IN THE COURT OF APPEALS OF IOWA
No. 14-0763
Filed May 20, 2015
IN RE THE MARRIAGE OF LEONARD JOHN WEIS
AND DIANE DOROTHY WEIS
Upon the Petition of
DIANE DOROTHY WEIS,
Petitioner-Appellee,
And Concerning
LEONARD JOHN WEIS,
Respondent-Appellant.
________________________________________________________________
Appeal from the Iowa District Court for Dubuque County, Monica L. Ackley,
Judge.
Leonard Weis appeals from the district court’s dissolution decree dissolving
the marriage between him and Diane Weis, asserting the district court’s property
division and award of spousal support was inequitable. AFFIRMED AS
MODIFIED; REMANDED.
Robert L. Sudmeier of Fuerste, Carew, Juergens & Sudmeier, P.C.,
Dubuque, for appellant.
Andrew Howie of Hudson, Mallaney, Shindler & Anderson, P.C., West Des
Moines, and Jamie A. Splinter of Splinter Law Office, Dubuque, for appellee.
Heard by Vogel, P.J., and Potterfield and Mullins, JJ.
2
VOGEL, P.J.
Leonard Weis appeals from the district court’s dissolution decree dissolving
the marriage between him and Diane Weis.1 He asserts the division of property
was inequitable, given it favored Diane. He further argues that the district court
failed to apply the factors set forth in Iowa Code section 528.21A (2013) when
awarding spousal support and that the award was improperly established as a
lump sum payment. He also asserts the court did not clarify how his Teamsters
pension was to be divided, nor did it consider the survivorship benefits. His final
claim asserts the district court should have credited him with his premarital cash
infusion into the marital home and the resulting increase in value.
We conclude the district court considered the appropriate factors when
allocating the property and awarding spousal support. However, the spousal
support should have been ordered to be paid monthly, rather than in a lump sum
payment, and it should terminate upon the death of either party; thus, the two
accounts awarded to Diane as spousal support should be included in the total
assets to achieve an equal distribution between the parties. With respect to
Leonard’s premarital property, the district court properly exercised its discretion
when declining to exclude this asset and distributing the property between the
parties. In regard to Leonard’s pension benefits, we remand for the entry of a
QDRO. Consequently, we affirm the dissolution decree as modified and remand.
1
This matter comes before us, after granting Diane Weis’s petition for rehearing. The
original opinion, filed on April 22, 2015, is vacated.
3
I. Factual and Procedural Background
At the time of trial, Leonard was eighty-two years old. In 1955 he began
working at H&W Motor Express and was employed there until his retirement in
1991. He received a pension from this company through the Teamsters Union.
He also retired from the Iowa National Guard after serving from 1947 until the late
1960s, from which he also receives a pension. He has severe health issues,
suffering from Parkinson’s disease, dementia, emphysema, diabetes, and a
partially-amputated foot. It is undisputed these health issues will prevent him from
living alone in the near future. Diane was seventy-five years old at the time of trial
and in moderately fair health, though she suffers from hearing and memory loss.
For fifteen years during the marriage, she worked part-time as a food server in the
Iowa schools, earning a pension from the Iowa Public Employees’ Retirement
System (IPERS).
Leonard and Diane married in 1973. Each brought four minor children into
the marriage, and they also had one daughter together. All the children are well
into adulthood. Diane filed a petition for dissolution on July 3, 2013. A pre-trial
conference was held on November 13, 2013, at which time the parties agreed to
some property division, but could not agree as to other issues.
While not affecting the district court nor our resolution of the issues, the
precipitating event to the dissolution petition being filed was a conflict over
Leonard’s will. Executed in September 2012, this will gave Diane a life estate in
“whatever he left behind, with the residue going to his children rather than hers.” 2
2
The will also stated: “I have not named my wife, Diane D. Weis as a residual beneficiary
of this, my Last Will and Testament. This omission is intentional and not an oversight.”
4
However, Diane would maintain all jointly owned property. The will further left a
life estate to Diane in the home, which was titled in Leonard’s name alone, but
made her “responsible for the care and maintenance of the property and for the
payment of all taxes and costs of living, including utilities” as long as she occupied
it. The pretrial stipulation set the value of the house at $125,000. 3 Diane was not
informed of the provisions of Leonard’s will when it was executed, but later found
the document.
Before the decree was entered, Diane’s total monthly income was $697.4
This amount is from her IPERS monthly pension of $149, in addition to $548 from
her social security. Leonard’s monthly income consisted of $3091. This income
is based on his military pension ($299), Teamsters pension ($1516), and his
social security ($1276).
The parties owned the following assets, which we reference in the context
of what asset was awarded to each party:
Asset Name Value and Recipient
ED SB Account 1 $27,469—Diane
ED SB Account 2 $18,473—Diane
US Bank IRA (Diane’s) $23,005—Diane
3
Though the district court valued the residence at $125,000, the court ordered it to be
sold for its appraised value of $122,000 pending the realtor’s suggested listing price.
4
This figure is pursuant to Diane’s financial affidavit. Contrary to her assertion, the
district court in its order stated Diane received $416 from Leonard’s Teamsters pension.
It further stated Leonard received $1113 from this pension, which was lessened from
$1516 due to Diane receiving the spouse’s portion. However, that is not accurate. The
$416 was what Diane would receive if awarded the pension in the distribution of the
parties’ assets, and so should not have been added to her monthly income pre-
dissolution. Furthermore, this puts Leonard’s monthly income at $3091, which is the
figure cited above. This was also reflected in Leonard’s financial affidavit.
5
Dupaco Account 1 $898—Diane
Dupaco Account 2 $381—Diane
Dupaco Account 3 $25—Diane
Partial house interest $41,408.77—Diane
2004 Buick LeSabre $7145—Diane
Total to Diane $118,804.775
U.S. Bank Account $2074—Leonard
Dupaco Account 4 $4334—Leonard
Dupaco Account 5 $901—Leonard
Dupaco Account 6 $26—Leonard
General Rivers Credit Union $3358—Leonard
Shares of Stock $725—Leonard
Majority house interest $80,591.23—Leonard
2008 Chevrolet Silverado $22,000—Leonard
Cemetery Plots $1796—Leonard
Total to Leonard $115,805.23
Un-awarded Assets Value
IRA Account (Leonard’s) $37,279
Savings Account $54,663.91
The district court entered its order dividing the property in the above-
referenced manner on March 25, 2014, following a trial on the issues.
Additionally, it awarded $781 each month in spousal support to Diane as a
5
The district court calculated this total to be $91,362.77.
6
“lifetime benefit.” However, in lieu of having Leonard decrease his monthly
income to make spousal-support payments, the court provided for satisfaction of
the obligation by giving Diane two marital assets—the savings account
($54,663.91) and the IRA account ($37,279), which had not been awarded in the
property distribution. Thus, the $91,942 in a lump sum spousal support payment
was awarded to Diane as a non-refundable prepayment of her “lifetime benefit.”
Diane was further awarded “one-half of the marital share of the Teamsters
pension,” which the court ordered to be divided through a qualified domestic
relations order (QDRO) to be prepared by Leonard’s counsel. This resulted in
Leonard’s pre-dissolution monthly income of $3091 being reduced by $416 to
$2675, and Diane’s increased by $416, from $697 to $1113.
Following entry of the dissolution decree, Leonard filed a motion pursuant
to Iowa Rule of Civil Procedure 1.904(2), requesting in part that the district court
clarify the distribution of benefits from the Teamsters pension. Though Diane
resisted the majority of the motion, she too requested the court clarify this point.
The court, without analysis, denied Leonard’s motion in its entirety. Leonard
appeals from the district court’s decree.
II. Standard of Review
We review dissolution decrees, including the distribution of property and
award of spousal support, de novo. In re Marriage of Sullins, 715 N.W.2d 242,
247 (Iowa 2006). We give weight to the district court’s findings of fact but are not
bound by them. Id.
7
III. Property Division and Spousal Support
Leonard first claims the property division should be modified. He cites his
severe health issues and the fact he cannot live alone as evidence the award
inequitably favored Diane. He further asserts the district court did not consider
the proper factors when allocating the property and awarding spousal support.
Diane responds that the court considered the situation of both parties and applied
the proper law. She supports the court’s property distribution and the award of
spousal support.
Iowa Code section 598.21(5) states:
The court shall divide all property, except inherited property
or gifts received or expected by one party, equitably between the
parties after considering all of the following:
a. The length of the marriage.
b. The property brought to the marriage by each party.
c. The contribution of each party to the marriage, giving
appropriate economic value to each party’s contribution in
homemaking and child care services.
d. The age and physical and emotional health of the parties.
e. The contribution by one party to the education, training, or
increased earning power of the other.
f. The earning capacity of each party . . . .
....
h. The amount and duration of an order granting support
payments to either party pursuant to section 598.21A and whether
the property division should be in lieu of such payments.
i. Other economic circumstances of each party, including
pension benefits, vested or unvested. Future interests may be
considered, but expectancies or interests arising from inherited or
gifted property created under a will or other instrument under which
the trustee, trustor, trust protector, or owner has the power to
remove the party in question as a beneficiary, shall not be
considered.
j. The tax consequences to each party.
....
m. Other factors the court may determine to be relevant in an
individual case.
8
These are the factors our courts consider when reviewing the distribution of
marital property. See In re Marriage of Schriner, 695 N.W.2d 493, 500 (Iowa
2005). Additionally: “We consider alimony and property division together in
assessing their individual sufficiency. They are neither made nor subject to
evaluation in isolation from one another.” In re Marriage of McLaughlin, 526
N.W.2d 342, 345 (Iowa Ct. App. 1994). Thus, most of the same factors are
considered in the context of the spousal-support award. See Iowa Code
§ 598.21A(1).
As an initial matter, we agree with Diane that the court took into
consideration the proper factors when ordering both the spousal support award
and the division of property. It cited Iowa Code section 598.21(5) when listing the
factors it was to consider—which are substantially similar to those found in section
598.21A—and its opinion clearly demonstrates it applied those factors to the
unique circumstances of these parties.
We further conclude the assets should be divided equally between Leonard
and Diane. Both are older with significant health problems, and the marriage
lasted forty-one years. Neither party is able to work in the future, and they both
live on fixed incomes. With Leonard receiving more income each month due to
his pensions and Diane needing a substantial increase of her income in order to
approximate her pre-dissolution standard of living, it is appropriate that each party
share equally in the marital assets.
We next turn to the district court’s rationale for awarding spousal support,
in which it stated:
9
Also due to the nature of the age of the parties, the income levels of
the parties now that they are in retirement mode, and the fact that
the Petitioner is expected to survive longer than the Respondent
given his current health issues, the Court finds alimony is necessary
to equalize the property distribution and the set and established life
patterns of the parties.
Diane’s lower income is primarily due to the fact she stayed home to take
care of the children for the majority of the marriage; thus, she only worked part-
time, and therefore did not acquire substantial pension benefits. An award of
$781 in monthly spousal support takes into consideration Diane’s lower income
and approximately equalizes the monthly income between the parties.
However, while we find some award of spousal support was appropriate,
Leonard asserts—and we agree—the manner was not. The district court handled
the award as follows:
ALIMONY: The Respondent shall pay the sum of $781.00 per month
as lifetime alimony for the benefit of the Petitioner for the extent of
her life. Respondent’s estate shall be responsible for the
continuance of the payments required herein in the event of his
death. This alimony award is approximately $9,372.00 per annum.
Based on the Petitioner’s life expectancy of 11.66 years as set forth
in the Iowa mortality tables, she should expect to receive a total
benefit of $109,277.52 as lifetime alimony. In order to avoid
constant payments being made to the Petitioner for the alimony, and
in light of the property distribution and the need for her to find a
residence here in Dubuque within which to live, the Court hereby
awards her the East Dubuque Savings Bank account balance of
$54,663.91 and the US Bank IRA with a balance of $37,279.00 as
contribution toward the lifetime alimony figure set forth herein. The
Respondent shall execute whatever document is necessary in order
to transfer title of the US Bank IRA into the Petitioner’s name within
30 days of the date of this decree. Petitioner shall execute a
satisfaction of judgment for the years this award represents so the
title to the Oak Grove residence will be clear of the lien for purposes
of the sale required herein. Petitioner shall be responsible for the
taxes this creates and the Respondent shall be entitled to a tax
credit for the payments. The parties shall consult a certified public
account for proper filing requirements.
10
Leonard asserts paying support in advance is really “a property distribution
masquerading as an award of spousal support” as “there is no provision for return
of the money to Leonard should Diane predecease him or remarry,” thus
converting periodic payments to a permanent settlement. We agree. See Knipfer
v. Knipfer, 259 N.W.2d 347, 351–52 (Iowa 1966) (“It is not what the arrangement
is called but what it is that fixes its legal status.”). When deciding whether this
constitutes a property award we consider that, if Diane should die before the
passage of time to equate to the lump sum award, her estate would have an
unearned asset—that is, pre-paid spousal support. Moreover, spousal support
payments are normally deductible when paid by the payor and treated as income
to the payee when received under federal tax provisions. See 26 U.S.C.
§§ 215(a), 71(a), & 71(b)(1)(D) (2014); see also In re Marriage of Olson, 705
N.W.2d 312, 316 (Iowa 2005) (noting both the federal and state governments will
tax the recipient’s spousal support and allow the payor a tax deduction). We
conclude, then, that the award of Leonard’s IRA account and the savings account
constituted a property distribution rather than an award of alimony. Particularly
given the tax consequences to each party, and the necessity of both Leonard and
Diane having sufficient liquid assets, this distribution inequitably favored Diane.6
6
However, we conclude Leonard’s reliance on In re Marriage of Boyer, 538 N.W.2d 293
(Iowa 1995), and his argument that the spousal support award was both contrary to Iowa
law and preempted by federal law, is misplaced. Boyer held the district court could not
rely on future social security entitlements when dividing benefits, but could make a
general adjustment to the division based on one party’s anticipation of greater benefits.
See id. at 296. This is not applicable to the district court’s award of spousal support to
Diane. Leonard also fails to provide any support for his argument that the law of Iowa in
this regard is preempted by federal law. Consequently, he waived this argument, and we
decline to consider this issue. See Channon v. United Parcel Serv., Inc., 629 N.W.2d
835, 866 (Iowa 2001).
11
Thus, the two undistributed assets—which total $91,942.91—should be put
back into the property to be distributed between Leonard and Diane. This results
in $326,552.91 of total assets to be distributed. This total is based on the
$118,804.77 previously awarded to Diane, the $115,805.23 previoulsy awarded to
Leonard, and the two unawarded assets of $37,279 and $54,663.91. To achieve
an equal division of assets, the unawarded accounts shall be divided so that the
ultimate division of assets is equal.
Diane will still be awarded monthly spousal support of $781, but we do not
agree with the district court’s conclusion that it should be a lifetime award.
Consequently, the decree should be modified so spousal support payments cease
upon the death of either Leonard or Diane. See In re Marriage of Lalone, 469
N.W.2d 695, 698 (Iowa 1991) (stating alimony will generally terminate upon the
death of the payor).
IV. Pension
Leonard next claims the district court did not take into consideration the
total value of the Teamsters pension benefits—both the monthly payments as well
as survivorship benefits—when awarding Diane “one-half of the marital share” of
those benefits. He asserts the total value of Diane’s marital share should be
considered in the context of whether the property distribution was equitable. In
response, Diane argues that Leonard did not provide any information regarding
the specifics of the benefits for his pension. Consequently, she asserts, the
district court did not have enough information to divide the pensions in a manner
that included the survivorship benefits. She also contests error preservation with
regard to the survivorship-benefits issue.
12
As an initial matter, we agree with Diane the specific issue of the
breakdown of the Teamsters benefits was not preserved. Arguments in this
regard were not raised at trial or in Leonard’s Rule 1.904(2) motion. The only
point at which it was mentioned was in Diane’s motion for an order nunc pro tunc;
however, the district court had lost its jurisdiction due to the notice of appeal that
was filed prior to the motion. See Helland v. Yellow Freight Sys., Inc., 204
N.W.2d 601, 605 (Iowa 1973) (noting the district court loses its jurisdiction once
the notice of appeal is filed). We further note Leonard did not provide a record at
trial that outlined the Teamsters pension and its accompanying survivorship
benefits.
Nonetheless, the district court did order that Diane receive “one-half of the
marital share of the Teamsters pension, which shall be divided by the entry of a
Qualified Domestic Relations Order.” This is consistent with the holding in In re
Marriage of Benson, 545 N.W.2d 252, 255 (Iowa 1996). Leonard worked for a
total of thirty-six years qualifying under the plan. Half of those years Leonard was
married to Diane. Therefore, under the district court’s order, which we find
equitable, Diane’s share of the Teamsters monthly benefit pension is to be
determined by the following formula: 18 years Leonard was both married and
covered under the plan, divided by 36 years total covered under the plan,
multiplied by 50% (the marital share), multiplied by the total monthly pension
benefit. As it is equitable to apply this formula to the monthly benefits, we also
consider it equitable to apply the Benson formula to the survivorship benefits.
Thus, the total survivorship benefit payable upon Leonard’s death that Diane is
entitled to receive should be determined by the same formula: 18 years Leonard
13
was both married and covered under the plan, divided by 36 years total covered
under the plan, multiplied by 50%, and multiplied by the total survivorship benefit.
Furthermore, Leonard is entitled to direct the remains of the survivorship benefit to
the beneficiary of his choice. Consequently, we remand for the entry of a QDRO
to be calculated by using the Benson formula.
V. Premarital Property
Leonard’s final argument asserts that the $7500 he brought to the marriage
from the sale of his premarital house should be included in the property-division
calculation. He argues that this cash contribution to the marital home increased
its value over the course of the marriage by $38,700, which he should receive as
separate property. Diane responds that Leonard did not present evidence to
support this argument.
Iowa Code section 598.21(5) states: “The court shall divide all property,
except inherited property or gifts received or expected by one party, equitably
between the parties.” The property to be divided may include premarital property.
See In re Marriage of Fennelly, 737 N.W.2d 97, 102 (Iowa 2007) (noting that
“property brought to the marriage by each party is merely one factor among many
to be considered under section 598.21” (internal citation omitted)).
In this case, the $7500 Leonard contributed to the marital home was only
one of many factors the district court properly considered in the division of the
assets after a long marriage. See id. at 104 (approving the district court’s equal
division of the parties’ premarital assets). Therefore, we conclude the district
court correctly excluded Leonard’s contribution when deciding how to allocate the
marital property.
14
For the foregoing reasons, we affirm the district court’s distribution of the
assets and its award of spousal support to Diane, with the following modifications:
(1) the spousal support award of $781 shall be paid monthly and terminate on the
death of either party; (2) the IRA ($32,279) and savings account ($54,663.91)
totaling $91,942.91, shall be included in the assets to be divided so that the
ultimate division of assets is equal between the parties; (3) Diane’s share of
Leonard’s Teamsters monthly benefit as well as her share of the survivorship
benefit are both to be determined by utilizing the Benson formula. Finally, the
court properly declined to set aside to Leonard his premarital cash contribution.
Consequently, we affirm as modified the district court’s decree dissolving the
parties’ marriage.
Costs to be divided equally between the parties. We decline Diane’s
request for appellate attorney fees.
AFFIRMED AS MODIFIED; REMANDED.