FOR PUBLICATION
ATTORNEY FOR APPELLANTS: ATTORNEY FOR APPELLEE:
MARYLAND L. AUSTIN LARRY W. MEDLOCK
Corydon, Indiana Allen, Allen & Allen
Salem, Indiana
IN THE
COURT OF APPEALS OF INDIANA
RALPH L. WILSON, JR., )
)
Appellant-Respondent, )
)
vs. ) No. 88A01-9912-CV-410
)
LINDA C. WILSON, )
)
Appellee-Petitioner. )
APPEAL FROM THE WASHINGTON SUPERIOR COURT
The Honorable Frank Newkirk, Jr., Judge
Cause No. 88D01-9406-DR-134
July 27, 2000
OPINION - FOR PUBLICATION
ROBB, Judge
Ralph Wilson (Husband) appeals from the trial courts division of property in a
dissolution action filed by Linda Wilson (Wife). We affirm.
Issues
Husband raises five issues for our review, which we consolidate and restate as
follows:
Whether the trial court properly ordered the parties marriage dissolved on September
30, 1994, but did not divide the marital property until March 18, 1999;
Whether the trial court selected proper valuation dates for the parties property;
Whether the trial court properly valued and divided the marital assets, specifically the
parties marital residence and Husbands pension; and
Whether the trial court properly valued and divided the marital debts.
Facts and Procedural History
Husband and Wife were married on March 11, 1978. At that time,
Husband had been working for Ford for approximately twelve years. He continued
to work at Ford throughout the marriage. Wife was a housewife and
stay-at-home mother to the parties daughter. She worked sporadically throughout the marriage,
never earning more than $10,000 in any one year.
Wife filed a petition for dissolution of marriage on June 24, 1994.
At the final hearing on September 29, 1994, Husband indicated his desire to
reconcile, and Wife acknowledged that further discovery and evaluation of assets was necessary
before the marital property could be divided; however, Wife requested that the marriage
nonetheless be dissolved on that date. The trial court entered an order
dissolving the marriage on September 30, 1994, and setting a hearing for all
remaining issues for November 16, 1994.
On November 9, 1994, Wife filed a motion to continue the final hearing
indefinitely, which was granted. From January 1995 to September 1995, and again
from November 1996 to April 1998, the parties reconciled and cohabitated in the
marital residence. The trial court did not reset the final hearing, nor
did either of the parties request it to be reset, until Wife filed
a motion for final hearing on November 5, 1998. The final hearing
was held on February 18, 1999, and the trial court entered a supplemental
decree of dissolution dividing the marital estate. Husband now appeals. Additional
facts will be provided as necessary.
Discussion and Decision
I. Standard of Review
We apply a strict standard of review to a dissolution courts distribution of
property. Wallace v. Wallace, 714 N.E.2d 774, 781 (Ind. Ct. App. 1999),
trans. denied. The party challenging the property division must overcome a strong
presumption that the court complied with the statute and considered the evidence on
each of the statutory factors. Id. The presumption that a dissolution
court correctly followed the law and made all the proper considerations in crafting
its property distribution is one of the strongest presumptions applicable to our consideration
on appeal. Id.
We will reverse a property distribution only if there is no rational basis
for the award; that is, if the result reached is clearly against the
logic and effect of the facts and circumstances before the court, including the
reasonable inferences to be drawn therefrom. Id. at 781-82. In so
determining, we cannot reweigh the evidence, and consider only the evidence favorable to
the dissolution courts decision. Cowden v. Cowden, 661 N.E.2d 894, 895 (Ind.
Ct. App. 1996). We will also reverse where the trial court has
misinterpreted the law or has disregarded evidence of statutory factors. Wallace, 714
N.E.2d at 782. However, that the same circumstances may have justified a
different property distribution will not permit us to substitute our judgment for that
of the divorce court. Id.
II. Timeliness of Property Division
Husband first contends that the trial court erred in failing to divide the
marital property at the time it granted the dissolution or within a reasonable
time thereafter. He argues that the trial courts indefinite continuance of the
final hearing for property division purposes delegated to Wife the power to decide
when the property division would take place, and that the trial court abused
its discretion in allowing the property matters to remain pending for over four
years.
Notwithstanding his contention that the trial court erred in failing to enter a
property division at the time it dissolved the parties marriage, Husband acknowledges that
the dissolution statute does not require all issues, including property division, to be
settled in a decree dissolving the marriage. See Ind. Code § 31-15-7-4
(formerly Ind. Code § 31-1-11.5-8(e)) (allowing the trial court to bifurcate the issues
to provide for summary disposition of uncontested issues and a final hearing of
contested issues and requiring the summary disposition order to include a date for
the final hearing of contested issues). The trial court set the property
issues for a final hearing at the time it entered the decree of
dissolution, as required by statute. Thus, it was not error for the
trial court to summarily dissolve the parties marriage and retain jurisdiction for the
purpose of a future property division.
In support of his contention that the trial court erroneously delegated to Wife
the power to decide when to effect the property division, Husband cites several
cases which are distinguishable from the case at bar. It is true
that we have said that, because the dissolution statute states that the court
shall divide the marital property, it is reversible error to delegate to one
of the parties the power to decide when, if ever, to divide the
property. Henderson v. Henderson, 401 N.E.2d 73, 74 (Ind. Ct. App. 1980).
In Henderson, the trial court awarded the marital real estate to the
wife, created a lien of $5,500 on the real estate in favor of
the husband to be retired or paid to [the husband] at such time
as [the wife] decides to sell said real estate and to further award
up to $4,000 to the husband upon a split of the equity of
the real estate when the wife sells. 401 N.E.2d at 73.
Thus, the amount the husband was entitled to receive from this provision, as
well as the time at which he would receive it, if ever, was
totally dependent upon the wifes decision to sell the property. This, the
court determined to be an improper delegation of the trial courts obligation to
divide the marital property. This is not the situation we have here.
Here, no disposition of the marital property had yet been made, and
neither party had exclusive control over the division, as in Henderson. Thus,
there was no delegation of the trial courts obligation.
Finally, with respect to Husbands contention that the trial court erred in allowing
the property issues to remain pending for over four years, we merely note
that, at any time, either party could have moved the court to set
the remaining issues for a final hearing. If Husband wanted the property
divided earlier, he need only have filed a motion seeking a hearing.
However, he did not do so, and he cannot now be heard to
complain. See Trout v. Trout, 638 N.E.2d 1306, 1307-08 (Ind. Ct. App.
1994), trans. denied (holding, in the context of a challenge to summarized testimony
in divorce proceedings, that any challenges to the procedure utilized by the trial
court were waived by Husbands failure to object to the format of the
proceedings. . . . Husband, through his silence, is held to have
assented to proceeding in this irregular manner.).
III. Valuation Dates
Husband also contends that the trial court erred in choosing different dates to
value different elements of the marital property. Part of the marital property,
including Husbands pension and 1971 Ford truck, was valued as of September 29,
1994, the date of the dissolution. Part of the marital property, including
certain credit card debt, was valued as of December 31, 1996. The
remainder, including the marital residence and 1991 Mercury, was valued as of February
19, 1999, the date of the final hearing on the property division.
A trial court has broad discretion in determining the date upon which to
value marital assets. Hiser v. Hiser, 692 N.E.2d 925, 927 (Ind. Ct.
App. 1998). For purposes of choosing a date upon which to value
marital assets, the trial court may select any date between the date of
filing the petition for dissolution and the date of the final hearing.
Id. at 928. There is no requirement in our law that the
valuation date be the same for every asset. Thus, to the extent
Husband argues that the trial courts valuation was erroneous because the court selected
different dates on which to value different assets, we see no error.
III. Valuation and Division of Marital Assets
A. Marital Residence
Husband contends that the trial court erred in electing to value the marital
residence as of February 19, 1999, the date of the final hearing for
purposes of property division. On or about the date of the dissolution,
the marital residence was valued at approximately $80,000. By the time of
the property division hearing, the residence was valued at approximately $110,000. The
trial courts order with respect to the marital residence is as follows:
The Court finds that [Husband] should be awarded the marital residence. The
Court finds that the house should be valued at $110,000.00 and orders that
[Wife] be awarded one-half of the equity in the house as of this
date, but awarding [Husband] first all contributions toward the principal balance which he
has made since September 30, 1994.
R. 24.
We agree with Husband that the marital pot closes on the date the
petition for dissolution is filed. Indiana Code section 31-15-7-4 states that:
In an action for dissolution of marriage under IC 31-15-2-2, the court shall
divide the property of the parties, whether:
(1) owned by either spouse before the marriage;
(2) acquired by either spouse in his or her own right:
(A) after the marriage; and
(B) before final separation of the parties; or
(3) acquired by their joint efforts.
Ind. Code § 31-15-7-4(a) (formerly Ind. Code § 31-1-11.5-11(b)) (emphasis added). The
final separation of the parties has been defined to mean the date of
filing of the petition for dissolution of marriage. Ind. Code §
31-9-2-46 (formerly Ind. Code § 31-1-11.5-11(a)). See also Harris v. Harris, 690
N.E.2d 742, 745 (Ind. Ct. App. 1998). However, the date of final
separation only establishes what property is to be included in the marital pot,
not necessarily the value of that property. As previously stated, the trial
court has discretion when valuing the marital assets to set any date between
the date of filing the dissolution petition (the final separation date) and the
date of the hearing. Quillen v. Quillen, 671 N.E.2d 98, 102 (Ind.
1996). Thus, the trial court did not necessarily err in choosing to
value some of the parties property as of a date after the filing
of the dissolution petition.
Husband argues that [t]o include in the marital pot the increase in value
of . . . real estate which is accrued due to the passage
of time after a dissolution is final is to include property acquired after
the final separation date. Brief of the Appellant at 8. We
acknowledge the unique circumstances in which this case comes to us: the
parties were actually divorced and had been restored to the status of unmarried
persons on the date the trial court chose for valuation of the marital
residence. Nonetheless, the marital residence is a marital asset rightly included in
the marital pot. During significant portions of the four years between the
dissolution and the property division hearing, the parties lived together in the marital
residence in a marital relationship, the mortgage payments were made out of a
joint checking account to which both parties contributed, albeit unequally, and both parties
contributed to the upkeep and running of the household.
Above all, the trial court is charged with dividing the marital property in
a just and reasonable manner. Ind. Code § 31-15-7-4(b) (formerly Ind. Code
§ 31-1-11.5-11). In Chestnut v. Chestnut, 499 N.E.2d 783 (Ind. Ct. App.
1986), husband and wife cohabitated for approximately four years prior to their marriage.
The trial court considered the actions of the parties during that four
year period of cohabitation in distributing the marital assets, and we held that
[i]t was within the trial courts discretion to consider this evidence when distributing
marital assets under principles of equity. Id. at 787.
We recognize the factual dissimilarities between Chestnut and this case, namely that in
Chestnut, the period of non-marital cohabitation preceded the marriage, whereas here, the period
of non-marital cohabitation followed the dissolution of the marriage. However, we believe
the principle behind Chestnut still applies: the trial court has discretion to
consider the totality of the circumstances when dividing the marital property. We
have held that it is possible for a court to abuse its discretion
in picking a [valuation] date which unjustly fails to account for a significant
increase in the value of an asset during the proceedings. Knotts v.
Knotts, 693 N.E.2d 962, 969 (Ind. Ct. App. 1998), trans. denied. Here,
the trial court valued the property as of the later date, and therefore,
at the greater value, but also reduced the equity to be split between
the parties by the amounts Husband had paid toward the principal balance.
We do not believe that the trial court abused its discretion in valuing
and dividing the marital residence in such a way that acknowledges the relationship
of the parties in the four years between the dissolution of their marriage
and the division of their property.
B. Husbands Pension
Husband also contends that the trial erred in valuing his Ford pension.
Husband began working for Ford in 1966, and the parties were married
in 1978. The trial court found that there is no reason to
deviate from the presumption of an equal division and award[ed] . . .
Wife 50% of the value of the pension as of September 30, 1994
. . . . R. 23-24. Husband concedes that his pension
was rightly included in the marital pot for division, but contends that the
trial court erred in not considering the years [Husband] worked prior to the
marriage in accruing pension benefits by his sole efforts . . . .
Brief of the Appellant at 15.
Indiana Code section 31-15-7-5 states that:
The court shall presume that an equal division of the marital property between
the parties is just and reasonable. However, this presumption may be rebutted
by a party who presents relevant evidence, including evidence concerning the following factors,
that an equal division would not be just and reasonable:
The contribution of each spouse to the acquisition of the property, regardless of
whether the contribution was income producing.
The extent to which the property was acquired by each spouse:
before the marriage . . . .
Ind. Code § 31-15-7-5(1), (2) (formerly Ind. Code § 31-1-11.5-11). Husband relies
upon this section in support of his argument that the trial court should
not have divided his pension equally between the parties, but should have considered
the extent of his premarital employment.
If Husband wished to have the extent of his premarital-employment contribution to his
pension considered by the trial court as potentially rebutting the presumption of an
equal division of marital property, he should have introduced some evidence during the
hearing of the value of the pension at the time of the marriage
or argued that a ratio of marital versus non-marital value be established.
However, he did not do this, and thus, Husband has failed to present
relevant evidence which would allow the trial court to justify an unequal division.
We see no abuse of discretion in the trial courts equal division
of the pension under these circumstances.
IV. Valuation and Division of Marital Debts
Finally, Husband contends that the trial court erred in its valuation and division
of the marital debts, specifically, the parties credit card debts. The trial
court found that each party shall be responsible for one-half of the credit
card debt that existed on December 31, 1996. R. 24. The
court further found that the debts . . . Husband has paid since
separation, represent a gift from him to [Wife] . . . .
Id. Husband contends that there was no evidence of a gift and
that the trial courts division of marital debts effected an unequal division of
marital property contrary to the trial courts stated intention to divide the property
equally.
The trial court divided the debts of the parties equally as of December
31, 1996. The fact that Husband continued to pay these debts even
after the parties marriage was dissolved by decree dated September 30, 1994, and
did not seek court intervention in determining his obligation to do so, was
rightly considered by the trial court in its determination that any amounts paid
after the date set by the court were, in fact, gifts to Wife.
We do not believe that the trial court abused its discretion in
so determining.
Conclusion
The trial court did not err in not dividing the marital property at
the same time it granted a dissolution of marriage to the parties.
Moreover, the trial court did not abuse its discretion in valuing and dividing
the property. Accordingly, the trial courts judgment is affirmed.
Affirmed.
SHARPNACK, C.J., and BAILEY, J., concur.