Court Opinion

ID: 9528415
Source: CourtListenerOpinion
Date Created: 2023-08-07 03:40:56.700781+00
Date Added: 2024-06-11T13:26:06.006119
License: Public Domain

Sawyer, J.
(concurring in part and dissenting in part). While I agree with the majority’s result and much of its reasoning with respect to the valuation of the esop and the alimony award, there are some specific points in the remainder of the opinion with which I disagree.
As for the valuation of the esop, the majority correctly recognizes that it must be valued without regard to the happening of events occurring after the divorce. See Kilbride v Kilbride, 172 Mich App 421, 436; 432 NW2d 324 (1988). Moreover, I agree with the majority’s discussion of the differences involved in determining the present value of defined-benefit plans versus defined-contribution plans. Accordingly, the majority correctly concludes that the trial court should have valued the esop on the basis of the evidence before it, namely, that it had a total value of $19,944.14 on December 31, 1987, and that defendant was sixty percent vested on that date, making the value of the esop $11,966.48.
I do have some concern with the majority’s reliance on MCL 552.18(2); MSA 25.98(2) in concluding that the trial court may also award that part of the unvested portion of the esop which is attributable to service credit accrued during the marriage. That statute authorizes, but does not compel, the awarding of rights to "unvested pension, annuity, or retirement benefits” attributable to service credit accrued during the marriage *81"where just and equitable.” Assuming, without deciding, that this statute applies to esops in general, I am not completely convinced it should be applied to the case at bar.
In Kilbride, supra at 441, we cautioned that distribution of pension benefits should not be based on actions or decisions of the parties following the divorce. In the case at bar, any further vesting would be contingent upon defendant’s postdivorce choice to remain with her employer. Thus, Kilbride would counsel against awarding any portion of the unvested esop. This is not to say that the statute is meaningless. Rather, it is designed for those cases in which equity demands some consideration of future events. For example, equity would demand that the pension be considered where the pension would vest a few days after the divorce where the entire period of employment occurred during the marriage. On the other hand, equity would present no such demand where a significant period of time remained until vesting, or where, as here, there was partial vesting, the percentage of which increased with time. Accordingly, I would not be inclined to consider the unvested portion of the esop in dividing the marital estate in this case, and would caution the trial court to exercise its discretion with great care in this regard.
Furthermore, while I agree with the majority’s determination to allow the trial court to reconsider the ratio of property division, I strenuously disagree with the majority’s comment that the trial court might wish to increase defendant’s share of the marital estate. Furthermore, I disagree in part with the standard of review employed by the majority.
Plaintiff argues that the trial court erred in considering fault in determining that defendant *82should receive sixty-three percent of the marital estate. Like the majority, I disagree with plaintiffs argument. Fault is a legitimate consideration in arriving at a property division in a divorce matter. See Pelton v Pelton, 167 Mich App 22, 26; 421 NW2d 560 (1988).1
The majority purports to review the trial court’s decision with respect to the division of assets under the de novo standard of review. While this certainly has been the standard employed in the past, I believe that the correct reading of the Supreme Court’s recent decision in Beason v Beason, 435 Mich 791; 460 NW2d 207 (1990), is that the de novo standard of review has been completely abandoned. Admittedly, the Court in Beason determined only that the de novo standard of review is inapplicable to review of a trial court’s findings of fact. Rather, those findings are to be reviewed under the "clearly erroneous” standard. Id. at 805.
However, unlike the majority, I do not believe that the Court’s decision in Beason to abandon de novo review is limited to review of the trial court’s findings of fact. Rather, I view the Court’s determination in Beason to be a complete abandonment of de novo review in divorce cases. Indeed, Beason probably signals a complete abandonment of de novo review in all actions in equity.
Our constitution mandates the abolishment, to the extent practicable, of the distinctions between law and equity. Const 1963, art 6, § 5; Beason, supra at 797. In Beason, supra at 798, the Court specifically noted that the division of property requires the exercise of discretion. Furthermore, *83the majority’s statement that a dispositional ruling is reviewed de novo and that we will not reverse "unless convinced we would have reached a different result,” ante at 78, contradicts Beason. In Beason, supra at 805, the Court specifically condemned the "unless convinced that we would have reached a different result” formulation. I am satisfied that Beason signals that the courts are at last to acknowledge the constitutional mandate to merge law and equity and that the de novo standard of review has, at long last, been relegated to the dustbin of history.
In lieu of de novo review, this Court must apply one of three standards, depending on the exact type of ruling being reviewed. If the trial court’s conclusion or application of law is at issue, it is reviewed merely to determine if it is correct or incorrect. See Beason, supra at 804-805. If findings of fact are being reviewed, then the clearly erroneous standard applies. Id. Finally, where the trial court’s discretionary exercise of authority is at issue, the court’s decision is reviewed for an abuse of discretion. See Spalding v Spalding, 355 Mich 382, 384; 94 NW2d 810 (1959).
Accordingly, the trial court’s determination that fault may be considered was a conclusion of law which we review merely to determine if it is correct. As indicated above, I believe it was. Next, the trial court’s finding of fact that plaintiff was at fault is reviewed to determine if it was clearly erroneous. I agree with the majority that it was not. Finally, the trial court’s decision to award sixty-three percent of the marital estate to defendant is an exercise of discretion, which must be reviewed merely for an abuse of that discretion, not, as the majority suggests, subjected to de novo review. With respect to whether the trial court abused its discretion in this regard, I am admit*84tedly troubled by the generous award to defendant and would not have awarded more than sixty percent of the marital estate to defendant had I been the trial judge. However, I was not the trial judge, and I am not inclined to substitute my judgment for his. Accordingly, I cannot conclude that the good judge abused his discretion in this respect.
I do believe, however, that the trial judge should be afforded the opportunity to reconsider the issue of the property division in light of our resolution of the esop valuation issue. The trial court made its determination of the division of assets with the view that the esop was not to be valued and awarded it solely to defendant. Since we conclude that it should have been valued at $11,966.48 and included in the marital estate, the trial judge might exercise his discretion differently and perhaps reduce defendant’s share of the marital estate. Accordingly, I take strong exception to the majority’s observation that the trial court might wish to change the ratio of distribution of the assets to even more lopsidedly favor defendant. As indicated above, I am troubled with the generosity of the trial court toward defendant as it is. I certainly could not sanction any increase in defendant’s share of the marital estate.
I, too, would remand for a valuation and distribution of the esop, but would also allow the trial court to reconsider the division of assets on remand to more evenly divide the assets.

 Plaintiff raises a number of interesting points addressing the issue whether fault should be considered. I am not, however, prepared to disagree with the large body of case law which approves of considering fault in determining an appropriate property division.