 had been credited to Paul as his separate property; (2) a

50/50 split of the funds in Paul’s Merrill Edge retirement plan; and (3) a 50/50 split of the

funds in Paul’s JP Morgan Smart Retirement plan. Paul initially expressed disagreement

with how Exhibit A treats the division of certain real property but ultimately requested the

division of property be approved as dictated in Exhibit A. The court admitted Exhibit A into

evidence, asked the parties to draft an agreed final divorce decree based on the evidence,

and stated that it wanted both attorneys and both parties to sign the decree. The trial court

concluded the hearing by noting that when the parties “get [the divorce decree] signed, I

will sign it, but as of now both of you are divorced.”

1 No children were born of the marriage. 2 Christine’s attorney drafted the final divorce decree. Unlike Exhibit A, which listed

the division of retirement funds by the plan names and in dollar terms, the divorce decree

further divided the Merrill Lynch IRA and Merrill Edge plans by various associated account

numbers and listed the division of all accounts in terms of percentages. Four account

numbers are associated with the Merrill Lynch IRA plan, and one account number is

associated with the Merrill Edge plan. The JP Morgan plan remains listed without an

associated account number but is named in the divorce decree as the “Tokai Carbon

401(k) plan.” 2

In a March 3, 2021 letter to the trial court, before the divorce decree was signed,

Paul’s attorney suggested certain edits to the proposed decree, including that it should

specifically state the dollar amount of each of the six retirement account numbers and

“specific language as to the date the funds [in the accounts] will be locked.” As it stood

then, Paul was unaware whether the retirement funds, which “fluctuate[] with the market,”

would be split as of the date of the November 2020 hearing—when the trial court stated

“as of now both of you are divorced”—or the date the divorce decree would ultimately be

signed by the trial court.

Christine and Christine’s attorney, but neither Paul nor his attorney, signed the

divorce decree without Paul’s suggested edits. Nonetheless, on March 8, 2021, the trial

court signed the “agreed final decree of divorce.” On April 7, 2021, Paul filed a motion for

new trial, asserting the “evidence [was] legally and factually insufficient to support [the

2 Tokai Carbon is Paul’s employer. 3 c]ourt’s judgment as to the division of [the retirement] accounts,” and largely echoing the

concerns he raised in his attorney’s March 3 letter.

The trial court held a hearing on Paul’s motion for new trial on May 4, 2021.

Following the hearing, the court denied Paul’s motion for new trial and clarified that “all

dates as it relates to monies will be as of the date of the divorce decree.” Christine’s

attorney requested nearly $2,000 in attorney’s fees allegedly incurred by Christine “post

prove-up,” but she did not present any evidence regarding the fees. The trial court granted

the request for attorney’s fees. Appellant then filed his notice of appeal. 3

II. DIVISION OF MARITAL ESTATE

By his first three issues, Paul argues the trial court erred by improperly dividing his

and Christine’s marital estate. Specifically, Paul claims the trial court failed: (1) to “divide

the parties’ community property in conformity with the evidence and the parties’

agreement”; (2) to “specifically segregate Paul’s separate property and confirm it as

separate property”; and (3) to “divide the estate of the parties in a manner that is just and

right.”

A. Applicable Law & Standard of Review

In a divorce decree, the trial court must order a division of the marital estate “in a

manner that the court deems just and right, having due regard for the rights of each party.”

3 On May 26, 2021, Christine filed a motion for judgment nunc pro tunc to correct two clerical errors

in the divorce decree. On December 21, 2021, the court entered an “agreed final decree of divorce judgment nunc pro tunc” correcting the two clerical errors. All references to the divorce decree herein will refer to the nunc pro tunc judgment. See TEX. R. APP. P. 27.3 (“After a[] . . . judgment in a civil case has been appealed, if the trial court modifies the . . . judgment, . . . the appellate court must treat the appeal as from the subsequent . . . judgment and may treat actions relating to the appeal of the first . . . judgment as relating to the appeal of the subsequent . . . judgment.”). 4 TEX. FAM. CODE ANN. § 7.001; see Pearson v. Fillingim, 332 S.W.3d 361, 362 (Tex. 2011)

(per curiam). This “just and right” standard is the sole method the court utilizes to account

for and divide community property upon divorce. Schlueter v. Schlueter, 975 S.W.2d 584,

588 (Tex. 1998). “Such a standard may at times lead to a disproportionate division of

assets and liabilities of the parties, depending on the circumstances that courts may

consider in refusing to divide the marital estate equally.” Id. Thus, the property division

need not be equal, but there must be some reasonable basis for an unequal division of

the property. Murff v. Murff, 615 S.W.2d 696, 698–99 (Tex. 1981) (listing non-exclusive

factors a trial court considers in an unequal division of the marital estate); O’Carolan v.

Hopper, 414 S.W.3d 288, 311 (Tex. App.—Austin 2013, no pet.).

We review the trial court’s division of the community estate upon divorce for an

abuse of discretion. Bradshaw v. Bradshaw, 555 S.W.3d 539, 543 (Tex. 2018) (citing

Murff, 615 S.W.2d at 698). A trial court has wide discretion in making a just and right

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