Warner v. Warner

46 S.W.3d 591, 2001 Mo. App. LEXIS 677, 2001 WL 410871
CourtMissouri Court of Appeals
DecidedApril 24, 2001
DocketNo. WD 58469
StatusPublished
Cited by4 cases

This text of 46 S.W.3d 591 (Warner v. Warner) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner v. Warner, 46 S.W.3d 591, 2001 Mo. App. LEXIS 677, 2001 WL 410871 (Mo. Ct. App. 2001).

Opinion

PER CURIAM:

This is an appeal brought by Charles H. Warner (“Husband”) from a dissolution of marriage decree entered by the Circuit Court of Boone County, on June 17, 1999, and from the court’s subsequent order regarding the division of the couple’s property. In that March 3, 2000 order, the trial court awarded Sandra Wolsfeld Warner (“Wife”) one-half the value of all stock options granted during the marriage by Husband’s employer, America Online, Inc. (“AOL”). Husband appeals that portion of the decree.

Factual & Procedural Background

The parties were married on June 12, 1977, separated in February of 1997, and the marriage was dissolved December 31, 1998. Three children were born of the [593]*593marriage: Charles, born in 1980; Sean, born in 1982; and William, born in 1990. Wife filed a petition for dissolution of the marriage on January 10, 1997, and Husband moved out of the family home on February 14, 1997. The first day of the dissolution trial was on January 14, 1998, and the hearing did not resume again for the second day of trial until April 28, 1998. Wife learned the second day of the hearings that Husband had relocated to New York City and had taken employment with America On Line, Inc. (“AOL”), beginning on March 19, 1998. The trial resumed again for the third and final day of dissolution hearings on May 28, 1998. At that point, Wife learned that, upon his employment with AOL, Husband had acquired AOL stock options. Wife moved on June 3, 1998, to reopen the case for the court to hear further evidence about the stock options. Despite Husband’s lack of cooperation, Wife eventually obtained information regarding the stock options directly from AOL. A hearing was commenced on February 10, 1999, and the court issued its final judgment on June 17,1999.

The court awarded to the parties joint legal custody of the three children, with primary physical custody of the two youngest children going to Wife and joint physical custody of the oldest child, Charles, to both parties. Husband was ordered to pay $2,055.00 per month in child support for the support of the minor children; to pay all the college costs for the Charles; and to provide health insurance coverage and to pay any health care expenses not covered by insurance for all three children.

Because Wife was a homemaker throughout most of the marriage, the trial court determined that she is unable to support herself through appropriate employment and that she lacks sufficient property to provide for her reasonable needs until she exercises the AOL stock options awarded to her by the court. The court therefore awarded Wife maintenance in the amount of $3,000.00 per month, stating: “Said maintenance shall terminate upon the death of either party, the remarriage of [Wife], or the exercise by [Wife] of any of the AOL stock options awarded to her.”

Husband had been employed for many years as a professor of Journalism at the University of Missouri. At the time of the dissolution, Husband was employed by AOL as a consultant and was a part-time faculty member at the New School for Social Research in New York City. Husband began his employment with AOL on March 19, 1998, approximately two months after the first day of the hearings on the dissolution of marriage and over a year after Wife had filed for dissolution of the marriage. Husband receives a base salary of $150,000, enhanced by significant stock options, in his employment with AOL. In addition, Husband receives retirement benefits from the University of Missouri from which he retired as a full-time faculty member in April, 1998.

The trial court found that a consent order restraining each party from “transferring, encumbering, concealing or otherwise disposing of’ any marital or separate property of the parties had been “repeatedly and knowingly” violated by Husband. These violations included giving $12,900.00 to a friend, Joy Ferguson; purchasing a vehicle for Ms. Ferguson; cashing in an IRA and a life insurance policy; purchasing a boat and real estate in Massachusetts; and several other expenditures in excess of $500 not accounted for by Husband. The trial court took this misconduct into consideration in its division of property, allocation of debts, and award of attorneys’ fees. Apart from the AOL stock options (the property at issue in this [594]*594appeal), the parties’ marital property and marital debts were divided by the court substantially equally between the parties. The total property awarded Wife was in excess of $365,000; she was assigned debts in excess of $75,000. The total property awarded Husband, minus debt, was in excess of $310,000. Husband’s separate property, which included a substantial inter vivos trust,2 was set aside to him. Finally, Husband was ordered to pay Wife’s attorneys’ fees in the amount of $39,000.00. Wife’s maintenance terminated in December 1999, when she exercised her portion of the first 50,000 AOL stock options, which were divided by agreement. As to the remaining AOL stock options, the court stated:

The America Online, Inc. Stock Options granted to [Husband] on March 16, 1998 and September 1, 1998, are marital property subject to division by the Court. The Court finds that it is not possible to determine the value of those options which have been granted but have not yet vested.

And in its decree, the trial court ordered:

The stock options issued to [Husband] by his employer, America Online, Inc., prior to December 31, 1998, shall be distributed such that each party receives an equal share of said stock options pursuant to the terms of the attached Domestic Relations Orders. There are currently 228,000 shares granted ... all vesting between March 19, 1999, and through September 1, 2002.

Husband contests the trial court’s ruling on two points. First, Husband contends that the trial court erred in treating the stock options as marital assets because: (1) he began his employment with the company subsequent to the commencement of the dissolution hearing, although prior to the judgment decree, and (2) the stock options were not “earned” during the marriage since they are contingent upon the occurrence of future events, i.e., his future performance with the company.

Second, Husband contends that the trial court erred in not considering all the factors required by § 452.330 RSMo Cum. Supp.19983 and other non-statutory factors when it awarded Wife one-half of the stock options. Factors which should have been considered by the court, according to Husband are: that Husband is fourteen years older than Wife; he is nearing retirement age; and he suffers from serious medical problems. Husband asserts that these factors warrant that he be awarded all or most of the marital portion of the stock options.

Standard of Review

The standard of review for this court-tried case is found in Murphy v. Carrón, 536 S.W.2d 30, 32 (Mo. banc 1976), in which the Court interprets Rule 73.01 to mean that the judgment of the trial court will be sustained by the appellate court unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or erroneously applies the law. The appellate court should set aside a trial court’s decree or judgment on the ground that it is “against the weight of the evidence” with caution and only when there exists “a firm belief that the decree or judgment is wrong.” Id.

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Cite This Page — Counsel Stack

Bluebook (online)
46 S.W.3d 591, 2001 Mo. App. LEXIS 677, 2001 WL 410871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-v-warner-moctapp-2001.