Opinion ID: 900641
Heading Depth: 1
Heading Rank: 6

Heading: Additional Prepaid Expenses

Text: [¶ 21.] At the divorce proceeding, the trial court included prepaid expenses and supplies of $11,368 to determine the net value of the road maintenance business. Jill claims that these prepaid expenses and supplies were identified on the January 15, 1998 financial statement as gas, fuel and oil. She argues that there was an additional prepaid expense of $6,465 from Lake Preston Coop for fertilizer which did not appear on the financial statement used by the trial court in determining the net value of Todd's road construction operation. The trial court found that there was insufficient evidence presented to warrant the inclusion of an additional $6,465 as requested by [Jill]. [¶ 22.] Jill argues that the trial court erred when it failed to include the $6,465 for prepaid fertilizer expenses as an asset of Todd's in the road maintenance operation. Jill claims that she presented hard evidence to the trial court that there was an additional prepaid expense for fertilizer that had not been included anywhere on [Todd's] proposal. [¶ 23.] The record reveals that contradicting evidence was presented at trial concerning what the $11,368 and $6,465 figures represented. We have often stated that [t]he trial court is in the best position to assess the credibility of witnesses, weigh the conflicting evidence and observe the witnesses and the evidence first hand. Geraets v. Halter, 1999 SD 11, ¶ 18, 588 N.W.2d 231, 234 (citing Cowan v. Mervin Mewes, Inc., 1996 SD 40, ¶ 15, 546 N.W.2d 104, 109; In re Estate of Elliott, 537 N.W.2d 660, 662 (S.D.1995)). The trial court weighed the testimony and evidence and found that Jill failed to provide sufficient proof that the extra $6,465 should be included. We find no abuse of discretion on this point. [¶ 24.] 2. Whether the trial court erred in denying Jill rehabilitative alimony. [¶ 25.] The award of rehabilitative alimony is reviewed under the same abuse of discretion standard as an alimony award. Urban v. Urban, 1998 SD 29, ¶ 13, 576 N.W.2d 873, 876. We have often held that [t]he factors to be considered in awarding alimony are: 1) The length of the marriage; 2) the respective earning capacity of the parties; 3) their respective financial conditions after the property division; 4) their respective age, health, and physical condition; 5) their station in life or social standing; and 6) the relative fault in the termination of the marriage. Ryken v. Ryken, 440 N.W.2d 300, 303 (S.D. 1989) (citing Caughron v. Caughron, 418 N.W.2d 791, 793 (S.D.1988); Tesch v. Tesch, 399 N.W.2d 880, 884 (S.D.1987)). In addition to the previous factors, the following additional factors must be considered in awarding rehabilitative alimony: 1) the supporting spouse's contributions; 2) foregone opportunities to enhance or improve professional or vocational skills; and 3) the duration of the marriage following completion of the non-supporting spouse's professional education. See Parsons v. Parsons, 490 N.W.2d 733, 735 (S.D. 1992). Rehabilitative alimony is `designed to meet an educational need or plan of action whose existence finds some support in the record.' Urban, 1998 SD 29, ¶ 13, 576 N.W.2d at 876-77 (quoting Radigan, 465 N.W.2d at 486 (citing Ryken, 440 N.W.2d at 303)). Typically, rehabilitative alimony is awarded when there is testimony to show an educational need or a plan of action to meet that need. Id. (citing Evans v. Evans, 1997 SD 16, ¶ 35, 559 N.W.2d 240, 248-49). [¶ 26.] The trial court found: Todd is thirty-four and Jill is thirty-one; both parties are in good health; Todd and Jill were married ten years; Todd is self-employed and has gross income of $4,160; Jill is employed as a mortgage loan processor earning $8.75 per hour and expecting annual income of $17,680; prior to the marriage, Jill had discontinued her attendance at college; during the marriage, Jill had several part-time jobs and periodically assisted the farming and road maintenance operations; and Jill's earning capacity has not been reduced and she will be substantially debt-free as a result of the property division. The trial court also found that Jill requires no additional educational training or degree to perform her present jobs requirements and has the competency to earn a living. Further, the court held that Jill did not forego education and employment opportunities during the marriage as her current employment demonstrates her ability to obtain employment. In rejecting Jill's request for rehabilitative alimony, the court held that Jill has requested rehabilitative alimony but has not demonstrated her inability to obtain gainful employment, she is earning a wage within her station in life and has not demonstrated that additional training is required for her to become self sufficient when in fact her current employment demonstrates her self sufficiency. [¶ 27.] An essential requirement of recovering rehabilitative alimony is that the requesting party must provide testimony of an educational need or plan of action. See, e.g., Urban, 1998 SD 29, ¶ 13, 576 N.W.2d at 877 (allowing no rehabilitative alimony because wife presented no evidence of any educational need or plan of action to support such an award). A review of the record reflects that Jill's plans were speculative at best. She failed to establish that an educational need existed and that she had a meaningful plan to correct that need; therefore, the trial court did not abuse its discretion in denying rehabilitative alimony. [¶ 28.] Both parties have requested appellate attorney fees. Based upon this decision, both requests are denied and each party is responsible for their own respective attorney fees. [¶ 29.] We reverse and remand on the issue of valuation of the Kenny Albrecht property, with directions to include the full value of the Kenny Albrecht property in the marital estate. We affirm the judgment of the trial court regarding the Marital Residence, the farm assets, prepaid expenses, and rehabilitative alimony. We have considered issue three and find it to be unpersuasive. [¶ 30.] MILLER, Chief Justice, and SABERS, KONENKAMP, and GILBERTSON, Justices, concur.