In Re the Marriage of Lisa Anne Duffy and Michael J. Duffy Upon the Petition of Lisa Anne Duffy, N/K/A Lisa Anne Morrison, and Concerning Michael J. Duffy
16-1446
| Iowa Ct. App. | Jun 21, 2017Background
- Lisa and Michael Duffy, married 24 years, divorced after children reached adulthood; trial adjudicated property division, spousal support, and attorney fees.
- Michael co‑owned Match Play Tennis Centers (50%) and earned salary plus management fee; Match Play had a buy‑sell stock price but an accountant testified the S‑corp had no net value.
- Lisa has significant health problems and applied for Social Security disability; the administrative award letter issued after trial found disability effective April 13, 2007.
- The district court valued the marital home at $166,400, treated $25,000 from Michael’s mother as a loan (marital debt), and treated Match Play credit‑card balances as marital debt.
- The decree assigned net assets to each party and ordered an equalization payment; the court’s valuation implied Michael owed $74,439.83 but the decree mistakenly recited $69,817.30.
- Trial court awarded Lisa $3,000/month spousal support for 30 months (then step‑downs) and $5,000 in attorney fees; Lisa moved for a new trial based on the post‑trial disability award, which was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Valuation of Match Play | Lisa: court undervalued Match Play; buy‑sell price shows value | Michael: accountant testified S‑corp passes through income and has no independent value | Court: upheld zero valuation as within evidence range (expert testimony controlling) |
| Valuation of marital home | Lisa: home worth more due to improvements and online estimates | Michael: flood damage lowered value | Court: $166,400 (assessor value) is within permissible evidence range |
| Treatment of $25,000 (mother) and corporate credit‑card debt as marital debt | Lisa: funds were gifts / business debt not marital | Michael: testimony and repayments show loan; card used for personal expenses | Court: treated both as marital debt (loan intent proven; card charges converted to marital use) |
| Equalization payment arithmetic error | Lisa: decree’s chart implies $74,439.83 owed; order states $69,817.30 | Michael: contested but later conceded chart amount was intended | Court: modified decree to require $74,439.83 payment (correcting error) |
| Spousal support amount and duration | Lisa: award too small and should continue until death | Michael: court balanced incomes, expenses, and debts | Court: $3,000/month for 30 months (then reductions) is equitable under statutory factors |
| Attorney fees award | Lisa: Michael can pay more; award insufficient | Michael: court considered his ability and obligations | Court: $5,000 award not an abuse of discretion |
| Motion for new trial based on Social Security award | Lisa: disability award was newly discovered and material | Michael: award letter issued after trial; evidence not available at trial | Court: denied new trial—award letter postdated trial and was not "newly discovered" evidence existing at trial |
Key Cases Cited
- In re Marriage of Sullins, 715 N.W.2d 242 (Iowa 2006) (marital debts may be allocated to one spouse if overall distribution remains equitable)
- In re Marriage of McDermott, 827 N.W.2d 671 (Iowa 2013) (equitable distribution framework; equality often appropriate)
- In re Marriage of Hansen, 733 N.W.2d 683 (Iowa 2007) (factors for property division and spousal support analysis)
- In re Marriage of Schenkelberg, 824 N.W.2d 481 (Iowa 2012) (review standards for spousal support and dissolution appeals)
- In re Marriage of Vrban, 359 N.W.2d 420 (Iowa 1984) (intra‑family loans treated as marital debt when evidence shows intent to repay)
- Benson v. Richardson, 537 N.W.2d 748 (Iowa 1995) (standards for newly discovered evidence and new trial motions)
- In re Marriage of Willcoxson, 250 N.W.2d 425 (Iowa 1977) (trial courts’ discretion in fixing attorneys’ fees)