2013 Ohio 5894
Ohio Ct. App.2013Background
- Jan Shrader and Jacqueline Henke-Shrader executed an agreed divorce decree allocating the family home (433 Bank Ave., St. Bernard) to Wife, who would continue to reside there and assume the mortgage.
- Both parties were class members in a suit against the City of St. Bernard for land contamination; the decree addressed possible settlement proceeds.
- The decree’s handwritten provisions stated the city would either purchase the property or pay off the existing mortgage; "if there is an amount paid above the mortgage" any excess would be divided equally, with Wife credited for principal reductions since May 2011.
- The city issued a cash settlement (installments totaling ≈ $128,000) that was apparently less than the mortgage amount. Husband directed the class attorney to split proceeds equally; Wife requested proceeds be paid to the mortgage lender.
- Both filed contempt motions alleging improper distribution; the magistrate denied contempt for both (unclean hands) but ruled the settlement should be applied first to the mortgage, with any remainder divided equally, subject to Wife curing arrearages; the trial court adopted the magistrate’s decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the divorce decree requires equal division of a post-decree cash settlement from the class action | Shrader: the cash settlement should be divided equally between Husband and Wife | Henke-Shrader: the settlement must be applied to pay the mortgage on the property before any division | Court: the decree expresses parties’ intent that the mortgage be paid first; only any surplus is divided equally |
Key Cases Cited
- Kelly v. Med. Life Ins. Co., 31 Ohio St.3d 130 (1987) (presumption that parties’ intent is embodied in the contract language; contract interpretation governs agreed divorce decrees)