# FILED March 1, 1996 Cecil Crowson, Jr. App ellate C ou rt Clerk I N THECOUR

TOFAPPEALSOFTENNES SEE EA STER N SEC TI O N

D EM ETR EO U SFLEN G A S ) HAM I LTON C

OUNTY ) 03A 01- 9508- C

V - 00281 Pl a i ntif f

- A

pp e lla nt )

) ) v. ) HON. W I LLI AM M . BAR KER , ) J UDGE ) KI M BER LY DENI SEFLENGAS ) ) D e f e nda nt - A

ppe l l e e ) R EM ANDED W

I TH DI R

EC TI ONS

M AR VI N BER

KEOFC

HATTANOOGA FOR

APPELLANT LESLI EB. M

c W I LLI AM SOFC HATTANOOGA FOR

APPELLEE

O PI N I O N

G odda r d, P. J .

D e m e t r e ous Fl e nga s , t he hus ba nd, a nd K i m be r l y D

e ni s e Fl e nga s , t he w

i f e , w e r e gr a nt e d a n a bs ol ut e di vor c e i n Se pt e m be r 1994 i n H

a m i l t on C

ount y. Shor t l y t he r e a f t e r , t he Tr i a l C our t e nt e r e d i t s m

e m or a ndum

opi ni on a nd or de r w hi c h di r e c t e d t he di vi s i o no f the p a r tie s ' a s s e t s a ndlia b ilitie s . It is f r o m thi s or de r t ha t t he hus ba nd a ppe a l s .2 The pa r t i e s w

e r e m a r r i e d on A

ugus t 5, 1989. The y ha ve no c hi l dr e n t oge t he r , but t he hus ba nd' s da ught e r f r om a pr e vi ous m a r r i a g e live dw

iththe p a r tie s until s hor tlyb e f or e the p a r tie s ' s e pa r a t i on. The hus ba nd f i l e d hi s c om pl a i nt f or di vor c e i n Fe br ua r y of 1994. The w i f e a s ke d t ha t t he c om pl a i nt be di s m

i s s e d a nd s he t he n f i l e d a c ount e r - c l a i m s e e ki ng di vor c e . A non- j ur y t r i a l w a s he l d on J ul y 18 a nd 19, 1994. A n or de r of a bs ol ut e di vor c e w a s e nt e r e d on Se pt e m be r 9, 1994. I n A pr i l of 1995, a s a l r e a dy not e d, t he Tr i a l C our t i s s ue d i t s m e m or a ndum

or de r t ha t di r e c t e d t he di vi s i on of a s s e t s a nd lia b ilitie s . The p a r tie s o w ne dv a r i ou s a s s e t s , in c l u di nga num be r of a ut om

obi l e s . Thi s a ppe a l , how e ve r , i s c onc e r ne d w i t h onl y one a s s e t : t he m a r i t a l hom

e . I n 1980, pr i or t o t he pa r t i e s ' m a r r i a ge , t he hus ba nd pur c ha s e d a hous e i n Si gna l M ount a i n, Te nne s s e e f or $55, 000. The t i t l e t o t he hous e i s i n t he hus ba nd' s na m e onl y a nd i s s e pa r a t e pr ope r t y of t he hus ba nd. H ow e ve r , t he Tr i a l C our t or de r e d t ha t w hi l e t he w

i f e i s not e nt i t l e d t o a ny s ha r e i n t he hus ba nd' s s e p a r a t e pr op e r t y , s he i s ent i t l e dt os h a r e i nt he appr eci a t i o n of s uc h pr ope r t y s i nc e t he m a r r i a ge . The Tr i a l C our t not e d t ha t

" [ a ] l t hough t he r e w a s no e vi de nc e i nt r oduc e d r e ga r di ng t he a c t ua l i nc r eas e i nv a l u e o f t he r e s i de nce s i nce t he m a r r i a g e , i t i s c l e a r tha t m

o s t of the im

pr o v e m e nt s , w

hi c hw e r e s ub s t a nt i a l, w e r e m a de by t he pa r t i e s f ol l ow i ng t he m

a r r i a ge . " The r e f or e , t he Tr i a l C

our t or de r e d t ha t t he hous e be s ol d a nd t ha t " t he ne t3

pr o ceed s f r o m

t he s a l e , af t e r t he de du c t i o no f t he b a l a nce o w e d on t he m

or t ga ge s , t he he a t i ng a nd a i r - c ondi t i oni ng s ys t e m , r e a l e s t a t e s a l e s f e e s , c l os i ng c os t s , a nd a ny unpa i d pr ope r t y t a xe s , " be di vi de d be t w

e e n t he pa r t i e s s o t ha t t he hus ba nd w oul d r e c e i ve 75 pe r c e nt a nd t he w i f e 25 pe r c e nt .4 The hus ba nd pr e s e nt s t he s e i s s ue f or a ppe a l :

I . W he t he r a t r i a l cour t m a yaw a r dani nt e r e s t i na s pous e ' s s e pa r a t e pr ope r t y t o t he ot he r s pous e de s pi t e n oevi de nce t h a t t he s e p a r a t e pr op e r t yi nc r eas e di n va l ue . II. W he t he r a t r i a l c our t m a y a dm i t a l a y opi ni on r e ga r di ng va l ue by a w i t ne s s w

ho i s not a n e xpe r t a nd doe s not ow

n t he pr ope r t y.

The r e i s no que s t i on t ha t t he m a r i t a l hom

e i s s e pa r a t e pr ope r t y be l ongi ng t o t he hus ba nd. H ow e ve r , T. C. A

. 36- 4- 121( b) ( 1) ( B) pr ovi de s t ha t " a ny i nc r e a s e i n va l ue dur i ng t he m a r r i a ge , of pr ope r t y de t e r m i ne d t o be s e pa r a t e pr ope r t y" i s m a r i t a l pr ope r t y s o l ong a s e a c h pa r t y t o t he m a r r i a ge

" s ubs t a nt i a l l y c ont r i but e d t o i t s pr e s e r va t i on a nd a ppr e c i a t i on. " See al s o Ellis v . Ellis , 748 S . W . 2d 424 ( Te nn. 1988) . The C ode de f i ne s s ubs t a nt i a l c ont r i but i on a s " t he di r e c t or i ndi r e c t c ont r i but i on of a s pous e a s hom e m a ke r , w

a ge e a r ne r , pa r e nt or f a m i l y f i na nc i a l m

a na ge r , t oge t he r w i t h s uc h ot he r f a c t or s a s t he c our t ha vi ng j ur i s di c t i on t he r e of m a y de t e r m

i ne . " T. C. A

. 36- 4- 1 2 1 ( b )(1 )(C

) .

I nt he case bef or e u s , t he r e i s evi de nce t h a t t he p a r t i e s m

a de s e v e r a l i m

pr o v e m e nt s t ot he m

a r i t a l ho m

e and a dj oi ni ng pr ope r t y. A m ong t he i m

pr ove m e nt s w e r e : a ddi ng a ga r a ge , a ddi ng a c ove r e d de c k, a ddi ng a w ood s t or a ge bui l di ng, e nc l o s i nga p a tio , in s t a llingc e nt r a l he a t a nda i r , fe nc i ngina por t i on of t he pr ope r t y, i ns t a l l i ng a n uppe r dr i ve w a y a nd va r i ous ot he r i m

pr ove m e nt s . The s e i m

pr ove m e nt s w e r e done by t he pa r t i e s5

t he m s e l ve s , by w

or ke r s t he pa r t i e s t r a de d w i t h or by i ndi vi dua l s w ho w e r e pa i d f or t he i r w or k. The hus ba nd doe s not c ont e s t t he Tr i a l C

our t ' s f i ndi ngth a t the w i f e s ub s t a ntia llyc o nt r i but e dto t he i ns t a l l a t i on of t he i m pr ove m e nt s . The hus ba nd i ns t e a d i ns i s t s t ha t be c a us e t he w i f e f a i l e dt opr o du ce anyact u a l evi de nce of ani nc r eas e i nt he pr ope r t y' s va l ue s he i s not e nt i t l e d t o a n i nt e r e s t i n t he pr ope r t y. D

e t e r m i ni ng t he va l ue of s uc h pr ope r t y i s a f a c t que s t i on a nd t hus , t he t r i a l c our t ' s de t e r m i na t i on m

us t be gi ve n gr e a t w

e i ght on a ppe a l . W a l l ace v . W

a l l ace , 733 S . W

. 2d 102 ( Te nn. A

pp. 1987) . The Tr i a l C our t ' s de c i s i on w i t h r e ga r d t o va l ua t i on of m

a r i t a l pr ope r t y w i l l be pr e s um

e d t o be c or r e c t unl e s s t he e vi de nc e pr e ponde r a t e s ot he r w i s e . W

a l l ace , s upr a . The di f f i c ul t y he r e i s t ha t t he r e i s no a c t ua l e vi de nc e r e ga r di ng t he va l ue of t he hus ba nd' s e qui t y i n t he pr ope r t y a t t he tim

e o f the m

a r r i a g e . A

t tr i a l, th e hu s b a ndte s tif i e dth a t t he pr ope r t y w

a s w or t h $80, 000 w

hi l e t he w

i f e t e s t i f i e d t ha t t he pr ope r t y w

a s w or t h $175, 000. A l s o i nt r oduc e d i nt o e vi de nc e w a s t he f a c t th a t pr i or tothe in s t a lla tiono f the he a tinga nd c ool i ng s ys t e m

t he pa r t i e s ha d i ns ur e d t he pr ope r t y f or $137, 000. A t t he t i m

e of t he t r i a l , t he pr ope r t y w a s e nc um

be r e d by a f i r s t m or t ga ge of $25, 500, a s e c ond m or t ga ge of $20, 000 a nd a l i e n of $5, 800 f or t he he a t i ng a nd c ool i ng s ys t e m .1 27 - 3- 12 8. R e m and f or c or r e c t i on o f r e c or d.

- - Th e cour t s h a l l al s o , i n al l ca s e s , w

h e r e , i n i t s opi n i on, com p l e t e j u s t i c e ca nnot be ha d by r e a s o n o f s o m e def e c t i n t h e r e c o r d , wa n t of pr ope r par t i e s , or over s i ght w i t hout c u l p a b l e n e g l i g e n ce, r e m a n d t h e cau se t o t h e co u r t b e l o w f o r f u r t h e r p r o ceed i n g s , w

i t h p r o p e r d i r ect i o n s t o ef f ect u a t e t h e o bj ect s of t h e o r d e r , a nd upon s u c h t e r m s as m a y be de e m

e d r i ght . 6 I t i s t r ue , a s i ns i s t e d by t he hus ba nd, t ha t our c a s e s ha ve he l d t ha t t he bur de n t o pr ove a n i nc r e a s e i n t he pr ope r t y va l ue f a l l s upon t he one w ho c l a i m

s a n i nt e r e s t i n t he i nc r e a s e . Br ys on v. Br ys on , a n unpubl i s he d opi ni on of t hi s C our t f i l e d i n N a s hvi l l e on A

ugus t 26, 1988; C ut s i nge r v. C

ut s i nge r , a n unpubl i s he d opi ni on of t hi s C our t f i l e d i n N

a s hvi l l e on O

c t obe r 4, 1995. H

ow e ve r , i n t he c a s e a t ba r t he r e i s no que s t i on t ha t s ubs t a nt i a l i m

pr ove m e nt s w e r e m a de t o t he pr ope r t y dur i ng t he m a r r i a ge ; i nde e d, t he hus ba nd c onc e de s t ha t t hi s i s t r ue . I n light o f thi s w

e a r e di s i nc line dtos t r i c tlya pp l ythe r ul e he r e i nbe f or e s e t out , but i ns t e a d be l i e ve t hi s i s a n a ppr opr i a t e c a s e f or r e m

a nd unde r t he pr ovi s i ons of T. C. A . 27- 3- 128, 1as w

a s e m pl oye d i n H

azar dv . H

azar d , 833 S . W

. 2d 911 ( Te nn. A

pp. 1991) . The r e f or e , inthe int e r e s t o f ju s tic e tob o t hp a r tie s , t hi s cas e i s r e m

a nde dt ot he Tr i a l C our t t or ecei v e evi de nce and t o de t e r m

i ne t he ne t va l ue ( a f t e r de duc t i on of a ny e nc um br a nc e s ) of t he pr ope r t y a t t he t i m e of t he m

a r r i a ge . The a m

ount s o f ound i s t he s e pa r a t e pr ope r t y of t he hus ba nd a nd w i l l be s e t a s i de t o hi m out of t he ne t pr oc e e ds f r om t he s a l e . The ba l a nc e of t he ne t pr oc e e ds , ha vi ng be e n f ound by t he Tr i a l C our t t o be m

a r i t a l pr ope r t y, w

i l l be di vi de d be t w e e n t he pa r t i e s i n s uc h pr opor t i ons a s t he Tr i a l C

our t f i nds j us t upon c ons i de r a t i on of t he f a c t or s s e t f or t h i n T. C. A . 36- 4- 121( c ) .7 I n vi e w

of our r e s ol ut i on of t he f i r s t i s s ue , i t i s not necess a r yt oaddr e s s t he s econd .

C os t s of a ppe a l a r e a dj udge d one

- ha l f a ga i ns t e a c h pa r t y.

_______________________________ H ous t on M

. G odda r d, P. J . CONC UR:

________________________________ H e r s c he l P. Fr a nk s , J .

________________________________ C h a r l e s D

. Su s a n o , J r ., J .