Gregory Allen Willis v. Laura Ellen Rankin
2021 CA 000579
| Ky. Ct. App. | Apr 7, 2022Background
- Gregory Willis (appellant) and Laura Rankin (appellee) married in 2016; they separated in 2019 and Laura filed for dissolution in July 2019.
- Laura produced recorded deeds showing she purchased three tracts comprising 1053 Oak Hill Road in 1993, 2002, and 2009—each acquired and paid for before the marriage.
- After the marriage, one tract (40.0016 acres) was sold for $60,000; Laura deposited $28,000 of the proceeds into the parties’ joint checking account along with proceeds from the sale of Gregory’s nonmarital real estate.
- Laura conveyed the remaining Oak Hill Road tracts into the Feltner and Willis Revocable Family Trust naming both as trustees; Laura testified this was for estate planning, Gregory said it was part of a bargain.
- Gregory testified he spent nonmarital funds on fencing, gravel, an enclosed porch, and awnings but produced no receipts or proof that the work increased the property’s value; Laura’s appraiser testified any increase was nominal.
- The family court classified Oak Hill Road as Laura’s nonmarital property; Gregory appealed, arguing mischaracterization and failure to account for his nonmarital contribution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Characterization of Oak Hill Road property (marital vs. nonmarital) | Laura: property was nonmarital—acquired and paid for pre-marriage; deeds introduced | Gregory: property became marital by postmarriage actions (trust title, joint account deposits, improvements) | Court: Affirmed nonmarital; deeds and pre-marriage purchases control; no rebuttal of KRS 403.190 presumption |
| Effect of placing property in a revocable trust / joint trusteeship (transmutation) | Laura: transfer to trust for estate planning did not change character | Gregory: adding his name/placing in trust evidence of intent or bargain to make it marital | Court: Rejected transmutation; followed Sexton—joint title/ trust alone does not transmute nonmarital property |
| Tracing and credit for nonmarital funds used for improvements | Laura: Gregory failed to trace funds or prove increase in value from his expenditures | Gregory: he funded improvements (fencing, gravel, porch, awnings) from nonmarital proceeds and should get credit | Court: Gregory failed to produce documentation or proof of increased value; improvements were nominal; no nonmarital interest found |
Key Cases Cited
- Sexton v. Sexton, 125 S.W.3d 258 (Ky. 2004) (rejects transmutation by joint title and applies source-of-funds tracing rule)
- Barber v. Bradley, 505 S.W.3d 749 (Ky. 2016) (nonmarital funds can become marital by gift/agreement; applies O’Neill factors)
- Jones v. Livesay, 551 S.W.3d 47 (Ky. Ct. App. 2018) (tracing nonmarital funds to postmarriage improvements can yield a nonmarital award if increase in value is shown)
- Mullins v. Picklesimer, 317 S.W.3d 569 (Ky. 2010) (standard for substantial-evidence review of family-court findings)
- O’Neill v. O’Neill, 600 S.W.2d 493 (Ky. Ct. App. 1980) (factors for determining whether nonmarital funds were gifted into marital estate)