Wallace v. Wallace

No. 82-245 I N THE SUPREME COURT O F THE STATE O M N A A F O T N 1983 NANCY J E A N XALLRCE, P e t i k i o n e r and R e s p o n d e n t , -VS- THOMAS K. WALLACE, Respondent a n d A p p e l l a n t . Ap9eal from: D i s t r i c t C o u r t o f t h e F o u r t h J u d i c i a l D i s t r i c t , I n and f o r t h e County o f M i s s o u l a , The Wonorable James B. W h e e l i s , Jud-ge p r e s i d i n g . C o u n s e l f o r Record: For Appellant: P a t t e r s o n , M a r s i l l o , Tornabene & S c h u y l e r ; C h a r l e s J. T o r n a b e n e , M i s s o u l a , Montana F o r Respondent : Ferguson & Pgitchell ; M i s s o u l a , Montana Submitted: J a n u a r y 1 7 , 1983 Decided : March 2 5 , 1983 Filed: MAH % 5 /gg3 -- &257,qLu P Clerk -. Mr. Justice John Conway H a r r i s o n d e l i v e r e d t h e O p i n i o n of the Court. R e s p o n d e n t ( w i f e ) p e t i t i o n e d t h e D i s t r i c t C o u r t of t h e F o u r t h J u d i c i a l District i n and for the County of Missoula, S t a t e of Montana, f o r a d e c r e e of d i s s o l u t i o n of m a r r i a g e . F i n d i n g s of f a c t , c o n c l u s i o n s of l a w , d e c r e e and j u d g m e n t were e n t e r e d March 26, 1982. A p p e l l a n t ( h u s b a n d ) moved f o r a new t r i a l o n A p r i l 6 , 1982. On May 1 9 , 1 9 8 2 , t h e District Court entered a n amended d e c r e e and h u s b a n d a p p e a l s . Husband and wife were married on April 28, 1967, in Bremerton, Washington. The p a r t i e s had been married fourteen years when they separated i n January, 1981. They have two c h i l d r e n from t h e i r m a r r i a g e . W i f e is t h i r t y - t h r e e y e a r s of a g e . She was unemployed a t t h e t i m e of the divorce. W i f e h a s a h i g h s c h o o l e d u c a t i o n and h a s had vocational training as a nurse's aide and as a keypunch operator. During the marriage, w i f e was employed for a short t i m e a s a ward s e c r e t a r y i n a h o s p i t a l a p p r o x i m a t e l y n i n e y e a r s ago. She a l s o worked a s h o r t t i m e as a n u r s e ' s aide four years ago. W i f e had b r a i n s u r g e r y a p p r o x i m a t e l y n i n e y e a r s a g o . As a r e s u l t of the surgery, w i f e h a s two s t e e l c l i p s in her skull. Wife suffers from constant headaches and has a neurological i m p a i r m e n t c a u s i n g slow r e f l e x a c t i o n on h e r l e f t s i d e . Husband is also t h i r t y - t h r e e y e a r s of age. He is employed w i t h t h e B o n n e v i l l e Power A d m i n i s t r a t i o n ( B . P.A. ) . Husband h a s a h i g h s c h o o l e d u c a t i o n and h a s t a k e n some c l a s s e s a t t h e c o l l e g e level. He has apparent good mental and physical health. H u s b a n d ' s wage s c a l e a t t h e t i m e o f h e a r i n g was $ 1 4 . 6 5 p e r h o u r . He has advanced with B.P.A. as far as he is able without a college education. The p a r t i e s a g r e e d t h a t t h e w i f e s h o u l d h a v e c u s t o d y of the t w o m i n o r c h i l d r e n and t h a t t h e husband s h o u l d be awarded r e a s o n - able, liberal visitation. The D i s t r i c t Court divided t h e marital estate as follows: - ITEM EQUITY TO HUSBAND TO WIFE House $ 46,000.00 Bremerton , Washing t o n House 39,000.00 15,600.00 23,400.00 M i s s o u l a , Montana Land 3,000.00 3,000.00 B e a v e r t a i l , Montana Husband ' s R e t i r e m e n t Account 11,500.00 11,500.00 Personal Property - -9. 6- -0 0.- -, 00. - - -- .5-,- - 0 . 0 0 80 - -- - - .-3- -0 -. 0-- - - , 8 -0 0 Subtotal $109,100.00 $35,900.00 $73,200.00 L e s s Marital L i a b i l i t i e s To Husband TOTAL The D i s t r i c t C o u r t o r d e r e d husband t o pay c h i l d s u p p o r t of $ 1 8 5 p e r c h i l d p e r month f o r e a c h o f t h e t w o m i n o r c h i l d r e n and f u r t h e r o r d e r e d t h e c h i l d s u p p o r t p a y m e n t s be i n c r e a s e d b y 5 p e r - c e n t p e r month p e r c h i l d o n t h e a n n i v e r s a r y o f the decree. The D i s t r i c t C o u r t a l s o o r d e r e d h u s b a n d t o p a y w i f e $ 1 3 0 p e r month as maintenance u n t i l h e r d e a t h or r e m a r r i a g e . The D i s t r i c t Court justified the property division, child s u p p o r t and maintenance s t a t i n g the respondent is a n a b l e - b o d i e d man and b a s e d upon t h e e m p l o y m e n t e x p e r i e n c e , a g e and h e a l t h of the parties, husband is deemed t o h a v e a g r e a t e r o p p o r t u n i t y t h a n w i f e t o a c q u i r e f u t u r e c a p i t a l assets. Following t h e e n t r y of judgment, on A p r i l 6 , 1982, husband moved for a new t r i a l . Husband claimed t h e r e was no c o m p e t e n t medical testimony to s u p p o r t t h e D i s t r i c t Court's finding that wife suffered from health problems which would impair her prospects of finding future employment. On May 3, 1982, the District Court ordered husband's motion for a new trial be t r e a t e d as a m o t i o n t o amend t h e j u d g m e n t . On May 1 9 , 1 9 8 2 , t h e D i s t r i c t C o u r t o r d e r e d t h e d e c r e e be amended. The p r o p e r t y d i v i - sion, child support and maintenance provisions remained unchanged. Husband a p p e a l s . The i s s u e s r a i s e d on a p p e a l a r e : 1. Whether t h e District Court e r r e d i n awarding an a u t o m a t i c i n c r e a s e i n t h e c h i l d s u p p o r t payments. 2. Whether the District Court I s findings and conclusions were p r o p e r l y made and b a s e d upon s u b s t a n t i a l c r e d i b l e e v i d e n c e . 3. Whether t h e District Court's property division was in- equitable. Here, t h e c o u r t had c r e d i b l e e v i d e n c e of t h e h u s b a n d ' s abi- lity to contribute to the children's support and that the c h i l d r e n ' s n e e d s as t h e y g r o w o l d e r , require increased support. The District Court ordered the child support payments be i n c r e a s e d b y 5 p e r c e n t p e r month p e r c h i l d o n t h e a n n i v e r s a r y of the decree. W e assume t h e language of t h e c l a u s e is a m i s t a k e and t h e D i s t r i c t C o u r t m e a n t to o r d e r a 5 p e r c e n t increase per c h i l d on a n a n n u a l b a s i s , n o t a m o n t h l y b a s i s , and w e d i r e c t t h a t t h e d e c r e e be m o d i f i e d t o so r e a d . I n t h e p r e s e n t c a s e , t h e f i n d i n g s by t h e t r i a l c o u r t a p p e a r t o j u s t i f y the 5 percent annual increase i n c h i l d support: " [Finding of f a c t no. 13.1 ' B a s e d upon t h e employment e x p e r i e n c e , a g e and h e a l t h of t h e p a r t i e s t h e r e s p o n d e n t ( h u s b a n d ) i s deemed t o have a g r e a t e r opportunity than the p e t i t i o n e r ( w i f e ) t o a c q u i r e f u t u r e c a p i t a l a s s e t s and income. ' " [ F i n d i n g o f f a c t n o . 1 4 . 1 ' T h e r e s p o n d e n t is a n a b l e - b o d i e d man, i n 1980 g r o s s e d $ 2 9 , 0 0 0 . 0 0 t h r o u g h h i s e m p l o y m e n t , and i s f i n a n c i a l l y c a p a b l e o f p a y i n g c h i l d s u p p o r t i n t h e amount o f $185.00 p e r month p e r c h i l d . ' " Husband next argues that the District Court's f i n d i n g s of fact and conclusions of l a w were n o t s u p p o r t e d by substantial credible evidence. Husband claims t h e r e c o r d l a c k s t h e m e d i c a l testimony necessary to support the finding that wife's health p r o b l e m s w a r r a n t t h e i n e q u i t a b l e d i v i s i o n of property. Husband c l a i m s s i n c e w i f e was t h e o n l y w i t n e s s who t e s t i f i e d c o n c e r n i n g h e r own h e a l t h , s u c h t e s t i m o n y d o e s n o t c o n s t i t u t e c r e d i b l e e v i - dence. T h i s C o u r t h a s s t a t e d s e v e r a l times: "We w i l l n o t s u b s t i t u t e o u r j u d g m e n t f o r t h a t o f t h e trier of f a c t , b u t r a t h e r w i l l o n l y c o n s i d e r whether s u b s t a n t i a l evidence s u p p o r t s t h e f i n d i n g s and c o n c l u s i o n s . Those f i n d i n g s w i l l n o t be o v e r t u r n e d b y t h i s C o u r t u n l e s s t h e r e is a clear p r e p o n d e r a n c e of e v i d e n c e a g a i n s t them. W e w i l l view t h e evidence i n a l i g h t most f a v o r a b l e t o t h e p r e v a i l i n g p a r t y , r e c o g n i z i n g t h a t s u b s t a n t i a l e v i d e n c e may be weak or c o n f l i c t i n g w i t h o t h e r e v i d e n c e y e t still support the findings." I n Re Marriage o f Bosacker ( 1 9 8 0 ) , - Mont 2 5 3 , 2 5 6 , 37 ~ t . ~ e p 4 6 9 , 47i-i----cameron v . . . , 609 P.2d Cameron ( 1 9 7 8 ) , -- Mont - - 9 4 5 , 35 S t . R e p . 1 7 2 3 , 1 7 2 9 . . r 5 8 7 P.2d 939, Here, t h e r e w a s no e v i d e n c e which c o n t r a d i c t e d t h e medical t e s t i m o n y of the wife. Viewing the evidence i n a l i g h t most f a v o r a b l e to t h e w i f e , we f i n d t h e husband h a s n o t m e t h i s burden of coming f o r t h with a preponderance of evidence to r e b u t the wife I s testimony. Husband a r g u e s t h e t r i a l c o u r t ' s f i n d i n g was i n e r r o r b e c a u s e t h e r e w a s no c o r r o b o r a t i n g t e s t i m o n y from com- p e t e n t m e d i c a l a u t h o r i t i e s t o s u p p o r t t h e w i f e ' s own t e s t i m o n y o f h e r h e a l t h problems. T h i s C o u r t h a s n e v e r s t a t e d t h e r e m u s t be corroborating testimony from competent medical authorities to s u p p o r t one p a r t y ' s testimony about h e a l t h problems i n a d i v o r c e proceeding. Here, t h e h u s b a n d c o u l d h a v e made c o m p e t e n t m e d i c a l a u t h o r i t y a v a i l a b l e to t h e t r i a l c o u r t t o r e b u t t h e w i f e ' s testi- mony b u t c h o s e n o t t o d o so. Even t h o u g h a p a r t y ' s testimony a b o u t t h e i r own h e a l t h p r o b l e m s may be weak, it is s t i l l t h e b u r - d e n o f t h e o p p o s i n g p a r t y t o o f f e r e v i d e n c e as r e b u t t a l . The husband further argues the District Court did not equitably apportion t h e marital a s s e t s as r e q u i r e d by sect i o n 40-4-202, MCA. Husband claims the property division is in- equitable because the wife received a s u b s t a n t i a l l y dispropor- tionate amount o f the property. In, I n R e Marriage of Laster (1982) -- Mont . -- - , 6 4 3 P.2d 5 9 7 , 39 S t . R e p . 737, t h i s Court stated: "The D i s t r i c t C o u r t ' s d u t y u n d e r s e c t i o n 4 0 - 4 - 2 0 2 ( 1 ) , MCA, is t o c o n s i d e r t h e f a c t o r s therein and then divide the property equitably. An e q u i t a b l e d i v i s i o n d o e s n o t n e c e s s a r i l y mean a n e q u a l d i v i s i o n . A s has b e e n n o t e d many times by t h i s C o u r t , :... " ' A l t h o u g h t h e D i s t r i c t C o u r t may e q u a l l y d i v i d e - m a r i t a l a s s e t s , E i i h - a d i T t r i b u t -- G the i IS n o t m- a n d a t e d b y s e c t i o n 40-4-202, -- - - - MCA -- ... S e c t i o n 40-4-202 i s f l e x i b l e and i t v e s t s a good d e a l o f d i s c r e t i o n i n t h e D i s t r i c t C o u r t . . . w e h a v e s t a t e d , b e f o r e and a f t e r t h e a d o p t i o n of t h e s t a t u t e , t h a t each case must b e l o o k e d a t i n d i v i d u a l l y , w i t h a n e y e to i t s unique circumstances . . . 11I (Citations omitted.) ( E m p h a s i s a d d e d . ) L a s t e r , 6 4 3 P.2d - a t 601. A s p r e v i o u s l y noted i n t h i s case, t h e w i f e was unemployed a t t h e t i m e of t h e h e a r i n g . I t was n o t i n e q u i t a b l e to g i v e t h e w i f e t h e h o u s e i n W a s h i n g t o n , and a l a r g e r p o r t i o n of t h e p r o c e e d s of the sale of the rental property i n Missoula. Considering the f a c t t h a t t h e w i f e was unemployed a t t h e t i m e o f h e a r i n g and w a s t o have custody of the t w o minor c h i l d r e n , h e r n e e d s a r e con- siderably greater than the husband's. The record shows the D i s t r i c t C o u r t a t t e m p t e d to make t h e p r o p e r t y d i v i s i o n b a s e d upon the age, health, station, occupation, amount and sources of income, v o c a t i o n a l s k i l l s , employability, liabilities, n e e d s of the parties and custodial provisions as mandated by sect i o n 40-4-202, MCA. W f i n d no e r r o r i n t h e t r i a l c o u r t ' s d i v i s i o n of e t h e marital p r o p e r t y . The judgment is a f f i r m e d . W e concur: Chief Justice Mr. C h i e f J u s t i c e F r a n k I. H a s w e l l , c o n c u r r i n g i n p a r t and dissenting in part: I concur i n a f f i r m i n g t h e d i v i s i o n of m a r i t a l p r o p e r t y and f i n d s u f f i c i e n t e v i d e n c e t o s u p p o r t t h e D i s t r i c t C o u r t ' s f i n d i n g s on t h e w i f e ' s h e a l t h problems. M q u a r r e l is i n t h e award o f a n a u t o m a t i c a n n u a l i n - y crease i n child support. I t is e s s e n t i a l t h a t t h e r e b e an e v i d e n t i a r y b a s i s t o d e t e r m i n e t h a t i t would b e u n c o n s c i o n - a b l e t o c o n t i n u e t h e amount o f c h i l d s u p p o r t p a y m e n t s t h e n in effect. See G a l l v. Gall (1980), Mont. , 608 P.2d 496, 37 S t . R e p . 639. Gall further cautions that the award of c h i l d s u p p o r t c a n n o t be b a s e d upon "mere s p e c u l a - t i v e future conditions or possible conditions." 608 P.2d a t 498. Here, t h e r e c o r d is b a r r e n of a n y e v i d e n t i a r y founda- t i o n f o r the automatic annual increase. Automatic c o s t of l i v i n g a d j u s t m e n t s i n c h i l d s u p p o r t payments based on a formula t h a t f l u c t u a t e s w i t h changes i n t h e Consumer P r i c e I n d e x and c o n s i d e r s t h e f a c t o r s a f f e c t i n g c h i l d s u p p o r t is p o s s i b l e . S e e F a l l s v. Falls ( 1 9 8 1 ) , 52 N.C.App. 203, 278 S.E.2d 546; Branstad v. Branstad ( I n d . I !appa 19&0), 400 N.E.2d 167. The v i c e o f the automatic cost-of- living increase in the instant case is that the other f a c t o r s a f f e c t i n g c h i l d s u p p o r t s e t f o r t h i n s e c t i o n s 40-4- 204 a n d 40-4-208, MCA, w e r e assumed t o r e m a i n c o n s t a n t a n d the 5 percent annual increase established without eviden- t i a r y support. I would vacate the annual cost-of-living increase in c h i l d s u p p o r t and a f f i r m t h e remainder of t h e d e c r e e . wssiD Chief J u s t l c e Mr. J u s t i c e F r e d J . Weber: I concur in the foregoing separate opinion of t h e Chief Justice. Mr. Justice Daniel J. Shea, concurring in part and dissenting in part: I also join in the affirmance of the property division but dissent from the approval of the automatic cost of living escalator. This case only demonstrates what has always been known to be the true basis of family law--the only certainty is that there is no certainty. With absolutely no evidentiary foundation, the trial court ordered child support payments to increase 5 percent per year. No evidence was offered by the wife that the husband's salary had increased at any particular rate or that it would increase at any rate in the future. It can also be assumed that the husband's needs as time goes by, will increase. The strange thing here is that an annual increase in child support was not really a factor in the trial of this case. Rather, the first suggestion came when the wife proposed the automatic increase in the proposed find.ings and conclusions submitted to the trial court after the hearing was over. With no evidentiary basis in the record, and with no explanation of why the automatic increase was granted, the trial court simply ordered it to be. I find this to be a gross abuse of discretion.