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In Re the Marriage of Gary E. Erlandson and Susan Kay Erlandson Upon the Petition of Gary E. Erlandson, and Concerning Susan Kay Erlandson
16-0989
| Iowa Ct. App. | Aug 2, 2017
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Background

  • Gary and Susan Erlandson married in 2001, separated around 2010, and executed a written "Stipulation for Separation" that the district court approved in a "decree for separation."
  • The stipulation awarded Susan the marital home (she assumed the mortgage), assigned Gary responsibility for a $23,000 home equity loan, and addressed pension/retirement accounts in ambiguous language.
  • The stipulation contained a "complete settlement" clause and a paragraph stating the stipulation would remain in effect if the parties later filed for dissolution.
  • The parties reconciled for several years but kept separate finances; Gary later filed for dissolution in 2016.
  • At dissolution, the district court: (1) ratified the separation decree dispositions (home and loan), (2) awarded Susan one-half of Gary’s military pension using the Benson formula, and (3) ordered temporary spousal support of $400/month until December 31, 2018.
  • Gary appealed, arguing the property division (home, pensions, loan) and the spousal-support award were inequitable and that the court exceeded the separation stipulation by applying Benson; Susan sought appellate fees.

Issues

Issue Plaintiff's Argument (Gary) Defendant's Argument (Susan) Held
Whether the separation stipulation controls property distribution in the dissolution Stipulation is inequitable; court must equitably divide marital property at dissolution Stipulation is binding; Gary cannot collaterally attack or modify the agreed division Stipulation controlled; court properly enforced its terms for the home and loan
Proper division of pensions and whether Benson formula could be applied Pension division ambiguous; if stipulation fixed value at separation date, Susan gets less; Benson addition was improper Stipulation awarded Susan one-half of Gary’s pension; Benson merely implements that share Court correctly interpreted stipulation as giving Susan her own pensions and one-half of Gary’s; Benson application to set timing/method was permissible
Whether Susan's failure to cross-appeal the Benson reference bars her argument Cross-appeal required to contest method Argument that interpreting stipulation is responsive defense to Gary’s appeal; cross-appeal not required here Failure to cross-appeal did not preclude Susan defending the stipulation’s meaning; she could respond to Gary’s appeal
Whether the dissolution court could award spousal support despite "complete settlement" clause No alimony needed because parties handled finances separately since separation; clause precludes later spousal support "Complete settlement" does not override public policy allowing spousal support; statute permits support in separate maintenance contexts "Complete settlement" language did not bar spousal support; temporary $400/month award was equitable and affirmed

Key Cases Cited

  • In re Estate of Whalen, 827 N.W.2d 184 (Iowa 2013) (statutory separate maintenance permits division of property analogous to dissolution)
  • In re Estate of Carlisle, 653 N.W.2d 368 (Iowa 2002) (discussing effect of separation decrees and property adjudication)
  • In re Marriage of Kurtz, 199 N.W.2d 312 (Iowa 1972) (distinguishing common-law and statutory separate maintenance decrees)
  • In re Marriage of Benson, 545 N.W.2d 252 (Iowa 1996) (method/formula for dividing military retirement pay)
  • In re Marriage of Anliker, 694 N.W.2d 535 (Iowa 2005) (appellate deference and standards for spousal support determinations)
  • In re Marriage of Berning, 745 N.W.2d 90 (Iowa Ct. App. 2007) (discretionary nature of appellate attorney fee awards)
  • Hussemann ex rel. Ritter v. Hussemann, 847 N.W.2d 219 (Iowa 2014) (limits on enforcing postnuptial agreements affecting elective shares)
  • In re Marriage of Shanks, 758 N.W.2d 506 (Iowa 2008) (distinguishing standards for premarital/postnuptial agreement enforcement)
Read the full case

Case Details

Case Name: In Re the Marriage of Gary E. Erlandson and Susan Kay Erlandson Upon the Petition of Gary E. Erlandson, and Concerning Susan Kay Erlandson
Court Name: Court of Appeals of Iowa
Date Published: Aug 2, 2017
Docket Number: 16-0989
Court Abbreviation: Iowa Ct. App.