Sandusky v. Sandusky
Sandusky v. Sandusky
Opinion
Opinion
¶1 George A. Sandusky and Kylee J. Sandusky had been married for more than twenty-three years when they entered into a separation agreement in early 2010 (the Separation Agreement). After approximately sixteen months during which the parties complied with the terms of that agreement, Kylee petitioned for divorce. 1 Following a trial, the court entered a decree of divorce that largely adopted and enforced the terms of the Separation Agreement. But the court determined that the agreement's term regarding the division of checking and savings accounts was not specific enough to be enforced and ordered an equal distribution of the financial accounts between the parties. In addition, the court awarded alimony to Kylee. George appeals, arguing that the trial court should have bifurcated the trial and that the court's property distribution and alimony award exceeded its discretion in light of the Separation Agreement. He further argues that the court should have granted his motion for a new trial and awarded him attorney fees. We affirm.
I. Motion to Bifurcate
¶2 George first contends that the trial court abused its discretion in refusing to bifurcate the trial. In particular, he asserts that the issue of "the validity of the Separation Agreement was clearly separable" and should have been tried first and apart from the issues regarding "the asset determination and distribution of marital and separate property."
¶3 Rule 42(b) of the Utah Rules of Civil Procedure allows a court, "in furtherance of convenience or to avoid prejudice," to "order a separate trial of any claim ... or of any separate issue." Because this rule "gives the trial court considerable discretion to administer the business of its docket and determine how a trial should be conducted," this court "will not disturb the trial court's bifurcation order unless the trial court abused its discretion."
Walker Drug Co. v. La Sal Oil Co
.,
¶4 George moved for bifurcation before trial, asking the court to "bifurcate proceedings related to the validity and enforceability" of the Separation Agreement and requesting that all other issues, including alimony and property distribution, be reserved for trial. In support, George asserted that "[o]nce the issue of the validity of the [Separation] Agreement is decided, there is a greater likelihood the other issues ... would be able to be mediated without the need for litigation" and that therefore bifurcation "would serve both the interests of convenience and judicial economy and impose no prejudice to either party." Kylee opposed bifurcation, arguing that all the issues in the case, including the validity of the Separation Agreement, were "completely intertwined." She asserted that "[b]ifurcation would not help" the parties mediate their dispute and that, instead of avoiding prejudice, bifurcation "would be highly inconvenient and prejudicial." The trial court denied George's motion.
¶5 On appeal, George has not shown that the trial court's decision fell outside the bounds of its discretion. In the arguments before the trial court, George and Kylee sharply disagreed both about whether the issue of the Separation Agreement's validity was "a separate issue" and whether bifurcation would be convenient and avoid prejudice. See Utah R. Civ. P. 42(b). Moreover, George's most significant reason for bifurcation was improving the odds of settlement, but Kylee did not share this belief. Under these circumstances, we cannot say that the trial court exceeded its considerable discretion in weighing these competing viewpoints and choosing not to bifurcate the proceedings. 2
II. Property Distribution and Alimony
¶6 George raises a number of arguments on appeal regarding property distribution and alimony. He asserts that "the decision of the trial court does not conform with the Separation Agreement, prior Utah precedent or any notion of equity."
¶7 "Generally, district courts have considerable discretion concerning property distribution in a divorce proceeding and their determinations enjoy a presumption of validity."
Dahl v. Dahl
,
¶8 To provide context for George's arguments, we begin with a brief summary of the terms of the Separation Agreement and the trial court's findings regarding its enforceability. We then turn to George's specific contentions regarding property division and alimony. Last, we consider his contention that the trial court's divorce decree produced an inequitable result.
A. The Separation Agreement
¶9 George and Kylee executed the Separation Agreement in February 2010 when they were living apart and approximately sixteen months before Kylee filed for divorce. The parties entered the Separation Agreement "to confirm their separation" and to settle "their property rights and other rights, responsibilities, and obligations growing out of their marital relationship." The parties agreed that division of marital property as set forth in the Separation Agreement's provisions was "fair, reasonable and equitable,"
and they agreed that the Separation Agreement would "be binding on the parties." The parties also agreed that the Separation Agreement would be incorporated into any court order or divorce decree.
¶10 The trial court determined that the Separation Agreement was a valid and binding contract-a determination neither party contests on appeal. Because the Separation Agreement was enforceable, the trial court gave it "great weight," but the court also "assess[ed] whether its terms [were] fair and equitable."
See
Pearson v. Pearson
,
B. Property Division
¶11 George now contends that the property "distribution made by the Court was not consistent with the Separation Agreement and was inequitable." Although he acknowledges that, in his words, "a property settlement agreement is not binding upon the trial court in a divorce action," he asserts that "the property division agreed to by the parties should not have been disturbed."
¶12 "[T]he overarching aim of a property division, and of the decree of which it and the alimony award are subsidiary parts, is to achieve a fair, just, and equitable result between the parties."
Dahl v. Dahl
,
1. The Financial Accounts
¶13 George challenges the trial court's distribution of the couple's financial accounts, attacking the court's interpretation of the Separation Agreement and asserting that the court "erred in determining that the bank accounts were not sufficiently identified to justify ... deeming them marital property." In George's view, the Separation Agreement "was not sufficiently ambiguous as to warrant the court's re-disposition of property already agreed-upon by the parties." In the alternative, he contends that even if the Separation Agreement's provision regarding the checking and savings accounts was unenforceable, the trial court nevertheless should have treated one particular checking account (the #400 account) as his separate property and should have awarded that account solely to him.
¶14 The Separation Agreement has a section identifying and assigning separate property to George and Kylee. It states that Kylee is entitled to the following separate property: "All home furnishings, computers, tvs, jewelry, and Honda 2007 Civic, checking and savings accounts, and 401K." It states that George is entitled to the following separate property: "Honda Ridgeline 2007 truck, checking and savings accounts and retirement pension." The Separation Agreement does not identify which of the parties' several checking and savings accounts each spouse would receive. At trial, George took the position that the parties' intent was for the majority of the accounts to be considered his separate property and that their intent was evident in the plain language of the Separation Agreement. Kylee's position, on the other hand, was that the checking and savings account phrase was ambiguous and that she was fraudulently induced into signing the Separation Agreement as a whole. 3
¶15 The trial court ultimately ordered the parties to split their checking and savings accounts equally. The court reasoned that because the parties "had numerous accounts many of which were in both of their names," the Separation Agreement's provision regarding the checking and savings accounts was not specific enough to be enforced. The court questioned whether the parties had reached a meeting of the minds concerning how to divide the financial accounts and also stated that the "lack of identification of any particular accounts renders this provision ambiguous."
See generally
Lyngle v. Lyngle
,
¶16 Based on the evidence presented, the court also found that the financial accounts were "acquired during the marriage and contain commingled funds"; that no accounts were "obviously the separate property of either [Kylee] or [George]"; and that "all of the parties' checking and savings accounts are marital property." The trial court thus concluded,
In light of the parties' vastly opposed positions on their intent, and the fact that the Court has determined that the financial accounts are all marital property, the Court determines the most fair and equitable approach, as well as the presumption under Utah law, is to split all of the financial accounts equally between the parties.
¶17 George has not demonstrated that the trial court erred in so concluding. To adequately brief an issue, an appellant's argument must contain his "contentions and reasons ... with respect to the issues presented, ... with citations to the authorities, statutes, and parts of the record relied on." Utah R. App. P. 24(a)(9) (2016).
4
An argument is inadequately briefed "when the overall analysis of the issue is so lacking as to shift the burden of research and argument to the reviewing court."
CORA USA LLC v. Quick Change Artist LLC
,
¶18 As for George's alternative argument, he asserts that the #400 account was his separate property because he "acquired [it] before the marriage and maintained [it] separately from any commingled assets." The trial court did not accept this argument, instead concluding that the #400 account, along with all of the other financial accounts, was marital property. The court reasoned that any premarital property that George brought into the marriage in the #400 account was "commingled" and that he "intended to merge, commingle, gift and transmute any separate property into marital property."
See generally
Dunn v. Dunn
,
¶19 George has not shown that the trial court exceeded its discretion in subjecting the #400 account to equitable division. He conceded at oral argument that some evidence supported the trial court's findings, and he has not engaged with or shown clear error in the findings on this issue.
See
Kimball v. Kimball
,
2. Real Property
¶20 George next asserts that ten lots of real property (the Lots) were his separate property that he should retain. The Separation Agreement identifies the Lots as real property that George owned "solely in his own name," and provides that the Lots were to "remain separate" property. At some point during the proceedings, the Lots were sold.
¶21 In fact, the trial court ultimately awarded George the Lots as his separate property, albeit in the form of the sale proceeds. As George recognizes, the trial court's post-trial order clarified and ordered that the proceeds from the sale of the Lots were awarded to George as his separate property per the terms of the Separation Agreement. We therefore fail to see error or discern how George was aggrieved by the trial court's decision in this regard.
3. Loans
¶22 George also contends that the trial court "improperly ruled that $305,000 was part of the marital estate as 'loans' " and erred in requiring him to pay Kylee "the amount equal to one-half" of these loans. He further asserts that these loans were "already repaid," implying that the divided financial accounts contained the amounts representing the allegedly repaid loans.
¶23 The trial court found that at the time of trial the parties possessed some assets that they had acquired after executing the Separation Agreement. These assets included $305,000 in loans that the parties made to three individuals using funds from their financial accounts. Because the loans were held at the time of trial and were not accounted for by the Separation Agreement, the court determined that "the most fair and equitable distribution, as well as the presumption under Utah law, ... is to split them equally."
¶24 George filed a post-trial motion, asserting that the loans had been made from his separate property and that the loans had been repaid. The trial court also allowed George to file supplemental briefing for the express purpose of providing him an opportunity to cite specific evidence admitted at trial in support of his motion. Ultimately, the trial court denied the motion. The court concluded that "the evidence at trial did not demonstrate that [the] loans were made from [George's] separate property"; rather, "the loans were made from funds that were commingled and were not segregated." The court also concluded that no evidence showed that the three indebted individuals had repaid the loans. The court noted that, although George cited his own deposition, the deposition was not offered or received as a trial exhibit and that the portion of the deposition published during George's testimony did not establish that the loans were repaid.
¶25 George's attack on the trial court's treatment of the loans is, at heart, a challenge to the factual findings. To demonstrate clear error in the trial court's factual findings, the appellant must "overcome[e] the healthy dose of deference owed to factual findings" by "identify[ing] and deal[ing] with [the] supportive evidence" and establishing a legal problem in that evidence.
State v. Nielsen
,
¶26 Just as he did before the trial court and citing his own deposition and trial testimony, George asserts that the loans were made from separate funds and that the loans were repaid. But as the trial court noted, his deposition was not admitted into evidence, and the cited portions of his trial testimony do not support his assertion that the particular loans at issue were made from his separate property or that they were repaid. Moreover, George does not address the trial court's rationale for rejecting these same assertions made in his post-trial motion.
Cf.
Duchesne Land, LC v. Division of Consumer Prot.
,
C. Alimony
¶27 Next, George challenges the trial court's alimony award, contending that the court's ruling "did not follow the parties' agreement with regard to the monthly payments and/or lump sum award" and resulted in "an inequitable distribution of the parties' assets." George contends that, contrary to the parties' intent, the court "substituted its own contractual terms that the $400,000 lump sum payment was 'alimony' awarded to [Kylee] on top of the Court's distribution of the estate."
¶28 Under the terms of the Separation Agreement, George agreed to pay Kylee $2,000 per month as alimony beginning in March 2010. The Separation Agreement specifically states that the alimony provisions are "independent of" the property division provisions: "The provisions for the support, maintenance and alimony of Kylee are independent of any division or agreement for the division of property between the parties, and shall not for any purpose be deemed to be a part of or merged in or integrated with the property settlement of the parties." Additionally, the parties signed an addendum, which provides, "At any time either one of the parties may terminate the monthly alimony payments of $2000 with a lump sum cash payment of $400,000."
¶29 The trial court concluded that the parties' agreement regarding alimony was fair and equitable. The court specifically concluded that George was obligated to pay alimony of $2,000 per month to Kylee for up to twenty-four years, 7 unless and until one of the parties elects the lump sum payment as provided for in the addendum to the Separation Agreement. 8 The court also stated that no evidence was presented that either party had made such an election. The court's findings indicate that George testified that his understanding was that Kylee's share of the property division was $400,000 and that, under the Separation Agreement, George was to pay Kylee that share as alimony at a rate of $2,000 per month or a lump sum payment option of $400,000. The court found that George's testimony on this point was "in direct conflict with the plain language" of the Separation Agreement.
¶30 On appeal, George's challenge to the alimony award is essentially a reassertion of his view that, per the Separation Agreement, Kylee's share of the property division was $400,000 and that he was to pay that share to Kylee as alimony at a rate of $2,000 per month or a lump sum payment option of $400,000. In so arguing, George maintains that the $2,000 monthly payment or the alternative lump sum $400,000 payment "represented [Kylee's] property distribution."
¶31 But the trial court's alimony award was consistent with the Separation Agreement's plain language, and George's argument to the contrary is not. Article 4 of that agreement expressly provides that its "provisions for the support, maintenance and alimony of Kylee are independent of any division or agreement for the division of property ." (Emphasis added.) Because the $2,000 per month alimony payments and the alternative $400,000 lump sum under the Separation Agreement are "independent of" the property division and therefore cannot be "part of" the parties' property settlement, George's alimony payment and the alternative lump sum payment cannot represent Kylee's share of the property distribution.
¶32 George also takes issue with the trial court's analysis under Utah Code section 30-3-5(8), which establishes the factors that a court shall consider in determining alimony. The trial court decided that even though the parties had agreed upon alimony
and had not addressed the requisite statutory factors, it would analyze those factors for alimony "to ensure the parties' agreed upon award [was] fair and equitable." The court then analyzed, among other things, the financial needs and conditions of the recipient spouse, the recipient spouse's earning capacity, and the ability of the payor spouse to provide support.
See
¶33 George attacks the trial court's analysis regarding Kylee's needs and his ability to provide support, asserting that the evidence did not support its analysis of these two factors. But to successfully challenge a trial court's factual findings on appeal, the appellant must show that the findings are "in conflict with the clear weight of the evidence" or convince this court that a mistake has been made.
See
Kimball v. Kimball
,
D. The Equities of the Divorce Decree
¶34 George further contends that the trial court's order to equally divide all of the couple's financial accounts plus the alimony award resulted in an inequitable divorce decree. According to George, the decree awarded Kylee three-quarters of the total marital estate.
¶35 George has not shown that the trial court exceeded its discretion in dividing the assets and awarding alimony. As previously stated, trial courts have considerable discretion over property division and alimony, and their primary objective is to accomplish a just, fair, and equitable result between divorcing spouses.
See
Dahl v. Dahl
,
III. Motion for a New Trial
¶36 Next, George contends that the trial court committed legal error and improperly denied him a new trial. He cites rule 59(a)(1) of the Utah Rules of Civil Procedure, which states that a new trial may be granted for any "irregularity in the proceedings of the court, jury or opposing party, or any order of the court, or abuse of discretion by which a party was prevented from having a fair trial." He also implicitly relies on rule 59(a)(3), which allows for a new trial due to "accident or surprise that ordinary prudence could not have guarded against." Utah R. Civ. P. 59(a)(3).
¶37 George has not preserved these issues for appeal. "An issue is preserved for appeal only if it was 'presented to the trial court in such a way that the trial court [had] an opportunity to rule on [it].' "
Wohnoutka v. Kelley
,
IV. Attorney Fees
¶38 Both parties request an award of attorney fees. George asks for his fees incurred in the trial court, and Kylee asks for her fees incurred in defending this appeal.
A. George's Request for Attorney Fees in the Trial Court
¶39 George contends that the trial court abused its discretion by not awarding attorney fees to him. He argues that such an award was justified "[b]ased on the actions of [Kylee]" and the fact that the trial court rejected Kylee's attempt to void the Separation Agreement.
¶40 The trial court declined to award attorney fees to either party and instead ordered each party to bear his or her own fees. The court determined that both parties were able to bear their own fees based upon their financial condition and the distribution of marital property. Accordingly, the trial court determined that an award of fees was not warranted under Utah Code section 30-3-3 or rule 102 of the Utah Rules of Civil Procedure.
¶41 "In Utah, attorney fees are awardable only if authorized by statute or by contract."
Dahl v. Dahl
,
¶42 George has not established that the trial court exceeded its discretion in declining to award attorney fees to him. George's argument for fees does not address the application of the statutory standard for awarding fees in this context. Instead, George relies on the fact that Kylee unsuccessfully argued to invalidate the Separation Agreement, and he relies on other unspecified
"actions of [Kylee]."
11
This argument falls short, however, because it does not show that George should have been awarded fees "to enable [him] to prosecute or defend the action,"
see
B. Kylee's Request for Attorney Fees on Appeal
¶43 Kylee asks this court to award her attorney fees incurred on appeal pursuant to rule 33 of the Utah Rules of Appellate Procedure. She asserts that such an award is warranted because "George's appellate brief is frivolous"-a position based on her assertions that George "failed to preserve issues, he did not marshal the evidence, and he invited error."
¶44 Rule 33 provides that if an appellate court determines that an appeal "is either frivolous or for delay, it shall award just damages, which may include single or double costs, as defined in Rule 34, and/or reasonable attorney fees, to the prevailing party." Utah R. App. P. 33(a). Our supreme court has instructed that "parties seeking attorney fees under rule 33 face a high bar" and that the sanction for bringing a frivolous appeal is only applied in "egregious cases, lest the threat of such sanctions should chill litigants' rights to appeal lower court decisions."
Porenta v. Porenta
,
CONCLUSION
¶45 In summary, George has failed to show that the trial court exceeded its discretion in refusing to bifurcate the trial. George has also failed to show that the trial court's property distribution was inequitable or that the trial court otherwise exceeded its discretion in dividing property and awarding alimony. Finally, George failed to preserve his claim that the court erred in denying his motion for a new trial, and he has failed to show error in the trial court's denial of his request for attorney fees. Accordingly, we affirm.
"As is our practice in cases where both parties share a last name, we refer to the parties by their first name with no disrespect intended by the apparent informality."
See
Smith v. Smith
,
Even assuming George could demonstrate that the trial court abused its discretion in not bifurcating the proceedings, his challenge to that decision would nevertheless fail because he has not shown that he was prejudiced as a result. George's broad assertions of prejudice are unsupported, and he fails to identify with any measure of precision how bifurcation of the proceedings would have led to a different result. See Utah R. Civ. P. 61 ("The court at every stage of the proceeding must disregard any error or defect in the proceeding which does not affect the substantial rights of the parties.").
The trial court rejected Kylee's attempt to void the Separation Agreement on the ground of fraudulent inducement.
Since the time George filed his brief, rule 24 of the Utah Rules of Appellate Procedure has been amended and renumbered. The rule now provides that an appellant's argument "must explain, with reasoned analysis supported by citations to legal authority and the record, why the party should prevail on appeal." Utah R. App. P. 24(a)(8).
George also asserts that if the financial accounts were marital property, then "those funds were not divided equitably." We address this argument in Part II.D.
In connection with his argument about the loans, George briefly suggests that the trial court failed to provide adequate factual findings. But to preserve this issue for appeal, George had to object in the trial court "to the adequacy of the detail of" the court's factual findings.
In re K.F.
,
The Separation Agreement does not provide a date on which alimony payments will end. Because Utah law does not permit alimony to be awarded for a duration longer than the marriage itself, the trial court ordered that George was obligated to pay alimony from March 2010 (the date the Separation Agreement went into effect) for "up to 24 years" (the length of the parties' marriage).
See
The trial court found that although George paid $2,000 per month in alimony from March 2010 through June 2011, he did not pay alimony from July 2011 through July 2015. Accordingly, the court found that George owed Kylee $96,000 in past due alimony. George asserts on appeal that the $96,000 calculation is in error, relying on his assertion that Kylee "withdrew $90,000 from the bank account in June 2011" when she filed for divorce and that she "withdrew this sum as prepaid 'alimony'-or a portion of her lump sum payment due to her under the separation agreement." George's reference to the $90,000 withdrawal appears to pertain to the trial court's finding that Kylee had withdrawn $90,000 from a marital account and that George was entitled to half of that amount as his share of that marital property. Given that the trial court accounted for Kylee's $90,000 withdrawal by deducting $45,000 from the final sum of marital assets to be distributed to Kylee, George has not shown error in the trial court's $96,000 calculation of the past due alimony.
To the extent George suggests that the property division should have been given additional weight in the court's analysis of the alimony factors, he has not developed a reasoned and supported analysis, and we do not consider the argument further. See supra ¶17.
In any event, George offers only conclusory statements that "the interests of justice are served by a fair adjudication on accurate and correct calculations" and that the trial court "should be instructed to adhere" to the Separation Agreement. But he does not offer reasoned analysis connecting these statements to rule 59, nor does he further explain how or why he should prevail on these issues. See Utah R. App. P. 24(a)(9) (2016) (setting out an appellant's briefing obligation). As a result, George's challenge to the denial of his motion for a new trial also fails because he has not adequately briefed it.
Although George claims entitlement to fees based on Kylee's failed arguments and actions, he does not claim that her positions were frivolous or asserted in bad faith, or that attorney fees should have been awarded on such a basis. See generally Utah Code Ann. § 78B-5-825(1) (LexisNexis 2012) (allowing the trial court in civil actions to award attorney fees to a prevailing party "if the court determines that the action or defense to the action was without merit and not brought or asserted in good faith").
In rejecting George's request for attorney fees, the court also determined that both parties prevailed in part. Although George's briefing alludes to this finding, that finding is not relevant to the fees analysis in this case, because this is an action to establish, not to enforce, an order dividing property.
See
Goggin v. Goggin
,
Reference
- Full Case Name
- Kylee J. SANDUSKY, Appellee, v. George A. SANDUSKY, Appellant.
- Cited By
- 8 cases
- Status
- Published