871 N.W.2d 570
Neb. Ct. App.2015Background
- Craig and Chrissie Wiech married in 2008, separated in September 2013, and Chrissie filed for dissolution in October 2013; no children were born of the marriage.
- Trial occurred in May 2014; decree issued August 5, 2014, awarding Chrissie the marital home (subject to mortgage), personal property, and a lump-sum payment from Craig’s pension representing marital portions of pension, sick, and vacation/comp time; Craig received a motorcycle and was assigned certain debts.
- Craig appealed, challenging classification, valuation, and division of marital property (pension valuation date; treatment and division of accrued sick, vacation, and comp time; valuation/equity in marital residence; allocation of 2013 tax liabilities; and offsets for premarital debts).
- The district court valued multiple assets as of early 2014 (mortgage balance May 1, vehicle liens March 31, pension statement March 2014, sick/vacation as of May 3) and used March 2014 for pension valuation.
- Collective bargaining agreement entitled Craig to cash payouts for certain unused leave upon separation/retirement; the trial court treated sick, vacation, and comp time as marital property and awarded Chrissie specified dollar shares (but awarded full marital portion of sick leave to Chrissie).
- The trial court did not assign specific equity values to the marital residence, did not divide the 2013 tax liabilities, and did not offset premarital debts paid down during the marriage.
Issues
| Issue | Plaintiff's Argument (Chrissie) | Defendant's Argument (Craig) | Held |
|---|---|---|---|
| Proper valuation date for pension | Early 2014 statements reflect marital estate; March 2014 valuation is appropriate | March 2014 has no rational relation to separation; should be Sept 2013 | Court: March 2014 valuation not abuse of discretion; valuation date may be tied to trial timing |
| Are accrued sick, vacation, and comp time marital property? | These are deferred compensation/payable under contract and thus marital property | Same issue contested; Craig argued they should not be marital property or treated differently | Court: Where collective bargaining agreement gives a cash right, such leave is deferred compensation and part of marital estate |
| Division of accrued sick, vacation, and comp time | Chrissie awarded specific dollar shares including full marital sick-leave amount | Craig argued only an equitable share should be awarded | Court: Classification affirmed; awards for vacation and comp time affirmed; but awarding entire marital portion of sick leave to Chrissie was error—remand to equitably divide marital sick-leave portion |
| Valuation/equity assignment for marital residence | Home awarded to Chrissie; assessor value and mortgage provided; commission speculative | Craig argued failure to value equity was error | Court: Failure to calculate and assign equity was error; remand to compute equity (value minus mortgage) and assign to a party |
| 2013 tax liabilities allocation | Chrissie owed smaller amount; tax liabilities arising during marriage should be marital debt | Craig argued not his sole responsibility despite withholding choices | Court: Income tax liability incurred during marriage is generally marital debt; remand to equitably divide ~$6,800 tax liabilities |
| Offsets for premarital debt paid with marital funds | Chrissie paid premarital bankruptcy obligation during marriage; no offset made | Craig had premarital debt as well not offset | Court: Payments of premarital debts with marital funds require offset; remand to reduce Chrissie’s share by $56,400 and Craig’s by $3,549.95 and then equitably divide estate |
Key Cases Cited
- Pohlmann v. Pohlmann, 20 Neb. App. 290 (valuation date must be rationally related to marital property)
- Blaine v. Blaine, 275 Neb. 87 (use of a specific, consistent valuation date permits equitable allocation)
- Millatmal v. Millatmal, 272 Neb. 452 (one-third to one-half of marital estate guideline; fairness and reasonableness govern division)
- Fisher v. PayFlex Systems USA, 285 Neb. 808 (vacation pay classified as additional wages/deferred compensation)
- Wadkins v. Lecuona, 274 Neb. 352 (comp time payments identified as deferred compensation)
- Davidson v. Davidson, 254 Neb. 656 (marital estate includes property accumulated during marriage; unvested retirement interests included)
- Walker v. Walker, 9 Neb. App. 694 (to deduct real estate commission, proponent must show sale is imminent or likely and establish commission amount)
- Meints v. Meints, 258 Neb. 1017 (income tax liability during marriage generally treated as marital debt)
- Gangwish v. Gangwish, 267 Neb. 901 (premarital debt paid with marital funds should offset spouse’s share)