Opinion ID: 1296720
Heading Depth: 4
Heading Rank: 1

Heading: Equity of Premarital Residences

Text: The only evidence in the record indicates that Vicki's net proceeds from the condemnation of the Northern Lights home did not exceed $2,600, and that this money was used for general purposes. Thus, contrary to Finding No. 7, Vicki did not contribute these funds to purchase the marital residence. With respect to the proceeds of the Pokey Circle refinancing, C.B. argues that the property purchased with these funds should be treated as separate property. Of the $32,000 in proceeds, $17,000 was used for the Kingfisher downpayment. Nevertheless, C.B. argues that the equities in this case dictate classifying this portion of the proceeds as separate property. [4] In Miles v. Miles, 816 P.2d 129 (Alaska 1991), we stated that [i]t is within the trial court's discretion to find that premarital assets have become part of the marital estate. However, we have held that the act of commingling assets does not automatically establish intent to jointly hold property, and a court always should consider the property's source when determining what assets are available for distribution. Carlson v. Carlson, 722 P.2d 222, 224 (Alaska 1986). Thus, the trial court retains discretion to decide whether a premarital asset remains separate property even where the asset has been treated as joint property. The trial court makes this determination in the context of an equitable division of marital assets and its balancing of the parties' situation under the Merrill factors. Id. at 132 (footnote omitted). While Miles makes it clear that it is not an abuse of discretion to treat a premarital asset as separate property under these circumstances, it does not state that it would be an abuse of discretion not to treat the premarital asset as separate property. To treat C.B.'s contribution of premarital assets as marital property would not ordinarily be an abuse of discretion if there is evidence that C.B. intended the transmutation of separate property into marital property and there are acts which demonstrate that intent. See Chotiner v. Chotiner, 829 P.2d 829, 832-33 (Alaska 1992). However, given the inaccuracies and the lack of detail in the trial court's lone Finding on this subject, a remand is in order in this case. The trial court's Finding was also erroneous in the respect that only $17,000 of the $32,000 Pokey Circle refinancing proceeds were used for the down payment on the couple's Kingfisher home. The remaining proceeds were used to purchase the airboat, the real estate partnership investment, and IRA accounts for both C.B. and Vicki. Both parties agree that placing separate property in joint ownership is rebuttable evidence that the owner intended the property to be marital. See, e.g., Chotiner, 829 P.2d at 833. C.B. argues that no presumption exists in this case regarding those assets which were never in Vicki's name: C.B.'s IRA account, the airboat, and the Parker Parsley real estate partnership investment. C.B. argues that there was no other evidence suggesting that these assets were converted to marital property, since no additions were made to them from marital funds. Vicki offers no argument why they should be treated as marital assets, other than her reliance on the trial court's erroneous Finding No. 7. Because this Finding does not address the classification of those assets, other than the Kingfisher home, which were purchased using the equity value of C.B.'s premarital residence, we remand for classification of these assets.