Thomas v. Abel

688 N.E.2d 197, 1997 Ind. App. LEXIS 1657, 1997 WL 711103
CourtIndiana Court of Appeals
DecidedNovember 17, 1997
Docket49A02-9602-CV-108
StatusPublished
Cited by6 cases

This text of 688 N.E.2d 197 (Thomas v. Abel) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Abel, 688 N.E.2d 197, 1997 Ind. App. LEXIS 1657, 1997 WL 711103 (Ind. Ct. App. 1997).

Opinion

OPINION

HOFFMAN, Judge.

Appellant-petitioner Barbara Abel Thomas (“Wife”)- appeals the trial court’s grant of appellee-respondent Bill J. Abel’s (“Husband”) petition to modify the spousal maintenance provisions of a settlement agreement entered with Wife, Barbara, upon the dissolution of their marriage.

The parties were married on September 14, 1957, and the dissolution decree was entered on October 19,1981. The decree incorporated a separation agreement incident to the dissolution which was executed by the parties on October 19,1981. The agreement was a six-page document that contained ten articles to which the parties consented “in consideration of’ the document’s “mutual promises.” The agreement addressed matters of property disposition, child support, and spousal maintenance. Section 4 of Article IV specifically states the following:

*199 Support and Maintenance for the Wife. When and after Husband attains the age of 60 years he shall each month pay to the Wife as support and maintenance an amount equal to one-third (1/3) of his monthly pension (before deduction for a survivor benefit plan) as a retired Army National Guard officer: These payments shall continue until the death of the Wife or the Husband, whichever occurs first. It is further agreed that the Husband will, if the law permits, execute an assignment or any other appropriate document, so that one-third (1/3) of said pension will be paid directly to the Wife. It is further agreed that if the law permits the one-third (1/3) of the pension to be paid directly to the Wife and that said one-third (1/3) can con--tinue after the death of the Husband that the documents necessary to accomplish this will be executed by the Husband.

Article I, Section 1 provides in pertinent part that “[t]his Agreement shall be irrevocably binding upon both parties....”

Husband turned 60 years old in December of 1993. Although Husband began to receive his National Guard pension in January of 1994, he did not pay the one-third to Wife, nor did he file the assignment with the Army Finance which would permit Wife to be paid the amount directly. Wife then made application to the Army Finance and was informed that she was not eligible to receive the money. Nevertheless, Wife began to receive checks starting in August of 1994; however, the amount of the checks was less than the one-third amount she was suppose to receive.

In August of 1994, because of the létter Wife received stating that she was not entitled to Husband’s pension, Wife filed a contempt citation seeking to have Husband held in contempt for his failure to pay the one-third of the pension to Wife. In response, Husband filed a petition to terminate or modify the agreement, on November 14, 1994, alleging “a change of circumstances so substantial and continuing as to render [the payment of one-third of his retirement pension to Wife] unreasonable.” Hearings were held which were presided over by Master Commissioner Carol Lynn Terzo, and on October 6, 1995, Commissioner Terzo recommended the following:

The Court having taken said cause under advisement and now being duly advised finds and orders as follows:
1. That the maintenance order shall be modified and terminated as of this date.
2. That all money paid per the maintenance order shall not be reimbursed.
3. That each party be responsible for their own attorney fees.

The checks Wife .was receiving ceased to come in October of 1995.

Oh October 11, 1995, Wife filed her motion to strike the commissioner’s order. In response to Wife’s motion to strike, Judge Kenneth Johnson issued a separate order, on October 12,1995, approving and adopting the commissioner’s recommendations and overruling Wife’s motion. On October 21, 1995, Wife filed a motion to correct error. Oral argument on the motion was held on December 19, 1995. Thereafter, on January 17, 1996, the motion was deemed denied. This appeal ensued.

Wife presents five issues for our review which we consolidate and restate as follows:

(1) whether the provision of the agreement providing that Husband pay a portion of his military retirement pension to Wife is one for maintenance or is a property settlement provision;
(2) if the agreement is one for maintenance, is a maintenance agreement subject to modification because of changed conditions; and
(3) whether the trial court abused its discretion in denying Wife’s request for attorney’s fees.

First, we must determine whether the military retirement payments Husband agreed to pay to Wife constituted maintenance or property. In Coster v. Coster, 452 N.E.2d 397 (Ind.Ct.App.1983), this Court listed as factors tending to show that periodic payments were maintenance the following: 1) a specific designation as “maintenance”; 2) provisions for termination of payments upon the death of either the wife or husband; and 3) the installments are to be made from *200 future income. Id. at 403. Here, the periodic payments that Husband was to make to Wife when he turned 60 years old were denominated in the agreement as maintenance. The payments were to continue until the death of either the Husband or the Wife, whichever first occurred. No interest on the payments was to be charged. The payments were clearly to come from Husband’s future income. Examination of the agreement in light of the guidelines set forth in Coster established that the challenged provision of the settlement agreement was for maintenance rather than property settlement. The trial court did not err in making such determination.

Having determined that the provision in question was for maintenance, we must now decide if the maintenance agreement was subject to modification for a substantial change of conditions rendering the terms of the agreement unreasonable.

The public policy of this state favors separation agreements. Myers v. Myers, 560 N.E.2d 39, 42 (Ind.1990). The parties are given freedom to make continuing financial arrangements in a spirit of amicability and conciliation. Id. Such agreements are binding upon the parties if approved by the trial court. Id. A property settlement agreement incorporated into a final dissolution decree and order may not be modified unless the agreement so provides or the parties subsequently consent. Id.

An award of maintenance, however, may be included in a dissolution decree in either of two ways. First, the court may order maintenance pursuant to IND. CODE § 31-1-11.5-9(c) (1993 Ed.) 1 after making the findings required under IND. CODE § 31-1-11.5-11(e) (1993 Ed.), 2 which authorizes the court to find that maintenance is necessary for reasons of a spouse’s incapacitation, insufficient assets, or need for rehabilitation. IND. CODE § 31-1-11.5-11(e)(1)-(3).

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Cite This Page — Counsel Stack

Bluebook (online)
688 N.E.2d 197, 1997 Ind. App. LEXIS 1657, 1997 WL 711103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-abel-indctapp-1997.