Opinion ID: 1832878
Heading Depth: 3
Heading Rank: 3

Heading: Distribution of Marital Assets and Debts.

Text: The second property issue is whether the trial court properly distributed marital assets and debts. The court of appeals found that the district court made a scrivener's error in its distribution table when it erroneously entered the figure $9,237 for Lyle's total liabilities and $7,952 for Lyle's net assets under the distribution plan. In fact, the numbers were transposed: the figure of $9,237 should have been entered as Lyle's net assets and $7,952 as Lyle's total liabilities. We agree with the court of appeals that this error should be corrected. When this error is corrected, the payment required by Delores to equalize the distribution of assets is reduced from $23,186 to $22,543. Both the district court and the court of appeals granted Lyle a $541 deduction for an outstanding debt to J.W. McGrath. Mr. McGrath served as Lyle's initial counsel in these dissolution proceedings. This allowance is illogical considering that Delores was not given reciprocal credit for her litigation expenses. Attorneys' fees incurred in dissolution proceedings are not marital debt. See Rodvik v. Rodvik, 151 P.3d 338, 346 (Alaska 2006). It was, therefore, error to characterize the debt to J.W. McGrath as marital debtit is Lyle's personal liability. The court, however, does have the discretion to make an award of attorneys' fees when equitable. In re Marriage of Rosenfeld, 668 N.W.2d 840, 849 (Iowa 2003). Such was the case here where Delores was awarded both trial and appellate attorneys' fees. To then allow Lyle a credit for his fees would thus be inequitable. While this debt is relatively minor it does affect Delores' equalization payment. The payment required by Delores to equalize the distribution of assets is reduced from $22,543 to $22,263. With respect to the district court's distribution of credit card debt, we note that the Capital One credit card finances the Durango which Delores has been awarded. Further, the Discover credit card represents debt accumulated after the parties' separation. We see no basis for disturbing the trial court's disposition of these liabilities. While the AT & T credit card debt was marital debt, we believe it is equitable to require Delores to assume this liability as the level of debt was incurred without Lyle's knowledge and without his consent. In determining the total assets retained by each party in the property division, both Lyle and Delores received deductions for obligations owed to relatives. The net value of Lyle's assets was reduced by $7,391 as a result of loans by Lyle's sister, Leigh A. Wolf, which were incurred after the parties separated. The net value of assets retained by Delores was reduced by $6,500 as a result of a loan obtained during the course of the marriage from Delores' parents. The loan Lyle obtained from his sister is not documented by a promissory note or other debt instrument. The loan from Delores' parents is documented, but payments on the loan have not been made over the past several years. Delores claims that the trial court erred in assigning to Lyle a liability for an undocumented loan that may or may not be enforced. A similar argument, however, can be made with respect to the loan from Delores' parents. Loans from family members are not the same as indebtedness to disinterested third parties. There is nothing fundamentally unfair with the district court's treatment of these liabilities, and we decline to disturb it on appeal.