Radmanesh v. Radmanesh ( 2023 )


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  • Nebraska Supreme Court Online Library
    www.nebraska.gov/apps-courts-epub/
    11/03/2023 01:06 AM CDT
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    Nebraska Supreme Court Advance Sheets
    315 Nebraska Reports
    RADMANESH V. RADMANESH
    Cite as 
    315 Neb. 393
    Juli Ann Radmanesh, appellee, v.
    Kourosh C. Radmanesh, appellant.
    ___ N.W.2d ___
    Filed October 27, 2023.   No. S-22-826.
    1. Divorce: Property Division: Alimony: Appeal and Error. In a marital
    dissolution action, an appellate court reviews the case de novo on the
    record to determine whether there has been an abuse of discretion by the
    trial judge. This standard of review applies to the trial court’s determina-
    tions of alimony and property division.
    2. Evidence: Appeal and Error. In a review de novo on the record, an
    appellate court is required to make independent factual determinations
    based upon the record, and the court reaches its own independent con-
    clusions with respect to the matters at issue.
    3. ____: ____. When evidence is in conflict, the appellate court considers
    and may give weight to the fact that the trial court heard and observed
    the witnesses and accepted one version of the facts rather than another.
    4. Judges: Words and Phrases. A judicial abuse of discretion exists if the
    reasons or rulings of a trial judge are clearly untenable, unfairly depriv-
    ing a litigant of a substantial right and denying just results in matters
    submitted for disposition.
    5. Divorce: Property Division: Alimony. In a dissolution of marriage
    proceeding, 
    Neb. Rev. Stat. § 42-365
     (Reissue 2016) allows a court to
    order payment of such alimony by one party to the other and division of
    property as may be reasonable.
    6. Property Division: Alimony. The purpose of alimony is to provide for
    the continued maintenance or support of one party by the other when
    the relative economic circumstances make it appropriate. The purpose
    of property division is to distribute the marital assets equitably between
    the parties.
    7. Alimony: Appeal and Error. In reviewing an alimony award, an
    appellate court does not determine whether it would have awarded the
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    RADMANESH V. RADMANESH
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    same amount of alimony as the trial court did, but whether the trial
    court’s award is untenable such as to deprive a party of a substantial
    right or just result. An appellate court is not inclined to disturb the trial
    court’s award of alimony unless it is patently unfair on the record.
    8.   Divorce: Alimony. In weighing a request for alimony, the court may
    consider all the property owned by the parties when entering the decree,
    whether accumulated by their joint efforts or acquired by inheritance.
    9.   Judgments: Appeal and Error. As a general proposition, an appellate
    court does not require a district court to explain its reasoning.
    10.   Alimony. The primary purpose of alimony is to assist an ex-spouse for
    a reasonable period of time necessary for that individual to secure his or
    her own means of support. Ultimately, the duration of an alimony award
    must be reasonable.
    11.   ____. Alimony should not be used as a tool to equalize the parties’
    incomes or to punish one of the parties. However, a disparity of income
    or potential income might partially justify an alimony award.
    12.   Divorce: Property Division: Equity. The purpose of assigning a date
    of valuation in a dissolution decree is to ensure that the marital estate is
    equitably divided.
    13.   Divorce: Property Division: Appeal and Error. Generally, the date
    upon which a marital estate is valued should be rationally related
    to the property composing the marital estate and the property being
    divided. The date of valuation is reviewed for an abuse of the trial
    court’s discretion.
    14.   Property Division. Marital debt includes only those obligations incurred
    during the marriage for the joint benefit of the parties. This is a flexible,
    fact-specific standard.
    Appeal from the District Court for Sarpy County: Stefanie
    A. Martinez, Judge. Affirmed.
    Liam K. Meehan, of Wagner, Meehan & Watson, L.L.P., for
    appellant.
    April M. Lucas, Joy Kathurima, and Tracy Hightower-
    Henne, of Hightower Reff Law, L.L.C., for appellee.
    Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke,
    Papik, and Freudenberg, JJ.
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    315 Nebraska Reports
    RADMANESH V. RADMANESH
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    315 Neb. 393
    Funke, J.
    I. INTRODUCTION
    Husband appeals from a decree of dissolution, arguing that
    the district court for Sarpy County, Nebraska, erred in award-
    ing wife alimony and an equalization payment and in equally
    dividing student loans for the parties’ children. Finding no
    abuse of discretion, we affirm the decree.
    II. BACKGROUND
    Kourosh C. Radmanesh (Cyrus) and Juli Ann Radmanesh
    were married in 1991. During the marriage, the parties had
    twin children born in April 2000. The parties separated in or
    around August 2018. In July 2021, Juli filed a complaint for
    dissolution of marriage. The parties’ children had reached the
    age of majority by the time of the trial.
    1. Trial
    At the trial, Cyrus and Juli were the only witnesses. The tes-
    timony and evidence pertinent to the issues raised on appeal is
    summarized below. Additional facts will be introduced, where
    relevant, in our analysis of the parties’ arguments on appeal.
    (a) Alimony
    For the 4 years before the trial, Juli worked at a retail store,
    earning approximately $40,000 annually. She contributed to
    an employer-sponsored retirement plan while working in that
    position. Juli testified that her monthly expenses were approxi-
    mately $4,000. Juli requested alimony of $1,000 per month for
    5 years from Cyrus.
    Juli testified that she inherited approximately $160,000 from
    her father’s estate, mostly in stocks, after separating from
    Cyrus, but before the trial. She further testified that most of
    that inheritance was initially placed in a savings account, and
    the rest was placed in her checking account or used to pay
    expenses. The parties agreed that the funds in several of Juli’s
    accounts were from her inheritance.
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    Cyrus testified that he was a consultant in the telecommuni-
    cations industry and that he owned his own firm. He testified
    that he made between $10,000 and $140,000 per contract. He
    further testified that his income varied annually depending on
    the length and location of the contracts. For example, docu-
    mentation admitted into evidence showed that Cyrus earned an
    average of $106,000 annually between 2009 and 2013, and an
    average of $20,000 annually between 2014 and 2018. Cyrus
    testified that for his most recent contract, from 2019 to 2021,
    he earned $143,000 to $145,000 annually. Cyrus testified that
    he had not worked since 2021 and that he was paying his bills
    with his savings. Cyrus further testified that he had bid for new
    contracts, but to no avail.
    Juli, however, suggested that Cyrus was responsible for his
    unemployment. The district court admitted into evidence a
    copy of an email and text message sent from Cyrus to the par-
    ties’ children. Therein, Cyrus stated that although his current
    contract was ending, he had been offered a full-time job, con-
    tingent on his being vaccinated for COVID-19. Cyrus stated
    that he was willing to get the vaccine “if Juli suspend[ed] the
    divorce case” until the children graduated from college. Cyrus
    stated that he had communicated this to Juli, along with other
    “incentive[s]” that she would receive if she suspended the
    divorce. Cyrus further stated that if Juli did not agree, he “will
    not get the COVID19 vaccine and after 12/31/21 he will be
    unemployed and [give] no support for the family in 2022 and
    beyond.” According to Cyrus, Juli did not agree to his terms.
    Thereafter, Cyrus told his children he would be unable to pro-
    vide for them because he was “volunteering” not to get the
    vaccine required for the job.
    Cyrus also testified that he was 65 years old at the time of
    the trial and that he would like to work until he was 70 years
    old or older. He then confirmed that he intended to work for
    the next 5 years at least if he was able. He stated that once
    he retired, he would rely on Social Security benefits to pay
    his expenses, benefits which he expected to be approximately
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    $4,000 a month. Cyrus had not contributed to any retirement
    account, and evidence at the trial showed that his monthly
    expenses were estimated to be approximately $4,000. He also
    had other bills and miscellaneous expenses. Cyrus argued
    against any obligation for spousal support for Juli.
    (b) Equalization Payment
    Juli testified to her ownership and the value of multiple
    bank accounts, credit card accounts, and retirement accounts
    that were separate from an IRA holding her inherited funds.
    She also testified that she owned a vehicle. Juli requested that
    the district court divide all marital property equally. Juli also
    requested that the previously mentioned inheritance from her
    father’s estate be deemed nonmarital property and not included
    in the valuation of the marital estate.
    Cyrus agreed with Juli’s classification of the inherited funds
    and did not request any of those funds nor Juli’s retire-
    ment funds.
    The district court admitted into evidence a marital estate
    distribution worksheet proposed by Juli. The proposed distri-
    bution listed the value of the parties’ assets and debts. All the
    assets and debts for both parties were valued between July 4
    and November 1, 2021.
    Cyrus argued that Juli’s proposed distribution of assets
    incorrectly valued his bank account. According to his testi-
    mony, as well as the proposed distribution and bank account
    statements, the account had a balance of $115,100 as of
    August 2021. However, Cyrus testified that by the time of the
    trial, the value of the account had depleted to approximately
    $52,000 because he had been unemployed and had used the
    account for expenses. Cyrus did not offer any documentary
    evidence to support his testimony that the account had been
    depleted since the divorce filing. Nor did he dispute any of
    the evidence or testimony presented by Juli about the value
    of the remainder of the parties’ marital estate. The total
    value of the proposed marital estate, as set forth by Juli, was
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    RADMANESH V. RADMANESH
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    $96,403.51, and her proposed distribution via equalization
    payment was $53,200.29.
    (c) Student Loan Debt
    The parties testified that their children were both attend-
    ing college and expected to graduate in the spring of 2023.
    The children’s college tuition was paid for by a combination
    of scholarships, grants, and federal student loans. The student
    loans were incurred in Juli’s name. Neither party introduced
    any evidence documenting the details of the loans, but both
    testified about them.
    Juli testified that she applied for the loans on behalf of
    the children and that she took out the loans in only her name
    because she was the one who helped the children with their
    college applications and facilitated their education. Juli further
    testified that the loans were initially incurred in July 2018
    before the children started school, and every July thereafter,
    most recently in 2022. She also testified that before she took
    out the first loans in 2018, she and Cyrus had a conversation
    about the loans and that Cyrus agreed to incur the loans. She
    further testified that for the next couple years, she and Cyrus
    had similar discussions about incurring more student loans
    before each school year, but that for the final year, she applied
    for the loans without conferring with Cyrus. However, Juli
    testified that it was her understanding based on her earlier dis-
    cussions with Cyrus that he knew the loans would be taken out
    each year if there was a remaining balance on their children’s
    school tuition after their scholarships and grants were applied.
    Juli testified that there was $110,000 in student loan debt and
    requested that the debt be divided equally between Cyrus
    and her.
    Cyrus conversely testified that Juli “didn’t consult with
    [him]” about the student loans, but, rather, she “went and just
    applied for it.” Cyrus testified that Juli did not tell him that
    she had obtained the loans until after the fact. Cyrus stated
    that he wanted his children to be “accountable” for their own
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    education by paying off their own loans after they graduated.
    At the same time, Cyrus testified and provided documentary
    evidence to show that he regularly sent money to both children
    for school-related expenses. He further explained that he paid
    for his son’s room and board—approximately $20,000 annu-
    ally—directly to the college. Cyrus ultimately stated that he
    believed Juli should be entirely responsible for the student
    loans because she did not consult with him “in the beginning”
    and “she didn’t get [his] opinion.”
    2. District Court Decree
    The district court entered a decree of dissolution on October
    5, 2022. The decree stated that “[t]he Court was able to assess
    the credibility of the parties and the weight to be given to their
    testimony . . . . The Court ultimately give[s] greater weight to
    the testimony of [Juli].”
    As relevant to the issues raised on appeal, the decree ordered
    that Cyrus pay Juli alimony in the amount of $1,000 per month
    for 60 months. In support of the alimony award, the decree
    stated the following:
    The evidence showed that [Cyrus] contemplated his
    unemploy[ment] as a means to thwart these proceedings
    . . . . There was no evidence received to show [Cyrus]
    was unable to work at this time nor any evidence to
    show that he . . . attempted to find work. He did, how-
    ever, testify that at 65 years old, he intends to work for
    the next five years before he considers retirement when
    he will collect social security. As such, the Court finds
    that alimony is appropriate in this case and that [Cyrus]
    has the ability to pay.
    The decree also ordered that Cyrus pay Juli $53,200.29
    as an equalization of the parties’ nonretirement assets. The
    decree further ordered that each party keep the personal prop-
    erty in his or her possession and that Juli was awarded
    the video games located in a storage unit. The court also
    adopted and attached to the decree Juli’s proposed marital
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    RADMANESH V. RADMANESH
    Cite as 
    315 Neb. 393
    estate distribution. Finally, the decree ordered that the student
    loans incurred in Juli’s name were “taken out by the parties
    for the benefit of [their] children” and will be equally divided
    between the parties.
    3. Cyrus’ Motion to Alter
    or for New Trial
    Cyrus timely filed a motion to alter the judgment or, alter-
    natively, for a new trial. Juli objected, and at a hearing on
    the matter, Cyrus raised several of the arguments that he now
    raises on appeal. The district court denied the motion.
    Cyrus appealed, and we moved the case to our docket. 1
    III. ASSIGNMENTS OF ERROR
    Cyrus assigns, restated, that the district court erred in (1)
    awarding Juli alimony, (2) awarding Juli a $53,200.29 equal-
    ization payment, and (3) classifying the student loans incurred
    for the parties’ “adult children” as marital debt subject to
    equal division.
    IV. STANDARD OF REVIEW
    [1-3] In a marital dissolution action, an appellate court
    reviews the case de novo on the record to determine whether
    there has been an abuse of discretion by the trial judge. 2 This
    standard of review applies to the trial court’s determinations
    of alimony and property division. 3 In a review de novo on
    the record, an appellate court is required to make independent
    factual determinations based upon the record, and the court
    reaches its own independent conclusions with respect to the
    matters at issue. 4 When evidence is in conflict, the appel-
    late court considers and may give weight to the fact that the
    1
    See 
    Neb. Rev. Stat. § 24-1106
    (3) (Cum. Supp. 2022).
    2
    See Karas v. Karas, 
    314 Neb. 857
    , 
    993 N.W.2d 473
     (2023).
    3
    
    Id.
    4
    
    Id.
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    trial court heard and observed the witnesses and accepted one
    version of the facts rather than another. 5
    [4] A judicial abuse of discretion exists if the reasons or
    rulings of a trial judge are clearly untenable, unfairly depriv-
    ing a litigant of a substantial right and denying just results in
    matters submitted for disposition. 6
    V. ANALYSIS
    [5] Cyrus’ appeal raises issues of alimony and the clas-
    sification and division of property following the dissolution
    of the parties’ marriage. In a dissolution of marriage proceed-
    ing, 
    Neb. Rev. Stat. § 42-365
     (Reissue 2016) allows a court
    to order payment of such alimony by one party to the other
    and division of property as may be reasonable. 7 What con-
    stitutes a reasonable alimony award and division of marital
    property depends on the facts of each case, but to make that
    determination, a court may consider, among other things, the
    circumstances of the parties, the duration of the marriage,
    and the history of the contributions to the marriage by each
    party, including contributions to the care and education of
    the children. 8
    [6] While the criteria for reaching a reasonable alimony
    award and division of property may overlap, the two serve dif-
    ferent purposes and are to be considered separately. 9 Section
    42-365 explains that “[t]he purpose of alimony is to provide
    for the continued maintenance or support of one party by the
    other when the relative economic circumstances . . . make
    it appropriate.” Conversely, “[t]he purpose of property divi-
    sion is to distribute the marital assets equitably between the
    5
    Parde v. Parde, 
    313 Neb. 779
    , 
    986 N.W.2d 504
     (2023).
    6
    Karas, 
    supra note 2
    .
    7
    See 
    id.
    8
    See § 42-365.
    9
    See id.
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    parties.” 10 With these principles of reasonableness and equity
    as our guide, we turn to Cyrus’ assignments of error.
    1. Alimony
    Cyrus argues that the district court abused its discretion in
    awarding Juli alimony because it failed to consider Juli’s recent
    inheritance, Cyrus’ age, and generally Juli’s lack of a need for
    alimony as compared to Cyrus’ ability to pay. We find no abuse
    of discretion here.
    [7] In reviewing an alimony award, an appellate court
    does not determine whether it would have awarded the same
    amount of alimony as the trial court did, but whether the trial
    court’s award is untenable such as to deprive a party of a sub-
    stantial right or just result. 11 Further, an appellate court is not
    inclined to disturb the trial court’s award of alimony unless it
    is patently unfair on the record. 12 Again, the ultimate criterion
    is one of reasonableness. 13
    (a) Juli’s Inheritance
    [8] Cyrus claims that the inheritance Juli received after
    the divorce filing, but before the divorce decree, should have
    precluded her from being awarded alimony. Cyrus is correct
    that although property accumulated and acquired by a spouse
    through an inheritance should generally not be considered
    property part of the marital estate, 14 a court can certainly
    consider inheritance when deciding to award alimony. 15 As
    stated previously, the division of marital property and the
    award of alimony are separate inquiries under § 42-365. The
    fact that property is inherited and therefore excluded from
    division in a dissolution proceeding does not prevent the
    10
    Id.
    11
    Karas, 
    supra note 2
    .
    12
    Dooling v. Dooling, 
    303 Neb. 494
    , 
    930 N.W.2d 481
     (2019).
    13
    
    Id.
    14
    See 
    id.
    15
    See Ainslie v. Ainslie, 
    249 Neb. 656
    , 
    545 N.W.2d 90
     (1996).
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    income it generates from being considered when determining
    alimony. 16 In weighing a request for alimony, the court may
    consider all the property owned by the parties when enter-
    ing the decree, whether accumulated by their joint efforts or
    acquired by inheritance. 17
    We take Cyrus’ argument that the district court did not
    “consider” or “acknowledge” Juli’s inheritance in awarding
    alimony 18 to mean either that the decree was silent as to the
    inheritance or that the district court failed to give the inherit­
    ance adequate weight as compared to the other reasons for
    awarding alimony. Neither argument has merit.
    [9] Although the decree does not state that the district court
    considered Juli’s inheritance in awarding her alimony, neither
    does it state that the inheritance was disregarded. Generally,
    we do not require a district court to explain its reasoning. 19
    The parties spent considerable time at the trial testifying about
    Juli’s inheritance. They also offered numerous exhibits show-
    ing the balance of several of Juli’s accounts, some of which
    the parties agreed derived from her inheritance. As such, we
    do not find anything in the record to suggest that the district
    court was not cognizant of Juli’s inheritance when it awarded
    her alimony.
    As to the weight given to Juli’s inheritance, Juli testified
    that she received $160,000 in inheritance from her father’s
    estate and that approximately $120,000 of inherited funds
    were initially placed in a savings account before being divided
    among different retirement and bank accounts. However, the
    record is unclear as to exactly how much of the inherited funds
    Juli had in which accounts and whether the accounts that held
    inherited funds generated income. Upon our review of the
    record, the most that can be said is that at or near the time of
    16
    See 
    id.
    17
    Brozek v. Brozek, 
    292 Neb. 681
    , 
    874 N.W.2d 17
     (2016).
    18
    See brief for appellant at 15.
    19
    Brumbaugh v. Bendorf, 
    306 Neb. 250
    , 
    945 N.W.2d 116
     (2020).
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    the divorce proceedings, Juli had as much as $39,000 in inher-
    ited funds in her checking account, $37,000 in inherited funds
    in her IRA account, and $35,000 in inherited funds in one of
    her savings accounts.
    While those inherited funds were assets, there was no evi-
    dence presented that the funds actively generated income or
    could have been readily accessed or liquidated by Juli. Taking
    into consideration the limited evidence concerning Juli’s inher-
    itance, we find the statutory factors relevant to an award of
    alimony support the trial court’s determination.
    (b) Cyrus’ Age
    Cyrus also argues that the district court erred in awarding
    Juli alimony because of his “advanced age.” 20 In doing so,
    Cyrus contends that the Nebraska Court of Appeals’ decision
    in Kramer v. Kramer 21 stands for the proposition that alimony
    cannot be ordered to be paid by an individual over 62 years of
    age. Cyrus’ reliance on Kramer is misplaced.
    The court in Kramer did not hold that alimony could never
    be awarded beyond age 62; instead, it held that a divorce
    decree awarding lifetime alimony was unreasonable under the
    circumstances of that case and that the award should be
    reduced to a 15-year term. 22 Indeed, the Court of Appeals itself
    clarified some years later in an unpublished opinion that “th[e]
    reliance on Kramer for the proposition that alimony should
    not be awarded after the obligor reaches 62 years of age is
    improper.” 23 We agree.
    [10] This court has never suggested that there is an age at
    which a party to a divorce is too old to pay alimony. Rather,
    the terms of an award of alimony depend on what is reason-
    able under the circumstances of each case. We have held that
    20
    See brief for appellant at 14.
    21
    Kramer v. Kramer, 
    1 Neb. App. 641
    , 
    510 N.W.2d 351
     (1993).
    22
    See 
    id.
    23
    Paschall v. Paschall, No. A-12-668, 
    2013 WL 5366330
     at *3 (Neb. App.
    July 16, 2013) (selected for posting to court website).
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    the primary purpose of alimony is to assist an ex-spouse for
    a reasonable period of time necessary for that individual to
    secure his or her own means of support. 24 Ultimately, the dura-
    tion of an alimony award must be reasonable. 25 We find that
    the 5-year duration of alimony here qualifies as such. While
    Cyrus will be 70 years old when his alimony obligation termi-
    nates, he testified that he “would like to work up to . . . maybe
    70 plus,” then confirmed he “intend[ed] to work for the next
    [5] years at least” if he was able.
    (c) Juli’s Need for Alimony Versus
    Cyrus’ Ability to Pay
    As to Cyrus’ argument that the district court erred in award-
    ing Juli alimony because it failed to consider Juli’s lack of a
    need for alimony as compared to Cyrus’ ability to pay, we dis-
    agree. Specifically, we do not find that the district court’s order
    of alimony was an improper attempt to equalize the parties’
    income, as Cyrus asserts.
    [11] Alimony should not be used as a tool to equalize the
    parties’ incomes or to punish one of the parties. 26 However,
    a disparity of income or potential income might partially jus-
    tify an alimony award. 27 The district court found a significant
    disparity in the incomes here. We find no abuse of discretion
    in that conclusion.
    Cyrus testified that he could earn up to $140,000 per con-
    tract. While his work appeared to have some income volatil-
    ity, it is also apparent that his earning potential was several
    times that of Juli’s. Over the past 20 years, Cyrus made more
    than $100,000 per year numerous times. For Cyrus’ most
    recent contract, he earned $143,000 to $145,000 annually.
    24
    Karas, supra note 2; Wiedel v. Wiedel, 
    300 Neb. 13
    , 
    911 N.W.2d 582
    (2018).
    25
    Wiedel, supra note 24.
    26
    See Karas, 
    supra note 2
    ; Simons v. Simons, 
    312 Neb. 136
    , 
    978 N.W.2d 121
     (2022).
    27
    Simons, 
    supra note 26
    .
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    Additionally, Cyrus testified that his monthly expenses were
    approximately $4,000. Juli, on the other hand, earned approxi-
    mately $40,000 annually, and her monthly expenses were also
    approximately $4,000. As such, the district court did not abuse
    its discretion when it found that Cyrus should pay alimony to
    Juli in the amount of $1,000 per month for 5 years.
    Relatedly, we find no merit in Cyrus’ argument that he is
    unable to pay alimony because he was unemployed for the
    6 months preceding the trial. The district court found that
    Cyrus’ unemployment was voluntary and that he attempted to
    use a job offer as leverage for Juli to “suspend” the divorce
    proceedings. We have no basis to disagree. Cyrus argues on
    appeal that he chose to not take the job offer because he did
    not want to receive the COVID-19 vaccine required by the
    employer. However, the record shows that Cyrus communi-
    cated to both Juli and the parties’ children that he was will-
    ing to “proceed with taking [the] vaccines to stay employed
    . . . if Juli suspend[ed] the divorce case,” among other terms.
    When Juli did not agree to Cyrus’ terms, Cyrus communicated
    that he was “volunteering” to decline the vaccine and that he
    would be unemployed and unable to provide for the family in
    the future. Based on this evidence, we find no abuse of discre-
    tion in the district court’s finding that Cyrus “contemplated his
    unemploy[ment] as a means to thwart these proceedings.”
    We similarly find no merit in Cyrus’ remaining arguments
    about Juli’s lack of a need for alimony and his inability to pay.
    As stated previously, we do not determine whether we would
    have awarded the same amount of alimony that the district
    court did, but we instead only determine whether the alimony
    award was an abuse of discretion. 28 The alimony award here
    was reasonable, not an abuse of discretion, and we are not
    inclined to disturb it. 29
    28
    See Karas, 
    supra note 2
    .
    29
    See, id.; Dooling, supra note 12.
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    2. Equalization Payment
    Cyrus next argues that the district court erred in ordering
    him to pay Juli a $53,200.29 equalization payment. He con-
    tends that the court failed to credit him for the reduction in his
    portion of the marital estate in the time between the divorce fil-
    ing and the trial and that the video games in storage that were
    awarded to Juli had not been included in her proposed marital
    distribution. We find no abuse of discretion here.
    (a) Valuation Date
    The district court valued Cyrus’ bank account approximately
    1 month after the date of the divorce filing. Cyrus argues that
    the court should have instead valued the account at the date of
    the trial and that when it did not, it failed to properly credit
    him for the reduction in his portion of the marital estate.
    [12,13] The purpose of assigning a date of valuation in a
    dissolution decree is to ensure that the marital estate is equi-
    tably divided. 30 It is well settled that, generally, the date upon
    which a marital estate is valued must be rationally related to
    the property composing the marital estate and the property
    being divided. 31 We have declined to tie the hands of the
    district court and mandate that it must use only one particu-
    lar valuation date in equitably dividing the marital estate. 32
    The date of valuation is reviewed for an abuse of the trial
    court’s discretion. 33
    Cyrus’ bank account was valued at $115,100 on August
    11, 2021, a date and value that was supported by evidence
    admitted at the trial. Cyrus did not dispute the account’s value
    on the valuation date; he only testified that since then, the
    account had depleted to a lesser amount. However, Cyrus did
    30
    Karas, supra note 2.
    31
    See, id.; Dooling, supra note 12; Rohde v. Rohde, 
    303 Neb. 85
    , 
    927 N.W.2d 37
     (2019).
    32
    See, e.g., Rohde, supra note 31.
    33
    Eis v. Eis, 
    310 Neb. 243
    , 
    965 N.W.2d 19
     (2021).
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    not introduce bank statements or other evidence to support
    his assertion.
    In both Karas v. Karas 34 and Dooling v. Dooling, 35 for
    example, we held that the trial court did not abuse its discre-
    tion in valuing a spouse’s marital asset on one date, despite the
    spouse’s argument that a different valuation date more accu-
    rately reflected the lesser value of the asset, when the spouse
    did not offer evidence of that asset’s lesser value on that date
    to the court. We reach the same conclusion here and find that
    Cyrus failed to adequately offer evidence of the account’s
    value at or near the trial date.
    Further, all the parties’ assets and debts were valued between
    July and November 2021, not just Cyrus’ account. We decline
    to single out Cyrus’ most valuable marital asset and hold that
    the district court should have valued it as of another date. The
    district court’s valuation date was rationally related to Cyrus’
    account, as well as the other property in the parties’ marital
    estate. We thus cannot say it was an abuse of discretion for the
    district court to value Cyrus’ account near the divorce filing.
    (b) Video Games
    There was also testimony from both parties about a stor-
    age unit that held various items, including video games that
    the parties valued at approximately $30,000. Cyrus paid for
    the monthly costs of the storage unit, and although he testi-
    fied that he would rather Juli be responsible for the costs and
    items of the storage unit, save his personal property and their
    children’s property, he also testified that he would continue
    paying for the unit if Juli did not want any of the household
    property in it. Juli testified that Cyrus could have everything
    in the storage unit besides their son’s video games, which she
    requested that she be awarded so that she could deliver them
    to their son.
    34
    Karas, supra note 2.
    35
    Dooling, supra note 12.
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    Cyrus is correct that the contents of the storage unit were
    not included on the proposed marital distribution worksheet. In
    fact, the only mention of the storage unit in the district court’s
    decree was that Juli was awarded the video games in the unit
    and that she was responsible for transporting them. It is clear
    from the parties’ testimony, however, that the video games were
    intended for their son and that Juli planned to deliver them to
    him. Cyrus’ argument that the value of the video games was
    to Juli’s benefit and should have reduced the equalization pay-
    ment is without merit.
    3. Student Loan Debt
    Cyrus lastly argues that the district court erred in classifying
    the student loans incurred for the parties’ children as a marital
    debt that was to be equally divided between the parties. Again,
    we find no abuse of discretion.
    Cyrus argues that the student loans should not have been
    classified as marital debt because the loans were taken out for
    the benefit of their children, rather than the parties’ benefit. He
    contends that the student loans here are akin to loans taken out
    by one party to a divorce for that party’s own benefit and that
    Juli should be entirely responsible for the loans. Juli disagrees
    and argues that the student loans were incurred for the benefit
    of the parties and thus should not be treated differently than
    any other debt incurred during the marriage.
    Cyrus relies on two cases from the Nebraska Court of
    Appeals to support his contention that student loans are to be
    considered marital debt only if the loans are disbursed for the
    benefit of the marriage. In Walker v. Walker, 36 the Court of
    Appeals concluded that the district court did not abuse its dis-
    cretion in finding student loan debt incurred during the mar-
    riage to be nonmarital where the parties disputed the extent to
    which the student loans were used for joint marital interests
    or the obligor’s education. Specifically, the appellate court
    36
    Walker v. Walker, 
    9 Neb. App. 694
    , 
    618 N.W.2d 465
     (2000).
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    held that equity required the wife to take with her the student
    loan debt incurred when she obtained her law degree, as she
    took with her all the benefit of the degree. 37
    In Wright v. Wright, 38 the Court of Appeals similarly held
    that a trial court did not abuse its discretion when it did not
    divide student loan debt incurred by a spouse to further his
    education. The trial court found that there was insufficient evi-
    dence to determine an equitable amount to attribute as marital
    debt because some of the debt was used to finance the educa-
    tion and some of the debt was used to pay the parties’ bills.
    The appellate court agreed that the record was insufficient to
    determine how much of the debt was marital. 39
    Although Walker and Wright considered whether certain
    student loan debt was marital debt, neither case is directly
    on point with the facts of this case. The student loan debts
    incurred in those cases were debts incurred for the education
    of one of the parties in the divorce and not for the parties’ chil-
    dren. Additionally, there was no evidence in those cases as to
    an agreement of the parties concerning the debt. As such, the
    two cases offer limited guidance in determining the issue now
    before us.
    [14] Generally, all property accumulated and acquired by
    either spouse during a marriage is part of the marital estate. 40
    Exceptions include property that a spouse acquired before
    the marriage, or by gift or inheritance. 41 Debts, like prop-
    erty, should be considered in dividing marital property upon
    dissolution. 42 It is well settled in Nebraska that marital debt
    includes only those obligations incurred during the marriage
    37
    
    Id.
    38
    Wright v. Wright, 
    29 Neb. App. 787
    , 
    961 N.W.2d 834
     (2021).
    39
    
    Id.
    40
    Karas, 
    supra note 2
    .
    41
    Dooling, supra note 12.
    42
    See, Carter v. Carter, 
    261 Neb. 881
    , 
    626 N.W.2d 576
     (2001); Anderson v.
    Anderson, 
    27 Neb. App. 547
    , 
    934 N.W.2d 497
     (2019).
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    for the joint benefit of the parties. 43 This is a flexible, fact-
    specific standard. 44
    As summarized previously, there was competing evidence
    at the trial as to whether the parties agreed to, or at least
    discussed, incurring the student loans for their children. Juli
    testified that before she incurred the loans, she and Cyrus dis-
    cussed the loans, and that Cyrus expressly agreed to them. She
    further testified that she had similar discussions with Cyrus
    every year, except the year immediately prior to the divorce,
    before she renewed the student loans. Cyrus conversely testi-
    fied that no such discussions were had and that he did not
    agree to the loans and did not know about them until after
    the fact.
    The district court heard this competing evidence and deter-
    mined that Juli’s testimony was more credible. In doing so,
    the court concluded that the parties agreed to incur the stu-
    dent loan debt during the marriage. We give weight to that
    factual finding.
    In our earlier decisions dealing with classifying a debt as
    marital, the facts of each case and whether the party claiming
    the debt was nonmarital offered sufficient evidence at trial to
    satisfy that party’s burden of proof is what drove the analysis.
    Where there was no evidence, or competing evidence, as to
    whether the parties agreed to incur a debt during the marriage
    for their joint benefit, we have given weight to trial courts’
    credibility assessments and generally found no abuse of dis-
    cretion in their factual findings. 45 Again, when evidence is in
    conflict, the appellate court considers and may give weight
    43
    Karas, supra note 2; Vanderveer v. Vanderveer, 
    310 Neb. 196
    , 
    964 N.W.2d 694
     (2021); Fetherkile v. Fetherkile, 
    299 Neb. 76
    , 
    907 N.W.2d 275
     (2018);
    Millatmal v. Millatmal, 
    272 Neb. 452
    , 
    723 N.W.2d 79
     (2006); Mathews
    v. Mathews, 
    267 Neb. 604
    , 
    676 N.W.2d 42
     (2004).
    44
    Vanderveer, 
    supra note 43
    .
    45
    See, e.g., Karas, 
    supra note 2
    ; Kauk v. Kauk, 
    310 Neb. 329
    , 
    966 N.W.2d 45
    (2021); Vanderveer, 
    supra note 43
    ; Fetherkile, 
    supra note 43
    ; Millatmal,
    
    supra note 43
    ; Mathews, 
    supra note 43
    .
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    to the fact that the trial court heard and observed the witnesses
    and accepted one version of facts rather than another. 46 As
    such, we find no abuse of discretion in the district court’s divi-
    sion of the student loan debt.
    With that determination being made, we note that, as a gen-
    eral rule, absent agreement of the parties, a Nebraska district
    court cannot order a party to pay child support beyond the age
    of majority. 47 Nothing in this opinion should be understood to
    condone the unilateral incurring of postseparation indebtedness
    as a subterfuge to evade this principle.
    Cyrus’ further argument that the student loan debt could
    have been treated as a nonmarital debt because it was incurred
    after the parties separated is without merit. To the contrary, we
    have expressly declined to adopt a rule requiring that debts
    must be incurred before separation to be considered marital. 48
    VI. CONCLUSION
    For the foregoing reasons, the district court did not abuse
    its discretion in awarding alimony and the equalization pay-
    ment and in equally dividing the student loan debts between
    the parties.
    Affirmed.
    46
    Parde, 
    supra note 5
    .
    47
    Carlson v. Carlson, 
    299 Neb. 526
    , 
    909 N.W.2d 351
     (2018). See, Johnson
    v. Johnson, 
    308 Neb. 623
    , 
    956 N.W.2d 261
     (2021); Windham v. Kroll,
    
    307 Neb. 947
    , 
    951 N.W.2d 744
     (2020); Wood v. Wood, 
    266 Neb. 580
    , 
    667 N.W.2d 235
     (2003); Foster v. Foster, 
    266 Neb. 32
    , 
    662 N.W.2d 191
     (2003);
    Groseth v. Groseth, 
    257 Neb. 525
    , 
    600 N.W.2d 159
     (1999); Zetterman v.
    Zetterman, 
    245 Neb. 255
    , 
    512 N.W.2d 622
     (1994). See, also, Henderson
    v. Henderson, 
    264 Neb. 916
    , 
    653 N.W.2d 226
     (2002); Kimbrough v.
    Kimbrough, 
    228 Neb. 358
    , 
    422 N.W.2d 556
     (1988); Meyers v. Meyers, 
    222 Neb. 370
    , 
    383 N.W.2d 784
     (1986); Waldbaum v. Waldbaum, 
    171 Neb. 625
    ,
    
    107 N.W.2d 407
     (1961); Moore v. Bauer, 
    11 Neb. App. 572
    , 
    657 N.W.2d 25
     (2003); Boamah-Wiafe v. Rashleigh, 
    9 Neb. App. 503
    , 
    614 N.W.2d 778
    (2000).
    48
    See Vanderveer, 
    supra note 43
    .
    

Document Info

Docket Number: S-22-826

Filed Date: 10/27/2023

Precedential Status: Precedential

Modified Date: 11/3/2023