Wannamaker v. Wannamaker

406 S.E.2d 180, 305 S.C. 36, 1991 S.C. App. LEXIS 1
CourtCourt of Appeals of South Carolina
DecidedJanuary 7, 1991
Docket1590
StatusPublished
Cited by10 cases

This text of 406 S.E.2d 180 (Wannamaker v. Wannamaker) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wannamaker v. Wannamaker, 406 S.E.2d 180, 305 S.C. 36, 1991 S.C. App. LEXIS 1 (S.C. Ct. App. 1991).

Opinion

Gardner, Judge:

This is a cross appeal involving equitable division. The parties were separated for eleven years before commencing marital litigation. The appealed order equitably apportioned the husband’s medical practice and other property acquired after separation but before institution of marital litigation. We affirm in part, modify in part, reverse in part and remand.

ISSUE

The only issue of merit presented by the wife is whether the trial judge erred in failing to find that some of her husband’s stock was transmuted into marital property.

The issues of merit presented by the husband are whether (1) the trial judge erred in apportioning the wife an interest in the husband’s medical practice, which started six years after the separation, (2) the trial judge erred in apportioning the wife an interest in the husband’s retirement funds which he acquired during the years following the separation, (3) the trial judge erred in requiring the husband to pay half of the fee for the court appointed expert whose assignment was to evaluate the husband’s interest in the medical partnership.

FACTS

Braxton B. Wannamaker (the husband) and Lynda H. Wannamaker (the wife) were born in Orangeburg County, South Carolina, and were childhood sweethearts. They married at the age of sixteen and had four children, all of whom now are emancipated except the oldest daughter who is doing *38 post-graduate study at her father’s expense.

After the marriage, the husband fnished high school, attended Clemson and graduated from the medical college in Charleston, Souh Carolina. They moved to Wisconsin where the husband did his residency. After completing his residency, the husband joined the army and the parties separated. While stationed in Japan, the husband had an affair. The husband later told the wife about his affair, and the parties reconciled. The parties separated permanently in August 1977, after the husband confronted the wife about an affair she was having with a workman at their home. The parties were not divorced until April 11,1988.

While the parties were living together, the husband enjoyed an income from work, dividends and capital gains in the amount of $357,583. During the same period the wife had an income of $5,150. After the separation, the husband enjoyed an income, including dividends and capital gains of $851,408.

Other pertinent facts will be included when discussing the specific issues.

DISCUSSION

I.

We reject the wife’s contention that the husband’s stocks were transmuted into the marital estate.

The husband's parents made gifts to him of stock before and during the marriage. The husband kept a bank account in Orangeburg through which he bought and sold stock and deposited dividends. The husband occasionally used funds from this account for marital purposes. The trial judge by the appealed order held that all of the husband’s stock was either a gift to him or purchased with nonmarital assets. This holding is supported by the record.

Clyde Hiers, an expert certified public accountant employed by the wife, testified that he had examined the husband’s receipts and disbursement journals 1 from 1948 through 1988. He introduced an exhibit summarizing pertinent findings. Hiers found that the money from the “Orangeburg ac *39 count” was spent for marital purposes in some instances or transferred to other accounts held by the husband in other instances. His scrutiny of the 41-year account history, however, revealed no instance of marital funds being used to acquire the stocks in question.

In summary, both parties’ property interest in “marital property” is set forth in The Equitable Apportionment of Marital Property Act, S.C. Code Ann. §§ 20-7-471 through 20-7-479 (Supp. 1989) (the Act). These statutes provide that during the marriage a spouse shall acquire, based upon certain factors set out in § 20-7-472, a vested special equity in property acquired during the marriage. Specifically exempted from the marital estate is property acquired by a party as a gift from some one other than the spouse, property acquired before the marriage, property acquired by either party in exchange for gifted property or inherited property, and any increase in the value of nonmarital property, except to the extent that the increase resulted directly or indirectly from efforts of the other spouse during the marriage. 2

The Act does not define or even recognize “transmutation,” the doctrine that nonmarital property can become marital property. The doctrine, however, was recognized by our courts before 3 and after 4 enactment of the Act. There is now a large body of law on the subject. The case of Johnson v. Johnson, 296 S.C. 289, 372 S.E. (2d) 107 (Ct. App. 1988), a landmark opinion by Judge Bell, provides a useful summary of this law. That case held, inter alia, that (1) transmutation is a matter of intent to be gleaned from the facts of each case, (2) the mere use of separate properties to support the marriage without some additional evidence of intent to treat it as marital property, is not sufficient to establish transmutation and (3) the spouse claiming the transmutation must produce objective evidence showing that, during the marriage, the parties themselves regarded the property as the common property of the marriage. 296 S.C. at 295-296, 372 S.E. (2d) at 110-111.

Nonmarital property can become transmuted into marital property when it becomes so comingled as to be untraceable. See Hussey v. Hussey, 280 S.C. 418, 425, 312 *40 S.E. (2d) 267, 270 (Ct. App. 1984). The phrase “so co-mingled as to be untraceable” is all important because the mere comin-gling of funds does not automatically make them marital funds.

The Orangeburg account was kept in the husband’s name. Good records were kept as to the deposits and disbursements in this account. We hold that the preponderance of evidence establishes that the funds of the Orangeburg account used to purchase stock were traced to the individual property of the husband.

The argument that if any portion of the husband’s separate estate is used in the furtherance of the marriage, the entire account loses its independent status and becomes marital property is without merit. See Brooks v. Brooks, 289 S.C. 352, 345 S.E. (2d) 510 (Ct. App. 1986).

We concur with the finding of the trial judge that the husband’s stocks purchased from the Orangeburg account are his separate property and the implied ruling that there was no transmutation. We, therefore, reject the wife’s argument that the stocks owned by the husband were transmuted into the marital estate.

II.

We hold that the trial judge erred in apportioning the wife an interest in the husband’s medical partnership which he established after the separation.

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Bluebook (online)
406 S.E.2d 180, 305 S.C. 36, 1991 S.C. App. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wannamaker-v-wannamaker-scctapp-1991.