Adams v. Adams
2015 N.D. LEXIS 143
| N.D. | 2015Background
- Sandra and John Adams married in 1971; divorce filed in 2011; trial on property division in 2013 with amended judgments in 2015.
- Marital estate is complex and real estate–focused, with interrelated entities owned by the spouses.
- Court found going-concern value appropriate for businesses and awarded interrelated assets to John, separable assets to Sandra.
- Radisson Hotel and related floors are owned through Adams Investment LP and AKA, with Sandra actively managing the Radisson.
- Discounts for lack of marketability or lack of control were applied to some entities but not to Radisson or the floors awarded to Sandra.
- Equalization payment of $6,866,666 from John to Sandra was ordered over 5.5 years at 2% interest; Sandra appeals the discounts and interest rate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether discounts should have applied to Radisson and floors | Sandra: no discounts should be applied | Adams: discounts appropriate per neutral appraiser | No clear error; court’s valuation within range; no discount to Radisson/floors warranted |
| Whether two percent interest was appropriate for the equalization payment | Sandra: rate too low; should be 6.5% or federal rate | John: 2% reasonable in economy | District court did not abuse discretion; 2% affirmed |
Key Cases Cited
- Kaiser v. Kaiser, 555 N.W.2d 585 (N.D. 1996) (discretion to apply discounts in marital-property valuation follows evidence and method)
- Fisher v. Fisher, 546 N.W.2d 354 (N.D. 1996) (discounts may be applied or not; depends on case)
- Fisher v. Fisher, 568 N.W.2d 728 (N.D. 1997) (continued discussion on discounts)
- Dick v. Dick, 434 N.W.2d 557 (N.D. 1989) (court may award interest to achieve equitable distribution)
- Klitzke v. Klitzke, 308 N.W.2d 385 (N.D. 1981) (discretionary interest rate in property division)
- Rudel v. Rudel, 279 N.W.2d 651 (N.D. 1979) (interest as tool to equalize property distribution)
- McCarthy v. McCarthy, 2014 ND 234, 856 N.W.2d 762 (N.D. 2014) (standard of review for property distribution; clearly erroneous)
- Hoverson v. Hoverson, 2013 ND 48, 828 N.W.2d 510 (N.D. 2013) (evidence-based valuation and appellate review)