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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Tamra Faris v Gordon Taylor (7/12/2019) sp-7385
Notice: This opinion is subject to correction before publication in the P ACIFIC REPORTER.
Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,
303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email
corrections@akcourts.us.
THE SUPREME COURT OF THE STATE OF ALASKA
TAMRA FARIS, )
) Supreme Court No. S-16762
Appellant, )
) Superior Court No. 1JU-13-00757 CI
v. )
) O P I N I O N
GORDON TAYLOR, )
) No. 7385 - July 12, 2019
Appellee. )
)
A
ppeal from the Superior Court of the State of Alaska, First
Judicial District, Juneau, Louis J. Menendez, Judge.
Appearances: Tamra Faris, pro se, Portland, Oregon, and
Fred W. Triem, Petersburg, for Appellant. Paul H. Grant,
Juneau, for Appellee.
Before: Bolger, Chief Justice, Winfree, Stowers, Maassen,
and Carney, Justices.
BOLGER, Chief Justice.
I. INTRODUCTION
A couple divorced after over 40 years of marriage. Although the wife had
moved to a different state several years prior, the superior court determined that their
date of separation was in 2014. The court also recaptured pension payments the two
received after this date. The wife appeals, arguing that these and various other aspects
of the superior court's property division were erroneous.
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The superior court neither erred nor abused its discretion in its
determination of the date of separation. And most of the wife's other challenges to the
property division are without merit. But we reverse the superior court's failure to make
specific factual findings in its recapture analysis.
II. FACTS AND PROCEEDINGS
A. Facts
Gordon Taylor and Tamra Faris were married in 1973. For most of their
marriage, they lived in Juneau. Faris spent her entire career working for the federal
government, earning a Civil Service Retirement System (CSRS) pension. In 2004 Faris
accepted a promotion and moved to Honolulu, Hawaii. She moved to Portland, Oregon,
also for work reasons, in 2006 and currently resides there. She retired from her career
with the federal government in 2010.
When Faris moved, Taylor remained in Juneau. Taylor held a variety of
jobs during his marriage to Faris, including various positions with the State of Alaska
that made him eligible for Public Employees' Retirement System (PERS). He retired in
2011 and now draws from a PERS annuity and Social Security.
B. Proceedings
1. The divorce trial
In 2013 Taylor filed for divorce. He and Faris reached a settlement
agreement in February 2014 and the court entered a divorce decree at that time. Three
days later, however, Faris sought to withdraw distribution of property from that
agreement.
The superior court held five days of trial on the couple's property division
in late 2015 and early 2016, after the settlement agreement had broken down. The court
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issued an order dividing the marital estate in May 2017. It concluded that the parties had
not separated until 2014, when they divorced.
To divide the marital estate, the superior court first determined the
properties available for distribution. These included two marital properties: a home in
1 The court valued the Juneau home at
Juneau and a second home in Portland, Oregon.
$450,000 and awarded it to Taylor. It found that the Portland home was worth $580,000
and awarded the home to Faris.
The court then valued and distributed the remaining property, finding it
"equitable to divide the estate with 50% of the assets awarded to each party." This split
required dividingtheparties' pension paymentsbetween themso that each would receive
the same monthly income. The court heard expert testimony on the value of each party's
pensions, but the testimony conflicted. The court elected to split the monthly pension
payments in half, using a qualified domestic relations order (QDRO).
The court also considered the pension payments the parties had received
since the date of separation in 2014. The court calculated the total benefit each party
received from this income and credited that benefit against each party's award, thereby
"recapturing" the parties' post-separation pension payments.
2. Post-trial motions
After the trial Faris filed several motions for reconsideration, arguing in
relevant part that the court erred when it (1) recaptured the CSRS payments received
between the date the divorce was granted and the close of trial and (2) determined that
the date of separation was in 2014.
1
A third property, a cabin in Juneau, was also determined to be marital
property and was awarded to Taylor. It is not at issue on appeal.
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Thesuperior court denied reconsiderationoftheseissues. Itfound that both
parties had "treated the [post-separation] PERS and CSRS payments as separate assets,"
2 and declined to revisit its decision
effectively converting them to a non-marital form,
to recapture. The court also declined to revisit its date of separation determination,
noting that social relations had continued between the parties after 2004.
Faris appeals the superior court's order dividing the marital estate.3
III. DISCUSSION
A. The Superior Court Correctly Determined That The Date Of
Separation Was In 2014.
The superior court determined that the date of Faris's and Taylor's
separation was February 11, 2014, the date on which the court issued their divorce
decree. Faris argues that the court erred in two ways. First she argues that the court
4 She claims that
"selected the wrong legal rule" when determining the separation date.
the superior court used "a legal rule that adopts the bright-line convenience of date of
trial instead of the more equitable date of separation." (Emphasis in original.) But
Faris's argument incorrectly characterizes the superior court's analysis. The superior
2 See Day v. Williams , 285 P.3d 256, 260 (Alaska 2012) (noting that a court
may only issue an order of recapture if assets at issue were "wasted, dissipated, or
converted to a non-marital form").
3 On appeal Faris alleges that the superior court failed to award her $100,000
in attorney's fees resulting from "procedural delay[s] and time-wasting actions." Yet
Faris raised this argument only in her reply brief. "[W]e deem waived any arguments
raised for the first time in a reply brief." Barnett v. Barnett, 238 P.3d 594, 603 (Alaska
2010).
4 "[W]hether the trial court applied the correct legal rule in exercising its
discretion is a question of law that we review de novo using our independent judgment."
Richter v. Richter, 330 P.3d 934, 937 (Alaska 2014) (alteration in original) (quoting
Stanhope v. Stanhope, 306 P.3d 1282, 1286 (Alaska 2013)).
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court did not rely solely on the date the divorce was granted to determine the date of
separation. Instead, it analyzed the facts of the case to determine when the marriage
functionally terminated. This was consistent with our precedent: we have expressly
rejected defining the date of separation as a matter of law, and have instead granted the
superior court the discretion to identify the date of separation according to the facts
5 The superior court did not commit legal error in its analysis.
before it.
Faris also argues that the court abused its discretion when it determined that
the separation date was in 2014 because she contends that the parties separated in 2004
when she moved to Hawaii. "Alaska law has defined [the separation date] as the point
at which 'the marriage has terminated as a joint enterprise' or when a couple is no longer
6 Identifying this termination requires
'functioning economically as a single unit.' "
considering whether the parties have objectively separated and "live physically apart
from one another."7 It also requires evaluating whether at least one party subjectively
5 See Schanck v. Schanck , 717 P.2d 1, 3 (Alaska 1986) ("We decline to
specify, as a matter of law, that the effective date when . . . earnings become severable
from marital property is at separation or at filing for divorce. Each case must be judged
on its facts to determine when the marriage has terminated as a joint enterprise."); see
also Dundas v. Dundas , 362 P.3d 468, 472 (Alaska 2015) ("Determining 'the separation
date is a fact-specific inquiry.' " (quoting Tybus v. Holland , 989 P.2d 1281, 1285 (Alaska
1999))); Hanlon v. Hanlon , 871 P.2d 229, 231 (Alaska 1994) ("Determining the cutoff
date for distinguishing marital from non-marital property is a matter for resolution by the
trial court on a case-by-case basis; we have declined to treat the matter as an issue of
law."). We review the date of separation determination for an abuse of discretion. See,
e.g., Dunmore v. Dunmore , 420 P.3d 1187, 1195 (Alaska 2018); Dundas, 362 P.3d at
473; Tybus, 989 P.2d at 1284-85; Hanlon, 871 P.2d at 231.
6 Fletcher v. Fletcher, 433 P.3d 1148, 1152 (Alaska 2018) (alteration in
original) (quoting Tybus, 989 P.2d at 1285).
7 Id. at 1153 (quoting Dundas, 362 P.3d at 472 n.2).
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8
intended to separate. A superior court abuses its discretion if its separation date
determination lacks sufficient evidentiary support. 9
Here the evidence suggests that Faris and Taylor objectively separated in
2004, but they lacked the subjective intent to separate until 2014. Faris moved
physically apart from Taylor in 2004. But the superior court found that "the parties'
marriage . . . would have continued if Mr. Taylor did not file for divorce." There is
ample evidence in the record to support the superior court's finding, as Faris made
repeated statements after 2004 demonstrating an intent not to separate. In 2013 she
wrote a letter explicitly stating that she did "not want a divorce." And in January 2014
she wrote an email stating that she "would have never filed for divorce, no matter what,
ever. That is still true. I do not want divorce." Even after the superior court issued its
divorce decree in February 2014, Faris claimed in an affidavit that the "divorce was
entirely [Taylor's] idea" and reiterated that she did "not want to be divorced."
Faris claims that her move to Hawaii evinced a declaration of "financial
separation," yet the record indicates that a financial entanglement continued until 2014:
Faris and Taylor filed joint tax returns until 2014. They also held properties jointly in
a living trust. Faris's own words and actions undermine her argument that she intended
to separate in 2004. The superior court did not abuse its discretion in determining that
the date of separation was in 2014.
B. The Superior Court Did Not Clearly Err When It Determined That
The Portland Home Was Marital Property.
It is uncontested that the parties' Portland, Oregon property was purchased
in 2006. "Generally, 'all assets acquired by the parties during their marriage are marital
8 Id . (quoting Dundas, 362 P.3d at 472 n.2).
9 Id .
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property' except for gifts and inheritances." 10 Faris sets the date of separation in 2004
and argues that consequently the Portland home cannot be marital property. But because
we have upheld the superior court's finding that the date of separation was in 2014, the
home was purchased during the marriage. The superior court thus did not clearly err in
determining that the home was marital property.
C. The Superior Court Did Not Clearly Err In Its Valuation Of The
Juneau Home.
At trial Faris argued that the parties' Juneau property could be subdivided,
and thus it had a higher value than the $450,000 submitted by Taylor. The court found
this suggestion to be "purely speculative." It reasoned that "[s]ince Mr. Taylor has not
subdivided the land, built the necessary driveway, or otherwise taken any concrete action
to solidify this intention, the court cannot accept Ms. Faris's $505,000 valuation for the
[Juneau] property." The court rejected Faris's valuation and adopted Taylor's.
Faris argues that the court erred in its valuation of the property because it
11
failed to consider evidence of Taylor's intention to subdivide the lot.
This evidence
included an application for a driveway permit, a plat showing a second driveway, the
confirmed legality of a subdivision, Faris's own testimony, and letters from Taylor
indicating a desire to "split the land" and "build a small efficient home."
We have instructed trial courts to avoid property valuations based on
speculative improvements to property. In Edelman v. Edelman, we held such a valuation
to be clearly erroneous, in part because of the unknown expenses that might be required
10 Beals v. Beals , 303 P.3d 453, 460 (Alaska 2013) (quoting Johns v. Johns ,
945 P.2d 1222, 1225 (Alaska 1997)). We review the superior court's determination of
what property is available for distribution for clear error. Dunmore, 420 P.3d at 1190.
11 We review the valuation of property for clear error. Wagner v. Wagner,
386 P.3d 1249, 1251 (Alaska 2017) (citing Limeres v. Limeres, 320 P.3d 291, 296
(Alaska 2014)).
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12
to complete a subdivision on which the valuation was based. The superior court heeded
that precedent here: it declined to use a higher valuation for a hypothetically subdivided
plot when neither the subdivision nor the necessary construction of a driveway had
occurred. It did not err in adopting the lower valuation for the unsubdivided plot.
D. The Superior Court Did Not Err By Awarding Faris Half Her Pension.
Faris argues that the superior court erred by not awarding her 100% of the
payments from her CSRS pension. She contends that the parties' 2014 divorce decree
incorporated a settlement agreement that made such an award. She contends that the
13
terms of the settlement are still effective.
But Faris unilaterally sought withdrawal from that settlement. And the
superior court later vacated the property distribution order and findings that had been
based on the settlement. The superior court did not revive the settlement when it
determined that the date of separation was in 2014. Accordingly the superior court did
not err by distributing Faris's pension payments between Taylor and herself.
E. The Superior Court Did Not Abuse Its Discretion When It Used A
QDRO To Divide Future Pension Income.
The superior court divided the parties' pensions evenly, using a QDRO, so
that both parties would have the same monthly income. When explaining how this
income would be divided, the court referenced the parties' expert witnesses, who
assigned conflicting valuations to each of the pensions. The court concluded "that the
equities in this case necessitate the equalization of income between the parties."
12 3 P.3d 348, 352-53 (Alaska 2000).
13 Whetherasettlementagreementremains binding on thepartiesis aquestion
of law, reviewed de novo. See Calais Co. v. Ivy , 303 P.3d 410, 414 (Alaska 2013) ("We
interpret settlement agreements as contracts. The interpretation of contractual terms is
a question of law, which we review de novo.").
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Faris argues that the court's division is incorrect because the court treated
the pension income separately from the estate. She contends that the court should have
instead determined the present value of the pension plans and included this within the
estate. We review allocation of property for abuse of discretion; "[w]e will not disturb
14
the [superior] court's allocation unless it is clearly unjust."
We have stated that it is not an abuse of discretion for a superior court to
use a QDRO when the evidence does not permit an accurate valuation of the pensions.15
Here the parties presented conflicting evidence on the value of their retirement benefits.
It was within the superior court's discretion to divide the income with a QDRO because
the true value of the pensions was unclear.
F. The Superior Court Did Not Perform An Adequate Recapture
Analysis.
Parties who control a marital asset during separation may be required to
compensate the other party if they dissipate or waste the asset or convert it to non-marital
form.16 A superior court may effect this compensation by ordering "recapture" of such
assets, i.e., crediting them against the responsible party's property distribution award.17
Here the superior court recaptured the total reduced retirement pay Faris
received between the date of her separation from Taylor and the marital estate's final
14 Partridge v. Partridge , 239 P.3d 680, 685 (Alaska 2010).
15 See id . at 687; see also Nicholson v. Wolfe , 974 P.2d 417, 425-26 (Alaska
1999) ("Trial courts have discretion to distribute retirement benefits to a non-employee
spouse through either a qualified domestic relations order (QDRO) or through a lump
sum payout.").
16 Ethelbah v. Walker, 225 P.3d 1082, 1090 (Alaska 2009).
17 See id.
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18
division in May 2017. The court reasoned that recapture of these marital assets was
warranted because "neither party shared either of the [retirement] payments with the
other." Faris argues that the superior court erred because the recaptured payments were
notwasted,dissipated,or converted to non-maritalform, but rather spent onher legitimate
living expenses.
19 We have stated
We review an order of recapture for an abuse of discretion.
that a superior court abuses its discretion when, absent specific evidentiary findings of
dissipation, waste, or conversion to a non-marital form, it orders recapture of marital
assets no longer existing at the time of trial.20 We have also instructed that "findings
cannot be merely conclusory, but must be based on evidence."21
Here the superior court did not make "any findings about what [the parties]
22 Furthermore the court failed to consider
actually did with [their] pension income[s]."
whether the funds "still existed at the time of trial."23 And if they did not exist, the
superior court cited no evidence that the funds had been converted "with the intent to
18 The superior court reduced its calculation of Faris's pension income to
account for mortgage payments she made for the Portland home as well as state and
federal income taxes.
19 Day v. Williams, 285 P.3d 256, 260 (Alaska 2012).
20 See, e.g., id.; Ethelbah, 225 P.3d at 1090; Foster v. Foster, 883 P.2d 397,
399-400 (Alaska 1994).
21 Day, 285 P.3d at 260 (quoting Ethelbah, 225 P.3d at 1091).
22 Ethelbah, 225 P.3d at 1091.
23 Partridge v. Partridge, 239 P.3d 680, 692 (Alaska 2010).
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24
deprive the marital estate." It was an abuse of discretion for the court to order a
recapture of those funds absent such specific findings. We therefore remand so the
superior court has an opportunity to complete a full recapture analysis.
IV. CONCLUSION
We VACATE the superior court's decision on the recapture of the
retirement pay received between the date of separation and the final property division
order and REMAND for clarifying findings on this issue. Based on its recapture decision,
the court is authorized to modify the property division order to the extent necessary to
effect an equitable division. We AFFIRM on all other issues raised in this appeal.
24 Brandal v. Shangin , 36 P.3d 1188, 1194 (Alaska 2001).
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