Court Opinion

ID: 9710527
Source: CourtListenerOpinion
Date Created: 2023-08-26 04:11:20.353919+00
Date Added: 2024-06-11T18:22:57.398739
License: Public Domain

*1192CLIFFORD, Justice,
concurring, with whom RUDMAN, J., joins.
[¶ 6] Although I cannot disagree that the trial court applied the provisions of 19 M.R.S.A. § 772-A in a technically correct manner, nevertheless, I write separately to state my concern that in litigating what property is marital and what is nonmarital, too little significance is being attached to former section 722-A(2)(E). Former section 722-A now exists as 19-A M.R.S.A. § 953 (1998).1 Section 953 provides, in pertinent part, as follows:
§ 953. Disposition of property
2. Definition. For purposes of this section, “marital property” means all property acquired by either spouse subsequent to the marriage, except:
E. The increase in value of property acquired prior to the marriage.
3. Acquired subsequent to marriage. All property acquired by either spouse subsequent to the marriage and prior to a decree of legal separation is presumed to be marital property regardless of whether title is held individually or by the spouses in some form of coownership such as joint tenancy, tenancy in common, tenancy by the entirety or community property. The presumption of marital property is overcome by a showing that the property was acquired by a method listed in subsection 2.
Section 953(3) operates to raise a presumption that all property acquired subsequent to the marriage is marital. The increase in equity to theretofore nonmarital property resulting from mortgage payments made during the marriage is property acquired during the marriage and becomes marital property. Noyes v. Noyes, 617 A.2d 1036, 1038 (Me. 1992); Hall v. Hall, 462 A.2d 1179, 1181-82 (Me.1983). Similarly, increases in the value of theretofore nonmarital property attributable to the use of marital funds, or to marital effort invested in the property becomes marital, because those increases are property acquired during the marriage within the meaning of section 953(3). Knowles v. Knowles, 588 A.2d 315, 317 (Me.1991); Macdonald v. Macdonald, 532 A.2d 1046, 1050 (Me.1987).
[¶7] When there is an increase in the value of theretofore nonmarital property during the marriage that is not attributable to marital funds or to marital effort, that increase is not “property acquired ... subsequent to the marriage” within the meaning of section 953(3). Rather, pursuant to section 953(2)(E), it is nonmarital property because it represents an increase in the value of property acquired prior to the marriage. The language of section 953(2)(E) reflects that we are not a community property State, but are governed by principles of equitable distribution. Salenius v. Salenius, 654 A.2d 426, 429 (Me.1995).2
[¶ 8] The Scarborough residence was purchased by Richard with nonmarital funds prior to the marriage. At the time of the marriage, the property had a value of $120,-000 and was subject to a first mortgage with an outstanding balance of $74,890. Thus, the nonmarital equity at the time of the marriage was $45,110. At the time of the divorce, the value of the property had increased by $17,-Ó00 to $137,000. Payments of $12,385 on the first mortgage made during the marriage reduced the mortgage balance to $62,505 and, coupled with the increase in the value of the property, increased the equity by $29,-385. Although the $12,385 mortgage reduction is properly credited to the marital estate, the court assigned the entire $29,385 increase in the equity of the property to the marital estate, even though, except for the $12,385 mortgage pay down, there was no evidence of marital contribution or effort that could be said to be responsible for that in*1193crease. In Hall, we said that the value of otherwise norunarital property that is enhanced by the use of marital funds or marital effort becomes marital, but only to the extent of that enhancement. 462 A.2d at 1182.
[¶ 9] It is not uncommon for real estate in growing communities such as Scarborough to show substantial increases in value. Here, in the absence of any evidence of investment of marital funds or marital effort to improve the property beyond the mortgage payments, it is likely that at least a -portion of the $17,000 increase in the value of Richard’s property, resulted from a higher real estate market, and accordingly, pursuant to 19 M.R.S.A. § 722-A(2)(E) (now 19-A M.R.S.A. § 953(2)(E)) would be credited to the non-marital estate. Unfortunately for Richard, however, who represented himself, he presented no evidence of increases in real estate market value. Accordingly, the presumption that any increase in the value of nonmarital property is property acquired during the marriage requires that the trial court’s determination of marital property be affirmed.

. Tide 19 was repealed and replaced by Tide 19-A. P.L.1995, ch. 694, §§ B-1, B-2 (effective Oct. 1, 1997).

. "In a community property state, the spouse acquires a ‘present vested undivided one-half interest in all property acquired during the existence of the marital relationship’ regardless of die state of title.... By contrast, in an equitable distribution state, such as Maine, each spouse retains sole interest in property held in his or her name, subject to the right of the other spouse to equitable distribution.” Salenius v. Salenius, 654 A.2d 426, 429 (Me.1995) (citations omitted).