In the Matter of the Marriage of: Ruth Morales v. Rolando Morales (mem. dec.) ( 2020 )


Menu:
  • MEMORANDUM DECISION
    Pursuant to Ind. Appellate Rule 65(D),
    this Memorandum Decision shall not be                                              FILED
    regarded as precedent or cited before any                                  Jul 28 2020, 9:16 am
    court except for the purpose of establishing
    CLERK
    the defense of res judicata, collateral                                        Indiana Supreme Court
    Court of Appeals
    estoppel, or the law of the case.                                                   and Tax Court
    ATTORNEY FOR APPELLANT                                   ATTORNEY FOR APPELLEE
    Jessie D. Cobb-Dennard                                   Zachary J. Stock
    Sallee Law, LLC                                          Indianapolis, Indiana
    Indianapolis, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    In the Matter of the Marriage of:                        July 28, 2020
    Ruth Morales,                                            Court of Appeals Case No.
    20A-DN-256
    Appellant-Petitioner,
    Appeal from the
    v.                                               Marion Superior Court
    The Honorable
    Rolando Morales,                                         Marc T. Rothenberg, Judge
    The Honorable
    Appellee-Respondent.                                     Kimberly Dean Mattingly,
    Magistrate
    Trial Court Cause No.
    49D07-1808-DN-33242
    Kirsch, Judge.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020                           Page 1 of 15
    [1]   Ruth Morales (“Wife”) appeals the trial court’s order dissolving her marriage to
    Rolando Morales (“Husband”) and dividing the parties’ marital property. Wife
    raises the following restated issues for our review:
    I.       Whether the trial court violated her right to procedural due
    process when it determined that she had expended her
    allotted time and prematurely terminated her case-in-chief
    and denied her right to cross examine Husband; and
    II.      Whether the trial court abused its discretion in its division
    of the marital property.
    [2]   We affirm.
    Facts and Procedural History
    [3]   Husband and Wife were married on September 14, 2013. Wife filed a petition
    for the dissolution of the marriage on August 22, 2018. Appellant’s App. Vol. 2 at
    9. During the marriage, Husband worked consistently and earned income. Tr.
    Vol. II at 15-17. While the parties were married, Wife was not always
    employed, but she had worked for many years before the marriage and had
    accumulated retirement savings in the approximate amount of $69,000.00.
    Id. at 19-20, 30-31, 43.
    Wife also brought proceeds of a prior home sale into the
    marriage that the parties used for the down payment for their marital home in
    the amount of $30,000.00. Appellant’s App. Vol. 2 at 36; Tr. Vol. II at 31.
    [4]   During the marriage, Husband and Wife acquired various assets, including the
    marital home, vehicles, bank accounts, and miscellaneous personal property;
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020     Page 2 of 15
    they also incurred liabilities, including a mortgage and credit card debt.
    Appellant’s App. Vol. 2 at 9-15; Tr. Vol. II at 2, 8-9, 11-14. The marital home was
    the most significant asset of the marriage with an appraised value of
    $217,000.00. Appellant’s App. Vol. 2 at 9; Tr. Vol. II at 8-9, 32-33; Resp’t’s Ex. A.
    The largest liability of the marriage was the mortgage, which was
    approximately $130,000.00. Appellant’s App. Vol. 2 at 9; Tr. Vol. II at 8, 33.
    [5]   On September 27, 2018, an Agreed Provisional Entry was issued, under which
    Wife maintained possession of the marital home while the dissolution was
    pending, and Husband paid “all expenses” related to the home, which included
    the mortgage, utilities, insurance, taxes, and necessary maintenance, upkeep
    and repairs. Appellant’s App. Vol. 2 at 21. While the dissolution was pending,
    Husband made payments totaling approximately $17,000.00 for mortgage,
    insurance, tax, and utility payments.
    Id. at 10;
    Tr. Vol. II at 34-35. In the
    Agreed Provisional Entry, Husband was required to pay $200.00 per month in
    maintenance to Wife. Husband made approximately $12,000.00 in
    maintenance payments while the dissolution was pending. Appellant’s App. Vol.
    2 at 11, 23; Tr. Vol. II at 46-47.
    [6]   On September 12, 2019, the trial court set the parties’ dissolution for a final
    hearing on November 1, 2019 from 9:00 a.m. to 11:30 a.m. Appellant’s App. Vol.
    2 at 58. On November 1, 2019, the final hearing was held and began at
    approximately 9:00 a.m.
    Id. at 7;
    Tr. Vol. II at 2. The record stopped at 9:09
    a.m. and did not resume until 10:25 am., resulting in an approximate seventy-
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 3 of 15
    six minutes missing from the transcript. Tr. Vol. II at 5. At 10:25 a.m., the trial
    court stated:
    We are back on the record after some technical difficulties in
    Case Number 49DO71808DN33242. The things I said when I
    thought the record was running are that: I was able to verify that
    Wife has filed an updated financial declaration. [Wife’s counsel]
    is more appropriately dressed so we’ll proceed. [Husband’s
    counsel] indicated he was not able to update Husband’s financial
    declaration but insists that nothing has in fact changed since his
    [financial declaration] was filed in February. Counsel, there is an
    issue that the record apparently shut down maybe twenty
    minutes before we actually adjourned. Are you uncomfortable
    with that? Do you want to repeat some of Wife’s testimony? I
    have detailed notes. I could state for the record what my notes
    have.
    Id. Both parties agreed
    to rely upon the trial court’s notes and to proceed.
    Id. [7]
      From the trial court’s comments, it is clear that Wife had presented some of her
    case-in-chief and had begun testifying before the record had stopped. After the
    record resumed, Wife continued to testify under direct examination.
    Id. at 5-6;
    Pet’r’s Exs. 1, 2. After a few minutes of testimony and sometime before 11:00
    a.m., the trial court cautioned Wife’s counsel, “The time we lost is assessed to
    you. We still need to hear from [H]usband by the time we adjourn at 11:30.
    So, you need to pickup [sic] your pace.” Tr. Vol. II at 24. A few moments later,
    the trial court again cautioned Wife’s counsel, “[Y]our direct will end at 11:00
    straight up.”
    Id. at 26.
    After several more minutes of additional direct
    examination, the trial court interrupted Wife’s counsel and stated, “That
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 4 of 15
    concludes direct. [Husband’s counsel] you may cross.”
    Id. at 28.
    Wife’s
    counsel did not make any objection at this time.
    Id. [8]
      Husband’s attorney then cross-examined Wife and began his case-in-chief by
    questioning Husband.
    Id. at 28-32.
    When Husband’s counsel finished his
    direct examination of Husband, he concluded his questioning, and the
    following exchange occurred between the trial court and Wife’s counsel:
    THE COURT: You may step down Sir, thank you.
    [COUNSEL]: Your Honor may I cross?
    THE COURT: No.
    [COUNSEL]: Why not?
    THE COURT: You used thirty minutes this morning on direct of
    your client. Not thirty minutes, we spend probably eight or ten
    working together on stipulations and the lack of [financial
    declarations]. We came back just after ten, you went until 11
    with direct of your client. We were set for two and a half hours
    and you used ninety minutes of that on direct of your client. You
    can’t use more than half the time and then expect to be able to
    use [Husband’s counsel’s] time. We’re now past our allotted
    time....
    [COUNSEL]: I’m entitled to cross-examine the witness, Your
    Honor.
    THE COURT: No Ma’am, you’re not.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 5 of 15
    [COUNSEL]: I’m not?
    THE COURT: Your time is over. You would have been had
    you saved some of your time. You used more than your half of
    trial time on direct of your client. That was your and your
    client’s choice; strategy, I don’t know, but no. I’m not going to
    stay through a lunch meeting because you didn’t use your trial
    time wisely. That’s not permitted. . . .
    Id. at 51-52.
    The trial court then requested proposed decrees be submitted, and
    the hearing concluded.
    Id. at 52-53. [9]
      On January 28, 2020, the trial court issued its decree dissolving the marriage
    between Husband and Wife and dividing the marital property. Appellant’s App.
    Vol. 2 at 9-15. The trial court determined that Husband should keep one
    vehicle, two bank accounts, and various personal property consisting of
    furniture and tools.
    Id. at 11, 14-15.
    The trial court awarded Wife one of the
    vehicles and personal property consisting of furniture with a value of
    approximately $8,000.00.
    Id. at 12, 14.
    Husband was awarded the marital
    home and the associated mortgage.
    Id. at 11, 14.
    The trial court ordered
    Husband to refinance the mortgage on the home and provide Wife with her
    share of the equity in an equalization payment of $40,951.89.
    Id. at 11.
    The
    trial court assigned the debt acquired before the petition for dissolution was
    filed, which appears to have been either $17,000.00 or $20,000.00, to be split
    equally between the parties.
    Id. at 12, 14.
    The trial court found that, if Wife
    has not paid her share of the debt at the time that Husband closed the refinance
    on the marital home, Husband was to deduct the unpaid amount Wife owed on
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 6 of 15
    the debts as a credit toward her share of the home’s equity.
    Id. at 12.
    The debts
    incurred by each party after the petition for dissolution was filed were to be kept
    by the party who incurred the debt.
    Id. The trial court’s
    distribution of the
    marital estate resulted in an equal division of the marital property.
    Id. at 9-15.
    Wife now appeals.
    Discussion and Decision
    I.      Management of the Proceedings
    [10]   Wife argues that the trial court violated her due process rights during the final
    hearing. “Provided that a trial court fulfills its duty to conduct trials
    expeditiously and consistent with the orderly administration of justice, a trial
    court has discretion to conduct the proceedings before it in any manner that it
    sees fit.” J.M. v. N.M., 
    844 N.E.2d 590
    , 601 (Ind. Ct. App. 2006) (citing Hoang
    v. Jamestown Homes, Inc., 
    768 N.E.2d 1029
    , 1035 (Ind. Ct. App. 2002), trans.
    denied), trans. denied. We review the decisions that a trial court makes regarding
    the conduct of the proceedings for an abuse of that discretion.
    Id. [11]
      Wife argues that the manner in which the trial court conducted the final hearing
    violated her right to procedural due process. Specifically, she contends that she
    was deprived of her right to a full and fair hearing because the trial court
    prematurely terminated her case-in-chief and denied her request for further
    proceedings. Wife also asserts that the trial court denied her procedural due
    process right to cross examine an adverse witness, Husband.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 7 of 15
    [12]   The Fourteenth Amendment of the United States Constitution prohibits any
    state from depriving a person of life, liberty, or property without due process of
    law. Melton v. Ind. Athletic Trainers Bd., 
    53 N.E.3d 1210
    , 1215 (Ind. Ct. App.
    2016). The Indiana Constitution states that “[a]ll courts shall be open; and
    every person, for injury done to him in his person, property, or reputation, shall
    have remedy by due course of law. Justice shall be administered freely, and
    without purchase; completely, and without denial; speedily, and without
    delay.” Ind. Const. art. I, § 12. Indiana courts have consistently construed
    Article I, Section 12, also known as the due course of law provision, as
    analogous to the federal due process clause. 
    Melton, 53 N.E.3d at 1215
    . The
    right to cross-examine witnesses under oath is a fundamental right which
    cannot be denied unless waived. Theobald v. Theobald, 
    804 N.E.2d 284
    , 286
    (Ind. Ct. App. 2004). “[T]he right to effectively cross-examine witnesses can be
    waived.” Archem, Inc. v. Simo, 
    549 N.E.2d 1054
    , 1060 (Ind. Ct. App. 1990)
    (finding right to cross-examination waived by mere failure to object when trial
    court did not provide opportunity to cross-examine the witness), trans. denied.
    [13]   In the present case, Wife was aware that the final hearing was scheduled for
    two and one-half hours. Appellant’s App. Vol. 2 at 58. Once the record resumed
    after the approximate seventy-six minutes time span that it had stopped, direct
    examination of Wife resumed, and sometime before 11:00 a.m., the trial court
    cautioned Wife’s counsel, “[t]he time we lost is assessed to you. We still need
    to hear from [H]usband by the time we adjourn at 11:30. So, you need to
    pickup [sic] your pace.” Tr. Vol. II at 24. A few moments later, the trial court
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 8 of 15
    again cautioned Wife’s counsel that her direct examination would end at 11:00
    a.m., “straight up.”
    Id. at 26.
    Wife did not object to either of the trial court’s
    admonishments.
    Id. at 24, 26.
    After several more minutes of additional direct
    testimony, the trial court interrupted Wife’s counsel and informed her that
    direct testimony was concluded.
    Id. at 28.
    Wife’s counsel again did not make
    any objection.
    Id. With presumably only
    thirty minutes left in the hearing,
    Husband’s attorney then cross-examined Wife and presented his direct
    examination of Husband.
    Id. at 28-32.
    When Husband’s counsel finished his
    direct examination of Husband, the trial court excused Husband, and Wife’s
    counsel asked if she could cross-examine Husband.
    Id. at 51.
    When the trial
    court told her that she could not, the following exchange occurred:
    [COUNSEL]: Why not?
    THE COURT: You used thirty minutes this morning on direct of
    your client. Not thirty minutes, we spend probably eight or ten
    working together on stipulations and the lack of [financial
    declarations]. We came back just after ten, you went until 11
    with direct of your client. We were set for two and a half hours
    and you used ninety minutes of that on direct of your client. You
    can’t use more than half the time and then expect to be able to
    use [Husband’s counsel’s] time. We’re now past our allotted
    time....
    [COUNSEL]: I’m entitled to cross-examine the witness, Your
    Honor.
    THE COURT: No Ma’am, you’re not.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 9 of 15
    [COUNSEL]: I’m not?
    THE COURT: Your time is over. You would have been had
    you saved some of your time. You used more than your half of
    trial time on direct of your client. That was your and your
    client’s choice; strategy, I don’t know, but no. I’m not going to
    stay through a lunch meeting because you didn’t use your trial
    time wisely. That’s not permitted. . . .
    Id. at 51-52.
    Wife made no formal objection to the procedure employed by the trial court.
    Beyond stating her belief that she was entitled to cross-examine Husband,
    Wife’s counsel did not object to either the trial court cutting short Wife’s direct
    examination or to not allowing cross-examination of Husband.                   Grounds for
    objection must be specific and any grounds not raised in the trial court are not
    available on appeal. Franciose v. Jones, 
    907 N.E.2d 139
    , 147 (Ind. Ct. App. 2009
    (citing Grace v. State, 
    731 N.E.2d 442
    , 444 (Ind. 2000)), trans. denied. Because
    Wife failed to make a specific objection to the trial court’s actions in limiting
    her direct examination and not providing an opportunity to cross-examination,
    she waived any error. See 
    Archem, 549 N.E.2d at 1060
    (finding right to cross-
    examination waived by mere failure to object when trial court did not provide
    opportunity to cross-examine the witness).
    II.     Division of Marital Property
    [14]   The division of marital property is within the sound discretion of the trial court,
    and we will reverse only for an abuse of discretion. In re Marek, 47 N.E.3d
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020       Page 10 of 15
    1283, 1287 (Ind. Ct. App. 2016), trans. denied. “We will reverse a trial court’s
    division of marital property only if there is no rational basis for the award; that
    is, if the result is clearly against the logic and effect of the facts and
    circumstances, including the reasonable inferences to be drawn therefrom.”
    Id. When we review
    a claim that the trial court improperly divided marital
    property, we consider only the evidence most favorable to the trial court’s
    disposition of the property without reweighing evidence or assessing witness
    credibility.
    Id. at 1288-89.
    “Although the facts and reasonable inferences might
    allow for a conclusion different from that reached by the trial court, we will not
    substitute our judgment for that of the trial court.”
    Id. at 1289.
    Such a case
    turns on “whether the trial court’s division of the marital property was just and
    reasonable.” Morgal-Henrich v. Henrich, 
    970 N.E.2d 207
    , 210-11 (Ind. Ct. App.
    2012).
    [15]   Wife argues that the trial court abused its discretion in its division of the marital
    property. She specifically asserts that the trial court abused its discretion when
    it awarded Husband the marital residence and seems to contend that, because
    she contributed to the down payment for the home and substantially
    contributed to its acquisition, she should have received it in the property
    division, which would have resulted in an unequal division. Wife also claims
    that the trial court’s division of property was an abuse of discretion because the
    trial court failed to account for all assets and debts of the marriage and assigned
    values to other assets and debts that were not supported by the evidence. Wife
    further argues that despite the equalization payment, the trial court actually
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 11 of 15
    awarded an unequal portion of the marital property to Husband because the
    equalization payment was subject to credits for certain payments made by
    Husband while the dissolution was pending.
    [16]   It is well-settled that in a dissolution action, all marital property, whether
    owned by either spouse before the marriage, acquired by either spouse after the
    marriage and before final separation of the parties, or acquired by their joint
    efforts, goes into the marital pot for division. Ind. Code § 31-15-7-4(a);
    Falatovics v. Falatovics, 
    15 N.E.3d 108
    , 110 (Ind. Ct. App. 2014). For purposes
    of dissolution, property means “all the assets of either party or both parties[.]”
    Ind. Code § 31-9-2-98(b). This “one pot” theory ensures that all assets are
    subject to the trial court’s power to divide and award. Carr v. Carr, 
    49 N.E.3d 1086
    , 1089 (Ind. Ct. App. 2016), trans. denied. Indiana Code section 31-15-7-4
    provides the trial court shall divide the property of the parties in a just and
    reasonable manner, whether that property was owned by either spouse before
    the marriage, acquired by either spouse in his or her own right after the
    marriage and before the final separation, or acquired by their joint efforts. An
    equal division is presumed to be a just and reasonable division. Ind. Code § 31-
    15-7-5. A challenger must overcome a strong presumption that the court
    considered and complied with the applicable statute, and that presumption is
    one of the strongest presumptions applicable to our consideration on appeal.
    
    J.M., 844 N.E.2d at 602
    .
    [17]   Here, in dividing the marital property, the trial court determined that Husband
    should keep one vehicle, two bank accounts, and various personal property
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 12 of 15
    consisting of furniture and tools, totaling approximately $23,000.00. Appellant’s
    App. Vol. 2 at 11, 14-15. The trial court awarded Wife one of the vehicles and
    furniture which totaled approximately $8,000.00.
    Id. at 12, 14.
    Husband was
    also awarded the marital home and the associated mortgage.
    Id. at 11, 14.
    The
    trial court ordered Husband to refinance the mortgage on the home and provide
    Wife with her share of the equity in an equalization payment of $40,951.89.
    Id. at 11.
    The trial court assigned the debt acquired before the petition for
    dissolution was filed, which appears to have been either $17,000.00 or
    $20,000.00, to be split equally between the parties.
    Id. at 12, 14.
    However, the
    trial court found that if Wife has not paid her share of the debt at the time that
    Husband refinanced the mortgage on the marital home, then Husband was to
    deduct the unpaid amount Wife owed on the debts as a credit toward her share
    of the home’s equity.
    Id. at 12.
    The debts incurred by each party after the
    petition for dissolution was filed were to be kept by the party who incurred the
    debt.
    Id. The trial court’s
    distribution of the marital estate resulted in an equal
    division of the marital property.
    Id. at 9-15.
    [18]   To the extent that Wife is arguing that the trial court erred when it did not
    award her the marital home, we disagree. The evidence showed that Wife
    contributed $30,000.00 to the down payment for the home. It also showed that
    Husband was employed consistently throughout the marriage, that Wife was
    not and that, at least throughout the time the dissolution was pending, Husband
    paid for the mortgage, taxes, insurance, and utilities on the home, which totaled
    at least $13,500.00. Tr. Vol. II at 15-17, 20, 31, 33-34. The trial court did not
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020   Page 13 of 15
    abuse its discretion in awarding the home to Husband because the evidence
    showed that both Husband and Wife contributed to the acquisition of the
    marital home.1
    [19]   Wife also takes issue with the way that several items were valued and assigned
    by the trial court in the division of marital property. Our Supreme Court has
    held that a trial court’s disposition of marital property is to be considered “‘as a
    whole, not item by item.’” 
    Morgal-Henrich, 970 N.E.2d at 212
    (quoting Fobar v.
    Vonderahe, 
    771 N.E.2d 57
    , 59 (Ind. 2002)).
    In crafting a just and reasonable property distribution, a trial
    court is required to balance a number of different considerations
    in arriving at an ultimate disposition. The court may allocate
    some items of property or debt to one spouse because of its
    disposition of other items. Similarly, the factors identified by the
    statute as permitting an unequal division in favor of one party or
    the other may cut in different directions. As a result, if the
    appellate court views any one of these in isolation and apart from
    the total mix, it may upset the balance ultimately struck by the
    trial court.
    
    Fobar, 771 N.E.2d at 59-60
    .
    1
    To the extent that Wife is contending that the trial court disproportionately awarded the marital property to
    Husband by giving him credit for the expenses he paid toward the marital residence and toward maintenance
    while the dissolution was pending, we do not find this to be true. While the trial court did state in the decree
    that Husband shall receive a credit for those expenses, it did not subtract those sums from the equalization
    payment that Husband is ordered to pay Wife. Appellant’s App. Vol. 2 at 11. Instead, the only sums to be
    subtracted from the equalization payment were any unpaid portion of Wife’s share of the credit card and
    small bank loan, which were ordered to be divided equally between Husband and Wife.
    Id. at 11-12.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020                      Page 14 of 15
    In crafting its division of the marital property, the trial court’s distribution of the
    marital estate resulted in an equal division of the marital property. There is a
    statutory presumption that “an equal division of the marital property between
    the parties is just and reasonable.” Ind. Code § 31-15-7-5. Wife has not shown
    how the division of marital property should have differed and, if so, whether it
    should still result in an equal division of the marital property. Assuming that
    there should still be an equal division since Wife has not raised any of the
    statutory reasons why her claimed errors would result in an unequal division,
    we find that the trial court did not abuse its discretion in its determinations.
    Wife’s challenges, including the miscalculation of a tax refund, loan balance,
    and asset valuations, are too small to have changed the overall result of the trial
    court’s division of the marital property.2 Wife has not shown that the trial
    court’s division of the marital property was not just and reasonable, and the
    trial court did not abuse its discretion.3
    [20]   Affirmed.
    Najam, J., and Brown, J., concur.
    2
    As to the debts, including the Sam’s Club credit card that Wife contends were not included in the decree,
    the evidence showed that the Sam’s Club credit card had a zero balance at the time the dissolution petition
    was filed, and therefore, the outstanding balance at the time of the final hearing was incurred while the
    petition was pending, and the trial court ordered the parties to be responsible for the debt they incurred since
    the petition for dissolution was filed. Tr. Vol. II at 24, 43; Appellant’s App. Vol. 2 at 12.
    3
    We do note that, in her dissolution petition, Wife requested that she be restored to her former name, “Ruth
    Misiuta,” but it appears that the trial court did not address this issue in the dissolution decree. Appellant’s
    App. Vol. 2 at 9-12, 17-19. To the extent that the trial court has not yet done so, we instruct the trial court to
    restore Wife to her former name.
    Court of Appeals of Indiana | Memorandum Decision 20A-DN-256 | July 28, 2020                         Page 15 of 15