KYLEE J. SANDUSKY, Appellee, υ. GEORGE A. SANDUSKY, Appellant.
No. 20160131-CA
THE UTAH COURT OF APPEALS
Filed February 23, 2018
2018 UT App 34
JUDGE JILL M. POHLMAN authored this Opinion, in which JUDGES GREGORY K. ORME and DAVID N. MORTENSEN concurred.
Third District Court, Silver Summit Department. The Honorable Kara L. Pettit. No. 114500103. Elizabeth A. Shaffer, Attorney for Appellant. Paul J. Morken and Frank D. Mylar, Attorneys for Appellee.
¶1 George A. Sandusky and Kylee J. Sandusky had been married for more than twenty-three years when they entered into a separation agreement in early 2010 (the Separation Agreement). After approximately sixteen months during which the parties complied with the terms of that agreement, Kylee petitioned for divorce.1 Following a trial, the court entered a decree of divorce that largely adopted and enforced the terms of
I. Motion to Bifurcate
¶2 George first contends that the trial court abused its discretion in refusing to bifurcate the trial. In particular, he asserts that the issue of “the validity of the Separation Agreement was clearly separable” and should have been tried first and apart from the issues regarding “the asset determination and distribution of marital and separate property.”
¶3
¶4 George moved for bifurcation before trial, asking the court to “bifurcate proceedings related to the validity and enforceability” of the Separation Agreement and requesting that all other issues, including alimony and property distribution, be reserved for trial. In support, George asserted that “[o]nce the issue of the validity of the [Separation] Agreement is decided, there is a greater likelihood the other issues . . . would be able to be mediated without the need for litigation” and that therefore bifurcation “would serve both the interests of convenience and judicial economy and impose no prejudice to either party.” Kylee opposed bifurcation, arguing that all the issues in the case, including the validity of the Separation Agreement, were “completely intertwined.” She asserted that “[b]ifurcation would not help” the parties mediate their dispute and that, instead of avoiding prejudice, bifurcation “would be highly inconvenient and prejudicial.” The trial court denied George‘s motion.
¶5 On appeal, George has not shown that the trial court‘s decision fell outside the bounds of its discretion. In the arguments before the trial court, George and Kylee sharply disagreed both about whether the issue of the Separation Agreement‘s validity was “a separate issue” and whether bifurcation would be convenient and avoid prejudice. See
II. Property Distribution and Alimony
¶6 George raises a number of arguments on appeal regarding property distribution and alimony. He asserts that “the decision of the trial court does not conform with the Separation Agreement, prior Utah precedent or any notion of equity.”
¶7 “Generally, district courts have considerable discretion concerning property distribution in a divorce proceeding and their determinations enjoy a presumption of validity.” Dahl v. Dahl, 2015 UT 79, ¶ 119 (citation and internal quotation marks omitted). We therefore will uphold the trial court‘s decision on appeal “unless a clear and prejudicial abuse of discretion is demonstrated.” Id. (citation and internal quotation marks omitted). We similarly “review a district court‘s alimony determination for an abuse of discretion” and will not disturb its alimony ruling “as long as the court exercises its discretion within the bounds and under the standards [set by Utah appellate courts] and has supported its decision with adequate findings and conclusions.” Id. ¶ 84 (citation and internal quotation marks omitted). In reviewing the trial court‘s decisions, “we will not set aside findings of fact, whether based on oral or documentary evidence, unless they are clearly erroneous, and we give due regard to the district court‘s superior position from which to judge the credibility of witnesses.” See id. ¶ 121.
¶8 To provide context for George‘s arguments, we begin with a brief summary of the terms of the Separation Agreement and the trial court‘s findings regarding its enforceability. We then turn to George‘s specific contentions regarding property division and alimony. Last, we consider his contention that the trial court‘s divorce decree produced an inequitable result.
A. The Separation Agreement
¶9 George and Kylee executed the Separation Agreement in February 2010 when they were living apart and approximately sixteen months before Kylee filed for divorce. The parties entered the Separation Agreement “to confirm their separation” and to settle “their property rights and other rights, responsibilities, and obligations growing out of their marital relationship.” The parties agreed that division of marital property as set forth in the Separation Agreement‘s provisions was “fair, reasonable and equitable,” and they agreed that the Separation Agreement would “be binding on the parties.” The parties also agreed that the Separation Agreement would be incorporated into any court order or divorce decree.
¶10 The trial court determined that the Separation Agreement was a valid and binding contract—a determination neither party contests on appeal. Because the Separation Agreement was enforceable, the trial court gave it “great weight,” but the court also “assess[ed] whether its terms [were] fair and equitable.” See Pearson v. Pearson, 561 P.2d 1080, 1082 (Utah 1977) (“The court need not necessarily abide by the terms of the [litigants‘] stipulations, and, although such should be respected and given great weight, the court is not duty bound to carry over the terms thereof.” (footnote omitted)); see also Reese v. Reese, 1999 UT 75, ¶ 25, 984 P.2d 987 (“[T]he general principle derived from our case law is that spouses . . . may make binding contracts with each other and arrange their affairs as they see fit, insofar as the negotiations are conducted in good faith . . . and do not
B. Property Division
¶11 George now contends that the property “distribution made by the Court was not consistent with the Separation Agreement and was inequitable.” Although he acknowledges that, in his words, “a property settlement agreement is not binding upon the trial court in a divorce action,” he asserts that “the property division agreed to by the parties should not have been disturbed.”
¶12 “[T]he overarching aim of a property division, and of the decree of which it and the alimony award are subsidiary parts, is to achieve a fair, just, and equitable result between the parties.” Dahl v. Dahl, 2015 UT 79, ¶ 25 (citation and internal quotation marks omitted); see also
1. The Financial Accounts
¶13 George challenges the trial court‘s distribution of the couple‘s financial accounts, attacking the court‘s interpretation of the Separation Agreement and asserting that the court “erred in determining that the bank accounts were not sufficiently identified to justify deeming them marital property.” In George‘s view, the Separation Agreement “was not sufficiently ambiguous as to warrant the court‘s re-disposition of property already agreed-upon by the parties.” In the alternative, he contends that even if the Separation Agreement‘s provision regarding the checking and savings accounts was unenforceable, the trial court nevertheless should have treated one particular checking account (the #400 account) as his separate property and should have awarded that account solely to him.
¶14 The Separation Agreement has a section identifying and assigning separate property to George and Kylee. It states that Kylee is entitled to the following separate property: “All home furnishings, computers, tvs, jewelry, and Honda 2007 Civic, checking and savings accounts, and 401K.” It states that George is entitled to the following separate property: “Honda Ridgeline 2007 truck, checking and savings accounts and retirement pension.” The Separation Agreement does not identify which of the parties’ several checking and savings accounts each spouse would receive. At trial, George took the position that the parties’ intent was for the majority of the accounts to be considered his
¶15 The trial court ultimately ordered the parties to split their checking and savings accounts equally. The court reasoned that because the parties “had numerous accounts many of which were in both of their names,” the Separation Agreement‘s provision regarding the checking and savings accounts was not specific enough to be enforced. The court questioned whether the parties had reached a meeting of the minds concerning how to divide the financial accounts and also stated that the “lack of identification of any particular accounts renders this provision ambiguous.” See generally Lyngle v. Lyngle, 831 P.2d 1027, 1029 (Utah Ct. App. 1992) (“A document is ambiguous if it is subject to two plausible constructions, or its terms are so incomplete they create confusion as to its meaning.” (citation and internal quotation marks omitted)).
¶16 Based on the evidence presented, the court also found that the financial accounts were “acquired during the marriage and contain commingled funds“; that no accounts were “obviously the separate property of either [Kylee] or [George]“; and that “all of the parties’ checking and savings accounts are marital property.” The trial court thus concluded,
In light of the parties’ vastly opposed positions on their intent, and the fact that the Court has determined that the financial accounts are all marital property, the Court determines the most
fair and equitable approach, as well as the presumption under Utah law, is to split all of the financial accounts equally between the parties.
¶17 George has not demonstrated that the trial court erred in so concluding. To adequately brief an issue, an appellant‘s argument must contain his “contentions and reasons . . . with respect to the issues presented, . . . with citations to the authorities, statutes, and parts of the record relied on.”
¶19 George has not shown that the trial court exceeded its discretion in subjecting the #400 account to equitable division. He conceded at oral argument that some evidence supported the trial court‘s findings, and he has not engaged with or shown clear error in the findings on this issue. See Kimball v. Kimball, 2009 UT App 233, ¶ 14, 217 P.3d 733 (“A trial court‘s factual determinations are clearly erroneous only if they are in conflict with the clear weight of the evidence, or if this court has a
2. Real Property
¶20 George next asserts that ten lots of real property (the Lots) were his separate property that he should retain. The Separation Agreement identifies the Lots as real property that George owned “solely in his own name,” and provides that the Lots were to “remain separate” property. At some point during the proceedings, the Lots were sold.
¶21 In fact, the trial court ultimately awarded George the Lots as his separate property, albeit in the form of the sale proceeds. As George recognizes, the trial court‘s post-trial order clarified and ordered that the proceeds from the sale of the Lots were awarded to George as his separate property per the terms of the Separation Agreement. We therefore fail to see error or discern how George was aggrieved by the trial court‘s decision in this regard.
3. Loans
¶22 George also contends that the trial court “improperly ruled that $305,000 was part of the marital estate as ‘loans‘” and erred in requiring him to pay Kylee “the amount equal to one-half” of these loans. He further asserts that these loans were “already repaid,” implying that the divided financial accounts contained the amounts representing the allegedly repaid loans.
¶23 The trial court found that at the time of trial the parties possessed some assets that they had acquired after executing the Separation Agreement. These assets included $305,000 in loans that the parties made to three individuals using funds from their financial accounts. Because the loans were held at the time of trial and were not accounted for by the Separation Agreement, the court determined that “the most fair and equitable distribution, as well as the presumption under Utah law, . . . is to split them equally.”
¶24 George filed a post-trial motion, asserting that the loans had been made from his separate property and that the loans had been repaid. The trial court also allowed George to file supplemental briefing for the express purpose of providing him an opportunity to cite specific evidence admitted at trial in support of his motion. Ultimately, the trial court denied the motion. The court concluded that “the evidence at trial did not demonstrate that [the] loans were made from [George‘s] separate property“; rather, “the loans were made from funds that were commingled and were not segregated.” The court also concluded that no evidence showed that the three indebted individuals had repaid the loans. The court noted that, although George cited his own deposition, the deposition was not offered or received as a trial exhibit and that the portion of the deposition published during George‘s testimony did not establish that the loans were repaid.
¶25 George‘s attack on the trial court‘s treatment of the loans is, at heart, a challenge to the factual findings. To demonstrate clear error in the trial court‘s factual findings, the appellant must “overcome[e] the healthy dose of deference owed to factual findings” by “identify[ing] and deal[ing] with [the] supportive evidence” and establishing a legal problem in that evidence. State v. Nielsen, 2014 UT 10, ¶¶ 40–41, 326 P.3d 645; accord Taft v. Taft, 2016 UT App 135, ¶ 19, 379 P.3d 890. A party challenging factual findings cannot persuasively carry his burden in this
¶26 Just as he did before the trial court and citing his own deposition and trial testimony, George asserts that the loans were made from separate funds and that the loans were repaid. But as the trial court noted, his deposition was not admitted into evidence, and the cited portions of his trial testimony do not support his assertion that the particular loans at issue were made from his separate property or that they were repaid. Moreover, George does not address the trial court‘s rationale for rejecting these same assertions made in his post-trial motion. Cf. Duchesne Land, LC v. Division of Consumer Prot., 2011 UT App 153, ¶ 8, 257 P.3d 441 (explaining that an appellant must address the basis for the district court‘s decision to persuade the reviewing court that the district court has erred). As a result, George has not carried his burden of persuasion on appeal to show error in the trial court‘s decision regarding the loans.6
C. Alimony
¶27 Next, George challenges the trial court‘s alimony award, contending that the court‘s ruling “did not follow the parties’ agreement with regard to the monthly payments and/or lump sum award” and resulted in “an inequitable distribution of the parties’ assets.” George contends that, contrary to the parties’ intent, the court “substituted its own contractual terms that the $400,000 lump sum payment was ‘alimony’ awarded to [Kylee] on top of the Court‘s distribution of the estate.”
¶28 Under the terms of the Separation Agreement, George agreed to pay Kylee $2,000 per month as alimony beginning in March 2010. The Separation Agreement specifically states that the alimony provisions are “independent of” the property division provisions: “The provisions for the support, maintenance and alimony of Kylee are independent of any division or agreement for the division of property between the parties, and shall not for any purpose be deemed to be a part of or merged in or integrated with the property settlement of the parties.” Additionally, the parties signed an addendum, which provides, “At any time either one of the parties may terminate the monthly alimony payments of $2000 with a lump sum cash payment of $400,000.”
¶29 The trial court concluded that the parties’ agreement regarding alimony was fair and equitable. The court specifically concluded that George was obligated to pay alimony of $2,000 per month to Kylee for up to twenty-four years,7 unless and until
¶30 On appeal, George‘s challenge to the alimony award is essentially a reassertion of his view that, per the Separation Agreement, Kylee‘s share of the property division was $400,000 and that he was to pay that share to Kylee as alimony at a rate of $2,000 per month or a lump sum payment option of $400,000. In so arguing, George maintains that the $2,000 monthly payment or the alternative lump sum $400,000 payment “represented [Kylee‘s] property distribution.”
¶31 But the trial court‘s alimony award was consistent with the Separation Agreement‘s plain language, and George‘s argument to the contrary is not. Article 4 of that agreement expressly provides that its “provisions for the support, maintenance and alimony of Kylee are independent of any division or agreement for the division of property.” (Emphasis added.) Because the $2,000 per month alimony payments and the alternative $400,000 lump sum under the Separation Agreement are “independent of” the property division and therefore cannot be “part of” the parties’ property settlement, George‘s alimony payment and the alternative lump sum payment cannot represent Kylee‘s share of the property distribution.
¶32 George also takes issue with the trial court‘s analysis under
¶33 George attacks the trial court‘s analysis regarding Kylee‘s needs and his ability to provide support, asserting that the evidence did not support its analysis of these two factors. But to successfully challenge a trial court‘s factual findings on appeal, the appellant must show that the findings are “in conflict with the clear weight of the evidence” or convince this court that a mistake has been made. See Kimball v. Kimball, 2009 UT App 233, ¶ 14, 217 P.3d 733 (citation and internal quotation marks omitted). George has not carried his burden in this regard. He does not address the trial court‘s specific alimony findings or attempt to deal with the evidence in support of them. Because George asks us to reweigh the evidence and fails to demonstrate a legal problem in the evidence, he has not shown error in the trial court‘s findings regarding the alimony factors.9 See Taft v. Taft, 2016 UT App 135, ¶¶ 19, 43, 379 P.3d 890.
D. The Equities of the Divorce Decree
¶34 George further contends that the trial court‘s order to equally divide all of the couple‘s financial accounts plus the alimony award resulted in an inequitable divorce decree. According to George, the decree awarded Kylee three-quarters of the total marital estate.
¶35 George has not shown that the trial court exceeded its discretion in dividing the assets and awarding alimony. As
III. Motion for a New Trial
¶36 Next, George contends that the trial court committed legal error and improperly denied him a new trial. He cites
¶37 George has not preserved these issues for appeal. “An issue is preserved for appeal only if it was ‘presented to the trial court in such a way that the trial court [had] an opportunity to
IV. Attorney Fees
¶38 Both parties request an award of attorney fees. George asks for his fees incurred in the trial court, and Kylee asks for her fees incurred in defending this appeal.
A. George‘s Request for Attorney Fees in the Trial Court
¶39 George contends that the trial court abused its discretion by not awarding attorney fees to him. He argues that such an award was justified “[b]ased on the actions of [Kylee]” and the fact that the trial court rejected Kylee‘s attempt to void the Separation Agreement.
¶40 The trial court declined to award attorney fees to either party and instead ordered each party to bear his or her own fees. The court determined that both parties were able to bear their own fees based upon their financial condition and the distribution of marital property. Accordingly, the trial court determined that an award of fees was not warranted under
¶41 “In Utah, attorney fees are awardable only if authorized by statute or by contract.” Dahl v. Dahl, 2015 UT 79, ¶ 168 (citation and internal quotation marks omitted).
¶42 George has not established that the trial court exceeded its discretion in declining to award attorney fees to him. George‘s argument for fees does not address the application of the statutory standard for awarding fees in this context. Instead, George relies on the fact that Kylee unsuccessfully argued to invalidate the Separation Agreement, and he relies on other unspecified “actions of [Kylee].”11 This argument falls short, however, because it does not show that George should have been awarded fees “to enable [him] to prosecute or defend the action,” see
B. Kylee‘s Request for Attorney Fees on Appeal
¶43 Kylee asks this court to award her attorney fees incurred on appeal pursuant to
¶44
CONCLUSION
¶45 In summary, George has failed to show that the trial court exceeded its discretion in refusing to bifurcate the trial. George has also failed to show that the trial court‘s property distribution was inequitable or that the trial court otherwise exceeded its discretion in dividing property and awarding alimony. Finally, George failed to preserve his claim that the court erred in denying his motion for a new trial, and he has failed to show error in the trial court‘s denial of his request for attorney fees. Accordingly, we affirm.
POHLMAN, Judge:
