Opinion ID: 2614601
Heading Depth: 1
Heading Rank: 2

Heading: Dean M. Schmanski Trust and Dean M. Schmanski Charitable Remainder Trust

Text: In December 1983, and January, 1984, prior to Dean and Kim's marriage, Dean received two gifts of stock of Carsonite International from his father, Don Schmanski. In 1984, Carsonite International was recapitalized and the company's stock split. Based on this split, Dean held 144,000 shares of voting stock. In 1985, Don sold Carsonite International, and Dean's stock sold for approximately $400,000. Dean received the money in 1985 and 1986. In 1985, he placed some of the proceeds of the sale in a joint account with Kim in the financial institution of Kidder Peabody. In 1986, Dean set up another account, with Dean Witter, for the remainder of the proceeds. The paperwork accompanying the Dean Witter account is labeled Joint Account Agreement with Right of Survivorship. Funds from the account were used to purchase community items, and a VISA credit card and wallet checks for the account were printed in both Kim's and Dean's names. In 1989, Don repurchased Carsonite International, and extended an opportunity to Dean, who was employed at Carsonite International, as well as to other employees of Carsonite, to acquire stock in the company. Dean accepted the offer and purchased 90,000 shares of Carsonite International stock. The money used to purchase the stock came from the joint account at Dean Witter. In 1994, Carsonite International underwent another recapitalization, and the stock split ten to one. Thus, Dean owned 900,000 shares of Carsonite International stock. He subsequently placed these shares in the Dean M. Schmanski Trust, and some shares were later transferred to the Dean M. Schmanski Charitable Remainder Trust. The next year, the stock sold for two dollars per share, for a total of $1.8 million. Dean argues that the district court erred in finding that the proceeds of the Dean M. Schmanski Trust and the Dean M. Schmanski Charitable Remainder Trust were community property. The district court concluded that NRS 125.150 irrevocably transmutes separate property placed in joint tenancy into community property. However, the district court also concluded that even if NRS 125.150 does not irrevocably transmute separate property placed into joint tenancy into community property, the separate property placed into joint tenancy is presumed to be a gift to the community unless the presumption is overcome by clear and convincing evidence. Gorden v. Gorden, 93 Nev. 494, 497, 569 P.2d 397, 398 (1977). [1] We hold that NRS 125.150 does not irrevocably transmute separate property placed into joint tenancy into community property. This statute provides: 1. In granting a divorce, the court: (b) Shall, to the extent practicable, make an equal disposition of the community property of the parties, except that the court may make an unequal disposition of the community property in such proportions as it deems just if the court finds a compelling reason to do so and sets forth in writing the reasons for making the unequal disposition. 2. Except as otherwise provided in this subsection, in granting a divorce, the court shall dispose of any property held in joint tenancy in the manner set forth in subsection 1 for the disposition of community property.... [2] This court has held that when the language of a statute is plain, its intention must be deduced from such language, and this court has no right to go beyond it. Cirac v. Lander County, 95 Nev. 723, 602 P.2d 1012 (1979). We conclude that the plain language of NRS 125.150 does not support a determination that separate property placed into joint tenancy is irrevocably transmuted into community property. NRS 125.150(2) requires the court to dispose of any property held in joint tenancy in the same manner set forth in subsection 1 for the disposition of community property. It does not mandate that joint tenancy property be transmuted into community property, but only that it be disposed of in the same manner, subject to the other provisions in NRS 125.150(2) regarding joint tenancy property. However, we agree with the district court that in accordance with Gorden, separate property placed into joint tenancy is presumed to be a gift to the community unless the presumption is overcome by clear and convincing evidence. Therefore, we must consider whether the original gifts of stock were transformed into community property. The Dean Witter account was labeled Joint Account Agreement with Right of Survivorship. Both Dean and Kim signed the account documents, and monthly statements concerning the account were addressed to both of them. Further, wallet checks and a VISA credit card for the Dean Witter account were accessible to both parties. The district court's findings of fact supported by substantial evidence will not be set aside unless clearly erroneous. Substantial evidence is that evidence which a reasonable mind might accept as adequate to support a conclusion. Bopp v. Lino, 110 Nev. 1246, 1249, 885 P.2d 559, 561 (1994) (citations omitted). In this case we hold that substantial evidence supports the district court's finding that the proceeds of the Dean M. Schmanksi Trust and the Dean M. Schmanski Charitable Remainder Trust constitute community property. [3] Dean maintains that even if this court concludes that the joint accounts were community property, the district court erred in not granting him an unequal distribution under NRS 125.150(1)(b) or reimbursement for his contributions under NRS 125.150(2). We disagree. Under NRS 125.150(1)(b), the district court may award an unequal disposition of community property if it finds a compelling reason to do so. We conclude that the record supports the district court's finding that there was no compelling reason to award an unequal disposition of the stock proceeds, and therefore, the district court acted within its discretion in dividing the property equally between Dean and Kim. Therefore, we affirm the district court's distribution of the proceeds of the Dean M. Schmanski Trust and the Dean M. Schmanski Charitable Remainder Trust.