Court Opinion

ID: 9858812
Source: CourtListenerOpinion
Date Created: 2023-09-24 16:47:07.024516+00
Date Added: 2024-06-11T09:56:33.279009
License: Public Domain

MARING, Justice,
concurring.
[¶ 18] I concur in the result. I write because of my concern that the trial courts are abdicating their duty to order a fair and equitable divorce judgment when presented with settlement agreements.
[¶ 19] The record in this case establishes Lana Terry and Faron Terry were married on February 14, 1986. On Christmas Eve 1999, Faron delivered copies of pleadings for divorce to Lana at her place of work. Five days later, on December 29, 1999, Faron presented a stipulation to Lana for her signature, which she then signed. By signing the stipulation, she admitted service of a copy of the Summons and Complaint which are also dated December 29, 1999. Seven days later, on January 5, 2000, Lana signed an addendum amending the stipulation. All pleadings were filed with the court on January 20, 2000. Judgment was entered incorporating the stipulation, as amended by the addendum, on January 24, 2000, less than a month after commencement of the divorce action. Lana served a motion to reopen the Judgment on August 29, 2000, seven months after the entry of the Judgment. Her motion was based on *17N.D.R.Civ.P. 60(b) and that the Judgment was unconscionable.
[¶ 20] This was a long-term marriage. Two children were born to Faron and Lana, both of whom were still minors at the time of the divorce. The record indicates that while Faron attended law school, Lana obtained work and supported the family. After Faron graduated, the couple eventually moved back to Minot, where Faron opened his own law practice and Lana worked for Manor Care Nursing Home. At the time of the divorce, the parties’ stipulation indicated Faron earned approximately $2,815.00 net per month, or twice as much as Lana, who earned approximately $1,300.00 net per month. I disagree with the majority that this is not a large disparity in income. The parties accumulated very few assets, consisting mainly of the home, personal property, and retirement funds. The property division does not indicate Lana received any income producing assets. The Judgment did provide for $808.00 per month child support. Therefore, Lana and the two children are living on approximately $2,108.00 per month, while Faron is living on $2,007.00 per month.
[¶ 21] In her affidavit, Lana outlines how she has been disadvantaged by the marriage:
I have had to follow Faron both in career moves, as well as moves on account of his going back to school. During those periods of times I have changed jobs and not been able to build up retirement funds, or able to go to school myself. Because Faron was obtaining higher education, that education was the product of my financial contribution to the marriage and allowed him to be a full-time student while he only had to work part-time. During that period of time I maintained and provided for the house, took care of our children, arranged daycare, provided for meals, clothing, and did the other things that a primary care giver does. I did not know at the time that signing the papers that I would not be able to modify the same to come back later for spousal support. I was told at the time by Faron Terry that I would never get support and it was a waste of time for me to seek the same.
Our Court has said, “[a] disadvantaged spouse is one who has ‘foregone opportunities or lost advantages as a consequence of the marriage and who has contributed during the marriage to the supporting spouse’s increased earning capacity.’ ” Sommer v. Sommer, 2001 ND 191, ¶ 10, 636 N.W.2d 423. In the stipulation, Lana waives her right to spousal support. Lana was not represented by an attorney when she signed the stipulation or the addendum.
[¶ 22] The trial court, in entering the order for judgment of divorce, found the stipulation of the parties “to be a fair and reasonable agreement.” The matter proceeded by default with no appearance by either party before the court.
[¶ 23] With reference to stipulations, we have said:
District courts should not blindly accept, however, the terms the parties agree upon.... We have also held a district court should rescind an agreement if it is unconscionable.
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Property settlement agreements in divorce cases must be scrutinized for un-conscionability.
Weber v. Weber, 548 N.W.2d 781, 783 (N.D.1996) (citations omitted); accord Weber v. Weber, 1999 ND 11, ¶ 11, 589 N.W.2d 358. A trial court must not abdicate its duties to make a just and proper distribution of property and to compel a *18party to pay the other spousal support “during life or for a shorter period as to the court may seem just, having regard to the circumstances of the parties respectively” under N.D.C.C. § 14-05-24.
Therefore, district courts should make two findings when considering whether a settlement agreement between divorcing parties should be enforced. The first inquiry is whether the agreement is free from mistake, duress, menace, fraud, or undue influence under N.D.C.C. § 9-09-02(1).
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The district court’s second inquiry is whether the agreement is unconscionable.
Weber, 1999 ND 11, ¶¶ 12, 13, 589 N.W.2d 358 (citation omitted). Our Court in Weber also concluded that the Ruff-Fischer guidelines were appropriate • for a trial court to consider in determining the un-conscionability of a settlement agreement “because a domestic relations agreement should not be scrutinized in the same way as a business contract.” Id. at ¶ 17. Furthermore, our Court said “ ‘a stipulation in a divorce proceeding which occurs this rapidly with the use of one attorney and under serious threats of harm to one of the parties should be viewed with great skepticism.’ ” Id. at ¶ 18 (quoting Peterson v. Peterson, 555 N.W.2d 359, 362 (N.D.1996)). Even though there was no serious threat of physical harm in Weber, we noted: “Weber was under strain from the threat of losing considerably more of his life’s earnings if he did not sign the agreement.” Id.
[¶ 24] Rather than make a mere crypt'c finding that a settlement agreement is “fair and reasonable,” I urge trial courts to examine the content of settlement agreements for unconscionability and unfairness and to also examine the circumstances under which such agreements are entered.
[¶25] Although the quickness of the signing of the stipulation and addendum and entry of judgment, the long-term marriage, the large disparity in income and earning capacity, the lack of assets, and the lack of representation by an attorney lead me to the conclusion the agreement is unconscionable, our standard of review of the findings of the trial court is clearly erroneous. Weber, 1999 ND 11, ¶ 8, 589 N.W.2d 358. Because I cannot say the trial court was clearly erroneous, I concur in the result.