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McCarthy v. McCarthy
2014 ND 234
| N.D. | 2014
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Background

  • Paul McCarthy inherited a one-half remainder interest in 1,642 acres of farmland and a 2.5 acre farmstead with a life estate held by his mother; upon her death, Paul and his brother must pay $60,000 to each of their three sisters as a condition of inheriting.
  • Paul and Carleen McCarthy married in 1998; they have three minor children and lived on the farmstead until separation.
  • Paul is sole shareholder of McCarthy Electric, Inc. with a gross income of $62,459; Carleen is a teacher earning $45,729.
  • In 2012, they stipulated to a partial divorce judgment addressing child issues and primary residential responsibility to Carleen; marital property valued at $936,106.35, with roughly $751,453 tied to Paul’s remainder interest.
  • The district court awarded Carleen a one-quarter interest in Paul’s remainder interest, and offered Paul either to convey a 1/4 share or pay Carleen $125,000; remaining assets were divided accordingly, yielding a substantial disparity.
  • Spousal support was set at a nominal $20 per month with continuing jurisdiction; child support was set at $1,246 per month.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Property division disparity Carleen: buyout creates undue disparity not justified. McCarthy: court weighed speculative value of remainder and premarital aspects under Ruff-Fischer; distribution not clearly erroneous. Not clearly erroneous; district court explained rationale for disparity.
Spousal support propriety Carleen: needs support given health risks and financial uncertainty. McCarthy: support not required beyond nominal amount. Not clearly erroneous; nominal spousal support upheld with potential future modification.

Key Cases Cited

  • Hoverson v. Hoverson, 828 N.W.2d 510 (2013 ND) (clear error standard; Ruff-Fischer factors guide spousal-property decisions)
  • Wold v. Wold, 744 N.W.2d 541 (2008 ND) (long-term marriage; equitable distribution not necessarily equal)
  • Ulsaker v. White, 717 N.W.2d 567 (2006 ND) (Ruff-Fischer factors and marriage duration inform property division)
  • Ruff v. Ruff, 52 N.W.2d 107 (1952 ND) (early Ruff-Fischer framework for property division considerations)
  • Bladow v. Bladow, 665 N.W.2d 724 (2003 ND) (substantial disparity must be explained in property distribution)
  • Linrud v. Linrud, 552 N.W.2d 342 (1996 ND) (need to justify substantial disparities in division)
  • Theis v. Theis, 534 N.W.2d 26 (1995 ND) (permissible to retain jurisdiction for modification in uncertain futures)
  • Duff v. Kearns-Duff, 792 N.W.2d 916 (2010 ND) ( Ruff-Fischer framework for spousal support analysis)
  • Overland v. Overland, 744 N.W.2d 67 (2008 ND) (district court must consider Ruff-Fischer factors and needs/ability to pay)
  • Paulson v. Paulson, 783 N.W.2d 262 (2010 ND) (reaffirmed application of Ruff-Fischer guidelines)
  • Wald v. Wald, 556 N.W.2d 291 (1996 ND) (nominal spousal support appropriate given health-related needs)
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Case Details

Case Name: McCarthy v. McCarthy
Court Name: North Dakota Supreme Court
Date Published: Dec 18, 2014
Citation: 2014 ND 234
Docket Number: 20140044
Court Abbreviation: N.D.