50 Mass. App. Ct. 500 | Mass. App. Ct. | 2000
This is an appeal by a husband, David J. Ruml (husband), from a judgment of divorce nisi. We consider this appeal together with the husband’s appeal from two contempt judgments entered during the pendency of the divorce proceedings.
In connection with the divorce judgment, the husband’s primary contention is that the trial judge lacked the power to transfer to the wife all of the corpus and accumulated income in an inter vivas trust, of which the husband is neither a trustee nor beneficiary, because the wife as a former spouse was no longer a beneficiary, and the trustees were not made parties to the divorce action. In connection with the contempt judgments, the husband raises several issues, most notably whether a party may be held in contempt for failing to abide by an order which was sent to his attorney, the knowledge of which was attributed to the husband. We affirm all three judgments of the Probate and Family Court.
1. Background. The judgments appealed from arise out of the following circumstances. The husband and Doriane W. Ruml (wife) were married in Rhode Island on June 27, 1970. By the time of their separation in October, 1994, they had three sons, born on October 30, 1977, October 24, 1981, and May 22, 1990. During the course of the marriage, the husband acquired a master’s degree in business administration and became a successful and affluent businessman. The parties owned their own homes and expensive cars (during these proceedings, the husband drove a BMW and a Porsche); the children attended private schools; and the family belonged to a country club. The
In June, 1992, the parties relocated their primary residence to Holden, where they purchased a home. The husband continued to commute to Ohio. With the youngest of their three children then two years of age, the wife did not resume employment outside the home following that move. Beginning in November, 1992, when he became an executive for a bank in Phoenix, the husband commuted between Massachusetts and Arizona. This arrangement continued until October, 1994, when the husband left his wife and children and moved into a condominium in Scottsdale, Arizona, which he purchased with his sister.
2. The contempt judgments. Two judgments of contempt, both dated September 10, 1996, were entered against the husband on separate complaints for contempt filed by the wife. An evidentiary hearing on both complaints took place on July 19, 1996, and the husband testified and was cross-examined.
a. . Failure to pay child support. On July 21, 1995, a judge of
The trial judge found that since losing his job in November, 1994, the husband had been “selective in his job search as to salary,” further limiting his search to States other than Massachusetts. As of the date of the hearing, the husband was employed by a business he had purchased on May 17, 1996, with his father and sister, paying $15,000 for a thirty-five per cent interest in a partnership that owns a majority interest in that business. At the time of this purchase, the husband gave his $20,000 Porsche to the business.
The funds to purchase the husband’s share of the business came from an account (established before he received the $300,000 severance package) containing $50,000, held by one of his attorneys, which was also the source of $17,000 in legal fee payments, and a $15,000 payment to his father on account of an undocumented loan. The business purchase on May 17, 1996, and the loan repayment on May 16, 1996, took place two and three days prior to the scheduled date of the contempt hearing. From another bank account he withdrew $21,000 to repay several undocumented loans to family and friends; that
On the basis of detailed findings, amply supported by the evidence, the judge concluded that the husband had “financially abandoned his children” while at all times since the July 21, 1995, order he had access to adequate financial resources from which he could have paid his support obligation and provided health insurance. Larson v. Larson, 28 Mass. App. Ct. 338, 340 (1990), S.C., 30 Mass. App. Ct. 418 (1991). See Furtado v. Furtado, 380 Mass. 137 (1980); Bisienere v. Buccino, 36 Mass. App. Ct. 749, 753-754 (1994). There was no error in the trial judge’s refusal to accept at face value the results of the husband’s manipulation of his assets, which he .undertook to appear to be divested of financial resources, hoping thereby to justify his failure to pay support. We affirm the judgment of contempt.
b. Appointment of additional trustees. On April 8, 1996, following the first of six days of trial on the husband’s complaint for divorce (conducted over the course of a year and a half), the parties were heard on the wife’s motion seeking to preclude the husband from taking steps to remove or appoint any trustee of the David J. Ruml Family Irrevocable Trust (family trust) and from exercising any power of appointment with respect to the income or principal of the family trust.
The Probate Court judge determined that the husband had intentionally evaded notification of the court’s April 9, 1996, order and had proceeded to appoint two new trustees on April 11, 1996,
The husband does not claim that the order was unclear, nor does he contest that his steps to appoint the additional trustees would constitute a violation of that order had he known of it. Larson v. Larson, 28 Mass. App. Ct. at 340 (“in order to find a defendant in civil contempt there must be a clear and unequivocal command and an equally clear and undoubted disobedience”). His argument is that he cannot be in held in contempt because he had no actual knowledge of the order at the moment he made the appointments.
The Probate Court judge found that the husband made no effort to contact his attorney after April 8, 1996, to determine the court’s decision on his wife’s motion.
3. The divorce judgment. Although present on April 8, 1996, the first day of the divorce trial, the husband did not take the witness stand on that date, nor did he testify on any subsequent trial days in connection with the divorce. The trial ended on June 4, 1997. The husband’s sole testimony came during the July 19, 1996, hearing on the complaints for contempt. On January 2, 1997, the husband filed a motion for writ of protec
a. Use of transcripts from, the contempt hearing. Having failed to comply with the contempt judgments, the husband argues that he was at risk for arrest if he returned to Massachusetts; because his motion for a writ of protection was denied, he was unable to appear and testify at the divorce proceedings. In lieu thereof, he sought to admit in evidence the transcript of his testimony given at the contempt hearing. We reject the husband’s claim that it was error not to admit the transcript.
Although an exception to the hearsay rule permits the admission of prior recorded testimony by an unavailable witness in certain circumstances,
b. Incorporation of contempt findings. There was no error in the judge’s incorporation of the contempt findings in his divorce findings. Findings of fact made in an initial legal proceeding may, in an appropriate case, be incorporated in a judge’s findings of fact in a subsequent and related proceeding involving the same parties if the earlier findings are relevant and material to the subsequent proceeding. Adoption of Simone, 427 Mass. 34, 43-44 (1998). This is particularly so where, as here, the facts incorporated were not only the product of full litigation but were “essential to the judgment in that action.” Rudow v. Fogel, 376 Mass. 587, 591 (1978). See, e.g., Keller v. O’Brien, 420 Mass. 820, 821 (1995), S.C., 425 Mass. 774 (1997). See also Matter of Keenan, 314 Mass. 544, 548 (1943).
c. Distribution of family trust assets pursuant to G. L. c. 208, § 34. Following the trial, a divorce judgment nisi entered, pursuant to which the husband was granted a divorce. Based on the detailed findings of fact and conclusions of law, in which the Probate Court judge considered all of the relevant factors set forth in G. L. c. 208, § 34, the husband was directed to assign to the wife all of the corpus and accumulated income of the family trust. In addition, the wife was awarded one-half of the value of the husband’s retirement account and pension interests, and the marital home and its contents (the wife was to assume responsibility for the mortgage). The husband was allowed to retain any interest he had in the condominium and the business. The wife was awarded sole legal and physical custody of the children. No child support obligation was imposed upon the husband “at this time”
In his appeal, the husband makes no argument that the disproportionate division of assets ordered by the trial judge is unwarranted on the undisputed facts of this case.
It is well established that trust assets are marital assets subject to distribution pursuant to G. L. c. 208, § 34. Inherited assets, including an interest in trust property established by one spouse’s parents, may comprise part of a marital estate for purposes of possible division Under G. L. c. 208, § 34. Williams v. Massa, 431 Mass. 619, 625 (2000). See Lauricella v. Lauricella, 409 Mass. 211, 214 (1991); Comins v. Comins, 33 Mass. App. Ct. 28, 30-31 (1992). As was stated in Sullivan v. Burkin, 390 Mass. 864, 872 n.6 (1984), “[wjithout suggesting the outer limits of the meaning of the word ‘estate’ under G. L. c. 208, § 34, as applied to trust assets over which a spouse has a general power of appointment at the time of a divorce, after this decision there should be no doubt that the ‘estate’ of such a spouse would include trust assets held in a trust created by the other spouse and having provisions such as the trust in the case before us.” The husband in Sullivan v. Burkin executed a deed
We hold that in light of the broad powers of appointment reserved by the husband in the trust assets, such assets were subject to equitable distribution pursuant to G. L. c. 208, § 34. Cf. State St. Bank & Trust Co. v. Reiser, 7 Mass. App. Ct. 633, 637 (1979). We conclude that the trial judge committed no error when he directed the husband to distribute these assets to the wife. We reject the claims based on the arguments that the trustee(s) have not been made parties to this action and that the wife is not an intended beneficiary of the trust.
d. Other claims. The husband argues that the judge erred
Marital property may not be awarded to children in a divorce proceeding, Johnson v. Johnson, 425 Mass. 693, 694-695 (1997), but an award of property must “consider the present and future needs of the dependent children of the marriage.” G. L. c. 208, § 34, as inserted by St. 1989, c. 559. The wife, as sole legal and physical custodian for the children, is charged with the responsibility to provide for their present and future financial needs. No evidence was presented that the wife had acted in a manner adverse to the best interests of her children or that she would cease to support them following the divorce. To the contrary, the judge found that the wife had nurtured the children and had made every effort to maintain their quality of life despite having, since February, 1996, received no financial support from the husband. The Probate Court judge did not abuse his discretion when he denied the husband’s motion to appoint an attorney or guardian ad litem for the children.
The husband next asserts that the Probate Court judge erred when he ruled that funds which were being held in separate trusts for two of the children and funds which were being held in a bank account for the third child could be used by the wife to pay for living expenses.
The judge correctly concluded that the wife’s expenditures were for the intended beneficiaries’ comfort, support, education, and maintenance, as provided by the trust terms, and as contemplated by G. L. c. 201 A, § 14(a), as inserted by St. 1986, c. 362, § 1 (“[a] custodian may deliver or pay to the minor or expend for the minor’s benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor”), and were proper.
The husband claims that the judge abused his discretion by failing to award the husband his personal property, including clothes, shoes, and diplomas. A judge has broad discretion in dealing with the division of property incident to a divorce, including items of a personal nature. See G. L. c. 208, § 34. In light of the husband’s refusal to come into the Commonwealth for the divorce trial, his failure to maintain contact with his family, and his failure to support his family, the judge’s decision was not plainly wrong.
Judgments affirmed.
In addition, the parties enjoyed access to funds in the David J. Ruml Family Irrevocable Trust (family trust). This trust, which is the subject of the husband’s appeal, was established by him in 1989 with $600,000 which he received from trusts settled by his parents. At the time of the divorce, the trust had funds in the amount of 1.1 million dollars.
He did not live in the condominium with his sister, to whom he paid rent in the amount of $1,200 per month. The Probate Court judge found that “[t]he Husband lives at this location with a woman who makes no financial contributian to its upkeep and whom the Husband described as a person with whom he had a romantic relationship until the summer of 1995 and [who] is now a house guest.”
The wife filed an answer and counterclaim, also seeking a divorce pursuant to G. L. c. 208, § IB. The record does not show any action taken with respect to this counterclaim.
The contempt hearing took place following the commencement, on April 8, 1996, of trial on the husband’s complaint for divorce, which continued on January 6, 1997; March 20, 1997, April 4 and 11, 1997, and June 4, 1997. The husband returned to Arizona after testifying at the contempt hearing on July 19, 1996, and never returned to participate in the divorce trial.
Nor are we precluded from considering findings issued well after the notice of appeal has been filed, as the husband suggests. Even the sixty-day provision in Mass.R.Dom.Rel.P. 52(a) (“[w]here the court enters judgment
These listed assets did not reflect funds in the family trust. See-note 1, supra.
The hearings on the contempt complaints and the divorce complaint were all conducted before the same judge. Because we also uphold the judge’s property division, which he arrived at in part based on the husband’s failure to pay child support, we conclude that, upon the assignment to the wife of all of the principal and accumulated interest in the family trust, the order requiring the husband to pay $27,000 in support arrears shall be satisfied.
As we have previously noted, the husband was the settlor of the family trust, which he established in 1989 for the benefit of his spouse and children. Michael L. Timm, the sole trustee and a mutual friend of the husband and
Pursuant to Article I of the family trust agreement, the power to appoint new trustees “can be exercised by a written, acknowledged instrument placed in the files of the trust.”
We reject the husband’s claim that the judge erred in not finding that the appointment was effective April 8, 1996.
The husband argues that he first learned of the judge’s order on April 15, 1996, during a conversation with Michael Timm, the original trustee of the family trust. Even if we agreed that the husband was not in contempt until he received actual notice of the order, the result in this case would not be
Those circumstances are “where the prior testimony was given by a person, now unavailable, in a proceeding addressed to substantially the same issues as in the current proceeding, with reasonable opportunity and similar motivation on the prior occasion for cross-examination of the declarant by the party against whom the testimony is now being offered.” Commonwealth v. Meech, 380 Mass. 490, 494 (1980). See Commonwealth v. Trigones, 397 Mass. 633, 638 (1986). See also Liacos, Massachusetts Evidence § 8.7, at 489 (7th ed. 1999).
Neither of the contempt judgments included an order for incarceration in the event of the husband’s failure to comply (the provision on each printed judgment form providing for incarceration was lined out). The argument that the husband might, at some future point, have become subject to process for his failure to comply with the contempt judgments, or that a period of incarceration might at some future date be ordered, is speculation. The judge did not abuse his discretion in denying the husband’s motion for a writ of protection. A writ of protection, which is rarely granted, “issues to protect a party from arrest in other suits which have been or may be instituted whereby his attendance while his case is on trial might be greatly embarrassed or wholly prevented.” Ginn v. Almy, 212 Mass. 486, 495-496 (1912) (emphasis added). In Ginn, the court noted that “neither the defendant’s property nor his person were exempt from legal process, by the use of which payment of the amount the plaintiff might recover against him could be secured,” id. at 496,
The judgment provides that such a claim might be made “upon motion.” After entry of a divorce judgment, the mechanism for a change in the orders is via a complaint for modification. G. L. c. 208, § 28, as inserted by St.
Assets in the family trust had, at the time of trial, a value of approximately $1,100,000. The parties also jointly owned the marital home which was valued at $280,000, and encumbered by a mortgage of $187,000. Other assets included the personal property and two cars in the wife’s possession, having a total value of $30,100; the husband’s retirement and pension accounts, having a total value of $179,417; bank accounts in the husband’s name totaling $8,674; the husband’s two cars, having a total value of $38,000 (including the Porsche which he gave to his business); his interest in the condominium, which he purchased with his sister for $235,000, and for which he provided ten per cent of the down payment; and his interest in the business he owns with his sister and father, the value of which could not be determined from the evidence. We note, however, the husband’s testimony that in 1997, the first full year of operation, he anticipated gross business income of $600,000. The husband’s claimed liabilities in the amount of $25,903.68 include legal fees totaling $21,668.68. The wife’s liabilities were found to be approximately $68,266, including $50,000 in legal fees.
Such a claim would have been fruitless. A Probate Court judge has broad discretion to make an equitable distribution of assets, including assets that one party receives by virtue of gift, devise, or trust. Rice v. Rice, 372 Mass. at 400. Williams v. Massa, 431 Mass. at 624. Earle v. Earle, 13 Mass. App. Ct. 1062, 1063 (1982). Davidson v. Davidson, 19 Mass. App. Ct. 364, 372 (1985). The husband was obligated to continue to support his wife of over twenty-five years and their children. The wife, who was forty-eight years old at the time of trial, with no specialized, marketable skills or recent employment history, had sole responsibility for the care, nurturing, support, and education of the three children after the separation, and, during the marriage, had made virtually all of the noneconomic contributions and had contributed to the family all of her modest income when she was employed. She has income needs in excess of $80,000 per year in after tax dollars, exceeding those of the husband. Aside from the equity in the home and her automobile and trust assets, she
The husband relies on Article 11(A) of the family trust agreement, which provides that the trustee “may pay to any one or more then living members of a group consisting of the spouse of Settlor and the issue of Settlor, such net income and principal of the trust as Trustee may determine is necessary for each such person’s health, support, maintenance, or education in the standard of living to which that person has been accustomed.”
Article E(B) of the family trust agreement provides:
“Settlor shall have the following power of appointment with respect to all or any part of the income and/or principal of the trust:
“A special power of appointment in favor of any one or more of a group consisting of charities, the spouse of Settlor, the issue of Settlor, and persons other than Settlor, his creditors[,] Settlor’s estate, and creditors of Settlor’s estate, exercisable from time to time by deed or deeds during Settlor’s life or by will at Settlor’s death. Settlor may appoint outright or in trust, select the trustees, create new powers of appointment in others, establish administrative powers, create life interests or other limited interests in some with future interests in others, create revocable or irrevocable interests, impose lawful conditions on such new powers of appointment, impose lawful spendthrift provisions, and in general appoint in any lawful manner; provided always, however, that no appointment by Settlor shall benefit directly or indirectly one not an object of the power and that nothing herein shall be construed as authorizing him to appoint to himself, his creditors, his estate, or creditors of his estate.”
We also note that the spendthrift clause in the trust agreement does not preclude the distribution of trust assets to the wife. See Lauricella v. Lauricella, 409 Mass. at 216 (husband’s present beneficial interest in trust property, subject to a spendthrift clause, may be distributed pursuant to G. L. c. 208, § 34); Davidson v. Davidson, 19 Mass. App. Ct. at 371-372 (husband’s remainder interest in a trust, subject to a spendthrift clause and the condition of survivorship, was divisible under G. L. c. 208, § 34). In addition, we disagree that the wife is no longer a “spouse” as defined by the trust; the par
The trust for the oldest son was established on December 8, 1978, by the husband’s mother, with the wife designated as the trustee, and the oldest son as the beneficiary. As of March, 1996, this trust had a value of approximately $207,069.
The trust for the middle son was established on September 13, 1982, by the husband’s mother. The wife was the designated trustee, and the named beneficiary was the parties’ middle son. As of March, 1996, this trust had a
Pursuant to the Uniform Transfers to Minors Act, G. L. c. 201A, the wife was the custodian of a bank account at First Manhattan Co. for the parties’ youngest son. As of March, 1996, this account had a value of approximately $77,018.