Opinion ID: 887711
Heading Depth: 1
Heading Rank: 7

Heading: Equalization payment based on past family gifts

Text: ¶30 The District Court awarded Liz an equalization payment of approximately $360,000.00. The court did so on the supposition that, but for the parties' expectation of Jim's future inheritance, they would have saved for their retirement. The court arrived at the equalization payment figure by taking into account the total value of the gifts and cash given Liz and Jim by their parents (see ¶ 5), and dividing this figure by four. Jim argues this calculation was both erroneous and arbitrary. ¶31 We have to agree with Jim, for the simple reason that the marital estate does not contain any cash for distribution to Liz, much less the sum of $360,000.00. Recently, in In re the Marriage of Dennison, 2006 MT 56, ¶ 22, ___ Mont. ___, ¶ 22, ___ P.3d ___, ¶ 22, we reversed a similar equalization payment, concluding that the District Court exceeded its authority under § 40-4-202, MCA, when it awarded property in excess of the proven net worth of the estate. The same result is compelled here. When a court makes a present award of cash or property that does not exist in the marital estate, it abuses its discretion. Thus, we must order the court to vacate the equalization payment. Upon remand, the court should take this factor into account in re-determining the division of the marital estate and the matter of maintenance. See ¶ 36.