Court Opinion

ID: 9709709
Source: CourtListenerOpinion
Date Created: 2023-08-26 03:53:22.64403+00
Date Added: 2024-06-11T18:22:50.218912
License: Public Domain

Mr. JUSTICE ALLOY, concurring specially: I am writing this special concurrence for the purpose of aiding in the understanding of the issue in the instant case. While the dissent of Justice Stouder has much to commend it as a logical analysis, the weight of authority is in accord with the opinion submitted by Justice Barry which states in relevant part: “Admittedly some small portion of the purchase price was paid out of the business after the marriage. Such a fact has been held to be insufficient to cause nonmarital property to be transmuted to marital property. (Davis v. Davis (Mo. App. 1976), 544 S.W.2d 259, * * * The Davis case referred to is one of a line of Missouri cases which state that “[t]he time of payment of a major part of the purchase price of the 000 assets, i.e., after the marriage, would not alter the [nonmarital] status of the property.” Missouri has for some time had a version of the Uniform Marriage and Divorce Act, similar to Illinois’ current Marriage and Dissolution of Marriage Act. Missouri’s act defines marital property as property acquired subsequent to the marriage. Illinois, at section 503(a) (Ill. Rev. Stat. 1979, ch. 40, par. 503(a)), also defines marital property as property acquired subsequent to the marriage. By logical construction, under Missouri law, property acquired prior to the marriage is the party’s “own.” The Illinois statute reinforces this point by including among the exceptions to marital property “(6) property acquired before the marriage.” (Ill. Rev. Stat. 1979, ch. 40, par. 503(a)(6).) These exceptions to marital property are called “non-marital property.” The leading Missouri case on the question at issue is Cain v. Cain (Mo. App. 1976), 536 S.W.2d 866. The Cain case is quite similar to Justice Stouder’s hypothetical in his dissent. The court in the Cain case reached the opposite conclusion proposed by the Stouder dissent. The husband had purchased a 78-acre tract, known as “the farm,” prior to the marriage. At that time, he purchased the property with a 15% down payment. Subsequent to the marriage, the mortgage indebtedness of 85% was paid off with marital funds. The court noted that Missouri, as a State which follows the “lien theory” of mortgages, recognized the passage of title to the husband at the time the purchase and mortgage were entered into, i.e., prior to the marriage. The court also noted that a State’s recognition of the “title theory” of mortgages would not change the result as between the husband and wife. The court stated: “This court concludes *** that the fact that some of the payments on the mortgage were made with money which itself was marital property does not alter or affect the status of the farm as [the husband’s] separate property. *** ‘Property is classified as separate or community when it is acquired. As used in this connection the word “acquired” contemplates inception of title.’ 15 Am. Jur. 2d Community Property §22, p. 836. [See also 41 C.J.S. Husband & Wife §483, at 1023 (1944).]” 536 S.W.2d 866, 870-71. As can be noted from the quotation set forth, the court turned for precedent to the community property jurisdictions. While the Illinois Marriage and Dissolution of Marriage Act does not create “community property” as such (Kujawinski v. Kujawinski (1978), 71 Ill. 2d 563, 376 N.E.2d 1382), there is a valuable analogy between “marital property” under the Uniform Marriage Act and “community property” for the purpose of analyzing some issues. While the community property jurisdictions recognize the mortgaged property as separate property, “[w]here property is purchased with community and separate funds, and the acquisition nevertheless is held to belong to the separate estate, the community has a claim against the separate estate for the amount of its contribution to the purchase price, and such a claim is a charge or lien on the property so acquired.” One way of enforcing such an equitable lien would be to denominate the property “marital property” and then “divide [it] in just proportions considering all relevant factors, including: * * * the contribution * * * of each party in the acquisition, preservation, or depreciation or appreciation in value” of the property. (Ill. Rev. Stat. 1979, ch. 40, par. 503(c)(1).) This is the apparent approach adopted by the dissent of Justice Stouder. The Missouri court, in the Cain case, chose instead to deal with the farm as the husband’s separate property, in accordance with the weight of authority in the community property States. Because the parties had sufficient marital property, the court in Cain did not place a lien on the farm, corresponding to the wife’s contribution, but instead considered this contribution in its apportionment of marital property between the parties. The Illinois statute specifically allows for this solution. The marital property is to be divided “in just proportions considering all relevant facts, including: * * * the contribution * * * of each party in the acquisition, preservation, or depreciation or appreciation in value, of the marital and non-marital property.” (Emphasis added.) (Ill. Rev. Stat. 1979, ch. 40, par. 503(c)(1).) Because the statute clearly contemplates the contribution of one spouse to the acquisition and preservation of the nonmarital property of the other spouse, it cannot be said that any contribution by one spouse to the obligation owed by the other spouse automatically “transmutes” the encumbered property into marital property. That the same ultimate result may be reached by denominating the property as marital and apportioning according to the respective contribution of the spouses under section 503(c)(1), or by denominating it as nonmarital, yet recognizing the nonowner spouse’s contribution toward its acquisition when dividing the remaining marital property under section 503(c) (1), is recognized in both the majority and dissenting opinions in in re Marriage of Preston (1980), 81 Ill. App. 3d 672, 402 N.E.2d 332. As I read the Illinois statute, it was not contemplated that the courts should surrender the basic equitable power vested in the courts in making equitable distributions of property in dissolution of marriage cases. This is notably clear from the provisions of section 503(c), where the court is directed to divide property in just proportions considering all relevant facts, including the contribution of each party in the acquisition, preservation, or depreciation or appreciation in value of the marital and nonmarital property. There is, therefore, no lack of authority in the court to do justice in cases such as we are now considering without indulging in any procedure which would transmute property by simple reason of payments reducing a lien owed by the other spouse. Section 503(c) of the Illinois Act simply codifies the powers of the court to apply equitable principles to dispositions of property of a spouse, whether owned separately or jointly. The power of the courts to do equity in such cases is not limited by classification of the property as marital or nonmarital. For the reasons stated, therefore, I concur in the determination of Justice Barry in this cause.