In re Marriage of Vondra
2016 IL App (1st) 150793
Ill. App. Ct.2016Background
- Parties married in 1988; two children (emancipated). Petitioner (David) filed for dissolution; trial court entered final judgment Feb. 17, 2015; appeal by respondent Mika.
- Marital residence (703 Nichols Rd.) appraised at $480,000 with small mortgage at trial; respondent paid down the mortgage during the marriage using large nonmarital inheritances and gifts (the “Sabadaszka gift” ~$200,000 and “Ganzert” funds ~$167,000), totaling about $253,000.
- Respondent also placed funds into a jointly named CD (American Enterprise CD No. 6714, ~$144,706) that she later cashed and deposited into her account, and maintained a premarital Madison Avenue IRA (No. 6863) with postmarital contributions.
- At trial the court found the Sabadaszka and Ganzert funds were nonmarital in origin but concluded they were transmuted into marital property when used to pay down the jointly held marital mortgage; reimbursement claim denied.
- The court held the 6714 CD was marital because it was issued in both parties’ names and respondent failed to rebut the resulting presumption of a gift; the parties’ Madison Avenue IRAs were treated as marital by stipulation (record for stipulation not supplied on appeal).
- Appeal issues: entitlement to reimbursement of $253,000; classification of the 6714 CD and respondent’s Madison Avenue IRA as marital property. The appellate court affirmed.
Issues
| Issue | Plaintiff's Argument (Petitioner) | Defendant's Argument (Respondent) | Held |
|---|---|---|---|
| Whether respondent is entitled to reimbursement for $253,000 of nonmarital funds used to pay down the marital mortgage | The payments transmuted into marital property; no reimbursement | Funds were nonmarital (inheritance/gift) and traceable; used as conduit, so reimbursement owed | Denied — court found transmutation occurred and presumption of gift not rebutted |
| Whether the 6714 CD is marital property | Jointly titled CD creates presumption of gift to marital estate | Funds used to buy CD came from respondent’s nonmarital trust; no gift intended | Affirmed — joint title raised presumption of marital property; presumption not rebutted |
| Whether respondent’s Madison Avenue IRA (No. 6863) is marital despite premarital origin | Parties stipulated IRAs are marital; court treated them as marital | IRA was acquired premarriage and not distributed; no valid stipulation in record | Affirmed — appellate presumes trial court’s order and any stipulation exist where appellant fails to provide record |
| Whether proceeds from the 6714 CD “no longer exist” bars court’s distribution | N/A (argued by respondent on appeal) | Court improperly distributed nonexistent proceeds | Waived/forfeited — appellant failed to brief properly; argument rejected |
Key Cases Cited
- In re Marriage of Benz, 165 Ill. App. 3d 273 (Ill. App. Ct. 1988) (placement of nonmarital property into joint ownership raises presumption of gift to marital estate)
- In re Marriage of Durante, 201 Ill. App. 3d 376 (Ill. App. Ct. 1990) (use of nonmarital funds to purchase jointly titled residence creates rebuttable presumption of transmutation)
- In re Marriage of Hacker, 239 Ill. App. 3d 658 (Ill. App. Ct. 1992) (mere testimony of nonintent to gift insufficient to overcome transmutation presumption)
- In re Marriage of Heroy, 385 Ill. App. 3d 640 (Ill. App. Ct. 2008) (distinguishes conduit-use of joint account to purchase nonmarital property from use that creates ownership in marital property)
- In re Marriage of Blunda, 299 Ill. App. 3d 855 (Ill. App. Ct. 1998) (appellate review standard: classification of property will not be disturbed unless against manifest weight of the evidence)
- Charter Bank & Trust v. Edward Hines Lumber Co., 233 Ill. App. 3d 574 (Ill. App. Ct. 1992) (party cannot dispute on appeal matters to which he stipulated)
- Salazar v. Wiley Sanders Trucking Co., 216 Ill. App. 3d 863 (Ill. App. Ct. 1991) (appellant must present complete record on appeal; absent record, court presumes trial court’s judgment conforms to law)
