Schwendeman v. Schwendeman, Unpublished Decision (2-25-2000)
Schwendeman v. Schwendeman, Unpublished Decision (2-25-2000)
Opinion of the Court
DECISION AND JUDGMENT ENTRY Kathryn D. Schwendeman appeals the judgment of the Washington County Court of Common Pleas upon Clair D. Schwendeman's complaint for divorce. Kathryn asserts that the trial court erred in failing to consider the relevant statutory factors and in failing to provide for her sustenance when it awarded spousal support. We disagree, because we find that the trial court awarded spousal support within its discretion. Kathryn also asserts that the trial court erred by failing to reserve jurisdiction to modify the award of spousal support. Again, we disagree because the trial court acted within its discretion. Kathryn also asserts that the trial court erred in valuing Clair's retirement account pursuant to its value upon the de facto termination of the marriage. We disagree, because the trial court was within its discretion in determining that a de facto termination of the marriage occurred and that the plan's monthly statements reflected its value. Kathryn next asserts that the trial court did not effect an equitable distribution of the marital property. We disagree, because the trial court's determination on how to equitably divide the property is supported by evidence and, thus, the trial court did not abuse its discretion. Finally, Kathryn asserts that the trial court erred in refusing to award attorney's fees to her. We disagree, because the trial court acted within its discretion when it declined to award attorney's fees. Accordingly, we affirm the judgment of the trial court.
Kathryn and Clair's marriage deteriorated over a period of several years. In May 1995, after their son left home, Kathryn and Clair agreed that he should move out because she found his behavior "unbearable." Upon leaving the marital home, Clair established his own bank account and moved into a modestly furnished one-bedroom apartment. He continued to deposit money into the parties' joint account so that Kathryn could pay the household bills, but he stopped using the account for his personal expenses. Shortly after Clair moved out, he and Kathryn met at a city park, discussed their inability to reconcile, and determined that they should divorce.
The trial court held the final divorce hearing in December 1998. The testimony at the divorce hearing revealed that, after their decision to divorce, Clair continued to make weekly deposits to the joint account. Kathryn used the money to maintain the house and to pay bills, but Kathryn did not seek employment. Kathryn testified that injuries she received in a 1997 automobile accident cause her constant pain, and that she cannot work as a result. Kathryn did not present any medical testimony to support her contention that she is unable to work. Kathryn also admitted that she has not applied for disability benefits and that, though she planned to initiate suit against the other driver in her accident, she has not yet pursued such an action. Kathryn maintained that she has no income or potential for income. Clair's annual income at the time of the hearing was between $45,000 and $47,000, including overtime pay.
The trial court determined that Kathryn is entitled to spousal support. The trial court ordered Clair to pay Kathryn three hundred dollars per week during the first year following the divorce, two hundred dollars per week during the second year following the divorce, and one hundred dollars per week during the third year following the divorce. The trial court did not retain jurisdiction to modify the support order in the event of a change of circumstances.
The testimony at the hearing revealed that Kathryn and Clair owned two major assets, Clair's retirement plan and the marital home. At the hearing, Clair offered statements from the retirement plan as proof of its value. The statement closest to his separation with Kathryn, issued on June 30, 1995, reflected a value of approximately $35,582. Clair continued to make regular payments to the plan after he moved out of the marital home. As of June 30, 1998, around the time Clair filed for divorce, the plan's value was approximately $51,858. By September 30, 1998, the plan's value had declined to approximately $49,602. In its decision, the trial court determined that the retirement plan was valued at approximately $35,582 at the time of the de facto termination of the marriage. The trial court awarded the entire retirement plan to Clair.
The trial court awarded the marital house, which an appraiser valued at $48,000, to Kathryn. The trial court also awarded all the furnishings, appliances and other contents of the house to Kathryn. Because the house needs some repairs, the trial court awarded Kathryn approximately $3,400 of the $5,000 Clair obtained by liquidating his life insurance policy. Clair estimated the repairs would cost approximately $1,800 if he did them himself.
Kathryn sought to introduce a bill from her attorney reflecting that her attorney's fees amounted to $1,613, and to testify that she believed her attorney's fees were fair and reasonable. Clair objected, and the trial court sustained the objection. In its decision, the trial court ordered both parties to pay their own attorney's fees. Additionally, the trial court ordered that Kathryn would receive title to the more valuable car, and be solely responsible for payments on the car, while Clair would receive title to the truck, valued at approximately $2,500.
Kathryn appealed the trial court's decision, and asserts the following assignments of error:
I. The trial court erred in failing to consider the factors set out in O.R.C.
3105.18 (B) in making an award of sustenance alimony.II. The trial court abused its discretion in failing to award alimony in an amount sufficient to provide for the sustenance of defendant-appellant.
III. The trial court erred in failing to reserve jurisdiction to modify an award of sustenance alimony.
IV. The trial court erred in finding that there was a defacto (sic) termination of this marriage on May 14, 1995.
V. The trial court erred in failing to consider the present value of defendant-appellant's (sic) retirement benefits.
VI. The trial court erred in failing to admit into evidence the exhibit concerning attorney's fees and to consider an award under the circumstances of this case.
VII. The trial court erred in failing to divide the assets of the parties in an equitable fashion.
This court must give deference to a trial court's decision regarding spousal support unless the trial court abused its discretion. Blakemore v. Blakemore (1983),
R.C.
(a) The income of the parties, from all sources, * * *
(b) The relative earning abilities of the parties;
(c) The ages and the physical, mental, and emotional conditions of the parties;
(d) The retirement benefits of the parties;
(e) The duration of the marriage;
(f) The extent to which it would be inappropriate for a party, because [she] will be custodian of a minor child of the marriage, to seek employment outside the home;
(g) The standard of living of the parties established during the marriage;
(h) The relative extent of education of the parties;
(i) The relative assets and liabilities of the parties, including but not limited to any court-ordered payments by the parties;
(j) The contribution of each party to the education, training, or earning ability of the other party * * *;
(k) The time and expense necessary for the spouse who is seeking spousal support to acquire education, training, or job experience * * * provided the education, training, or job experience, and employment is, in fact, sought;
(l) The tax consequences, for each party, of an award of spousal support;
(m) The lost income production capacity of either party that resulted from that party's marital responsibilities;
(n) Any other factor that the court expressly finds to be relevant and equitable.
Kathryn emphasizes that the trial court must consider all of the factors in R.C.
In her first assignment of error, Kathryn contends that the trial court failed to consider all of the factors set forth in R.C.
The trial court is not required to place the rationale or basis for the award in the divorce decree. Kaechele; see, also, Carman,supra; Fausey v. Fausey (Oct. 13, 1995), Montgomery App. No. 14673, unreported. Instead, Kaechele provides that either the trial court's decision or the record must indicate the basis for the award. Kaechele,
Kathryn asserts that a cursory review of the R.C.
We find that the record contains evidence with respect to each relevant R.C.
A trial court may not modify a definite spousal support award unless it expressly reserves jurisdiction to do so. R.C.
Kathryn relies upon Nori in support of her argument that the trial court should have retained jurisdiction in this case. InNori, the wife, a homemaker during her thirty years of marriage, contended that the trial court abused its discretion by limiting her alimony to a ten-year period and by failing to retain jurisdiction to modify the alimony award. The Nori court held that, while a trial court may decline to set a termination date for spousal support where the marriage was lengthy and one spouse served as homemaker, such an award is wholly discretionary. Nori at 72. Thus, the Nori court determined that the trial court did not abuse its discretion by limiting the spousal support to a definitive term. However, the Nori court also found that "unforeseen circumstances" were likely to arise over the ten-year support term. Consequently, the court held that the trial court abused its discretion by failing to reserve jurisdiction to modify the alimony award. Nori at 73.
Like the wife in Nori, Kathryn served as a homemaker during her thirty years of marriage. However, the trial court in Nori found, in its discretion, that a ten-year support order was appropriate. In contrast, the trial court here found, in its discretion, that a three-year support order was appropriate. An unforeseen change in circumstances affecting support issues is more likely to occur over a ten-year period than over a three-year period. Pursuant to R.C.
A trial court possesses broad discretion in choosing when to apply a valuation date other than the date of the final hearing to marital accounts, and we will not disturb the trial court's decision absent an abuse of discretion. See Berish v. Berish
(1982),
Use of a de facto termination date may be appropriate when, upon separation, the parties make no attempt at reconciliation and continually maintain separate residences, business activities, and bank accounts. Gullia,
In this case, the record reveals that Clair left the marital home upon the bilateral decision of the parties. Contrary to Kathryn's contention, the fact that Clair's behavior was "unbearable" to her does not render his decision to leave unilateral. The parties made no attempt to reconcile after Clair left their marital home. Additionally, Clair maintained a separate residence, established his own bank account, and used the parties' joint account only to deposit money for Kathryn to use for bills and expenses. Based upon this evidence supporting the trial court's determination, we find that the trial court did not abuse its discretion by finding a de facto termination of the marriage in May 1995. Accordingly, we overrule Kathryn's fourth assignment of error.
In distributing a retirement plan, "the trial court must apply its discretion based upon the circumstances of the case, the status of the parties, the nature, terms and conditions of the pension or retirement plan, and the reasonableness of the result." Hoyt v. Hoyt (1990),
However, the trial court need not always divide a retirement plan upon divorce. In effecting an equitable division of all marital property, the trial court may leave a retirement plan intact and award it to one party, so long as the allocation of the parties' assets as a whole is equitable. Garman v. Garman
(Jan. 11, 1999), Adams App. No. 98CA658, unreported, citingHolcomb, supra,
The undisputed evidence in the record reflects that Clair's retirement plan was valued at approximately $35,582 at the time of the de facto termination of the marriage. The trial court determined, in its discretion, that it could effect an equitable distribution of the marital property by awarding the retirement plan to Clair and the house to Kathryn. Because the trial court left the retirement plan intact, the need to divide the plan with a QDRO did not arise. Accordingly, we find that the trial court did not abuse its discretion in awarding the full value of the retirement plan to Clair. We overrule Kathryn's fifth assignment of error.
R.C.
Kathryn did not present evidence that she was or will be prevented from fully litigating her rights if the trial court did not award attorney fees to her. Nor did Kathryn argue that she was or will be prevented from adequately protecting her interests because the trial court did not award her attorney's fees. The trial court awarded Kathryn over $3,400 from Clair's liquidated life insurance policy, only part of which is earmarked for home repairs. Additionally, the trial court awarded Kathryn weekly spousal support payments of three hundred dollars.
We find, regardless of whether the trial court permitted Kathryn to testify about the reasonableness of her attorney's fees, that Kathryn failed to demonstrate that the trial court abused its discretion by refusing to award attorney's fees to her. Accordingly, we overrule Kathryn's sixth assignment of error.
A division of marital property should be equal unless the court determines that an equal division would be inequitable, in which case the court must make an equitable division. R.C.
In this case, the testimony revealed that the appraised value of the marital home was approximately $48,000. The value of Clair's retirement plan upon the de facto termination of the marriage, May 30, 1995, was approximately $35,582. As of June 30, 1998, around the time Clair filed for divorce, the retirement plan had increased in value to approximately $51,858. Finally, at the time of the hearing, the most recent statement, from September 30, 1998, revealed that the retirement plan had declined in value to approximately $49,602.
Kathryn contends that these fluctuations demonstrate that Clair's retirement plan is more valuable than the house. However, Kathryn overlooks two relevant factors. First, the value in Clair's retirement plan increased in part due to his continued contributions to the plan after the de facto termination of their marriage. Second, accounts that derive their value from the stock market are inherently volatile, as evidenced by the decline in Clair's account from June to September of 1998.
We find that the record contains competent, credible evidence supporting the trial court's conclusion that awarding the house to Kathryn and the retirement plan to Clair effected an equitable division of the major marital assets. We further find that the trial court did not abuse its discretion in awarding the house to Kathryn and the retirement plan to Clair. Accordingly, we overrule Kathryn's final assignment of error.
JUDGMENT AFFIRMED.
The Court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this Court directing the Washington County Court of Common Pleas to carry this judgment into execution.
Any stay previously granted by this Court is hereby terminated as of the date of this entry.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 for the Rules of Appellate Procedure. Exceptions.
Evans, J. and Harsha, J.: Concur in Judgment and Opinion.
For the Court
BY: ______________ Roger L. Kline, Presiding Judge
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