Opinion ID: 1865151
Heading Depth: 2
Heading Rank: 1

Heading: imaginary closing costs award

Text: In determining property values, Donna Abrams presented an appraisal showing the market value of the home to be $68,000. Larry Abrams should have realized that the home would be considered in determining the divorce settlement. He failed to provide contrary evidence to this amount. However, the trial court went one step further by adding closing costs into the mix. Although the Abrams may have contemplated selling the house, such sale did not occur. Generally, something is a contingent liability when it depends upon some future event, which may or may not happen thereby making it uncertain whether it will ever become a liability. Hansen v. Hansen, 302 N.W.2d 801, 803 (S.D.1981). Closing costs are contingent upon the sale of the house, an event which was purely speculative at the time of trial. Speculative contingent liabilities should not be considered in apportioning the parties' assets for purposes of a property division. Hansen, 302 N.W.2d at 802 (quoting Wallahan v. Wallahan, 284 N.W.2d 21, 26 (S.D.1979)). Donna received the $68,000 home plus $10,183 in alleged closing costs. Forget the fact that the closing costs here are 15% of the value of the home. She has been awarded $10,183, yet never will have to sell the home to justify the receipt of these costs. Essentially, this is an award of an imaginary dollar amount. Such an imaginary award is an abuse of discretion. Hanks v. Hanks, 296 N.W.2d 523, 526 (S.D.1980). Thus, the $10,183 award should be eliminated.