Lori Anne Yattoni-Prestwood v. John Stewart Prestwood
2012 Tenn. App. LEXIS 602
| Tenn. Ct. App. | 2012Background
- Marriage in July 2008; brief duration with no marital assets, but substantial debt incurred by both.
- Pre-marriage Intermont loan refinanced 10 days before marriage; Wife co-signed; proceeds largely used for Husband’s benefit; debt largely non-marital.
- During marriage Wife paid various expenditures for Husband from her funds; trial court treated these as gifts and Wife’s separate debts.
- Bankruptcy discharge of Husband’s debts occurred after trial; Bank pursued a deficiency against Wife.
- Trial court division: parties retain their separate property and pay own liabilities; later denied Wife’s attorney’s fees; Wife appeals.
- This Court, on modification, orders equal division of marital debt and alimony in solido to Wife totaling $69,350, including $15,000 for Intermont loan and $54,350 split of remaining marital debt; awards trial and appellate attorney’s fees as alimony in solido; remands for fee awards and enforcement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper classification and allocation of marital debt | Wife argues debts were gifts and should be Wife’s separate debt. | Husband contends expenditures were gifts or separate obligations. | Equities favor equal division; debts are marital and Wife to receive alimony in solido totaling $69,350. |
| Attorney’s fees at trial | Wife entitled to attorney’s fees ordered by the court. | Trial court’s denial was appropriate. | Trial court erred; remand to award fees as alimony in solido. |
| Attorney’s fees on appeal | Wife should recover appellate fees as alimony in solido. | Appellate fees awarded as alimony in solido; remand to set amounts. | |
| Effect of Husband’s bankruptcy discharge on debt distribution | Bankruptcy discharge does not bar equitable distribution of marital debt. | Court may impose nondischargeable obligations; allowed to award alimony in solido to Wife. |
Key Cases Cited
- Batson v. Batson, 769 S.W.2d 849 (Tenn. Ct. App. 1988) (equitable distribution principles in short marriages)
- Alford v. Alford, 120 S.W.3d 810 (Tenn. 2003) (four-factor framework for debt distribution)
- Morton v. Morton, 182 S.W.3d 821 (Tenn. Ct. App. 2005) (overall fairness in dividing marital estate)
- King v. King, 986 S.W.2d 216 (Tenn. Ct. App. 1998) (guidance on equitable division of marital property)
- Wright v. City of Knoxville, 898 S.W.2d 177 (Tenn. 1995) (standard of review in dissolution proceedings)