Dew v. Dew
2012 Ark. App. 122
Ark. Ct. App.2012Background
- Suzanne and Terry Dew, married in 1995, separated in 2008, have two children, and are veterinarians with substantial real property and business interests.
- Trial court divorce decree (2010) awarded Terry general indignities, alimony of $8,000/mo for 48 months, child support, and exclusive ownership of Terry’s business entities; Suzanne received custody by Terry with agreement; and each was to bear debts tied to properties awarded.
- Marital property distributed: Doxa Retreat to Suzanne; Dew Residence and Dew Farm (tenants in common) to Terry; other real properties distributed; various accounts/assets apportioned between the parties.
- Suzanne challenged the property division, contending unequal distribution, valuation disputes (including business going-concern value vs. asset-by-asset value), and erroneous treatment of the clinic lease option and pre-1997 alimony provisions.
- The court valued and distributed intangible and business assets, including Azzore entities, clinic lease option, OncoPet, and tax-related items, and ordered an adjustment payment to equalize assets.
- Terry cross-appealed arguing alimony amount was excessive given Suzanne’s veterinary license; trial court’s discretion on alimony reviewed de novo with emphasis on need and ability to pay.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether property division was equitable | Suzanne argues remaining assets were not equally divided and seeks remand for full valuation. | Terry contends trial court achieved overall fair division; any discrepancies were not prejudicial. | Division not clearly erroneous; deference to trial court; overall balance deemed equitable. |
| Whether the clinic lease option is a divisible marital asset | Suzanne asserts the option to purchase the leased clinic real estate is marital property. | Terry argues the option is contingent and not subject to division; no contemporaneous value shown. | Court erred in treating it as non-marital, but no prejudice since no value shown at divorce. |
| Whether the Dew Residence acquired before 1997 falls under pre-1997 alimony/property rules | Suzanne contends pre-1997 law limits disposition of the residence; trial court erred. | Terry argues waiver/consent and trial strategy; issue raised late via posttrial motion. | Argument waived due to failure to raise at trial; no abuse of discretion in denying posttrial challenge. |
| Whether the alimony award is reasonable | Suzanne should receive more alimony given need and lack of earnings; cross-appeal challenges amount. | Terry asserts Suzanne can work as a veterinarian; alimony should reflect need and ability to pay. | Alimony upheld given Suzanne's lack of recent employment and need; trial court did not clearly err. |
Key Cases Cited
- Skokos v. Skokos, 332 Ark. 520 (Ark. 1998) (approve fair market value standard for business valuation in divorce)
- Adametz v. Adametz, 85 Ark.App. 401 (Ark. App. 2004) (recognize fair market value approach for businesses)
- Cole v. Cole, 82 Ark.App. 47 (Ark. App. 2003) (use of fair market value for business valuation)
- Crismon v. Crismon, 72 Ark.App. 116 (Ark. App. 2000) (valuation of marital assets including business components)
- Turnbough v. Mammoth Spring Sch. Dist. No. 2, 349 Ark. 341 (Ark. 2002) (statutory interpretation in reviewing trial court decisions)
- Gilliam v. Gilliam, 2010 Ark.App. 137 (Ark. App. 2010) (broad appellate review of property division; deference to trial court)
- Horton v. Horton, 2011 Ark.App. 361 (Ark. App. 2011) (preserve issues raised on appeal and de novo review of legal questions)
- Brown v. Brown, 373 Ark. 333 (Ark. 2008) (predecessor and post-change interpretations of marital residence disposition)
- Creson v. Creson, 53 Ark.App. 41 (Ark. App. 1996) (historical context for property division and tenancy)
- Neel v. Citizens First State Bank of Arkadelphia, 28 Ark.App. 116 (Ark. App. 1989) (permissible post-trial issues and consent-based waivers)
- Winn v. Winn Enters., Ltd. P’ship, 100 Ark.App. 134 (Ark. App. 2007) (going-concern value considerations in asset division)
