Opinion ID: 2071547
Heading Depth: 1
Heading Rank: 6

Heading: Debt Division.

Text: The last issue Scott raised on appeal was that in light of the spousal support award in the form of traditional alimony the debt division was not equitable. He contends that if the spousal support award is affirmed, Donna should assume more of the debt burden. Iowa Code section 598.21(1) directs the district court to divide the property equitably between the parties after considering a number of factors. Such factors that are pertinent here include (1) the length of the marriage, (2) the property brought into the marriage by each party, (3) the age and physical and emotional health of each party, (4) the earning capacity of each party, (5) the amount of spousal support awarded, and (6) other economic circumstances of each party. Iowa Code § 598.21(1)( a ), ( b ), ( d ), ( f ), ( h ), ( i ). As the court of appeals noted, adjudicating property rights in a dissolution action has to involve a division between the parties of their marital assets and debts. And in deciding what constitutes an equitable distribution of property, there need not be an equal division if the division is justified and equitable under all of the circumstances and factors set forth in section 598.21(1). In re Marriage of McNerney, 417 N.W.2d 205, 209 (Iowa 1987). Reaching its conclusion concerning the debt division, the district court expressly mentioned and relied on these principles and statutory factors and found: In this case, the Court's determination will result in a negative award to both parties. The Court has, therefore, determined that Scott, as the individual with the greater earning capacity, is more able to assume a greater portion of those obligations. In reaching that decision, the Court specifically notes its doubt that Scott will actually be required to pay the debt to his parents in the amount of $11,450.82. Deleting that figure from the ultimate total would make Scott's liability obligations as proposed in Respondent's Exhibit A to his final summation significantly less. The Court concludes that the proposed division of the liabilities of the parties as shown in Respondent's Exhibit A is appropriate under all of the facts and circumstances of this case. Under the unusual facts and circumstances of this case the Court believes that the proposed division of liabilities is the most equitable under all of the circumstances and factors required by law.... It is also an appropriate award in light of the Court's determination on Donna's request for spousal support. We agree with and adopt these findings. One additional factor that the court of appeals considered important on this issue is that Donna's workers' compensation award was applied to the retirement of marital debts. We likewise find this significant as well as the fact that the parties used between $7000 and $10,000 of Donna's personal injury settlement for the purchase of a home. Each party netted $5635.57 from the sale of the home, which they used to pay expenses and marital debts. We agree with the district court and the court of appeals that the debt division was equitable.