Opinion ID: 1429410
Heading Depth: 3
Heading Rank: 2

Heading: The Valuation of Assets

Text: Johnie next argues that the trial court erred in its valuation of certain marital assets. The court found that there was $52,000 owing on the family residence. However, Marian stated at her deposition and in response to an interrogatory that the mortgage balance was approximately $46,000 at the time of trial. We have previously held, generally, that the date of valuation for property in a divorce proceeding should be as close as practicable to the time of trial, Ogard v. Ogard, 808 P.2d 815, 819 (Alaska 1991), and the amount of debt owed on a piece of marital property must be taken into account when determining its value. Mack v. Mack, 816 P.2d 197, 199 (Alaska 1991). When a trial court chooses to value property at an earlier date, there should be specific findings ... why the date ... is the more appropriate choice for valuation. Doyle v. Doyle, 815 P.2d 366, 369 (Alaska 1991) (quoting Ogard, 808 P.2d at 820). In this case, there were no such findings. Although the trial court found that the parties stopped functioning as an economic unit in December 1991, it is unclear as to how the trial court reached its conclusion regarding the value of the marital home. The possibility of undervaluation of the property coupled with the lack of any finding regarding the propriety of some earlier date of valuation amounts to clear error and must be remedied on remand. The trial court also erred in failing to value Marian's vested retirement benefits. Retirement benefits earned during a marriage are a marital asset and are subject to equitable division. Wainwright v. Wainwright, 888 P.2d 762 (Alaska 1995). On remand these benefits must be valued and taken into account in the overall property division. We also note that, although the trial court placed responsibility on Johnie for a federal income tax debt incurred prior to 1992, it failed to include any of that debt in its listing of marital assets and liabilities. On remand the trial court should quantify the debt, allocate it, and take it into account. Lastly, the trial court made Johnie responsible for the payment of certain bills for the services of doctors rendered to him during the course of the marriage. Doctor's fees, incurred during the marriage, are marital debts which must be included in the marital estate and divided like any other marital property. See Lynch v. Lynch, 411 N.W.2d 263 (Minn.App. 1987). The trial court failed to quantify those debts before placing responsibility for them on Johnie. On remand the trial court should value the debts, allocate them, and take them into account in the property division.