Archive for May, 2009

LOVE MAY ONLY TAKE A MOMENT, BUT COMMON LAW MARRIAGE IS NOT SO QUICK.

Saturday, May 30th, 2009

James and Jacqueline fell in love in the State of Washington. They held an informal ceremony in Washington October 4, 1994, and vowed to each other to be married “under God”. Washington does not recognize common law marriages and apparently would not have recognized this one. The next year, however, they moved to Montana. James sold property he had previously owned and bought a ranch in Montana where they lived for the next 11 years. The ranch didn’t make money but doubled in value by the time Jacqueline filed for divorce in 2006. By then, the couple had made multiple representations to multiple institutions that they were married. James told his union they were married. He told the IRS he was married on his tax returns. They held themselves out as married to others. The trial court found that they were married and pegged the date of their marriage to the October 1994 event in Washington. James appealed on the basis of a line of cases that held that common law marriage comes about in an instant. Those cases were overruled (and good riddance). The only curious thing is the retroactive effectiveness of a marriage to a date time and place it was clearly legally impossible.

Also of interest here was the fact that post trial motions of the parties substantially affected the ultimate outcome. The trial court greatly reduced James’ cash payment due Jacqueline. Rarely do post trial motions produce much. Here, clearly the effort was well rewarded, however — for James, at least.

Finally, Jacqueline contended that although the ranch was purchased with proceeds from the sale of James’ premarital property, she was entitled to share in the increase in its value. They bought the ranch for $340,000 and its value at the time of divorce was $660,000 — so serious money was at issue here.

The Supreme Court repeated its earlier standards: that Jacqueline would have to show that she contributed to the preservation or appreciation in value of the ranch and that she would have no entitlement if the increase in value was solely the result of market forces. The Supreme Court reversed and remanded on this issue, holding that the trial court had not made any specific findings of fact about Jacqueline’s contribution to the appreciated value of the ranch or whether she acquired any marital interest in the appreciated value.

The case is Marriage of Swanner-Renner 2009 MT 186

Jointly Titled Premarital Home Distributed to Husband in 5 Month Marriage

Thursday, May 7th, 2009

Does title control distribution of assets in a divorce? Nope.

Seven months before this couple married, they purchased a home. They bought the home with the husband’s money. They titled the home jointly. They marry. They separate 7 months later. Husband makes all the mortgage payments on the home before and after separation.

The trial court awards the home to husband. Wife appeals claiming the trial court had no jurisdiction to award the home to husband because title was joint and the home was purchased before marriage. Section 40-4-201(1) MCA grants trial courts the power to equitably distribute property “…however and whenever acquired and whether the title thereto is in the name of the husband or wife or both.”

The Supreme Court affirmed, holding that title — in and of itself — does not control the distribution of property in a divorce.

Marriage of Markegard, 2009 MT 152N

Looking forward to driving over the Beartooth Highway

Saturday, May 2nd, 2009

Twin Lakes