Court Opinion

ID: 9686115
Source: CourtListenerOpinion
Date Created: 2023-08-24 15:30:27.227151+00
Date Added: 2024-06-11T18:18:15.165387
License: Public Domain

HENDERSON, Justice
(concurring in part, dissenting in part).
This Court apparently holds that the trial court made a good decision on the division of property and the alimony award. However, the Court wants to isolate one portion, the tax consequence aspect, out of the trial court’s decision and call it error. I disagree. Cleverly, the majority does this by stating that it is an error on valuation. The tax difference is $50,790; dividing this in half, we arrive at the $25,395 error in “valuation.” It is obvious that the entire decision of the trial court was based upon liquidation. In support of my position, I cite Krage v. Krage, 329 N.W.2d 878, 880 (S.D.1983):
The trial court apparently had a pattern according to which it distributed the marital property. Similarly, we noted a pattern of distribution in Wallahan [v. Wallahan, 284 N.W.2d 21 (S.D.1979)] in which we stated, “[i]t is clear from the decree in this case that the trial court attempted to create a scheme of distribution which would take into account as fully as possible any immediate tax consequences without indulging in speculation as to possible tax liabilities which might theoretically arise.” 284 N.W.2d at 26. We are hesitant to modify a judgment that follows a well-considered pattern of distribution. (Footnote omitted.)
There was a well-considered pattern of distribution in this case. We should not transmogrify it. The transmogrification should not result from a quest to punish this doctor who wishes to change his life. Yes, indeed, Dr. Kelley’s decision was in his complete control. Is it wrong to heal the sick, help the poor, clothe the naked, or feed the hungry?* If Dr. Kelley wishes to leave the pursuit of the buck, so let it be and let him embark upon a new journey in life. This choice is his, and does not belong to his ex-wife or the court system. Are we not granted by the framers of the Constitution “the pursuit of happiness”? Tax consequences should not be stripped from the package of the pattern of distribution which the trial judge devised. It was necessary for Dr. Kelley to liquidate his professional interests to pay the shortfall in the property distribution which Penelope Kelley desired. As I understand it, the court made a finding that it would not be reasonable after his resignation from the practice of pathology to expect him to leave his professional investments in place or for his former colleagues to allow such professional investments to continue. It is clear that the trial court believed, and found, a necessity for the liquidation of assets to fulfill the pattern of distribution. When the hammer of liquidation of assets falls, a resulting tax consequence is triggered. Here, the tax ramifications were not speculative; rather, they were realistic and certain. Penelope Kelley owes a duty not just to share in the pluses but to also share in the minuses. By her brief and argument, she declines any part of the tax liability.
With the handsome award of property and generous rehabilitative alimony award, Penelope Kelley is not satisfied by the *661great compassion shown to her by the trial court and the equity it attempted to devolve upon her.
Finding of Fact No. 20 should be set forth in extenso for the readers’ appreciation. Spiritually, and factually, it is against the writing of the majority opinion and the special concurrence. It provides:
That items two and three of finding nineteen above are after tax values as the Court finds that the liquidation of these items by Plaintiff is a definite certainty under the circumstances. Plaintiff has resigned effective year end 1984. After his resignation it is not reasonable to expect him to leave the investments in place or his former colleagues to allow it. It is unlikely that leaving such an investment in place would be practical especially considering his plans to leave the country. Also, in order to provide Defendant with the shortfall property distribution she is entitled to it is necessary for the funds to be liquidated. The tax ramifications are not speculative they are realistic and certain and represent a diminution in asset valuation which would occur if the parties weren’t getting a divorce. The tax consequences of a partial distribution of items two and three in paragraph nineteen above are unacceptable in view of the fact that Plaintiff can receive favorable tax treatment under the long term capítol [sic] gain provisions and the special pension and profit sharing provisions of the internal revenue code.
This Court now changes the pattern of distribution of marital property. It rests upon a holding, apparently, that the above finding is clearly erroneous for lack of proof. Can there be, however, a clearly erroneous finding of fact of $50,790 on valuation, when it is cleaved nicely in half, to the penny, and Dr. Kelley is required to pay all of the tax consequences of liquidation? Here, we see a conceptual end run it should be tackled and knocked to the ground for its fallacy.

 Thank God there are those of us who forsake the material goods in the world — to pursue works of charity and goodness. I am reminded of Thoreau’s words: "If a man does not keep pace with his companions perhaps it is because he hears a different drummer. Let him step to the music he hears however measured or far away.”