Stewart v. Stewart

728 So. 2d 473, 1998 WL 895932
Louisiana Court of Appeal·Decided December 16, 1998·No. 98-496·Published·Cited by 3 cases

Opinion

728 So.2d 473 (1998)

Charles L. STEWART, Plaintiff— Appellee/Appellant,
v.
Peggy Dianne STEWART, Defendant— Appellant/Appellee.

No. 98-496

Court of Appeal of Louisiana, Third Circuit.

December 16, 1998.

*474 Richard E. Lee, Pineville, for Charles L. Stewart.

Michael Hathorn Davis, Alexandria, for Peggy Dianne Stewart.

BEFORE: THIBODEAUX, COOKS, WOODARD, DECUIR, and PETERS, Judges.

THIBODEAUX, Judge.

This suit involves the partition of community assets between former spouses, Dianne Stewart and Charles Stewart. Both parties appeal the trial court's judgment to partition the community property by public sale. The defendant, Dianne Stewart, appeals the trial court's judgment not to reimburse her for expenses incurred in the maintenance of the family automobiles in her exclusive use during the separation, while the plaintiff, Charles Stewart, entreats us to reverse the trial court's judgment which characterized as community property the increase in value during the marriage of his separately-owned shares of stock.

For the following reasons, we affirm in part and reverse in part the judgment of the trial court. We conclude that the increase in the value of Mr. Stewart's stock is not a community asset. The trial court erred on this issue, but correctly decided that Ms. Stewart is not entitled to reimbursement for the maintenance expenses on the family automobiles. The trial court also erroneously ordered the partition of the community property by public sale. We remand to allow for a proper determination of the division of the assets.

I.
ISSUES
We shall consider:
1. whether the trial court erred in ordering the community property to be sold at a public sale before exploring other options available under La.R.S. 9:2801;
2. whether the trial court erred in not ordering Dianne Stewart to be reimbursed for expenses incurred for the maintenance of the two family vehicles in her exclusive use during her separation from Charles Stewart; and,
3. whether the trial court erred in characterizing the increase in the value of Charles Stewart's separately-owned shares of stock as community property.

II.

FACTS

Charles Stewart is a foreman who supervises the construction and maintenance of power lines for Red Simpson, Inc., a power line contracting company. He has a tenth grade education and had been employed by Red Simpson, Inc. for about twelve years at the time of trial.

Charles Stewart was given 21% shares of stock in a subsidiary corporation of Red Simpson, Inc., Pete Singleton, Inc. (later renamed Bo Stewart, Inc.) when he began his employment on January 2, 1986. Under the *475 employment contract, Mr. Stewart was given this stock in exchange for his agreement not to compete with Red Simpson, Inc. upon his termination of employment. The value of the stock was to be calculated at the end of each fiscal year. The value of Mr. Stewart's stock would either decrease or increase depending upon whether his crew generated a profit for that year. If his crew made a profit, Mr. Stewart's stock value would increase by 21% of the amount of the profit for that year. If the crew was "in the red," the book value of the stock would decrease by 21% of the amount of the deficit for that year. The stock had no value at its issuance.

The stock value was to be kept by Red Simpson, Inc. in its general funds until the termination of Mr. Stewart's employment with Red Simpson, Inc. Upon his termination, Mr. Stewart would be obligated to sell his shares of stock in Bo Stewart, Inc. back to Red Simpson, Inc.; its value would be paid over a period of four years and ninety days.

Charles and Dianne Stewart were married on May 18, 1988. The matrimonial regime ended on October 11, 1995. At the time of their marriage, Mr. Stewart's stock was worth $4,646.00. At the end of the matrimonial regime, the stock's value had increased to $142,147.00.

During the period the Stewarts were separated, Dianne Stewart and her daughter had exclusive use and control of the 1988 Ford pick-up truck and a 1994 Ford Probe. During this time, Ms. Stewart incurred expenses in the maintenance of the two vehicles in the amounts of $1,266.19 and $1,565.83, respectively.

III.

LAW AND DISCUSSION

Public Sale of Community Property

Both parties contend that the trial court erred in ordering all community property, with the exception of the stocks, be sold at a public sale. We agree.

The mandatory procedure for effecting a partition is provided by La.R.S. 9:2801. Barry v. Barry, 501 So.2d 897, 898 (La.App. 5 Cir.1987). Louisiana Revised Statute 9:2801 applies "[w]hen the spouses are unable to agree on a partition of community property or on the settlement of the claims between spouses arising from the matrimonial regime." Champagne v. Champagne, 93-840 (La.App. 5 Cir. 3/16/94); 635 So.2d 1203, 1205. Such is the situation presented here.

Louisiana Revised Statute 9:2801(4) states the following:

(4) The court shall then partition the community in accordance with the following rules:
(a) The court shall value the assets as of the time of trial on the merits, determine the liabilities, and adjudicate the claims of the parties.
(b) The court shall divide the community assets and liabilities so that each spouse receives property of an equal net value.
© The court shall allocate or assign to the respective spouses all of the community assets and liabilities. In allocating assets and liabilities, the court may divide a particular asset or liability equally or unequally or may allocate it in its entirety to one of the spouses. The court shall consider the nature and source of the asset or liability, the economic condition of each spouse, and any other circumstances that the court deems relevant. As between the spouses, the allocation of a liability to a spouse obligates that spouse to extinguish that liability. The allocation in no way affects the rights of creditors.
In the event that the allocation of assets and liabilities results in an unequal net distribution, the court shall order the payment of an equalizing sum of money, either cash or deferred, secured or unsecured, upon such terms and conditions as the court shall direct. The court may order the execution of notes, mortgages, or other documents as it deems necessary, or may impose a mortgage or lien on either community or separate property, movable or immovable, as security.
(d) In the event that the allocation of an asset, in whole or in part, would be *476 inequitable to a party, the court may order the parties to draw lots for the asset or may order the private sale of the asset on such terms and conditions as the court deems proper, including the minimum price, the terms of sale, the execution of realtor listing agreements, and the period of time during which the asset shall be offered for private sale.
(e) Only in the event that an asset cannot be allocated to a party, assigned by the drawing of lots, or sold at private sale, shall the court order a partition thereof by licitation. The court may fix the minimum bids and other terms and conditions upon which the property is offered at public sale.

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

Stewart v. Stewart, 728 So. 2d 473, 1998 WL 895932 (La. Ct. App. 1998).

728 So. 2d 473 (Stewart v. Stewart) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bible v. Bible
895 So. 2d 547 (Louisiana Court of Appeal, 2005)
Sheridon v. Sheridon
867 So. 2d 38 (Louisiana Court of Appeal, 2004)
Knighten v. Knighten
809 So. 2d 324 (Louisiana Court of Appeal, 2001)