Opinion ID: 895824
Heading Depth: 1
Heading Rank: 5

Heading: trust share

Text: [¶ 11] Bill argues the trial court erred in awarding Mary one-half of Bill's share of a trust set up by his father. [¶ 12] Bill's late father established a credit trust for Bill's mother to receive the income during her lifetime, and for Bill and his three siblings to receive the principal upon the death of Bill's mother. The trust instrument allows the principal to be invaded up to a maximum of $5,000 or 5 percent per year, whichever is greater. At the time of trial, the trust principal was more than $936,000. Because the principal could be invaded and reduce the share available to Bill upon his mother's death, the trial court concluded an award of a specific dollar amount would be speculative. Relying upon van Oosting, the court therefore ordered that Mary receive one-half of Bill's share when it becomes available to him. [¶ 13] Bill contends it was inequitable to award Mary any part of Bill's share in the trust, arguing that Mary received substantial gifts from Bill's parents during the marriage and received substantial property under the decree. Identical arguments were raised and rejected in van Oosting, a case factually indistinguishable from this one. In van Oosting, 521 N.W.2d at 96-98, we held the trial court's failure to award the wife a share of her husband's interest in a credit trust was clearly erroneous, and we remanded with directions that the court award the wife a percentage of the trust proceeds when received by the husband. The trial court in this case followed van Oosting, included Bill's interest in the trust as a marital asset and, recognizing the speculative nature of that interest, ordered that Mary receive a percentage of what Bill receives. [¶ 14] Bill argues that the trial court was invading his inheritance from his father, and therefore he should be entitled to a share of Mary's future inheritance from her parents. Bill's interest in the trust is not a future inheritance; he has a current vested interest in the trust. As we explained in van Oosting, 521 N.W.2d at 97, when the trust interest is vested, [a]lthough contingent in nature, his interest is certain to reach him upon the death of his mother. [¶ 15] Bill insists van Oosting is distinguishable because the wife in that case was ill, while Mary is healthy and able to work. Those are factual details that factor into the trial court's decision whether, and to what extent, Mary should share in Bill's interest in the trust. The trial court found that it was equitable to distribute one-half of Bill's share in the trust to Mary. That finding of fact is presumptively correct, and Bill has not met his burden of demonstrating that the finding is clearly erroneous.
[¶ 16] Bill argues the trial court erred in ordering him to pay $100 per month permanent spousal support to Mary. He contends that Mary has been fully rehabilitated because she acquired college degrees during the marriage, received substantial property under the decree, and is employed. [¶ 17] A divorce court may compel either of the parties ... to make such suitable allowances to the other party for support during life or for a shorter period as to the court may seem just, having regard to the circumstances of the parties respectively. NDCC 14-05-24. As Wald v. Wald, 556 N.W.2d 291, 296 (N.D.1996), and Wiege v. Wiege, 518 N.W.2d 708, 710 (N.D.1994), show, spousal support decisions are findings of fact that will not be reversed on appeal unless clearly erroneous. [¶ 18] We differentiate between two types of spousal support. Heley v. Heley, 506 N.W.2d 715, 719-720 (N.D.1993). Rehabilitative spousal support is ordered to give a disadvantaged spouse time and resources to acquire an education, training, work skills, or experience that will allow the spouse to become self-supporting. Id. Permanent spousal support is ordered to maintain a somewhat comparable standard of living for a spouse who is incapable of adequate rehabilitation. Id. [¶ 19] Bill contends permanent support is inappropriate because Mary is presently employed and self-supporting. We have clarified, however, that permanent support is not limited to a spouse who is incapable of any rehabilitation, but may also be awarded to a spouse who is incapable of adequate rehabilitation or self-support. Wald, 556 N.W.2d at 296; Wiege, 518 N.W.2d at 711. As Wald at 296-297, and Wiege at 711-712, illustrate, permanent support is thus appropriate when a substantial disparity between the earning abilities of the spouses exists. [¶ 20] The trial court found that Bill had an average annual income of nearly $120,000. The court found that Mary was capable of earning $10,000-$20,000 per year as a Spanish instructor. This substantial disparity in earning ability supports this permanent spousal support. We affirm the trial court's findings on spousal support.
[¶ 21] Bill challenges the trial court's award of $5,000 in attorney fees to Mary. He contends Mary was awarded sufficient property to pay her own attorney fees. [¶ 22] The North Dakota Century Code authorizes an award for attorney fees in a divorce case. NDCC 14-05-23. In Quamme v. Bellino, 540 N.W.2d 142, 148 (N.D.1995), we explained the relevant standards: The principal standards guiding an award of attorney fees in a divorce action are one spouse's need and the other's ability to pay. Foreng v. Foreng, 509 N.W.2d 38, 41 (N.D.1993). The court should consider the property owned by each party, their relative incomes, whether property is liquid or fixed assets, and whether the action of either party has unreasonably increased the time spent on the case. Bakes v. Bakes, 532 N.W.2d 666, 669 (N.D.1995) (citing Lucy v. Lucy, 456 N.W.2d 539, 544 (N.D.1990)). We will not overturn an award of attorney fees unless the appellant affirmatively establishes the trial court abused its discretion. Heller v. Heller, 367 N.W.2d 179, 184 (N.D.1985). We have already pointed out the great disparity in the respective incomes here: Bill earns six to twelve times more than Mary. Under these circumstances, the trial court did not abuse its discretion in awarding $5,000 in attorney fees to Mary.