Edwards v. EdwardsÂ, 251 N.C. App. 549

Background

Allen G. Edwards (Husband) and Christine L. Edwards (Wife) divorced after separating in 2012; one child (Brandon) was added as a third-party defendant below but is not part of this appeal.
Dispute concerns equitable distribution of two real properties (St. Mary Church Road and Pointer Lane) and the rental value of those properties during ~36 months of separation.
Trial court found net fair market values: St. Mary Church Road $193,195; Pointer Lane $109,439.
Trial court found Husband exclusively possessed both properties during separation and imputed total fair-market rental value of $72,000 for the 36 months ($2,000/month), distributing those amounts to Husband.
Husband appealed valuation and rental-value calculations; Wife introduced county ad valorem tax records for St. Mary property and Husband offered an appraiser valuing it much lower.
Parties concede actual gross rent received by Husband for St. Mary during separation was $15,200 and Husband claims $6,833 in upkeep expenses; parties disagree or present conflicting testimony about rent received for Pointer Lane.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether trial court abused discretion by using county tax value to set St. Mary Church Rd fair market value	Edwards argued tax value is incompetent evidence for market value and should not have been used	Wife introduced tax records and Husband did not object at trial	Court affirmed: tax valuation generally incompetent but admissible if not objected to; trial court may consider it
Whether rental value imputed by court for St. Mary Church Rd during separation was supported by competent evidence	Edwards argued the imputed $1,200/mo (total $43,200) lacked competent support; actual rent received should control	Wife conceded actual rent received should be used	Court reversed and remanded: use actual rent received ($15,200) minus allowable upkeep expenses; remand to quantify expenses
Whether rental value imputed by court for Pointer Lane during separation was supported by competent evidence	Edwards argued imputed $800/mo (total $28,800) was unsupported where son occupied the property and contradictory testimony exists about payments	Wife conceded the imputed amount was inappropriate and actual rent received should control	Court reversed and remanded: trial court must determine actual rent received (if any), subtract allowable expenses, and make findings; may receive additional evidence
Whether trial court may reconsider distribution after revaluation on remand	Edwards sought correction of divisible-property valuation only	Wife did not oppose revaluation/remand; court retained discretion on redistribution	Court instructed trial court on remand to re-value rental proceeds and then may redistribute marital/divisible property to achieve equitable distribution

Key Cases Cited

Fitzgerald v. Fitzgerald, 161 N.C. App. 414 (2003) (trial court determines net fair market value in equitable distribution and factual findings are conclusive if supported by competent evidence)
Davis v. Davis, 360 N.C. 518 (2006) (marital property valued as of date of separation)
Star Mfg. Co. v. Atlantic Coast Line R.R., 222 N.C. 330 (1942) (ad valorem tax records are not competent to establish market value)
Bunn v. Harris, 216 N.C. 366 (1940) (assessor valuations for taxation differ from actual market value)
Cardwell v. Mebane, 68 N.C. 485 (1873) (tax lists not competent evidence of land value)
Quick v. United Ben. Life Ins. Co., 287 N.C. 47 (1975) (evidence admitted without objection may be considered for its probative value)
Reeves v. Hill, 272 N.C. 352 (1971) (evidence received without timely objection can be considered even if incompetent)
Mrozek v. Mrozek, 129 N.C. App. 43 (1998) (conflicting evidence does not justify reversal where findings are supported by competent evidence)
Clay v. Monroe, 189 N.C. App. 482 (2008) (recognizes use of ad valorem tax value as evidence, though Supreme Court precedent controls)