Lead Opinion
Opinion
Thе appeal and cross-appeal at bench involve a dispute arising from the dissolution of marriage and determination of certain property rights of the parties. The pertinent facts leading to the controversy follow: Warren F. Broderick (husband) and Diana L. Broderick (wife) were married on January 17, 1970. They have two children: Ronald, born October 3, 1971, and Sheila, born June 6, 1975.
In October 1973 the parties purchased a family residence located at 701 St. Francis Drive, Petaluma, California. The price of the home was $23,500 which was financed by the spouses by making a down payment of $3,800
On September 8, 1977, wife executed a quitclaim deed transferring all her rights in the home to husband. At that time, the parties had separated and wife planned to move to Arkansas. Husband claimed to have paid wife $4,000 consideration for the quitclaim deed. The deed was prepared at a title company and was signed by wife in the presence of husband, the real estate broker and a notary public. The record indicates wife fully understood the legal consequences of the transaction, i.e., that by signing the deed she would give up all her rights in the family residence.
After the execution of the quitclaim deed and receiving the money therefor, wife left for Arkansas taking the children with her. Approximately 10 months later the parties reconciled and the family reunited in California. During the separation husband lived in the home and he made the monthly loan payments.
In November of 1979 the parties sepаrated again. This time both husband and wife filed their respective petitions for dissolution of marriage in superi- or court. During this second separation, the home was occupied by husband and the children and, just as in the previous separation, the mortgage payments on it were made by husband without contribution from wife.
This separation ended in August 1980 when the spouses reconciled once more. They lived together until September 1985 when they separated for the final time. The evidence is uncontradicted that the mortgage payments on the home were paid with community funds while the parties stayed together between August 1980 and September 1985, but during the final separation lasting from September 1985 to February 1987, the loan payments were made with the separate funds of wife who was allowed to live in the home together with the minor children.
The parties stipulated that on the date of trial the fair market value of the residence was $82,500 with an existing loan balance of $12,000. They further stipulated that at the time wife signed the quitclaim deed the fair market value of the house was $45,000 with a loan balance of approximately $18,000.
Both in her pleading and the evidence presented at trial, wife contended that the family residence was community property and that the quitclaim deed should be set aside. While husband contended that the 1977 quitclaim deed transformed the residence to his separate property, he did concede that wife would be entitled to some community interest in the home pursuant to
The trial court found that the residence constituted husband’s separate property and that under Moore the community interest in the home was $52,593. Simultaneously, the court rejected wife’s claim that the quitclaim deed at issue was invalid. Regarding the issue of whether husband was entitled to rental credit due to wife’s occupancy of the residence after separation, the court ruled that such credit was owed to husband in the amount of $86 per month, which sum was to be deducted from the child support payment. From this judgment both parties appeal.
The primary issues on appeal and on cross-appeal are: (1) whether the residence was properly classified as husband’s separate property; (2) whether the community interest in the home was to be determined under Moore; (3) whether the calculation of the extent of the community interest in the residence was accurate; and (4) whether the trial court erred in reducing the child support payment by the home rental value.
I. The Residence Was the Separate Property of Husband
It is well recognized that a quitclaim deed is a distinct form of conveyance and operates like any other deed inasmuch as it passes whatever title or interest the grantor has in the property. {Howard Homes, Inc. v. Guttman (1961)
The trial court found here that the family residence was the separate property of husband. This finding is supported by the evidence. The record
Wife also claims that the quitclaim deed should have been set aside by the trial court on grounds of: (1) reconciliation of the parties; (2) duress; and (3) inadequate consideration. We find no merit in any of her contentions.
A. The Reconciliation of the Parties Did Not Cancel the Quitclaim Deed
Wife first contends that the quitclaim deed should have been held invalid because following its execution the parties reconciled which ipso facto annulled the deed. {Lamb v. Lamb (1955)
While it has been held that reconciliation and resumption of marital relations may cancel the executory provisions of a property settlement agreement {Tompkins v. Tompkins (1962)
Here the evidence demonstrates that the execution of the quitclaim deed was not in contemplation of divorce; it constituted only a single, isolated property transaction which was not part of a property settlement agreement. Property settlement agreements address a wide range of marital disputes and generally include the division of all the community assets, including the personal property. They usually include the additional issues of child custody and support, spousal support, attorney fees, costs, etc.
But, even were we to assume that the 1977 quitclaim deed was part of a settlement agreement because it was exеcuted in contemplation of separation, wife’s contention still fails. The transfer of the residence was a completed deal (rather than an executory provision of a contract) and wife retained the consideration (i.e., the benefit of the bargain). Furthermore, the record does not establish that by reconciling, the parties intended to abrogate the deed. Although wife testified that following their reconciliation there was some discussion about a reconveyance of her share in the рroperty, husband categorically denied that he had ever made such a promise. Moreover, there was no evidence of the deed’s destruction, or of an execution of reconveyance or of restoration of wife’s control over the property. In light of this evidence we are bound to sustain the trial court’s finding that the reconciliation of the parties did not nullify the quitclaim deed. (Crawford v. Southern Pacific Co. (1935)
We briefly note Lamb, supra, and Morgan, supra, the primary authorities cited by wife, are distinguishable from these circumstances. In both Lamb and Morgan, there was a complete рroperty settlement agreement between the parties which was incorporated in the interlocutory decree of dissolution. In addition, the appellate court in Lamb and Morgan upheld the trial court’s finding of fact that, under the circumstances there present, the reconciliation was intended by the parties to void the property settlement agreement, including the quitclaim deeds executed by the husbands. In contrast herein, the trial court found otherwise, and based upon the record before us we cannot say that such finding is not suрported by sufficient evidence.
Wife next argues that the 1977 quitclaim deed should have been set aside because it was obtained by duress. We disagree.
It is well settled that a contract (or deed) may be set aside for duress only if it was “ ‘ . . obtained by so oppressing a person by threats regarding the safety or liberty of himself, or of his property, or of a member of his family, as to deprive him of the free exercise of his will. . . .” ’ ” (In re Marriage of Gonzalez (1976)
Herein, wife testified that she signed the quitclaim deed because she wanted to leave husband and needed the money. The alleged violence on the part of husband took place a couple of months earlier; at the time of executing the document, husband exerted neither threats nor violence.
Finally, wife claims that the quitclaim deed should have been invalidated on equitable grounds. {In re Marriage of Moore (1980)
Wife’s contention fails, because under well-settled statutory and case law inadequacy of consideration does not defeat the validity of a deed in the absence of fraud. (Civ. Code, § 1040;
In the case herein, the record establishes that husband made no representations regarding the value of the home, nor did he make any promises to wife at the time of signing the deed. Wife understood the meaning and effect of the deed and, in exchange for the agreed upon consideration, she voluntarily transferred her title in the home to husband. Under these circumstances wife has neither legal nor equitable claim to the property which she knowingly and voluntarily parted with in return for a mutually agreed upon sum.
In re Marriage of Moore, supra,
II. The Trial Court Correctly Chose the Moore Formula in Ascertaining the Community Interest in the Family Residence
The second major issue raised is whether the trial court erred in calculating the community interest in the residence under Moore. Husband now argues on appeal that the determination of the community interest should have been adjudicated under In re Marriage of Stoner (1983)
It is settled that where a party by his conduct induces the commission of an error, undеr the doctrine of invited error he is estopped from asserting the alleged error as grounds for reversal. (Abbott v. Cavalli (1931)
The record herein is indisputably clear that in both his pretrial statement and at trial husband conceded that if the residence was found to be his
III. The Calculation of Community Interest in the Home Was Erroneous
Using the Moore formula, the trial court found that the community interest in the residence was 74.6 percent, which equalled $52,593. This finding of the trial court is attacked by both parties. Wife contends that the trial court disregarded several factors in the Moore formula which, if properly applied, would have resulted in a higher percentage of community interest in the property totalling $63,582.69. Husband, on the other hand, claims that the trial court erred in including all the community contributions made between the purchase of the home in February 1973 and the date of trial in February 1987. He maintains that thе contributions made
A quitclaim deed is used when the grantor intends to convey such an interest in the propеrty as he or she has, in contradistinction to other deeds which grant fee or other estate with warranty of title. Under well-settled law, a quitclaim deed passes all the right, title and interest the grantor has in the property at the time of its execution, but it does not pass title or interest acquired by the grantor subsequent thereto. (Howard Homes, Inc. v. Guttman, supra,
It follows from the above discussion that by executing the quitclaim deed on Sеptember 8, 1977, wife transferred to husband all her interest in the home existing at that time which also included the community interest which had accrued up to that point as a result of paying down the loan principal with community funds. It is equally clear, however, that the community contributions made after the execution of the deed and after the parties reconciled, created an after-acquired community interest in the home which was unaffected by the prior quitclaim deed. The conclusion is thus inescapable that while the community contributions made prior to the execution of the quitclaim deed must be disregarded, those community payments to defray the loan principal made thereafter must be included in determining the parties’ community interest in the residence.
In recalculating the community interest in the property the trial court is bound to follow the guidelines set forth in Moore. The controlling
IV. The Reduction of the Child Support Payment Was Correct
The case is remanded to the trial court in order to redetermine the parties’ community interest in the residence consistent with the views expressed herein; in all other respects the judgment is affirmed.
Perley, J., concurred.
Notes
The wife’s testimony reads in part: “Q. Now, with regards to the violence that you had— testified about earlier, there had been no violence between you and Warren [husband] for months prior to the time you signed the quitclaim deed in September of 1977, isn’t that right? [fl] A. Yeah, about two months. [])] Q. At the time that you signed the quitclaim deed, Warren wasn’t threatening yоu, was hel [j|] A. No, he wasn’t holding a stick.” (Italics added.)
The finding in question states: “The Court rejects the argument as the facts fail to prove duress except in the context of wife apparently wanting and needing money because she was leaving for Arkansas. There was no testimony whatsoever that wife feared for her safety at the time of the execution of the deed; nor was there any showing that wife had asked husband for money to go to Arkansas and then was refused. To the contrary, husband apparently sent support money to Arkansas. . . .”
Civil Code section 1040 providеs that “A voluntary transfer is an executed contract, subject to all rules of law concerning contracts in general; except that a consideration is not necessary to its validity.” (Italics added.)
The pertinent parts of the record read as follows: The husband’s pretrial statement: “The major items of conmunity property to be divided by the parties are some interest in the [husband’s] retirement plan and an interest in the [wife’s] retirement fund. [][] Additionally, the [wife] would have some interest in the community residence pursuant to the holding in In re Marriage of Moore.” (Italics added.)
Definition of the issues at trial: “[N]umber threе, if the house is the husband’s separate property, what are the credits that’s [szc] wife’s entitled to under the Moore decision. [][] In other words, we concede that [if] the house is separate property],] she [the wife] does have credits pursuant to the Moore decision.” (Italics added.)
See footnote, ante, page 489.
Concurrence Opinion
I fully concur in parts II, III, and IV, of the lead opinion, and I reluctantly agree in result in part I.
At trial this was obviously a very close case. The evidence showed that at the time of the execution of the quitclaim deed, wife had a tenth grade
When wife signed the deed she understood that she was giving up her interest in the house, but she had no idea what interest (50 percent) she had or what value the house had (some $45,000 minus an existing loan of $18,000). However, husband never misrepresented to her the value of the house; he made no representations whatsoever. Wife never thought to ask about the value of her entitlement to the property: some $13,500.
On appeal the task of the judge is much more limited. On this record, I can find evidence sufficient to support the trial court’s finding that there was no duress or fraud in the transaction. I also agree that the reconciliation by its own force does not nullify the deed especially in light of husband’s testimony, obviously credited by the trier of fact, that the parties did not intend to nullify the deed by their reconciliation. Nevertheless I continue to have serious doubt that this transaction is legally conscionable: a quick three (or four) thousand dollars in exchange for an equity interest having at least triple that value.
Husband believed he paid closer to $4,000; the trial court never resolved that factual dispute.
