Gunn v. Gunn

SABERS, Justice

(concurring in part and dissenting in part).

I vote to reverse on Issue 2.

At the time of the divorce decree, eleven years ago, Lore was awarded one of the two homes owned by the parties. Michael was awarded the other home, subject to the existing mortgage. While Lore subsequently sold her homestead and moved out of the State, Michael continued to build equity in his homestead. He recently sold it, netting approximately $32,000 in proceeds which he wishes to apply to the outstanding mortgage on his current residence and homestead.

Under South Dakota statutory law, the proceeds from the sale of a homestead are absolutely exempt for a period of one year after the receipt of such proceeds by the owner. Therefore, the trial court erred in concluding that the court has jurisdiction over the proceeds from the sale of Michael’s homestead. SDCL 43-45-3(1) provides that a homestead is absolutely exempt and SDCL 43-45-3(2) provides in part:

In the event such homestead ... is sold by the owner voluntarily, the proceeds of such sale, not exceeding the sum of thirty thousand dollars, is absolutely exempt for a period of one year after the receipt of such proceeds by the owner.

As indicated in the majority opinion, judgment creditors are prevented from obtaining liens on the homestead. SDCL 15-16-7. There are no constitutional or statutory exceptions from these provisions for ex-wives. In view of these provisions, it is incumbent upon the party who wants security for the payment of future indebtedness to apply for same at the time of the divorce or at least shortly thereafter.

The two cases relied upon the majority are clearly distinguishable. In Harding, the court modified a divorce decree approximately two years later by ordering the sale of the homestead once possessed by both parties. In doing so, the court noted that, unlike this case, the husband had been awarded the homestead “on the theory ... that he would pay the alimony prescribed by the judgment promptly.” Harding, 16 S.D. at 410, 92 N.W. at 1081. In Kerr, the court modified a divorce decree for child support less than two years later by ordering a lien against non-homestead property of the father until he had fully complied with the decree. Kerr, 74 S.D. 454, 54 N.W.2d 357 (Kerr simply held that the court had the power to impose a lien to secure future payments).

This present opinion approves a modification of the divorce decree which allows a lien on the proceeds from the sale of Michael’s homestead almost ten years after the divorce. Under SDCL 43-45-3(2), there should not be any lien on these homestead *777proceeds except for the portion exceeding $30,000.

An ex-wife should not be allowed to sit on her rights to alimony and then expect the courts to “bend the laws” to protect her in the same manner as she was entitled at the time of divorce. The trial court went too far. We should reverse on Issue 2.