ÿWPC” …4Vj 0(y¡w@© 0Jé 0T3 0^‡ 0hå 0rM 0|¿ 0†; 0Á 1uQ U,Æ 0dò UBV %˜ U,ž U6Ê B) DC) AMl U*¹ +ã Bv~+vÓ© D3| 0@¯ AOïÆ> 0D D/H BwypÑ ÔøÔô3|x&($¡¡ EDDDÓ€2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô  ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ<þ6X9`(*Courier 12pt10cpiX< Œ 9p`(Monaco< Œ 9p`(Courier New% Line 7 d 7Border 1dd€-!Cþÿ << Gÿÿ< Œ 9p`(Arial !Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€ÔÝ  ÝÔ€#ÔÔ€#ÔÓ  ÓÔ YYY ÔFILEDÔ€#XÔÌÌò òJuly€3,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€#ôÔAppellate€Court€Clerkó ó dPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò%%%%'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€X„d&ÓÑ#€Xd#ÑÔ€ÔÝ  ÝÒ Ü ÒÒ ° ÒÑ ý ÑÑ  ÑÑ\R AØ'\Ñ›Ñ7€¿µXXdÈdÈ7Ñ€€€€à@ àò òIN€THE€COURT€OFÏAPPEALS€OF€TENNESSEEÌÙ€€ÙœßL€"$!;+'h|` Å `€€Lß›Ìà@ àEASTERN€SECTIONÌó óÌÌÌÌÌERNEST€WHITE€PATTON,€III,à à)€C/A€NO.€03A01„9601„CH„00001Ìà àà àà àà àà àà à)Ìà àà àPlaintiff,à àà à)€HAMILTON€CHANCERYÌà àà àà àà àà àà à)Ìv.à àà àà àà àà àà à)€HON.€R.€VANN€OWENS,Ìà àà àà àà àà àà à)€CHANCELLORÌLINDA€HARVEY€PATTON,à àà à)Ìà àà àà àà àà àà àœ)€MODIFIED€AND›Ìà àà àDefendant.à àà àœ)€REMANDED›ÌÌÌÌÌÌALBERT€L.€WATSON,€III,€Chattanooga,€for€Plaintiff„Appellant.ÌÌARTHUR€C.€GRISHAM,€JR.,€GRISHAM,€KNIGHT€&€HOOPER,€Chattanooga,Ïfor€Defendant„Appellee.ÌÌÌÌÌÌÌÌà@ àò òòòO€P€I€N€I€O€Nóóó óÌÌÌà@ àòòÌÓÓóóÌà àà àà àà àà àà àà àà àFranks.€J.ÌÌÌà àà àIn€this€divorce€action,€the€husband€appeals€from€theÏTrial€Courtððs€determination€of€the€classification€of€property€asÍmarital€property€and€the€division€of€the€marital€estate.Ìà àà àThe€parties€were€married€in€1984,€and€resided€togetherÏfor€approximately€nine€years.€€Prior€to€their€marriage,€theÏhusband€had€purchased€a€house€and€land€at€2606€Crescent€ClubÏDrive€(ð ðCrescent€Club€propertyð ð),€and€the€wife€had€purchased€2.5Ïacres€of€unimproved€land€on€Scenic€Highway€in€Hamilton€County.€ÏTitle€to€the€Crescent€Club€property€is€held€solely€by€theÏhusband,€and€the€title€to€the€Scenic€Highway€property€is€titledÏsolely€to€the€wife.€€However,€the€Trial€Judge€declared€bothÏproperties€to€be€marital€property€and€awarded€the€Scenic€HighwayÏproperty€to€the€husband,€and€the€Crescent€Club€property€to€theÏwife.€€The€Court€did€not€place€a€value€on€the€Crescent€ClubÏproperty,€but€concluded€there€was€approximately€$74,000.00€inÏequity€in€that€property,€but€œhe€did›€find€that€the€Scenic€HighwayÏproperty€was€valued€at€$30,000.00.Ìà àà àWhen€the€husband€purchased€the€Crescent€Club€propertyÏhe€made€a€downpayment€of€$73,000.00,€and€borrowed€$9,500.00€fromÏhis€soon„to„be€wife,€and€gave€œher€a›€promissory€note€in€œreturn,Ïwhich›€was€œapplied€as€an›€additional€downpayment€on€the€property,Ïas€well.€€When€the€wife€purchased€the€Scenic€Highway€property,Ïwhich€was€also€before€the€parties€married,€the€husband€paidÏ$10,000.00€toward€the€purchase€of€that€property.Ìà àà àœThis€case€is€before€us€òòde€novoóó€with€a€presumption€ofÏcorrectness€as€to€factual€issues.€€T.R.A.P.€Rule€13.€€The›Íevidence€establishes€that€the€husband,€in€addition€to€making€œthe›Ïdownpayment€on€the€Crescent€Club€property,€paid€the€monthlyÏmortgage€payments€out€of€his€monies,€and€the€downpayment,€withÏthe€exception€of€the€loan€from€the€wife,€came€from€the€husbandððsÏinheritance.€€Ìà àà àIn€defending€the€Trial€Courtððs€classification€of€theÏproperty,€the€wife€argues€that€the€doctrine€of€transmutation€isÏapplicable€here.€€We€cannot€agree.€€òòBatson€v.€Batsonóó,€769€S.W.2dÏ849€(Tenn.€App.€1988)€is€instructive.€€The€Court€first€observed:ÌÓÓà0 àà0 àTennessee€is€a€ð ðdual€propertyð ð€jurisdiction€becauseÏits€divorce€statutes€draw€a€distinction€betweenÏmarital€and€separate€property.€€Since€Tenn.€Code€Ann.Ïðð36„4„121(a)€(Supp.€1988)€provides€only€for€theÏdivision€of€marital€property,€proper€classification€ofÏa€coupleððs€property€is€essential.€€òòSee€3€Family€LawÏand€Practice€óóðð37.08[1]€(1988).€€Thus,€as€a€first€orderÏof€business,€it€is€incumbent€on€the€trial€court€toÏclassify€the€property,€to€give€each€party€theirÏseparate€property,€and€then€to€divide€the€maritalÏproperty€equitably.€€òòSee€óó2€h.€Clark,€òòThe€Law€ofÏDomestic€Relations€in€the€United€States€óóðð16.2,€at€183„84€(2d€ed.€1987).ÌÌà0 àà0 àÌà0 àà0 àà àTenn.€Code€Ann.€ðð36„4„121(b)€contains€the€groundÏrules€for€classifying€property,€and€little€elaborationÏis€needed€beyond€the€statute€itself.€€Tenn.€Code€Ann.Ïðð36„4„121(b)(2)€defines€ð ðseparate€propertyð ð€as:ÌÌà0 àà0 àà0 àall€real€and€personal€property€owned€by€a€spouseÏbefore€marriage;€property€acquired€in€exchangeÏfor€property€acquired€before€marriage;€€incomeÏfrom€and€appreciation€of€property€owned€by€aÏspouse€before€marriage€except€when€characterizedÏas€marital€property€under€subdivision€(b)(1);Ïand€property€acquired€by€a€spouse€at€any€time€byÏgift,€bequest,€devise€or€descent.ÌÌà0 àà0 àThis€Court€has€construed€this€section€to€mean€thatÍgifts€by€one€spouse€to€another€of€property€that€wouldÏotherwise€be€classified€as€marital€property€are€theÏseparate€property€of€the€recipient€spouse.€€This€CourtÏhas€also€found€that€the€portion€of€a€spouseððs€pensionÏor€other€retirement€benefit€attributable€to€creditableÏservice€prior€to€the€marriage€is€separate€property.ÌÌÓÓThe€Court€then€went€ahead€to€discuss€the€doctrine€ofÏtransmutation€and€said:ÌÓÓà0 àà0 à[s]eparate€property€may€become€part€of€the€maritalÏestate€if€its€owner€treats€it€as€if€it€were€maritalÏproperty.€€Professor€Clark€describes€the€doctrine€ofÏtransmutation€as€follows:ÌÌà0 àà0 àà0 à[Transmutation]€occurs€when€separate€property€isÏtreated€in€such€a€way€as€to€give€evidence€of€anÏintention€that€it€become€marital€property.€€OneÏmethod€of€causing€transmutation€is€to€purchaseÏproperty€with€separate€funds€but€to€take€titleÏin€joint€tenancy.€€This€may€also€be€done€byÏplacing€separate€property€in€the€names€of€bothÏspouses.€€The€rationale€underlying€both€theseÏdoctrines€is€that€dealing€with€property€in€theseÏways€creates€a€rebuttable€presumption€of€a€giftÏto€the€marital€estate.€€This€presumption€isÏbased€also€upon€the€provision€in€many€maritalÏproperty€statutes€that€property€acquired€duringÏthe€marriage€is€presumed€marital.€€TheÏpresumption€can€be€rebutted€by€evidence€ofÏcircumstances€or€communications€clearlyÏindicating€an€intent€that€the€property€remainÏseparate.ÌÌà0 àà0 à1€H.€Clark,€òòThe€Law€of€Domestic€Relations€in€theÏUnited€States€óóðð16.2,€at€185€(1987).ÌÌÓÓà àà àSeveral€reported€and€unreported€cases€have€discussedÏand€applied€the€doctrine€of€transmutation€in€property€settlementÏsituations,€but€none€is€applicable€to€the€facts€of€this€case.Ìà àà àDuring€the€course€of€the€trial,€the€husband€explainedÏwhy€he€held€title€solely€to€the€Crescent€Club€property.€€HeÍœsaid:›ÌÓÓà0 àà0 àQ.à0 àMr.€Patton,€was€there€any€reason€why€you€did€notÏpurchase€this€property€at€Crescent€Club€withÏMrs.€Patton€prior€to€the€marriage?ÌÌà0 àà0 àA.à0 àYes,€sir,€there€is.ÌÌà0 àà0 àQ.à0 àWhat€is€that€reason?ÌÌà0 àà0 àA.à0 àWell,€Mrs.€Patton,€Betsy€had€been€married€threeÏtimes€previous€to€our€marriage,€three€timesÏpreviously.€€I€would€be€putting€myself€I€thoughtÏat€great€risk€to€purchase€anything€jointly€withÏher.€€I€really€didnððt€know€what€would€happen,Ïwhat€would€transpire€œin›€œthe›€marriage,€but€theÏhistory€pretty€much€speaks€for€itself€so€I€wasÏtrying€to€protect€my€assets€and€my€property.ÌÌà0 àà0 àQ.à0 àDid€you€ever€transfer€any€interest€of€theÏCrescent€Club€property€to€Mrs.€Patton?ÌÌà0 àà0 àA.à0 àNo,€sir.ÌÌÓÓThe€parties€resided€in€the€Crescent€Club€œproperty,›€but€this€factÏalone€does€not€œtrigger›€the€doctrine€of€œtransmutation.€€The›Ïevidence€is€clear€that€the€husband€intended€that€this€propertyÏbe€his€separate€property,€as€evidenced€by€the€legal€œtitle€andÏhis€paying€the€mortgage€payments,€taxes€and€maintenance€out€ofÏhis€income.›€€Moreover,€the€evidence€preponderates€against€theÏfinding€that€the€Scenic€Highway€property€was€marital€property.Ìà àà àFrom€the€partiesðð€testimony,€œboth›€are€of€the€opinionÏthat€the€Crescent€Club€property€has€more€equity€than€found€byÏthe€Trial€Court.€€The€wife€would€be€entitled€to€any€increase€inÏthe€value€of€the€Crescent€Club€property€during€the€œmarriageÏbecause€she€substantially€contributed€to€the€appreciation€andÍpreservation€of€the€property.€€òòHarrison€v.€Harrisonóó,€912€S.W.2dÏ124€(Tenn.€1996).€€We›€conclude€that€the€Crescent€Club€propertyÏshould€be€sold,€the€balance€of€the€indebtedness€be€paid,€and€theÏhusband€be€then€given€the€$73,000.00€downpayment€which€he€œpaid,Ïwith€any€remaining€money€divided€equally€between€the€parties.›€ÏThe€Scenic€Highway€property€we€find€is€the€wifeððs€separateÏproperty,€and€she€is€awarded€that€tract.€€The€$9,500.00€note€toÏthe€œwife›€will€be€set€off€against€the€husbandððs€$10,000.00Ïpayment€toward€the€purchase€of€the€Scenic€Highway€property.€€TheÏHemphill€property€which€was€also€the€wifeððs€separate€property,Ïis€likewise€awarded€to€the€wife.Ìà àà àThe€husband€also€complains€about€the€award€of€personalÏproperty€to€the€wife.€€At€the€time€of€separation,€the€husbandÏtook€personal€property€from€the€house,€but€contends€that€thereÏis€additional€property€that€he€inherited€from€his€mother€œwhich›Ïhe€should€be€awarded,€œand›€is€œnow€in›€the€possession€of€the€wife.€ÏThe€husband€raised€this€issue€before€the€Trial€Judge€in€theÏmotion€for€a€new€trial,€and€the€Trial€Judge€appointed€a€mediatorÏto€resolve€the€dispute,€but€apparently€the€husband€œdid›€not€meetÏwith€the€mediator€œalthough›€several€opportunities€were€œgiven.›€€œWeÏdo€not€grant€the€husband€relief€on€this€issue€because€he€failedÏto€take€action€available€to€him€to€prevent€the€alleged€error.€ÏT.R.A.P.€Rule€36(a).€€›Ìà àà àThe€judgment€of€the€Trial€Court€is€affirmed€asÍmodified,€and€the€cause€remanded€with€the€costs€assessed€one„half€to€each€party.ÌÌÓÓÌÌà àà àà àà àà àà à________________________Ìà àà àà àà àà àà àHerschel€P.€Franks,€J.ÌÌÌCONCUR:ÌÌÌÌÌÌ___________________________ÌHouston€M.€Goddard,€P.J.ÌÌÌÌÌÌ___________________________ÌCharles€D.€Susano,€Jr.,€J.ÌÌÌ