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X/&24Technical Document Style.. 23  Ԁ.   CRight ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)3|x<6X9`(*Courier 12pt10cpiXXx6X@JQX@( T$   d|r"$(G.2)$ FT!   UXX     0  MARVINBERKELESLIEMcWILLIAMS($   0  HOWELLBERKEFRAYN HANN PATYBatsonTenn.Ct.AppinterspousalPamplinSatterfield I]nStephenson2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23   EEDe2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23  OPQRSVWX ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X<  9p`(Courier New% Line 7 d 4 F!#d#a  I$a        ݀ Mr.HartmanfiledamotionforreferencetoaSpecialMasterduetothe complexvaluationandcategorizationissues. C F!#d#a  I$a         Mr.Hartmanslistindicatedthat$8,000ofthejewelrywasinhispossessionwhile$25,000wasinMs.Hartmanspossession.0 PtPtHH(FG(HH(d'hStyl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   h HD: Geneva  h HD: Geneva F! . a  ݛ  7VXXdXXd7\RA'\ `    , 5  b u`  @ INTHECOURTOFAPPEALSOFTENNESSEE@ EASTERNSECTIONPAULARUTHSHEFFIELDHARTMAN@ @ ) HAMILTONCOUNTY@ ) 03A019608CV00249 PlaintiffAppellee  @ )@ )@ ) v.  @ ) HON.SAMUELH.PAYNE,̀@ ) JUDGE@ ) @ MELVINTHOMASHARTMAN,JR.@ )@ ) VACATEDINPART DefendantAppellant)andREMANDED@ BARRYL.GOLDOFCHATTANOOGAFORAPPELLANTCHARLESD.PATYOFCHATTANOOGAFORAPPELLEE    OPINION         Goddard,P.J.  MelvinThomasHartman,Jr.,appealsadivorcejudgmentrenderedbytheCircuitCourtforHamiltonCounty.OnappealheinsiststhattheTrialCourterredinitsawardofcertainjewelrytohiswife,PaulaRuthSheffieldHartman,asseparatepropertywhichwasinfactmaritalproperty.Mr.HartmanalsoinsiststhattheTrialCourtmadeaninequitabledivisionofthemaritalestatesincetheTrialCourtrefusedtoconsiderthetaxconsequencesofawardingMr.HartmancertainretirementfundsinexchangeforMs.Hartmanreceivingtheequityintheirhomeandotherrealproperty.  ThepartiesweremarriedonMarch9,1979.Bothhadbeenpreviouslymarried.Theyhadonechild,whowasaminoratthetimeofthehearing.Atthetimeofthemarriage,Ms.HartmanownedaSignalMountainhousewith$5,000inequity.Atthetimeofthedivorce,theirequityhadincreasedtoapproximately$48,500,includingtheequityinanadjacentlotofapproximately$19,750.Ms.HartmanfiledfordivorceinJulyof1994alleginginappropriatemaritalconductandirreconcilabledifferences.Mr.Hartmancounterclaimedfordivorce,allegingthatMs.Hartmancommittedadultery.TheTrialCourtrenderedajudgmentonOctober24,1995,awardingMr.HartmanthedivorcebasedonMs.Hartmansstipulationofherinappropriatemaritalconduct.TheTrialCourtorderedthatthetwopartieswouldbegrantedjointlegalandphysicalcustodyoftheirminordaughterandorderedapaymentscheduleforherexpensesandinsurance.However,theTrialCourtdidnotentirelyresolvethiscaseintheOctober1995judgment;itinsteadreferredtheissueofthedivisionofthemaritalassetstoaSpecialMaster. c   ׀  Afterahearingwiththetwoparties,theSpecialMasterissuedalengthyreportwhichresolvedthedivisionofthemaritalassets.Mr.HartmanfiledanumberofobjectionstotheSpecialMastersreport,andrequestedahearingontheseobjectionswiththeTrialCourt.AfterahearingintheTrialCourtonFebruary19,1996,ontheSpecialMastersreport,theTrialCourtadoptedtheSpecialMastersreportandorderedthattheproposeddivisionofassetsandliabilitiesbeadoptedaspartofthepreviousjudgment,includinganawardofcertainjewelrytothewifeasseparateproperty.TheorderalsoincludedanawardoftheequityinthehouseandadjacentlottoMs.HartmanandanawardofalmostequalvalueintheformofretirementmoneytoMr.HartmantoaccountforMs.Hartmansretainingtheequityinthehouse.  Mr.HartmansfirstissueonappealisthattheTrialCourtincorrectlycharacterizedcertainitemsofthejewelryasgifts,andthusasseparatepropertyandincorrectlyawardedthemtoMs.Hartman.Mr.HartmanbaseshisinsistenceonthefactthatMs.Hartmandidnotcarryherburdenofprovingthattheitemsofjewelryweregifts.Mr.HartmanreliesonthemaritalassetandliabilityliststhateachpartysubmittedtotheSpecialMaster.Mr.Hartmanslistclassified$33,000worthofjewelryasmarital, d   whileMs.Hartmanslistof"StatementofAssetsandLiabilities"itemizedeachitemofjewelryandvaluedthejewelryatapproximately$16,000,withoutindicatingwhetherthejewelrywasmaritalorseparateproperty.Ms.Hartmanalsofiledanexhibitwhichwastitled"WifesSeparateProperty,"whichdidnotincludeanyofthejewelryatissueonappeal,whileitdidincludeotherjewelrywhichwasreferredtoasbeingacquired"before"themarriage.BothpartiesadmitthattherewasnotestimonyattheSpecialMasterhearingorintheTrialCourtontheissueofwhethertheitemsofjewelryweregifts.TheTrialJudgesummarilyaffirmedtheSpecialMastersfindingthatthejewelrywasseparateproperty.  TheTrialCourtmustequitablydivideallofthe"maritalproperty."T.C.A.364121.Maritalpropertyisdefinedas"allrealandpersonalproperty,bothtangibleandintangible,acquiredbyeitherorbothspousesduringthecourseofthemarriage."T.C.A.364121.Separateproperty,ontheotherhand,isdefinedinT.C.A.364121(b)(2)(d)asproperty"acquiredbyaspouseatanytimebygift,bequest,deviseordescent."Therefore,agiftgivenbyonespousetotheotherduringmarriageisconsideredseparateproperty.Batsonv.Batson,769S.W.2d849(Tenn.App.1988).However,itmustbeproventhatagiftactuallyoccurred.ThisCourtstatedinHanoverv.Hanover,775S.W.2d612,617(Tenn.App.1989),that:       Themattertobedeterminedwherethereareinterspousalgiftsiswhetheragiftactuallyoccurred.Eachcasemuststandonitsownfacts.Acompletedgiftrequiresanintentiontomakeagift,delivery,andacceptance.       Theburdenofprovingtheelementsofagiftlieswiththedonee.Pamplinv.Satterfield,196Tenn.297,265S.W.2d886(1954).Inordertoprovethattheitemsofjewelryweregiftsfromherhusband,Ms.Hartmanboretheburdenofprovingthattheelementsofagiftwerepresent.  Ourdenovoreviewpersuadesusthatthereisinsufficientevidencetofindthejewelryinquestiontobeseparateproperty.Ms.Hartmandidnotputonanyproofthatsuggestedthattheitemsofjewelryweregifts.Tothecontrary,Ms.Hartmanimpliedinherfiledexhibitsof"AssetsandLiabilities"and"WifesProperty"thattheitemsofjewelryinquestionweremaritalproperty,notseparateproperty.    BecausewefindthatthereisinsufficientevidenceintherecordtosupporttheTrialCourt'sdeterminationofthejewelryasseparateproperty,weremandthisissuetotheTrialCourttoconsideradditionalevidencetodeterminewhetherMs.Hartmancarriedherburdenofprovingtheelementsofagift,andwhetherthejewelryshouldbeconsideredmaritalpropertyandbeequitablydividedinaccordancewithT.C.A.364121.  Mr.HartmanssecondissueonappealispredicatedontheargumentthattheTrialCourtabuseditsdiscretionbyfailingtoconsiderthetaxeffectsofanawardofpensionbenefitstoMr.Hartman,andthusrenderinganinequitabledivisionofthemaritalassets.OnMr.Hartmansattempttoofferawitness,aCertifiedPublicAccountantpreparedtotestifyastothetaxconsequencesoftheawardtoMr.Hartmanofthepensionfunds,theTrialJudgedeniedMr.Hartmansrequest:        THECOURT:Idontwanttohearproof,youknow,thatswhatwerehereifyouwanttoargueabouttheobjectionstothis,thatsfine,butjusttellmewhatyoudliketellmewhatyouwouldlike. MR.GOLD:Well,wecertainlydo,YourHonor,but THECOURT:Idontcaretohearanyproofonit.Infact,Iveneverheardproofonthisonebefore,neverhadanyofferedbeforetobehonestwithyou. MR.GOLD:WecertainlydoofferherforthepurposesofifImayjuststatefortherecord,YourHonor. THECOURT:Well,whydidntyouofferhertohim[SpecialMaster],nowhestheonetodothat.Youseethatwashisjob.ThatswhyIsentitoverthere.IwouldhavekeptitmyselfifIwantedtohearalltheproof.IdidnthavetimesoIsentittohim.       TheTrialCourtinsistedthatitwasnotrequiredtohearadditionalproofontheissue,sincetheproofshouldhavebeenofferedtotheSpecialMaster.   Mr.HartmanfirstarguedinoralargumentthatduringaTrialCourthearingontheSpecialmastersReport,theTrialCourtmustconsideranynewevidencethatapartyoffers,andthatbydenyinghisofferofproof,theTrialCourtabuseditsdiscretion.TheTrialCourtisnotrequiredtohearnewevidencetoaSpecialMastersreport,accordingtoRule53.04(2)oftheTennesseeRulesofCivilProcedure,whichstates:       Inanactiontobetriedwithoutajurythecourtshallactuponthereportofthemaster.Withinten(10)daysafterbeingservedwithnoticeofthefilingofthereport,anypartymayservewrittenobjectionstheretoupontheotherparties.ApplicationtothecourtforactionuponthereportanduponobjectionstheretoshallbebymotionanduponnoticeasprescribedinRule6.04.Thecourtafterhearingmayadoptthereportormaymodifyitormayrejectitinwholeorinpartormayreceivefurtherevidenceormayrecommititwithinstructions.       Therefore,theTennesseeRulesofCivilProceduredonotrequiretheTrialJudgetohearadditionalprooftotheSpecialMastersReport.Mr.Hartmanfurtherinsiststhatinthisparticularsituation,theTrialJudgeshouldberequiredtohearhisofferedproofinordertocomplywithT.C.A.364121(c),whichstatesthat"[I]nmakingequitabledivisionofmaritalproperty,thecourtshallconsiderallrelevantfactorsincluding...(9)Thetaxconsequencestoeachparty."̀  Mr.HartmancontendsthattheTrialCourtabuseditsdiscretionbyfailingtoconsiderthetaxconsequencesofhisreceiptofthepensionfundtoaccountforhisinterestintheequityofthehouse.Mr.HartmanarguesthatthedivisionofthemaritalassetswasnotanequitableonesinceMs.Hartmanreceivedtheequityofthehouseandremainedlivinginthe3800squarefoothome,whilehewasgivenaninterestinapensionfundwhichwouldnotbeworthnearlytheamountofthehomeequityifitwereliquidated.Mr.Hartmanarguesthatthepensionfund,ifliquidated,wouldbesubjecttoa10%penaltyforearlywithdrawalandsubjecttofederalincometaxes.Therefore,hearguesthatthepensionfundwouldonlybeworth59centsonthedollarifliquidated.Heinsiststhatinorderforthedivisiontobeequitable,heshouldbegivenaliquidassetofequalvaluetotheequityinthehomesothathemayusethatassettopurchaseahomeandbeinanequalpositiontoMs.Hartman.  TheTrialJudgerefusedtohearMr.Hartmanswitness,theCertifiedPublicAccountant,preparedtotestifyaboutthetaxconsequencesoftheawardoftheretirementbenefits,onthebasisthatMr.HartmanshouldhaveofferedtheprooftotheSpecialMaster.However,theissueofthetaxconsequencesoftheretirementbenefitsdidnotariseuntiltheSpecialMasterfinalizedhisproposeddivisionofassets,whichincludedawardingtheequityofthehousetoMs.HartmanandtheretirementbenefitstoMr.Hartman.ThisCourt,inStephensonv.Stephenson,anunpublishedopinionfiledinNashvilleFebruary7,1996,discussedtheimportanceoftheTrialCourtconsideringthetaxconsequencesofamaritaldivision,andstated,"Therighttoreceivetaxableincome,suchasaretirement,isnotasvaluableastherighttocollectnontaxableincome."TheTrialCourtinthiscasedidnotaffordMr.Hartmantheopportunityofconsideringthetaxconsequencesofthedivisionofassets.Therefore,wehold,basedonourdenovoreviewoftherecord,thattheTrialCourtwasinerrorinrefusingtohearMr.HartmansproofonthetaxconsequencesoftheproposeddivisionsincetherefusalwasafailureontheTrialCourtsparttoconsiderthetaxconsequencesofthedivisionasrequiredbyT.C.A.364121(c).  Fortheforegoingreasons,thejudgmentoftheTrialCourtastothedispositionofthejewelryandthedivisionofothermaritalpropertyisvacatedandthecauseremandedtotheCircuitCourtforadeterminationastowhetherthejewelryisMs.Hartman'sseparatepropertyormaritalproperty,withappropriatedispositionaftersuchdetermination.WealsoremandforconsiderationofthetaxconsequencesoftheawardtoMr.Hartmanoftheretirementfundsinexchangefortheequityintherealproperty.TheTrialCourtmay,ofcourse,rereferthequestionstoaSpecialMaster.CostsofappealareadjudgedagainstMs.Hartman.      _______________________________      HoustonM.Goddard,P.J.CONCUR:________________________________HerschelP.Franks,J.________________________________CharlesD.Susano,Jr.,J.