Burke v. State
2012 ND 169
| N.D. | 2012Background
- Cheryl Schulte (formerly Kramer) and Kenneth Kramer married in 1973; separation in 2002; separation agreement incorporated into May 2005 divorce judgment.
- Divorce judgment required Kramer to pay $500 monthly spousal support until Schulte remarried or died and to provide health insurance and pay non-covered medical costs.
- In 2010 Kramer was terminated from Bobcat for policy-violation conduct; he subsequently worked at Trail King with reduced income.
- Kramer moved in November 2010 to modify the divorce judgment to eliminate or reduce spousal support and health-insurance obligations.
- Trial court, in July 2011, eliminated spousal support, health insurance, and non-covered medical costs; Schulte appealed.
- On appeal the North Dakota Supreme Court affirmed in part, reversed in part, and remanded for fee considerations and further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a material change in circumstances justifies terminating spousal support. | Schulte contends no complete elimination; change not enough. | Kramer argues reduced income is material and justifies elimination. | Material change existed but elimination was error; remand for proper spousal-support determination. |
| Whether health insurance and non-covered medical costs are properly classed as spousal support or property division. | Schulte argues these are separate from spousal support and should not be terminated with it. | Kramer contends they constitute spousal support and may be modified accordingly. | Obligations were treated as spousal support; remand to reconsider in light of modified spousal support determinations. |
| Whether Schulte should be awarded attorney’s fees on appeal. | Schulte seeks attorney’s fees due to the improper termination of support. | Kramer opposes or disputes the fee award. | Remanded to determine attorney’s fees consistent with statutory criteria. |
Key Cases Cited
- Rothberg v. Rothberg, 2007 ND 24 (2007) (modification standard for spousal support; material change reviewed for clear error)
- Muehler v. Muehler, 333 N.W.2d 432 (N.D. 1983) (equitable considerations; self-induced income changes require more proof )
- Huffman v. Huffman, 477 N.W.2d 594 (N.D. 1991) (reluctance to modify agreements; respect for stipulations)
- Wheeler v. Wheeler, 548 N.W.2d 27 (N.D. 1996) (foreseeability and voluntary retirement considerations in modification)
- Toni v. Toni, 2001 ND 193 (2001) (encourages modification of agreement-based spousal support only with reluctance)
- Lipp v. Lipp, 355 N.W.2d 817 (N.D. 1984) (consider earning capacity and changed circumstances in support disputes)
- Leverson v. Leverson, 2011 ND 158 (2011) (interpretation of judgment; final judgment controls over underlying contract)
- Kramer v. Kramer, 2006 ND 64 (2006) (enforcement of separation agreement incorporated into divorce judgment)