Seymour v. Seymour

557 P.2d 1101, 89 N.M. 752
CourtNew Mexico Supreme Court
DecidedDecember 17, 1976
Docket10669
StatusPublished
Cited by12 cases

This text of 557 P.2d 1101 (Seymour v. Seymour) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seymour v. Seymour, 557 P.2d 1101, 89 N.M. 752 (N.M. 1976).

Opinion

OPINION

MONTOYA, Justice.

This is an appeal from a divorce decree granted by the District Court of Bernalillo County. Following a lengthy trial, the court below granted the divorce, divided the property and awarded the wife alimony and attorneys’ fees.

The husband, respondent below, claims as error and appeals from the following:

1. the unequal division of the community property,
2. the findings of the trial court determining that certain properties were community rather than separate property, and that certain properties were subject to a community lien,
3. the award to the wife of property belonging to Allen Builders, Inc. for services rendered by the wife to the corporation because the salary paid to her was inadequate,
4. the award of attorneys’ fees to the wife, and
5. the award of alimony to the wife.

In order to understand the issues involved, the facts developed at the trial should be mentioned. The parties were married on January 12, 1962, this being the second marriage for both. At the time of the marriage, the husband was engaged in three businesses known as Seymour Lumber Co., Allen Construction Co. and Coronado Wrecking Company, each operated as a sole proprietorship. The lumber company was started in 1955, the construction business in 1956 and the wrecking operation in the latter part of 1960. The husband continued the businesses during the marriage and later incorporated them. He took stock and promissory notes from the incorporated entities for the capital transferred to each. The wife actively participated in the businesses and was an officer and director in them. The husband also engaged in certain real estate ventures by himself and in participation with his lawyer. At the time of trial, the properties and cash were valued at $884,000. The trial court determined that some $370,000 was community property; accordingly, it divided such property so that the wife received $184,872.22 and the husband received $184,784.94. The remainder of the property was determined to be the separate property of the husband. Some of the real estate purchased after marriage was admitted to be community property. Title was taken to most of the property by the parties in joint tenancy. In some tracts the property was being purchased under a real estate contract, and in three tracts (even according to the wife’s requested findings) the title was in the name of the husband only. On one tract the title of record was in Allen Builders, Inc., a corporation owned completely by the husband.

It is to be noted that in only three deeds was the husband shown to be the sole record owner, and that the payments made before marriage on the tracts showing the husband to be the record owner were minimal compared to the payments made after marriage. The trial court found that the majority of the payments were made with community funds, with the exception of Tract 4, Map 34, which it found to be the property of Allen Builders, Inc. The evidence in the record and the findings of the trial court indicate that the payments for real estate acquired after marriage were paid in part from the drawing accounts of the husband in the businesses, in part from the savings account of the parties, and in part from monies withdrawn from the businesses, thereby reducing the amounts on the promissory notes due the husband from the corporations.

The trial court made a finding that the wife “due to her age, previous work experience and employment history is unable to obtain gainful employment to support herself and is in need of alimony at this time in the amount of $600 per month in addition to the amount necessary to pay her house payment on the family home.”

The trial court also awarded to the wife the sum of $20,000 toward her costs and attorneys’ fees.

We have carefully reviewed the record of the proceedings in this cause and would note that the nature and extent of the property interests of the parties were submitted in great detail at the trial below. It would serve no useful purpose to set forth the evidence, but we would note that there were extensive transactions involving drawings from the corporations for living expenses, purchasing real estate from corporate funds, and taking of title to real property in joint tenancy. After evaluating the extent of the parties’ contributions by way of time and effort to the various businesses we conclude that there is substantial evidence to support the trial court’s findings with respect to its determination of the nature and extent, as well as the division, of the property of the parties, except as hereinafter noted.

The next issue to be considered is .the claim that the trial court erred in awarding the wife the property belonging to Allen Builders, Inc. (Tract 4, Map 34, Middle Rio Grande Conservancy District). The trial court reasoned in its finding No. 29 that the business grew and prospered due to the labor of both parties and that the wife did not receive a fair compensation for her efforts and therefore that she was entitled to the tract to compensate her for the inadequate salary she had been receiving from the corporation. The trial court found that this tract had a total value of $14,800.00 and was subject to an outstanding mortgage of $1,432.86 and a paving lien of $2,468.40, leaving a net value of $10,898.74. It is undisputed that both parties contributed time and effort to the growth of Allen Builders, Inc., but the extent of such contributions is unknown. In any event, there were contributions by both parties of time and effort to the growth of the corporation, but there was also the contribution of the husband’s separate property to the capital of the corporation when the business was incorporated. Having found that the property in question is the property of the corporation, we question the propriety of the award of such corporate property to the wife. It did not belong to either party, but belonged to the corporation. Accordingly, we reverse the trial court on this issue and hold that' Tract 4, Map 34, cannot be transferred to the wife in lieu of any interest the wife may have in the business. The services rendered by both parties to Allen Builders, Inc. and salaries or withdrawals therefrom belonged to the community, but the acquisition of property with the funds of the corporation makes it part of the assets of the corporation. There is no evidence in the record to indicate the value of the services contributed by either of the parties to this or any of the corporations, and it would be mere speculation to say that the wife’s interest in the corporation was equivalent in value to the corporate property awarded by the trial judge to the wife.

The next issue is the claimed error in the trial court’s award of alimony. The pertinent findings made by the trial court read as follows:

“3. That the petitioner due to her age, previous work experience and employment history, is unable to obtain gainful employment to support herself and is in need of alimony at this time in the amount of $600.00 per month in addition to the amount necessary to pay her house payment on the family home.
“4.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lopez v. Lopez
New Mexico Court of Appeals, 2013
Rabie v. Ogaki
860 P.2d 785 (New Mexico Court of Appeals, 1993)
Bustos v. Gilroy
751 P.2d 188 (New Mexico Court of Appeals, 1988)
Lewis v. Lewis
739 P.2d 974 (New Mexico Court of Appeals, 1987)
Bilbao v. Bilbao
696 P.2d 494 (New Mexico Court of Appeals, 1985)
Bustos v. Bustos
673 P.2d 1289 (New Mexico Supreme Court, 1983)
Weaver v. Weaver
667 P.2d 970 (New Mexico Supreme Court, 1983)
Henderson v. Lekvold
657 P.2d 125 (New Mexico Supreme Court, 1983)
Ellsworth v. Ellsworth
637 P.2d 564 (New Mexico Supreme Court, 1981)
Dirks v. Dirks (In Re Dirks)
15 B.R. 775 (D. New Mexico, 1981)
Lucas v. Lucas
621 P.2d 500 (New Mexico Supreme Court, 1980)
Hurley v. Hurley
615 P.2d 256 (New Mexico Supreme Court, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
557 P.2d 1101, 89 N.M. 752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seymour-v-seymour-nm-1976.