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Simmons v. Simmons, Docket No. 18897 (Mich. Ct. App. Feb. 11, 1975)

Factual and Procedural Background

Freda M. Simmons filed a complaint for divorce against Bruce E. Simmons. By judgment dated November 9, 1973, the marriage was terminated, custody and support of minor children were provided for, alimony to plaintiff was awarded, and the parties' property interests were resolved. A particular dispute concerned a 72-acre apple orchard purchased on land contract by defendant from his parents.

The trial court ordered that the orchard be held by the parties as tenants in common, gave defendant the exclusive right of possession and use, and imposed upon him the duty to maintain the property and pay the taxes. The judgment further ordered the property sold after five years, or sooner upon defendant's election, with proceeds to be divided according to a formula in the judgment. The $100-per-month alimony provision was to cease on the sale of the orchard.

Defendant appealed, asserting error in the division of marital property with particular reference to the orchard. Plaintiff cross-appealed. The Court of Appeals reversed and remanded for further proceedings. Judge Peterson dissented and would have affirmed.

Legal Issues Presented

  1. Whether the trial court erred in dividing the marital property by effectively requiring the sale of defendant's 72-acre apple orchard.
  2. Whether, given the wide discretion afforded trial courts in dividing marital property, the appellate court should modify the property award or remand for further proceedings consistent with appellate direction.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Czuhai v Czuhai, 30 Mich. App. 208; 186 N.W.2d 32 (1971) Supports the proposition that the trial court has wide discretion in dividing marital property. Used to state the general standard of deference to the trial court's property division.
Paul v Paul, 362 Mich. 43; 106 N.W.2d 384 (1960) Establishes that appellate courts will not modify a property award unless convinced they would have reached a different result if in the trial court's position. Quoted to explain the appellate court's standard of review and to frame its reluctance to modify the property award absent conviction it was wrong.
Feldman v Feldman, 55 Mich. App. 147; 222 N.W.2d 2 (1974) Reinforces the principle of deference to trial court discretion in property division. Included with other authority to describe the standard under which the appellate court assesses property division decisions.
Johnson v Johnson, 346 Mich. 418, 431; 78 N.W.2d 216, 222 (1956) Explains that property division in divorce is not governed by rigid rules or mathematical formula; lists equitable factors to consider (source of property, contribution towards acquisition, years of married life, needs, earning ability, cause for divorce, etc.). Quoted to identify the equitable factors the court must consider in dividing marital property; applied to the orchard facts to conclude that forcing sale was improper.

Court's Reasoning and Analysis

The court began from the established principle that the trial court enjoys wide discretion in dividing marital property and that an appellate court will not modify an award unless convinced it would have reached a different result (citing Czuhai v Czuhai, Paul v Paul, and Feldman v Feldman). The court then applied the equitable factors articulated in Johnson v Johnson: division is case-specific and depends on factors such as source of property, contributions to acquisition, years of married life, needs, earning ability, and cause for divorce.

Applying those principles to the present facts, the majority emphasized three points from the record: the orchard had belonged to defendant's family for more than a century; the orchard was being purchased on land contract by defendant alone; and defendant had been an apple farmer all his life, with the orchard being his primary means of earning a living. On those bases the majority concluded it was improper to require defendant to sell his business.

The court therefore remanded for further proceedings consistent with the opinion. It instructed that the trial court could order defendant to make a cash payment to plaintiff and that the orchard could be made subject to a lien securing that payment. The opinion further directed that any cash award should be payable in installments over several years to give defendant a reasonable opportunity to avoid a forced sale of the farm. The court cited MCLA 552.27; MSA 25.105 concerning liens and foreclosure procedures when discussing lien availability on property for alimony or support awards.

Judge Peterson's dissent disagreed, stating the trial judge had carefully tailored the sale and disposition of proceeds to meet defendant's support obligations under MCLA 552.23(1); MSA 25.103(1). The dissent summarized record evidence (presented to the trial court) that the farm had been unproductive (a net loss of $8,600), that defendant was in default on the land contract with deficiencies exceeding the $60,000 purchase price, that defendant had other substantial obligations, that plaintiff was physically incapable of working, that defendant had not complied with temporary support orders accruing an arrearage of almost $6,000, and that plaintiff and minor children had subsisted on county aid. The dissent argued these realities supported the trial court's order requiring sale.

Holding and Implications

REVERSED AND REMANDED.

Direct consequences:

  • The appellate court vacated the trial court's order insofar as it required or resulted in the sale of the orchard as previously ordered, and remanded for further proceedings consistent with the opinion.
  • On remand the trial court may (a) order defendant to make a cash payment to plaintiff, (b) secure that payment by a lien on the orchard, and (c) structure payments in installments over several years to afford defendant an opportunity to avoid a forced sale.
  • Costs were awarded to defendant-appellant.

No broader precedent beyond application of existing principles governing equitable property division and the trial court's discretion was announced; the decision directs specific relief in this case without purporting to establish a new rule of law.

SIMMONS v. SIMMONS

J.H. GILLIS, P.J.

By judgment of November 9, 1973, the marriage between the parties was terminated, provision was made for the custody and support of minor children, support of plaintiff by alimony was allowed, and the property interests of the parties were resolved.

Defendant appeals, asserting that the trial judge erred in the division of the marital property with particular reference to the provision dealing with a 72-acre apple orchard being purchased on land contract by defendant from his parents. As to that property, the court ordered that it be held by the parties as tenants in common, giving defendant the exclusive right of possession and use along with the duty to maintain the property and pay the taxes thereon. After five years, or sooner upon defendant's election, the judgment orders the property sold and the proceeds divided according to a formula set out in the judgment. The $100-per-month alimony provision ceases on the sale of the orchard.

The relevant statute, MCLA 552.23(1); MSA 25.103(1), provides:
"Upon every divorce from the bond of matrimony and also upon every divorce from bed and board if the estate and effects awarded to either party shall be insufficient for the suitable support and maintenance of either party and such children of the marriage as shall be committed to the care and custody of either party, the court may further award to either party such part of the real and personal estate of either party and such alimony out of the estate real and personal, to be paid to either party in gross or otherwise as it shall deem just and reasonable, having regard to the ability of either party and the character and situation of the parties, and all the other circumstances of the case."

The trial court has wide discretion in dividing the property of the marital estate. Czuhai v Czuhai, 30 Mich. App. 208; 186 N.W.2d 32 (1971). We will not modify its property award unless convinced that, had we been in its position, we would have reached a different result. Paul v Paul, 362 Mich. 43; 106 N.W.2d 384 (1960); Feldman v Feldman, 55 Mich. App. 147; 222 N.W.2d 2 (1974). In the instant case, we are convinced that had we been in the trial court's position, we would not have ordered defendant to sell his apple orchard.

In Johnson v Johnson, 346 Mich. 418, 431; 78 N.W.2d 216, 222 (1956), our Supreme Court said:

"The division of property in a divorce action is not governed by any rigid rules or mathematical formula. Each case depends on the particular facts involved.

* * *

"The portion of property awarded to each party depends upon all the equitable factors involved, including the following: source of property, contribution towards its acquisition, the years of married life, the needs of the parties, their earning ability and also the cause for divorce."

This orchard had belonged to defendant's family for more than a century. It was being purchased on land contract by defendant alone. Most importantly, defendant has been an apple farmer all of his life. This orchard is his primary means of earning a living. We think it is improper to require defendant to sell his business.

Therefore, we remand this case to the trial court for further proceedings consistent with this opinion. The trial court can, of course, order defendant to make a cash payment to plaintiff. It can direct that the orchard be subject to a lien securing the payment of the cash award. The award should be made payable in installments over the next several years so as to give defendant a reasonable opportunity to avoid a forced sale of his farm.

MCLA 552.27; MSA 25.105, provides in pertinent part:
"In all cases where alimony or allowance for the support and education of minor children shall be awarded to either party, the amount thereof shall constitute a lien upon such of the real and personal estate of the adverse party as the court by its judgment shall direct, and in default of payment of the amount so awarded the court may order the sale of the property against which such lien is adjudged in the same manner and upon like notice as in suits for the foreclosure of mortgage liens * * *."

Reversed and remanded. Costs to defendant-appellant.

V.J. BRENNAN, J., concurred.

PETERSON, J. (dissenting).

I would affirm. It seems to me that the action of the trial judge was a well-considered solution to the problems of the parties. The sale of the orchard and the disposition of the proceeds, as ordered, was carefully tailored to fairly meet defendant's support obligations under the peculiar circumstances of this case, and within the power of the court under MCLA 552.23(1); MSA 25.103(1), providing:

"Upon every divorce from the bond of matrimony and also upon every divorce from bed and board if the estate and effects awarded to either party shall be insufficient for the suitable support and maintenance of either party and such children of the marriage as shall be committed to the care and custody of either party, the court may further award to either party such part of the real and personal estate of either party and such alimony out of the estate real and personal, to be paid to either party in gross or otherwise as it shall deem just and reasonable, having regard to the ability of either party and the character and situation of the parties, and all the other circumstances of the case."

A review of the record discloses that the court followed the statutory mandate to consider the ability of the parties, their character and situation and all of the circumstances of the case.

As against defendant's claim that it was inequitable to require the sale of the family farm, which was his means of livelihood, the court heard testimony that (a) the farm had not been productive, resulting in a net loss of $8,600 over the previous years; (b) defendant was in default on the land contract, his deficiencies exceeding the original purchase price of $60,000; (c) defendant had other substantial obligations; (d) plaintiff was physically incapable of working; (e) defendant had failed to comply with the court's temporary support order, accumulating an arrearage of almost $6,000 during the pendency of the action; and (f) plaintiff and the minor children had been subsisting with an aid to dependent children grant from the county department of social services. It is clear that the farm had a land value far in excess of its value as an operating farm — at least in defendant's hands. It is equally clear that as a farmer defendant is not, or has not been, capable of meeting his obligations and supporting his family.

While my brothers find it more equitable to give plaintiff a cash award and leave the farm with defendant subject to a lien for the cash award, it seems to me that the trial judge dealt with realities rather than defendant's vain expectations. There is no way defendant can have the farm and finance it too — he simply cannot pay a cash award without selling. When the award is not paid, plaintiff will have to resort to foreclosure proceedings, an expense she can ill afford.

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SIMMONS v. SIMMONS
(Feb 11, 1975)