McCreary v. Silver ( 2017 )


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  •                      NOTICE: NOT FOR OFFICIAL PUBLICATION.
    UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL
    AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.
    IN THE
    ARIZONA COURT OF APPEALS
    DIVISION ONE
    In re the Matter of:
    KARYN MCCREARY, Petitioner/Appellant/Cross-Appellee,
    v.
    ROBIN D. SILVER, Respondent/Appellee/Cross-Appellant.
    No. 1 CA-CV 16-0203 FC
    FILED 11-9-2017
    Appeal from the Superior Court in Coconino County
    No. S0300DO201400462
    The Honorable Elaine Fridlund-Horne, Judge
    AFFIRMED
    COUNSEL
    Warner Angle Hallam Jackson & Formanek PLC, Phoenix
    By Erik C. Bergstrom
    Counsel for Petitioner/Appellant/Cross-Appellee
    Aspey, Watkins & Diesel, PLLC, Flagstaff
    By Zachary J. Markham, Edward J. Walneck, John W. Carlson
    Counsel for Respondent/Appellee/Cross-Appellant
    MCCREARY v. SILVER
    Decision of the Court
    MEMORANDUM DECISION
    Judge Randall M. Howe delivered the decision of the Court, in which
    Presiding Judge James P. Beene and Judge Kent E. Cattani joined.
    H O W E, Judge:
    ¶1            Karyn McCreary (“Wife”) appeals from the decree of
    dissolution ending her marriage to Robin D. Silver (“Husband”). Husband
    cross-appeals. Both parties challenge the property division in the decree.
    For the following reasons, we affirm.
    FACTS AND PROCEDURAL HISTORY
    ¶2             Husband and Wife were married in 2001 and have two
    children. In 2014, Wife filed for divorce. Six months later, the parties entered
    into an agreement regarding legal decision-making and parenting time
    pursuant to Arizona Rule of Family Law Procedure (“Rule”) 69, which the
    family court adopted. Thereafter, the family court held a trial to address the
    contested issues, including property division. The following is a description
    of each asset at issue in this appeal.
    1. Real Property
    ¶3            The real property division dispute revolves around two
    separate homes. In 1983, Husband purchased the first home in Phoenix (the
    “Phoenix Home”) with his own funds as his sole property. After the parties
    married in 2001, they began living together in the Phoenix Home in June
    2001. In November 2002, Husband titled the Phoenix Home as community
    property with right of survivorship. During the marriage, the parties used
    funds from a joint checking account to pay the Phoenix Home’s mortgage.
    In 2008, Husband and Wife purchased a second home in Flagstaff, Arizona
    (the “Flagstaff Home”), which they also titled as community property with
    right of survivorship. A significant portion of the funds used to purchase
    the Flagstaff Home came from Husband’s sole and separate inheritance and
    investment accounts.
    ¶4            At trial, Husband testified that he never intended to gift the
    Phoenix Home to Wife. Conversely, Wife testified that both parties had
    “lengthy discussions about making [the Phoenix Home] our home.” As for
    the Flagstaff Home, Husband testified that he intended the community to
    reimburse him for the separate funds used to purchase the house. Wife
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    MCCREARY v. SILVER
    Decision of the Court
    testified that the parties “bought the house together as a home” and that
    Husband never communicated to her an expectation of repayment.
    2. Wells Fargo Account
    ¶5             A Wells Fargo account ending in 4660 (the “Wells Fargo
    Account”) was a brokerage account that contained Husband’s pre-marriage
    sole and separate savings. After they married, Husband added Wife’s name
    to the account as a joint tenant with right of survivorship. Wife testified at
    trial that the parties agreed that the account “was going to be our savings
    account.” Husband testified that he added Wife’s name upon the advice of
    his financial advisor only to create a survivorship right and that he did not
    intend to make a gift of the property to Wife.
    3. Airline Miles
    ¶6            During the marriage, the parties maintained an Alaskan
    Airlines joint credit card that accumulated airline miles. In her pretrial
    statement, Wife requested that the court award her all of the airline miles,
    but Husband did not discuss the miles in his pretrial statement. At trial,
    Wife again requested that she receive the airline miles and that Husband
    receive the rewards from their other credit cards.
    4. Family Court Distribution of Property
    ¶7             Before dividing the assets, the court discussed “equitable
    division” and cited to In re Marriage of Flower, 
    223 Ariz. 531
    (App. 2010). The
    family court awarded both homes to Husband and directed Husband to
    make an equalization payment of $295,223 to Wife. The court also awarded
    Husband (1) all airline miles as part of his share of the community property
    and (2) the Wells Fargo Account as his sole and separate property. The court
    found that Husband did not rebut the presumption of a gift of the homes
    with clear and convincing evidence. After finding that the homes were
    community assets, the court divided the value in the homes equally. In
    addition to the real property’s value, the court took into consideration other
    factors to arrive at a $295,223 equalization amount. First, the court found
    that $25,000 had been deposited into the Wells Fargo Account and that
    those funds were community property. Next, the court found that the
    $25,000 placed into the account offset any separate interest Husband had in
    the Toyota Highlander valued at $29,177; thus, Husband was not entitled
    to any reimbursement for the purchase of the Highlander. Thereafter, the
    court awarded Wife the Highlander.
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    MCCREARY v. SILVER
    Decision of the Court
    ¶8             Wife timely appealed from the decree, and Husband timely
    cross-appealed. Husband moved to dismiss Wife’s appeal for lack of
    jurisdiction arguing that Wife did not timely appeal. This Court considered
    and denied Husband’s motion to dismiss.1
    DISCUSSION
    ¶9             In a dissolution proceeding, the family court has broad
    discretion to divide the community property equitably. See Boncoskey v.
    Boncoskey, 
    216 Ariz. 448
    , 451 ¶ 13 (App. 2007). We will not disturb the
    court’s allocation absent an abuse of discretion. See 
    id. We view
    the facts “in
    the light most favorable to supporting” the decree. Stevenson v. Stevenson,
    
    132 Ariz. 44
    , 45 (1982). Here, neither party requested findings of fact and
    conclusions of law under Rule 82. See Ariz. R. Fam. Law P. 82. Accordingly,
    we assume the court “found every fact necessary to support its judgment
    and must affirm if any reasonable construction of the evidence justifies the
    decision.” 
    Stevenson, 132 Ariz. at 46
    .
    1. Real Property
    ¶10            Husband argues that the family court failed to recognize the
    two homes as his sole and separate property. “[A] presumed gift occurs”
    when one spouse places his or her separate real property in joint tenancy or
    titles it as community property with right of survivorship. Valladee v.
    Valladee, 
    149 Ariz. 304
    , 307 (App. 1986); see also 
    Flower, 223 Ariz. at 535
    ¶ 15
    (“[A] presumption exists that the contributing spouse intended to make a
    gift to the other spouse of a one-half interest in the property.”). This
    presumption can be overcome only “by clear and convincing evidence to
    the contrary” and not simply by one spouse’s “after-the-fact testimony that
    the property was placed in joint tenancy only as a means of avoiding
    probate.” 
    Valladee, 149 Ariz. at 307
    . Similarly, the gift presumption will not
    be overcome by “testimony of the hidden intentions of one of the parties,”
    but only by evidence of a “common understanding or an agreement that
    the character of the property was to be other than joint tenancy.” 
    Id. 1 Husband
    reiterates his argument from his motion to dismiss that this
    Court does not have jurisdiction because Wife did not timely file her notice
    of appeal. This Court, however, previously considered and denied
    Husband’s motion to dismiss Wife’s appeal for lack of jurisdiction and will
    not revisit the issue.
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    MCCREARY v. SILVER
    Decision of the Court
    ¶11           Under A.R.S. § 25–318(A), the family court must make an
    equitable distribution of all “community, joint tenancy and other property
    held in common.” Accordingly, all community property, whether gifted or
    otherwise, must be divided equitably. See Toth v. Toth, 
    190 Ariz. 218
    , 221
    (1997). The family court may not make a substantially unequal division
    “solely for the purpose of reimbursing one of the parties for expending his
    or her separate funds to initially acquire the property.” Whitmore v. Mitchell,
    
    152 Ariz. 425
    , 427 (App. 1987).
    ¶12           Here, because both homes were titled as community
    property, the family court properly presumed that Husband gifted Wife a
    one-half interest in the properties. See 
    Flower, 223 Ariz. at 535
    ¶ 15. In its
    ruling, the court acknowledged the applicable Arizona law and concluded
    that Husband failed to rebut the gift presumption with clear and convincing
    evidence. After determining that both homes were community assets, the
    court properly divided the value in the homes equitably. Thus, the family
    court did not abuse its discretion either by determining that the homes were
    community property or by its division of those properties.
    ¶13            Alternatively, Husband argues that even if the homes were
    community property, the family court erred by dividing them equally
    because “the particular facts in this case warranted an unequal division of
    the properties in Husband’s favor.” Husband relies on Flower, in which this
    Court held that “[a] determination of what constitutes an equitable division
    of marital property must include consideration of contributions made by
    each spouse to the community, in whatever form.” 
    Id. at 537
    ¶ 22. In Flower,
    the parties were married for one year, and during that time the husband
    retitled his home as community property with right of survivorship. 
    Id. at 533
    ¶¶ 2, 4. Thereafter, the parties took out a home equity loan and used
    the funds to improve a second home owned by wife as her sole and separate
    property. 
    Id. ¶ 3.
    At dissolution, the trial court recognized that “equal was
    not equitable” and awarded the husband a disproportionate share of the
    jointly-titled home. 
    Id. at 536
    ¶ 20. This Court affirmed concluding that the
    trial court had acted within its discretion. 
    Id. at 537
    ¶ 21. The ruling here
    acknowledged the Flower holding and reflected consideration of Husband’s
    contribution to the Phoenix and Flagstaff Homes. No more is required.
    Accordingly,the family court did not abuse its discretion.
    2. Wells Fargo Account
    ¶14          Wife argues that the family court erred by awarding the Wells
    Fargo Account to Husband as his sole and separate property because “[t]he
    account was indisputably joint tenancy property, and thus was required to
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    MCCREARY v. SILVER
    Decision of the Court
    be divided equally.” Unlike the transfer of real property, the transfer of
    separate funds into a joint bank account does not create the presumption of
    a gift. See 
    Stevenson, 132 Ariz. at 46
    ; Neely v. Neely, 
    115 Ariz. 47
    , 51 (App.
    1977) (“[T]he form of a bank account is not regarded as sufficient to
    establish the intent of the depositor to give another a joint interest in or
    ownership of the deposit.”).
    ¶15            Here, the Wells Fargo Account contained Husband’s pre-
    marriage sole and separate savings, and he later added Wife’s name to the
    account as a joint tenant with right of survivorship after their marriage.
    Because this transfer did not involve real property, no presumption of a gift
    existed. At trial, the parties gave conflicting testimony concerning whether
    Husband intended to make a gift of the property to Wife. “Our duty on
    review does not include re-weighing conflicting evidence.” Hurd v. Hurd,
    
    223 Ariz. 48
    , 52 ¶ 16 (App. 2009). Viewing the evidence in the light most
    favorable to upholding the family court’s determination, the family court
    acted well within its discretion by determining that the Wells Fargo
    Account was Husband’s sole and separate property. Accordingly, we
    affirm the court’s ruling.
    3. Airline Miles
    ¶16           Wife contends that the family court erred by awarding
    Husband all of the airline miles accrued during the marriage through a joint
    credit card. She argues that Husband waived his claim to the miles by not
    requesting them in his pretrial statement. Additionally, she argues that the
    court failed to explain “how such a division was fair and equitable.”
    Because Wife failed to request findings of fact and conclusions of law, she
    has waived the latter argument on appeal. See Nia v. Nia, 
    242 Ariz. 419
    , 425
    ¶ 26 (App. 2017). The family court is obligated to divide all identified
    community property “equitably, though not necessarily in kind.” A.R.S. §
    25–318(A). The court cannot ignore its obligation “simply because one
    spouse failed to list the property as a contested issue” in his or her pretrial
    statement. Nold v. Nold, 
    232 Ariz. 270
    , 274 ¶ 20 (App. 2013).
    ¶17          Here, Wife addressed the airline miles both in her pretrial
    statement and her testimony at trial. Accordingly, the family court properly
    considered the airline miles in dividing the community property. Thus, the
    family court did not abuse its discretion by awarding the airline miles to
    Husband.
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    MCCREARY v. SILVER
    Decision of the Court
    4. Equalization Payment
    ¶18            Wife next argues that the family court erred by calculating the
    equalization payment incorrectly. Specifically, she contends that the court
    “intended to offset the $29,177.00 value of the Toyota Highlander awarded
    to [her] against $25,000.00 in community funds that Husband deposited”
    into the Wells Fargo Account, but that the equalization calculation does not
    reflect that intent. Because neither party requested findings of fact, we
    presume that the court found all facts necessary to support the property
    division “if the evidence on any reasonable construction justified it.” Neal
    v. Neal, 
    116 Ariz. 590
    , 592 (1977).
    ¶19           The family court found that $25,000 was deposited into the
    Wells Fargo Account and that the money was later used to purchase the
    Highlander. As such, the $25,000 that was originally in the Wells Fargo
    Account was transferred into the value of the Highlander. Because Wife
    was awarded the Highlander, a community asset, the family court properly
    included the Highlander in Wife’s column of the equalization payment
    calculation. Husband’s $25,000 was not included in his column of the
    equalization payment calculation because he no longer possessed that
    money. Additionally, the record reflects that the community withdrew
    significantly more money from the Wells Fargo Account during the
    marriage than it deposited into that account. Accordingly, the family court
    did not abuse its discretion with its calculation of the equalization payment
    owed to Wife.
    CONCLUSION
    ¶20          For the foregoing reasons, we affirm the property division set
    forth in the decree. Both parties requested attorneys’ fees on appeal
    pursuant to A.R.S. § 25–324. In our discretion, we deny their requests and
    order each party to bear his or her own fees on appeal. Because neither
    party prevailed on the issues he or she raised on appeal, we decline to
    award costs to either party.
    AMY M. WOOD • Clerk of the Court
    FILED: AA
    7
    

Document Info

Docket Number: 1 CA-CV 16-0203-FC

Filed Date: 11/9/2017

Precedential Status: Non-Precedential

Modified Date: 11/9/2017