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Schaffner v. Dillard

Commonwealth of Kentucky Court of Appeals
Jan 30, 2015
NO. 2013-CA-001772-MR (Ky. Ct. App. Jan. 30, 2015)

Opinion

NO. 2013-CA-001772-MR

01-30-2015

ROBERTA L. SCHAFFNER, M.D. APPELLANT v. ROBERT P. DILLARD, M.D. APPELLEE

BRIEF FOR APPELLANT: Bonita K. Baker Louisville, Kentucky BRIEF FOR APPELLEE: Marcia L. Sparks Louisville, Kentucky


NOT TO BE PUBLISHED APPEAL FROM JEFFERSON CIRCUIT COURT
HONORABLE JOSEPH W. O'REILLY, JUDGE
ACTION NO. 11-CI-502993
OPINION
VACATING AND REMANDING
BEFORE: CLAYTON, COMBS, AND STUMBO, JUDGES. COMBS, JUDGE: Dr. Roberta Schaffner appeals the order of the Jefferson Circuit Court which disposed of property in a dissolution action. After our review, we vacate and remand.

The facts essential to this appeal are brief. Dr. Schaffner and Dr. Robert Dillard married in 1991. Shortly before their wedding, both signed a document agreeing to keep their finances completely separate. On August 26, 2011, Dr. Schaffner filed a petition for dissolution of marriage. On October 1, 2012, the trial court found that the 1991 agreement was not a valid contract, and neither party disputes that finding.

The court issued a decree dissolving the marriage on May 17, 2013, but reserving issues of child support and property division. A trial was held on May 16, 2013, to address those matters. On July 17, 2013, the trial court entered its order and relied heavily on the 1991 agreement that it had decreed to be invalid. On July 29, 2013, Dr. Schaffner filed a motion to alter, amend, or vacate the judgment. The court granted the motion in part and denied the motion in part on September 12, 2013. Dr. Schaffner now appeals.

This appeal involves the division of three life insurance policies and three retirement accounts. However, the threshold issue is whether the trial court acted appropriately in considering the invalid 1991 agreement.

Courts must apply a three-part analysis when dividing property in an action for dissolution of marriage. First, it must designate each item as either marital or non-marital. Then, it proceeds to award non-marital property in its entirety to the party who owns it. Finally, it considers the marital property and equitably divides it in just proportions. Smith v. Smith, 235 S.W.3d 1, 5 (Ky. App. 2006); Kentucky Revised Statute[s] (KRS) 403.190(1).

Marital property consists of all property acquired during the marriage. Pertinent to this appeal, KRS 403.190(2) provides a list of exceptions which includes "property excluded by valid agreement of the parties." KRS 403.190(2)(d)(emphasis added).

In this case, Dr. Schaffner argues that the court erroneously determined that three life insurance policies, Dr. Dillard's entire Navy pension, his IRA with USAA Federal Savings Bank, and his LPL Financial account were his exclusive non-marital property.

Dr. Schaffner also alleges that Dr. Dillard made inappropriate withdrawals from the IRA account during the litigation. The argument can only be considered if the account is deemed marital property.

We have carefully scrutinized the court's order. Its sole reasoning for designating those accounts as non-marital was the invalid 1991 agreement. KRS 403.190(2)(d) explicitly provides that a valid agreement qualifies as an exception to designating marital property as non-marital. The trial court relied on the agreement as only one component of all relevant statutory factors. However, it did not recite any other factors in its order which originally categorized the property; nor did it do so in its order denying the motion to alter, amend, or vacate the judgment. The invalid agreement was the only factor that it considered. Hence, it erred with the respect to the first prong of the division of property. In designating the property at issue as marital or non-marital, the court on remand should apply or address the factors set forth at KRS 403.190.

Accordingly, we vacate and remand for additional proceedings.

ALL CONCUR. BRIEF FOR APPELLANT: Bonita K. Baker
Louisville, Kentucky
BRIEF FOR APPELLEE: Marcia L. Sparks
Louisville, Kentucky


Summaries of

Schaffner v. Dillard

Commonwealth of Kentucky Court of Appeals
Jan 30, 2015
NO. 2013-CA-001772-MR (Ky. Ct. App. Jan. 30, 2015)
Case details for

Schaffner v. Dillard

Case Details

Full title:ROBERTA L. SCHAFFNER, M.D. APPELLANT v. ROBERT P. DILLARD, M.D. APPELLEE

Court:Commonwealth of Kentucky Court of Appeals

Date published: Jan 30, 2015

Citations

NO. 2013-CA-001772-MR (Ky. Ct. App. Jan. 30, 2015)