Lead Opinion
|, Appellant John David Moore (“David”) appeals a decree entered by the Logan County Circuit Court granting appellee Nancy Moore (“Nancy”) a divorce on the ground of general indignities. He argues that the circuit court erred in dividing the growth of his business as a marital asset, awarding Nancy alimony in the amount of $5,000 per month, and considering the division of property and alimony in isolation. We granted the parties’ joint petition for review of the court of appeals’ decision dismissing the appeal because the divorce decree was not a final, appealable order. We hold that the decree is a final order and reverse and remand as to the circuit court’s division of the growth of David’s business and the alimony award for an entry of an order consistent with our findings herein.
The parties, David Moore and Nancy Moore, were married on April 27, 2007. On June 18, 2012, Nancy filed for divorce. David answered and counterclaimed. The parties litigated the appropriate property distribution and alimony issues. Specifically, David ^requested an equal distribution of marital property. Nancy requested that the court also divide and award her half of the growth of David’s company, Moore U.S. Mail Contractor, Inc., which was a nonmarital business. She contended that the growth in value of the business was a marital asset to be divided between the- parties. David also contested the amount of alimony requested by Nancy.
On February 5, 2014, the circuit court entered a divorce decree. In it, the circuit court determined that David owned the company prior to the marriage, and therefore, it was nonmarital property. However, the circuit court found that the company’s increase in value was a marital asset because David spent a substantial amount of time during the marriage working to increase its value. The court also found that the company’s stock value increased as a result of Nancy’s participation in, and contributions to, the company. It concluded that the increase in the business’s value during the marriage was $556,365.05 and awarded Nancy one-half of that amount.
The circuit court also awarded Nancy $5,000 per month in alimony to be paid until she is sixty-five years old. The basis for this award was Nancy’s financial neéd and David’s income, as well as Nancy’s health, education, and prior work experience. Notably, in 2012, Nancy underwent surgery to remove a brain tumor. She and others testified that she had continuing medical complications as a result of the procedure, including short-term memory loss, weakness, difficulties with depth perception, and panic attacks. The circuit court noted that Nancy’s medical condition was the “most significant factor presented in support of her request.”
IsDavid appealed, arguing that the circuit court erred in awarding Nancy one-half of the growth of his business during the marriage and alimony of $5,000 per month until she is sixty-five years old. The court of appeals dismissed the appeal, finding that the divorce decree was not final for purposes of appeal, citing the following paragraph:
Plaintiffs Exhibits 37, 38, and 39 were three separate 'Warranty Deeds (legal description is attached as Exhibit “C”) which described a third tract of real estate .involved in, this case. Those deeds were from different grantors but did not convey all of those grantors’ interest in the same real estate to the Plaintiff and Defendant as tenants by the entirety. The court reduces the parties to tenants in common as to this tract of real estate and orders -the. same sold upon such terms and conditions as to which the. parties may agree. If the parties' are unable to agree upon the terms and conditions of sale after 180 days, then either party is free to petition to thé court to have the same sold by the clerk of this‘court. All proceeds after costs of sale shall be .divided equally between the parties.
Moore v. Moore,
I.Finality
The finality issue in this case is similar to that in Davis v. Davis,
II.Standard of Review
On appeal, divorce cases are reviewed de novo. Skokos v. Skokos,
III.Property Division
For his first point on appeal, David claims that the trial court erred in finding that the increase in value of his business is a marital asset to be equally divided between the parties. David claims the circuit court wrongly interpreted the statute, and we review issues involving statutory interpretation de novo, as it is for this court to determine what a statute means. Dep’t of Human Services v. Howard,
David contends that the growth of a his nonmarital business remained nonmarital property under Arkansas Code Annotated section 9 — 12—315(b)(5) (Repl. 2015) and is not subject to division. He recognizes that this court has carved out an exception to the statute, but contends it was inapplicable to the facts in this case. In support of the property division, the circuit court utilized the “active appreciation” analysis we adopted in Layman v. Layman,
This issue, of property division deals squarely with the interpretation of section 9-12-315. The basic rule of statutory construction is to give effect to the intent of the legislature. Hose v. Ark. State Plant Bd.,
In a divorce action, statutory law requires that all marital property be divided equally to each party, unless the circuit court finds the. division to be inequitable, in which case, the circuit court may make a division that it deems equitable. Ark.Code Ann. § 9-12-315(a). Section 9-12-315(b)(5) defines marital property as “all property acquired by either spouse subsequent to the marriage except ... the increase in value of property acquired prior to marriage_” Thus, under section 9-12 — 315(b)(5) the increase in value of property during a marriage is nonmarital, without exception, and should be returned to the owning party.
In Layman, this court added a caveat to the legislature’s determination that “the increase in value of property acquired pri- or to the marriage” is a nonmarital asset.
More recently, we applied this analysis in Farrell v. Farrell,
Layman and its progeny clearly conflict with the statutory scheme. Our legislature, by enacting section 9-12-315, has defined marital property in ordinary terms and determined how property should be divided among spouses at the time of the divorce. This is a matter of policy with which the legislature, not this court, is almost exclusively tasked. See Hatcher v. Hatcher,
Additionally, some courts have confused the rule in Layman by weighing the efforts of the owning and nonowning spouse when determining whether nonmarital property should be reclassified as marital. See Davis v, Davis,
The dissents ai-gue that stare decisis compels the opposite result. The policy behind stare decisis is to lend predictability and stability in the law. . However, we will overrule | ^precedent “when there has been a palpable error in legal analysis.” Ward v. State,
In this case, it is undisputed that David’s interest- in his company, Moore U.S. Mail Contractor, Inc., was-acquired before his marriage to Nancy. Therefore, it is a nonmarital asset and the circuit court erred by considering it marital property and awarding Nancy. half of the growth of the business. See Ark.Code Ann. § 9-12-315(a)(2).
We recognize that our property-division statute permits the division of non-marital property if the circuit court deems it equitable after taking into consideration several factors, including the following: the length of the marriage; age, health, and station in life of the parties; occupation of the parties; amount and sources of income; vocational skills; employability; estate, liabilities, and needs of each party and opportunity of each for further acquisition of capital assets and income; contribution of each party in acquisition, preservation, or appreciation of marital property, including services as a homemaker; and |10the federal income tax consequences of the court’s division of property. Ark.Code Ann. § '9-12-315(a)(2). In such instances the circuit court must recite its basis and reasons for not returning the nonmarital property. Id.
Here, the circuit court did not make findings under section 9-12-315(a)(2) to justify a distribution of nonmarital property, Instead, the court considered it marital property. For- these reasons, we reverse and remand for the circuit court to enter an order awarding David the growth of his business as his nonmarital property absent a specific statutory finding to justify any distribution to Nancy.
IV. Alimony
David next argues that the circuit court erred in granting Nancy $5,000 per month in alimony until she reaches age sixty-five. The purpose of alimony is to rectify economic imbalance in the earning power .and standard of living of the parties to a divorce in light of the particular facts of each ease. Kuchmas v. Kuchmas,
At the hearing on the divorce petition, Nancy testified to the nature and amount of her income, both current and anticipated. She stated she had graduated from high school-and attended one semester of college. -Prior to-her marriage to David, she worked as an administrative assistant at a bank and had'been offered a position as a loan officer shortly before she began working for David at his mail-delivery business. In 2012, she underwent surgery to remove a brain tumor. Following the surgery, she suffered from ongoing medical problems, which - prevented her from returning to work as an administrative assistant. Several witnesses testified as to their personal observations of Nancy following the surgery.
■ David argues that the alimony award is erroneous because Nancy offered no medical testimony regarding her prognosis and ability to return to the workforce in the future. Because the circuit court undertook the proper analysis after hearing the parties’ testimony and reviewing the evidence, we hold that the alimony award was not an abuse of discretion.
The circuit court concluded that David could afford a sum of $5,000 per month'and considered Nancy’s health’ and medical needs in addition to her education, prior work experience, and other financial needs. The court noted its observations of Nancy during the hearing, including an unanticipated event which caused her to appear to suffer from a panic attack. He found her medical issues to be legitimate. While it considered Nancy’s health to be the most significant factor presented, the court analyzed and weighed all the relevant factors. Despite the short length of the marriage and the exceptional amount of alimony awarded, the circuit court was in the best position to view the parties, and we | ^repeatedly have held that we will not reverse a finding by the' circuit eourt in an equity case unless it was clearly erroneous. Taylor v. Taylor,
V. Property Division and Alimony
Finally, David asserts that the court considered the property division and award for spousal support in isolatioh, and as a result, issued an inequitable award. We cannot find any support in the record for this argument. In setting the amount of alimony, the circuit court fully considered the statutory factors, one of which is the distribution of assets. Appellant even acknowledged in his brief that the decree stated that alimony was determined after considering “the amount of assets [Nancy] is awarded herein.” We find no abuse of discretion.
Reversed and remanded; court of appeals’ opinion vacated.
Brill, C.J., and Wynne, J,, dissent.
Notes
. The dissents contend that this case like Kelly v. Kelly, which also addressed the issue of finality, should be remanded to the court of appeals for reconsideration on the merits.
Concurrence Opinion
concurring in part and dissenting in part.
I ml agree with the majority that the circuit court’s order is final and appeal-able, but I strongly dissent from' the part of the opinion in which the majority decides, sua. sponte, to break from precedent and overrule Layman v. Layman,
“[T]he doctrine of stare decisis is of fundamental importance to the rule of law.” Hilton v. S. Carolina Pub. Rys. Comm’n,
Statutes should receive a consistent and uniform interpretation so that they, shall not be taken to mean' one thing at one time, and a different thing at another time. See Morris v. McLemore,
Nearly three decades ago, this court construed the property-division statute at issue in this case to mean that when one spouse makes significant contributions of time, effort, 114and skill which are directly attributable to the increase in value of nonmarital property, the presumption arises that such increase belongs to the marital estate. Layman,
|1BUnder the separation-of-powers doctrine, the legislature has the power and responsibility to proclaim the law through statutory enactments, and the judiciary has the power and responsibility to interpret legislative enactments. McCutchen v. City of Ft. Smith,
11(¡Finally, I am troubled by the majority’s decision to overrule Layman, Farrell, and Brown because neither party requested that those cases be overruled. Neither party had a quarrel with the rule announced in Layman and followed in Farrell and Brown. Rather, David contended that Farrell was inapplicable because the facts in his case were distinguishable from the facts in Farrell. Nancy contended that Farrell was controlling. Nevertheless, without the aid of briefs and without having been requested to act, this court overrules itself and reverses the circuit court, which properly followed our longstanding precedent.
As a general rule, “[o]ur adversary system is designed around the premise that the parties know what is best for them, and are responsible for advancing the facts and arguments entitling them to relief.” Castro v. United States,
It is clear that the majority disagrees with the rule announced in Layman. But the validity of that rule is not before the court. Judge Richard Arnold wisely stated that courts “do not, or should not, sally forth each day looking for wrongs to right. We wait for cases [17to come to us, and when they do we normally decide only questions presented by the parties.” United States v. Samuels,
Wynne, J., joins.
. Perhaps the most famous example of adherence to statutory precedent is the decision of the Supreme Court of the United States in Flood v. Kuhn,
In 1970, Curt Flood, the All-Star- center-fielder, filed an antitrust suit in federal court challenging the transfer of his contract from the St. Louis Cardinals to the Philadelphia ■Phillies. Even though baseball ■ appeared to be the only professional sport operating interstate that was exempt from antitrust laws, the Court would not alter its longstanding statutory interpretation. The Court opined,
If there is any inconsistency or illogic in all this, it is an inconsistency and illogic of long standing that is to be remedied by the Congress and not by this Court. If we were to act otherwise, we would be withdrawing from the conclusion as to congressional intent made in Toolson and from the concerns as to retrospectivity therein expressed. Under these circumstances, there is merit in consistency even though some might claim that beneath that consistency is a layer of inconsistency.
Flood,
The Court never changed its interpretation of the statute. Congress acted when it passed the Curt Flood Act of 1998, 15 U.S.C. § 26(b), which addresses the application of antitrust laws to the reserve clause of major league baseball.
Dissenting Opinion
dissenting.
We granted a joint petition for review in this case following our court of appeals’s decision dismissing the appeal for lack of a final order. Moore v. Moore,
In his brief, David argues that the facts of the present case distinguish it from Farrell:
Admittedly, on the wording of the standard, Farrell appears to apply to this case and require affirmance of the trial court’s decision. Distinctions between the two cases exist, however, and those distinctions ought to prevent application of the active appreciation analysis here. An examination of the facts in Farrell as compared to the facts in this case demonstrates the distinctions.
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These distinguishing facts remove this case from the exception recognized in Farrell. The trial court failed to take note of any of them within the portion of its decision to order division of the growth of the company. That was error requiring reversal.
As demonstrated above, David does not ask this court to overrule the line of cases that includes Layman and Farrell. This court has been resolute in stating that we will not make a party’s argument for that party or raise an issue sua sponte, unless it involves the circuit court’s subject-matter jurisdiction, which we will raise on our own. Sullivan v. State,
Under the doctrine of stare decisis, we are bound to follow prior case law. Chamberlin v. State Farm, Mut. Auto. Ins. Co.,
Brill, C.J., joins.
