Clason v. Clason
A-15-626
| Neb. Ct. App. | Oct 25, 2016Background
- Steven and Rachelle Clason married in 2006; Rachelle filed for dissolution in May 2014 after moving out and purchasing a home with marital funds. No children were born of the marriage.
- Much of the dispute concerned classification and valuation of property: Steven asserted substantial premarital farmland, equipment, livestock, and debts; Rachelle was awarded a recently purchased Beaver City home, a vehicle, and household items.
- Steven had filed bankruptcy about 10 months into the marriage; certain premarital debts were later paid (or reduced) during the marriage, and the parties disputed which amounts were paid with marital funds.
- The trial court classified the 2013 and prorated 2014 real estate taxes as nonmarital (liens on premarital land), treated $20,000 of premarital credit-card debt as Steven’s, classified $25,000 crop seed as marital, disregarded a claimed $35,000 unpaid-bills debt, and declined to award alimony or attorney fees.
- The trial court ordered Steven to pay Rachelle an equalization payment of $150,000, based on its netting of assets and debts; Steven moved for a new trial (denied), and appealed.
Issues
| Issue | Steven's Argument | Rachelle's Argument | Held |
|---|---|---|---|
| Whether marriage was irretrievably broken | Trial court erred; Rachelle did not make sufficient efforts to preserve marriage | Rachelle had ongoing conflicts, moved out, and would not reconcile | Court: No abuse of discretion; marriage found irretrievably broken |
| $35,000 unpaid-bills debt classification | Should be marital (feed, utilities, attorney fees) | Insufficient evidence of specific unpaid bills; Rachelle unaware | Court: No abuse; trial court properly disregarded the $35,000 claim |
| Premarital credit-card debt treatment | Debt shouldn’t have been assigned; not on joint statement | Steven admitted premarital credit-card debt and that ~$20,000 paid with marital funds | Court: Affirmed trial court’s assignment of $20,000 to Steven |
| 2013 and prorated 2014 real estate taxes | Taxes arose during marriage from income-producing land and should be marital | Trial court treated taxes as nonmarital because underlying land was premarital | Court: Reversed; taxes are marital liabilities and must be equitably divided |
| Credits for disposed premarital assets / crop seed | Steven sought credits for premarital household items, equipment, livestock, crops | Rachelle contested tracing and value; trial court found insufficient tracing; seed purchased with marital funds | Court: Affirmed denial of credits (no tracing); affirmed crop seed as marital asset |
| Calculation of premarital debts paid with marital funds | Trial court miscalculated sums affecting equalization payment | Trial court’s arithmetic was unsupported by record | Court: Found plain error in calculation ($182,422 vs correct $272,422); remand for recalculation and redistribution |
Key Cases Cited
- Meints v. Meints, 258 Neb. 1017, 608 N.W.2d 564 (2000) (income tax liabilities incurred during marriage are generally marital debts because they are costs of producing marital income)
- Brozek v. Brozek, 292 Neb. 681, 874 N.W.2d 17 (2016) (burden on spouse claiming credit for disposed nonmarital property to trace its value)
- Sellers v. Sellers, 294 Neb. 346, 882 N.W.2d 705 (2016) (three-step equitable division framework: classify, value, divide under § 42-365)
- McCollister v. McCollister, 219 Neb. 711, 365 N.W.2d 825 (1985) (marital estate division is not a rigid mathematical formula; fairness controls)
- Witcig v. Witcig, 206 Neb. 307, 292 N.W.2d 788 (1980) (marriage is irretrievably broken when parties cannot reside together; appellate deference to trial-court credibility findings)
Outcome: Affirmed in part; reversed in part and remanded for (1) reclassification/equitable division of 2013 and prorated 2014 real estate taxes and (2) correction of the premarital-debt-sum and recalculation of the marital estate and any equalization payment.