Court Opinion

ID: 9626613
Source: CourtListenerOpinion
Date Created: 2023-08-22 08:19:40.814346+00
Date Added: 2024-06-11T18:06:31.249720
License: Public Domain

RABINOWITZ, Chief Justice,
dissenting in part.
I disagree with the majority’s holding that the superior court abused its discretion in invading the annuity and distributing it as a marital asset. This court has held that “[wjhether or not the equities require invasion of premarital assets ... lies within the broad discretion of the trial court and will not be overturned absent a clear abuse of discretion.” Julsen v. Julsen, 741 P.2d 642, 647 n. 4 (Alaska 1987) (citing Wanberg v. Wanberg, 664 P.2d 568, 570 (Alaska 1983)). The superior court’s findings are not clearly erroneous and support its conclusions that the parties’ marital assets were used to protect the annuity and that the annuity should be treated as marital property.
In regard to this issue, the superior court made the following relevant findings of fact and conclusions of law:
The Guaranteed Security Life Insurance Company annuity is a marital asset and should be distributed as such. The funds for its acquisition cannot be distinguished as being from any pre-marital funds which are not subject to division. There is no evidence that the parties intended to treat this asset as being solely for the benefit of one to the exclusion of the other. Finally, the asset was protected and preserved by the expenditure of other substantial marital assets and *836the income producing activities of both parties.
The inheritance of $23,719.58 is a premarital asset. However, it must be invaded by the court and distributed as a marital asset so as to provide an equitable distribution between the parties. Julsen v. Julsen, 741 P.2d 642, 648 (Alaska 1987). It would constitute an abuse of discretion to give to Andrew an asset which was protected by the income producing activities of Jennifer and by the use of other marital assets in the above-referenced failed investments.
Jennifer’s domestic efforts and the direct financial contributions resulting from employment outside the home have economic value. The parties’ [sic] were able to preserve the annuity by living frugally using the income from both salaries and by financing investments and losses through their combined incomes and other savings.
In 1986 or 1987, the parties became concerned about the possibility of a judicial foreclosure on the Sharon Street four-plex. They negotiated with the bank for a loan forgiveness. Andrew specifically instructed Jennifer not to inform the bank of the existence of the annuity because he was afraid the bank would not agree to a loan forgiveness if they knew that the parties had such a substantial, highly liquid asset. The bank agreed to accept $10,000 from the parties joint savings in consideration for the loan forgiveness.
In Vanover v. Vanover, 496 P.2d 644, 648 (Alaska 1972), we held that the equities support the invasion of premarital assets where one spouse’s contribution to the marital community, pecuniary or otherwise, has benefited the other spouse’s premarital property. In this regard we said:
We believe that a balancing of the equities required that the trial court invade the separate property of Harold which he had acquired prior to his marriage to Gladys. From the record it is apparent that the homestead lands to which Harold had managed to obtain a patent pri- or to his marriage had greatly appreciated in value during the 15 years that he was married to Gladys. In part through the efforts of Gladys, by virtue of her working for eight years during their 15-year marriage and her contributions toward payment of family expenses and taxes, Harold was able to retain most of the homestead lands he had brought into their marriage.
Id. at 647.
In the instant case, as in Vanover, I believe that the equities require the invasion of the annuity because the annuity was protected by the parties’ marital assets, including Jennifer’s salary. Thus, I would hold that the superior court did not abuse its discretion in invading the annuity after concluding that the annuity was “protected and preserved by the expenditure of other substantial marital assets and the income producing activities of both parties.”