Sharp v. Sharp

2022 Ohio 1201
CourtOhio Court of Appeals
DecidedApril 11, 2022
Docket21AP0007 & 21AP0019
StatusPublished
Cited by1 cases

This text of 2022 Ohio 1201 (Sharp v. Sharp) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sharp v. Sharp, 2022 Ohio 1201 (Ohio Ct. App. 2022).

Opinion

[Cite as Sharp v. Sharp, 2022-Ohio-1201.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF WAYNE )

LYNNE SHARP C.A. Nos. 21AP0007 21AP0019 Appellee

v. APPEAL FROM JUDGMENT GLENN SHARP ENTERED IN THE COURT OF COMMON PLEAS Appellant COUNTY OF WAYNE, OHIO CASE No. 2017 DR-B 000337

DECISION AND JOURNAL ENTRY

Dated: April 11, 2022

HENSAL, Presiding Judge.

{¶1} Glenn Sharp appeals from the judgments of Wayne County Court of Common

Pleas. This Court affirms in part, reverses in part, and remands the matter for further proceedings.

I.

{¶2} In 2017, after 14 years of marriage, Lynne Sharp filed for divorce from Glenn

Sharp. A magistrate conducted a final hearing over two nonconsecutive days in 2018. Much of

the evidence presented involved the marital residence located at 13915 Friendsville Road,

Burbank, Ohio (the “Residence”), which was the primary asset in dispute between the parties.

{¶3} The evidence indicated that the parties acquired the Residence as part of a “like-

kind” exchange with So-Cal Collectibles. In this exchange, So-Cal Collectibles agreed to purchase

the Residence and then transfer it to Ms. Sharp via a quitclaim deed in exchange for a racecar Mr.

Sharp had purchased prior to the parties’ marriage. The “like-kind” exchange was done, in part,

to avoid tax liability. 2

{¶4} Despite being titled solely in Ms. Sharp’s name, the magistrate determined that the

Residence was Mr. Sharp’s separate property because Mr. Sharp purchased the racecar prior to the

parties’ marriage, and the acquisition of the Residence was directly traceable to that racecar. It

also determined that, since the Residence was Mr. Sharp’s separate property, it was not subject to

an equitable set off.

{¶5} After determining that the Residence was Mr. Sharp’s separate property, the

magistrate ordered Ms. Sharp to execute a quit claim deed, releasing her interest in the Residence.

It then ordered Mr. Sharp to refinance the parties’ home equity line of credit to remove Ms. Sharp’s

name and ordered that Mr. Sharp would remain liable for all property taxes, utilities, and insurance

payments for the Residence. It then addressed the following issues that are relevant to this appeal:

(1) delinquent real estate taxes; (2) the home equity line of credit; (3) the parties’ personal property,

including vehicles and tools; (4) federal and state tax liabilities; (5) spousal support; (6) Mr.

Sharp’s claim of financial misconduct and request for a distributive award; and (7) attorney fees.

We will briefly address each item in turn.

{¶6} Delinquent Real Estate Taxes. There was no dispute that the Sharps had not paid

real estate taxes for the Residence. The magistrate determined that, because it allocated the

Residence to Mr. Sharp, Mr. Sharp should be liable for the delinquent real estate taxes, with no

equitable setoff for that tax liability.

{¶7} Home Equity Line of Credit. The magistrate noted that the parties’ home equity

line of credit balance was $18,492.02, and that part of that money was used to purchase Ms.

Sharp’s personal vehicle (GMC Envoy) and a roof for the Residence. The magistrate concluded

that the portion used for Ms. Sharp’s personal vehicle would be setoff by awarding Mr. Sharp

certain tools, and that the remainder of the debt would be equitably allocated to Mr. Sharp due to 3

the Residence being his separate property. As previously noted, it ordered Mr. Sharp to refinance

the home equity line of credit to remove Ms. Sharp’s name, and to hold her harmless for any

liability.

{¶8} Personal Property – Vehicles and Tools. As previously noted, the magistrate

determined that Ms. Sharp’s GMC Envoy, which was purchased with funds from the home equity

line of credit, would remain her separate property as an equitable setoff. It then found that it would

be reasonable and equitable to setoff the marital value of certain tools ($4,365) from the purchase

price paid for Ms. Sharp’s GMC Envoy, the balance of which remained due and payable on the

home equity line of credit allocated to Mr. Sharp.

{¶9} State and Federal Tax Liability. The parties did not dispute that Ms. Sharp filed

her own, separate state and federal tax returns throughout the parties’ marriage. Mr. Sharp, on the

other hand, had not filed state or federal tax returns since the 1980s. The magistrate determined

that the parties would be responsible for their own tax returns and/or refunds, and that Mr. Sharp

would be “solely liable for any tax liability, penalties and delinquencies assessed due to his failure

to file tax returns prior to and throughout the parties’ marriage and shall hold [Ms.] Sharp harmless

as to said liability, both state and federal.”

{¶10} Spousal Support. The magistrate considered the factors set forth in Revised Code

Section 3105.18(C)(1). In addressing Section 3105.18(C)(1)(i), which relates to the relative assets

and liabilities of the parties, the magistrate noted that Mr. Sharp had been allocated the Residence,

and that Ms. Sharp would need to find alternative living arrangements. It also noted that

substantially more debt had been allocated to Mr. Sharp, including the home equity line of credit.

The magistrate concluded that Mr. Sharp should pay spousal support to Ms. Sharp in the amount

of $700.00 per month for a period of sixty months. 4

{¶11} Financial Misconduct. The magistrate addressed Mr. Sharp’s claim that Ms. Sharp

engaged in financial misconduct. According to Mr. Sharp, Ms. Sharp secured the home equity

line of credit using his forged signature. Mr. Sharp also claimed that he was unaware that the loan

was secured by the Residence, and that he was unaware that the Ms. Sharp was only making the

minimum payment on that loan. The magistrate determined that Mr. Sharp had knowledge of the

loan, and that Ms. Sharp did not substantially and willfully fail to disclose or subvert Mr. Sharp’s

knowledge of that debt. The magistrate, therefore, concluded that Ms. Sharp did not engage in

financial misconduct. In reaching this conclusion, the magistrate noted that Mr. Sharp’s “lack of

knowledge of the mortgage and whether his signature was in fact a product of forgery is left to

adjudication in another proceeding.”

{¶12} Attorney Fees. Regarding the parties’ claims for attorney fees, the magistrate noted

that it had already awarded spousal support to Ms. Sharp, and that it had allocated substantially

more debt to Mr. Sharp “due to his separate property interest in the [Residence] and as a

consideration in spousal support herein.” It then ordered each party to pay their own attorney fees.

{¶13} On the same day the magistrate issued its decision, the trial court issued its own

judgment entry, finding that the magistrate’s decision contained no errors of law or other defect.

The trial court’s judgment entry contained less analysis on certain issues but ultimately reached

the same conclusions as the magistrate’s decision.

{¶14} Relevant to this appeal, unlike the magistrate’s decision, the trial court’s judgment

entry did not indicate that the trial court considered the allocation of the Residence to Mr. Sharp

when ordering Mr. Sharp to pay spousal support to Ms. Sharp, or in ordering both parties to pay

their own attorney fees. Additionally, unlike the magistrate’s decision, the trial court’s judgment

entry contained little analysis regarding Mr.

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2022 Ohio 1201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sharp-v-sharp-ohioctapp-2022.