WPCh$ # VUNa % 0N 0 b w@ 4 , ;  N 0D  m 0J 0T0 0^ 0h 0rJ 0| 08 0 1uN 0d B'U>D D3B)DC 0@! AMaU*,f['K'v~rv AO"# 0D# D/$ BK$HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPT0nLH'"  Z 6Times New Roman Regular(&y$   (}(2w$ y!     XuvX `   0  - - *+D,-.D/E01Ӏ;<D tT3|x<ClarksvilleFendleyGraysonFendleys C.C.BeulahCutsingerMahaffeyMondellifendley v. fendley - opinion  ! ' IB011C20IB011C2 .   (#$  0   U2 0Indent123  2" 0Indent20 23  2, 0Indent30 0 23  26 0Indent40 0 0 23  2@ 0Indent50 0 0 0 23  2J 0Indent60 0 0 0 0 23  2T 0Indent70 0 0 0 0 0 23  2^ 0Indent80 0 0 0 0 0 0 23   ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P 8Mac DefaultMac Default ` X d<  9p`(&Times New Roman$$$$'dxd% Line 7 d++++7Border 1dd("$    -,C << G<  9p`(Arial " !  #d#))   //   YYY FILED/XJuly2,1997CecilW.CrowsonAppellateCourtClerk    !#d#))   $    )X       _Thispropertyincludedantiquefurnitureandfurnishingsvaluedforinsurancepurposesatapproximately$47,000.ThemostexpensiveitemsincludedChippendalediningroomfurnitureworth$25,800. \\RA'\ Q !#d#))   $    )X       _Thispropertyincludedantiquefurnishingsvaluedatapproximately$21,300forinsurancepurposes.  !#d#))   $    )X       _Thispropertyincludedaloveseat,Nipponand_Limogues_Ԁcutglass,andanantiqueurnvaluedatapproximately$9,500forinsurancepurposes. A !#d#))   $    )X       _Thepartiesvaluedthispropertyatapproximately$133,725forinsurancepurposes.PtPtHH(FG(HH(d'hStyl{WP}01  HH  2$HH  Geneva  <Px443!#4$*$$*$ KK  Geneva  Geneva .,6 Geneva   h HD: Geneva  h HD: Geneva -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd ! . ))   _        \RA'\  \RA'\7Vdd7    ћ @ ) INTHECOURTOFAPPEALSOFTENNESSEE@ MIDDLESECTIONATNASHVILLE) MARYS._FENDLEY_,   )      ) Plaintiff/Appellee,  )      ) MontgomeryChancery      ) No.9476171VS.      )      ) AppealNo.      ) 01A019509CH00418MARTG._FENDLEY_,   )̜R.0,A1-j|m`  `@Rߛ      ) Defendant/Appellant.  )@ APPEALFROMTHECHANCERYCOURT@ FORMONTGOMERYCOUNTY@ ATCLARKSVILLE,TENNESSEE@ THEHONORABLETHOMASE.GRAY,CHANCELLORForthePlaintiff/Appellee:    FortheDefendant/Appellant:JenniferD.Roberts     RogerA._Maness__Dickson_,Tennessee     Marks,Shell,_Maness_Ԁ&Marks        Clarksville,Tennessee@ ) AFFIRMEDASMODIFIED@ ANDREMANDED )       WILLIAMC.KOCH,JR.,JUDGE d  8 )@ OPINION ) Thisappealinvolvestheclassificationofpropertyinadivorcecase.ThewifefiledfordivorceintheChanceryCourtforMontgomeryCountyafterseventeenyearsofmarriage.Followingabenchtrial,thetrialcourtdeclaredthepartiesdivorcedandawardedthewifecustodyofthefourminorchildren.Initsdivisionofthepartiesproperty,thetrialcourtclassifiedthepartieshomeasmaritalpropertyandawardedittothewifebutclassifiedthehouseholdfurniture,fundsinheritedbythewife,andalimitedpartnershipinterestinanathleticclubasthewifesseparateproperty.Thehusbandtakesissueonthisappealwiththeallocationoftheresponsibilityforthedebtonthehome,theclassificationofseparateproperty,andtheoveralldistributionofthemaritalestate.Wehavedeterminedthatthetrialcourtshouldhaveallocatedthedebtsecuredbythehometothewifeandthatthetrialcourtcorrectlyclassifiedthedisputedassetsandequitablydistributedthemaritalestate.@ I.  MaryS._Fendley_ԀandMartG._Fendley_ԀweremarriedinClarksvilleinAugust1977.TheymovedtoMemphisaftertheweddingtoenableMr._Fendley_Ԁtoattendlawschool.Ms._Fendley_ԀworkedasacontactlenstechnicianwhileMr._Fendley_Ԁattendedlawschool.ThepartiesreturnedtoClarksvilleinJuly1980afterMr._Fendley_Ԁgraduatedfromlawschoolandcompletedthebarexamination. Ms._Fendley_sgrandmotherdiedshortlybeforethepartiesreturnedtoClarksville,leavingaspartofherestateafullyfurnishedhouseat411IdahoSpringsRoad.Ms._Fendley_sparentsinvitedtheirdaughterandsoninlawtomoveintothehousewhentheyreturnedtoClarksville.ThepartiesmovedintothehouseinAugust1980andlivedthererentfeeuntilDecember1982whentheypurchasedthehouseandpropertyfor$40,000fromMs._Fendley_sparents. ThehouseonIdahoSpringsRoadwasbuiltin1938andneededextensiverepairs.Thepartieswenttoworkimmediatelyrestoringandrenovatingthehouse.    Throughoutthemarriage,muchofthepartiesdisposableincome,aswellasMs._Fendley_sinheritedincome,wasspentonimprovementstotheproperty. Ms._Fendley_Ԁreceivedtwoinheritancesduringthemarriage.Onhertwentyfifthbirthdayin1982,Ms._Fendley_Ԁreceived$26,000fromatrustestablishedbyhergrandparents.SheusedthesefundstopurchaseanautomobileforMr._Fendley_,topaythepartiestaxes,andtopayforsomeofthehomeimprovements.In1990,Ms._Fendley_Ԁreceivedasecondinheritanceof$69,500.Shedepositedthesefundsinaseparateaccountinherownnameandwithdrewportionsofthefundsduringthemarriagetopurchasecentralheatandairconditioningforthehouse,topurchaseaboatfromherfather,andtopurchaseatruck.Ms._Fendley_Ԁalsoused$10,000ofthesefundstopurchasealimitedpartnershipinterestinoneofherbrothersbusinessventurescalledtheClarksvilleAthleticClub. Mr._Fendley_slawfirmlatermergedwithanotherfirmthatrepresentedHeritageBank.Inordertoenhancehisrelationshipwiththebankandtoobtainotherbankingprivileges,Mr._Fendley_ԀrequestedMs._Fendley_ԀtowithdrawherinheritedfundsfromherseparateaccountattheGuarantyFederalSavingsandLoanAssociationandtodepositthemintheHeritageBank.Actingontheunderstandingthatthefundswouldremainherseparateproperty,Ms._Fendley_Ԁwithdrewapproximately$29,000fromGuarantyFederalSavingsandLoananddepositeditinajointaccountattheHeritageBank.NotwithstandingtheiragreementthatthemoneyremainedMs._Fendley_sseparateproperty,Mr._Fendley_Ԁlater_withdrew_ԀfundsfromtheϜaccount,withoutMs._Fendley_sknowledgeorpermission,topaytaxesandtofundindividualretirementaccounts. ThepartieshadfourchildrenbeforetheyseparatedinJuly1994.Ms._Fendley_ԀfiledfordivorceinAugust1994.Followingabenchtrial,thetrialcourtdeclaredthepartiesdivorcedpursuanttoTenn.CodeAnn.364129(b)(1996),awardedMs._Fendley_Ԁcustodyofthechildren,anddirectedMr._Fendley_Ԁtopay$2,206permonthinchildsupport.Thetrialcourtalsoawardedthepartiestheirpersonalpropertyanddeterminedthatmostoftheantiquefurnitureandfurnishings,theremainderofthefundsMs._Fendley_inheritedin1990,andthe$10,000investmentintheClarksvilleAthleticClubwereMs._Fendley_sseparateproperty.ThetrialcourtclassifiedthehouseonIdahoSpringsRoadasmaritalpropertyandawardedthehousetoMs._Fendley_.@ II.  WeneednottarrylongwithMr._Fendley_sfirstissuewithregardtotheallocationofthedebtsecuredbythemaritalhome.HeassertsthatthetrialcourtshouldhavespecificallyallocatedthisdebttoMs._Fendley_Ԁbecauseshewasawardedthehousethatsecuredthedebt.Thetrialcourtsimplyoverlookedthisdebt,andMs._Fendley_Ԁreadilyconcedesthatsheshouldberesponsibleforit.Accordingly,thefinaldivorcedecreeshouldbemodifiedonremandtoreflectthatMs._Fendley_Ԁis_responsible_ԀfortheremainingindebtednessonthehouseandtorequirehertoholdMr._Fendley_Ԁharmlessforthisdebt.@ III.  Mr._Fendley_sprincipleargumentisthatthetrialcourterroneouslyclassifiedaspersonalpropertytheremainderofMs._Fendley_sinheritedfunds,herinvestmentintheClarksvilleAthleticClub,andtheantiquefurnitureonceownedbyMs._Fendley_sgrandmother,greataunt,andothermembersofherfamily.Wehavedeterminedthatthetrialcourtproperlyclassifiedthisproperty.@ A.  Distributingthepartiespropertyisanintegralpartofeverydivorcecase.Thispropertymustbeclassifiedaseitherseparateormaritalproperty,andpropertythatdoesnotfitthedefinitionof separatepropertymustbeconsideredtobe maritalproperty._Kendrick_Ԁv._Kendrick_,902S.W.2d918,924(Tenn.Ct.App.1994).Tenn.CodeAnn.364121(b)(2)defines separatepropertyas: (A)Allrealandpersonalpropertyownedbyaspousebeforemarriage;(B)Propertyacquiredinexchangeforpropertyacquiredbeforethemarriage;(C)Incomefromandappreciationofpropertyownedbyaspousebeforemarriage (   exceptwhencharacterizedasmaritalpropertyundersubdivision(b)(1);and(D)Propertyacquiredbyaspouseatanytimebygift,bequest,deviseordescent. Whilethestatutorydefinitionof separatepropertyfocusesonthesourceoftheproperty,thecourtsmustalsoconsiderthewaythatthepartieshaveusedthepropertyduringthemarriagebecausetitlealoneisnotnecessarilycontrolling._Langford_Ԁv._Langford_,220Tenn.600,604,421S.W.2d632,634(1967);Mahaffey_ԛv._Mahaffey_,775S.W.2d618,624(Tenn.Ct.App.1989);_Robinette_Ԁv._Robinette_,726S.W.2d524,525(Tenn.Ct.App.1986)_.Otherwiseseparatepropertycanbetransmutedintomaritalpropertyifthepartiestreatitasmaritalpropertyandifthereisnoevidencethatthespouseowningthepropertyintendedthatitremainseparate.McClellanv.McClellan,873S.W.2d350,351(Tenn.Ct.App.1993);_Batson_Ԁv._Batson_,769S.W.2d849,858(Tenn.Ct.App.1988). Classifyingpropertyasseparateormaritalisaquestionoffact._Cutsinger_Ԁv._Cutsinger_,917S.W.2d238,241(Tenn.Ct.App.1995);_Sherrill_v._Sherrill_,831S.W.2d293,295(Tenn.Ct.App.1992).Thus,atrialcourtsclassificationdecisionsareentitledtogreatweightonappeal.Wilsonv.Moore,929S.W.2d367,372(Tenn.Ct.App.1996).Thesedecisionswillbepresumedtobecorrectunlesstheevidencepreponderatesotherwise,_Hardin_Ԁv._Hardin_,689S.W.2d152,154(Tenn.Ct.App.1983),orunlesstheyarebasedonanerroroflaw._Mahaffey_Ԁv._Mahaffey_,775S.W.2dat622.@ B. @  TheFurnitureandHouseholdItems  ManyofthefurnitureandfurnishingsintheIdahoSpringsRoadhousecanbetracedbacktomembersofMs._Fendley_sfamily.MostofMs._Fendley_sgrandmothersfurnitureremainedinthehouseaftershediedin1980. 1   ׀EventhoughMs._Fendley_sfatherinheritedthisproperty,heleftmuchofitinthehouseandpermittedhisdaughterandsoninlawtouseit.Later,in1990,Ms._Fendley_s2 8 d fatherpermittedMs._Fendley_ԀtoselectotherfurnitureandfurnishingsfromthepropertyheinheritedfromanauntwholivedinIllinois. 3   ׀Inaddition,Ms._Fendley_smotherpassedalongseveralitemsofpersonalpropertythathadoncebeeninherfamilysLouisianaplantation._ 4   _ Assooftenhappenswithfamilyheirlooms,Ms._Fendley_sparentsdidnotprepareformalwrittendocumentsconcerningtheirdispositionofthispropertyortheirwishesconcerningitsultimatefate.TheyneverspecificallyinformedeitherMs._Fendley_ԀorMr._Fendley_ԀthattheygavethemthepropertyasajointgiftoreventhattheyhadgiventhepropertytoMs._Fendley_Ԁtodowithasshepleased.Ms._Fendley_smotherstatedonseveraloccasionsduringthemarriagethatshereservedtherighttotakeanyofthefurniturebackifsheeverhadroomforit.ShealsoinstructedMs._Fendley_Ԁtomakesurethatherchildreneventuallyreceivedspecificitemsofproperty.Thepartiesandtheirchildrenusedthepropertyandspecificallymadesurethatitwascoveredbytheirhomeownersinsurancepolicy. Aftershefiledfordivorce,Ms._Fendley_Ԁassertedthatthisproperty,aswellasthepartiesweddinggifts,giftsshehadreceivedfromhermother,andsilverwareshehadobtainedpriortothemarriage,shouldbeclassifiedasherseparateproperty. 5   כMr._Fendley_ԀcounteredbyassertingthatallthefurnishingsandpersonalpropertyintheIdahoSpringsRoadhouse,regardlessoftheirorigin,weremaritalpropertybecausethepartieshadusedthemduringthemarriageandbecauseneitherMs._Fendley_Ԁnorherparentshadexpressedanintentthatthispropertyremainseparate.ThetrialcourtclassifiedmostofthepropertyoncebelongingtomembersofMs.FendleysfamilyasMs._Fendley_sseparatepropertybutincludedthepartiesweddinggifts,thesilverwareMs._Fendley_Ԁhadpurchasedpriortothemarriage,andotherfurnishingsboughtduringthemarriageasmaritalproperty.   ̛ Mr._Fendley_Ԁnowinsiststhatthetrialcourterredinitsclassificationbecausethedoctrineoftransmutationrequiresthefurnitureandfurnishingstobeclassifiedasmaritalproperty.Wedisagree.ThesolefactthatthepartiesusedthepropertyduringtheirmarriagedoesnotnecessarilymeanthatMs._Fendley_sparentsorMs._Fendley_Ԁherselfintendedtomakeagiftofthispropertytothemaritalestate.Ms._Fendley_Ԁandherparentsstatedcategoricallythatthepropertywasnotgiventothepartiesjointly.Furthermore,therecordcontainsevidenceinconsistentwiththeconclusionthatMs._Fendley_sparentsgavethemthepropertyoutright.Ms._Fendley_Ԁmadestatementsthroughoutthemarriageindicatingthatshehadnotrelinquishedherrighttocontroltheultimatedispositionoftheproperty. Passingdownfamilyheirloomsisacommonplaceoccurrence.Sometimesitisaccomplishedwithformalityandceremony,butmorefrequently,itisdoneinformallyandprivatelybetweenfamilymembers.Thus,theabsenceofformaldocumentsinvolvingthedispositionofthispropertyisoflittleconsequencetousunderthefactsofthiscase.ThetrialcourthadtheopportunitytoobservethepartiesandtheirwitnessesastheytestifiedanddeterminedfromthisevidencethatMs._Fendley_ԀandherfamilydidnotintendthatthefamilyheirloomswouldbecomemaritalpropertysimplybecauseMs._Fendley_Ԁandherfamilyusedthem.Wehavenobasis,onthesefacts,toconcludethatthetrialcourterredbydeterminingthattheevidencedemonstratedthatMs._Fendley_ԀandherparentsintendedthatthisϜpropertywouldremainintheirfamily.̛̜@ C.@ TheRemainingInheritedFunds  Mr._Fendley_ԀalsoassertsthatthetrialcourtshouldhaveclassifiedthefundsMs._Fendley_ԀdepositedintheirjointaccountattheHeritageBankasmaritalfunds.Relyingagainonthedoctrineoftransmutation,heinsiststhatthefactthatMs._Fendley_Ԁwithdrewthesefundsfromherownseparateaccountanddepositedtheminajointaccountcanonlysupporttheconclusionthatsheintendedtorelinquishhercontroloverthesefunds.Theevidencedoesnotsupportthisargument. Ms._Fendley_Ԁreceivedthesefundsbyinheritance.Shedepositedtheminaseparateaccountinherownname.Sheusedpartofthefundsforfamilypurposesbutintendedtoleaveenoughfundsintheaccounttoprovidesomeassistanceforthechildrenscollegeeducation.Ms._Fendley_ԀmaintainedcompletecontroloverthesefundsuntilMr._Fendley_ԀconvincedherthatdepositingtheminanotheraccountatHeritageBankwouldfurtherhisbusinessinterests.Ms._Fendley_ԀcompliedwithMr._Fendley_srequestbutonlywiththeunderstandingthatMr._Fendley_Ԁwouldhavenocontroloverthesefundseveniftheywereinajointaccount.AfterMs._Fendley_ԀdiscoveredthatMr._Fendley_Ԁhadwithdrawnaportionofthesefundswithoutherpermission,shedepositedthefundsinanotherseparateaccount. Themerefactthatthefundswereplacedforatimeinajointaccountdoesnotrequirethattheybeconsideredmaritalproperty.Ms._Fendley_saccountoftheuseofthesefundsislargelyundisputedanddemonstratesthatsheneverintendedtorelinquishhercontroloverthesefunds.Accordingly,wehavenobasisforconcludingthattheevidencepreponderatesagainstthetrialcourtsconclusionthatthesefundswereMs._Fendley_sseparateproperty.̛̜@ D.@ TheHealthClubInvestment  Inhisfinalclassificationissue,Mr._Fendley_Ԁarguesthatthetrialcourtshouldnothaveclassifiedthe$10,000investmentintheClarksvilleAthleticClubasMs._Fendley_sseparatepropertybecausethepartiestreatedtheinvestmentasifitweremaritalproperty.WeconcurwiththetrialcourtsconclusionthatthefundsusedfortheinvestmentremainedMs._Fendley_sseparateproperty,eventhoughthepartiestreatedtheincomefromtheinvestmentasmaritalproperty,andtheentirefamilybenefittedfromtheinvestment. Duringthemarriage,Ms._Fendley_sbrotherstartedtheClarksvilleAthleticClubandofferedMs._Fendley_Ԁandhersisterstheopportunitytopurchaselimited_partnership_Ԁinterestsfor$10,000.The_Fendley_sdecidedthatpurchasingalimitedpartnershipwouldbeagoodideabecausetheentirefamilywouldreceivealifetimemembershipintheclub.Mr._Fendley_intendedtoborrowthemoneyfortheinvestment,butMs._Fendley_Ԁdecidedtouseherinheritedfundsinordertoavoidanyfurtherindebtedness.ThepartnershipdocumentslistedMs._Fendley_Ԁasthesolelimitedpartner;however,themembershipcardsandclubsreportofincomelistedbothMs._Fendley_ԀandMr._Fendley_Ԁasthe individualpartner. Thepartiesreportedtheincomefromtheinvestmentontheirjointtaxreturns,andthereisnodisputethattheyconsideredtheincometobemaritalproperty.Afterthepartiesseparated,Ms._Fendley_ԀliquidatedthelimitedpartnershipinterestwhenshediscoveredthatMr._Fendley_Ԁhadwithdrawnfundsfromtheaccountshewasmaintainingforherchildrenscollegeeducation.Shedepositedthefundsfromtheinvestmentbackintoherchildrenscollegeeducationaccount. Ms._Fendley_sdecisiontouseaportionofherseparatefundsasaninvestmenttothebenefitofherfamilyisnottantamounttoadecisiontorelinquishallcontroloverthefunds.Whilethelifetimemembershipsandtheinvestmentincomeweremaritalproperty,thefundsasamatterofcontractbetweentheclubandMs._Fendley_Ԁremainedunderhercontrol.Ms._Fendley_continuedtoexercisecontroloverthefundsandeventuallyliquidatedtheinvestmentandreturnedthefundstoaseparateaccountinherownname.Underthesefacts,wehavedeterminedthatthetrialcourtcorrectlyclassifiedthefundsfromtheliquidatedinvestmentinthehealthclubasMs._Fendley_sseparateproperty.@ IV.  Asafinalmatter,Mr._Fendley_Ԁassertsthatthemannerinwhichthetrialcourtdividedthemaritalestatewasinequitablebecausethepartiescircumstancesare ratherequal.InsteadofawardingMs._Fendley_Ԁ61%andMr.Fendley39%ofthemaritalestate,heinsiststhatamoreequaldistributionwouldbeappropriate. Trialcourtshavebroaddiscretionindividingmaritalestates.Tenn.CodeAnn.364121(a)(1991);Fisherv.Fisher,648S.W.2d244,246(Tenn.1983).Accordingly,appellatecourtscustomarilygivegreatweighttotheirdecisionsinvolvingtheclassificationandallocationofmaritalproperty.Wilsonv.Moore,929S.W.2dat372.WewillordinarilydefertothetrialcourtsdecisionunlessitisinconsistentwiththefactorsinTenn.CodeAnn.364121(c)orisunsupportedbyapreponderanceoftheevidence.Brownv.Brown,913S.W.2d163,168(Tenn.Ct.App.1994);_Mahaffey_Ԁv._Mahaffey_,775S.W.2dat622;_Hardin_Ԁv._Hardin_,689S.W.2dat154. Thetrialcourtsgoalineverydivorcecaseistodividethepartiesmaritalpropertyinajustandequitablemanner.Adivisionofpropertyisnotrenderedinequitablesimplybecauseitisnotmathematicallyequal,Cohenv.Cohen,937S.W.2d823,832(Tenn.1996);Ellisv.Ellis,748S.W.2d424,427(Tenn.1988);_Kendrick_Ԁv._Kendrick_,902S.W.2dat929,orbecauseeachpartydidnotreceiveashareofeverypieceofmaritalproperty.Brownv.Brown,913S.W.2dat168.Inthefinalanalysis,thejustnessofaparticulardivisionofmaritalpropertydependsonitsfinalresultsconsideredinlightofthepertinentfactorsinTenn.CodeAnn.364121(c).Thompsonv.Thompson,797S.W.2d599,604(Tenn.Ct.App.1990). Thevalueofthepartiesentiremaritalestateis$243,946.26.Thetrialcourtsdivisionoftheestateawardspropertywithavalueof$148,569.02toMs._Fendley_Ԁandpropertyworth$95,377.24toMr._Fendley_.Accordingly,thetrialcourthasawardedMs._Fendley_Ԁ61%andMr._Fendley_Ԁ39%ofthemaritalestate.Wehavedeterminedthatthisdivisionisequitableunderthefactsofthiscase.ContrarytoMr._Fendley_sassertion,wedonotfindthatthepartiescircumstancesareessentiallythesame.Ms._Fendley_ԀhelpedMr._Fendley_Ԁcompletehisprofessional_educational_Ԁwhilecurtailingherown.Asaresult,Mr._Fendley_ԀisbetterequippedtoearnincomeandacquirecapitalassetsthanMs._Fendley_.Basedonthepartiesrespectiveages,_employability_,andearningcapacities,wehavedeterminedthatthetrialcourtsdivisionofthepartiesmaritalestateisequitable.@ V.  WeaffirmthefinaldivorcedecreeasmodifiedhereinandremandthecasetothetrialcourtfortheamendmentofthefinaldecreetoprovidethatMs._Fendley_ԀissolelyresponsibleforthepaymentoftheremainingindebtednesssecuredbytheIdahoSpringsRoadpropertyandforanyotherproceedingsthatmayberequired.WealsotaxthecostsofthisappealtoMartG._Fendley_Ԁandhissuretyforwhichexecution,ifnecessary,mayissue.       ____________________________       WILLIAMC.KOCH,JR.,JUDGECONCUR:________________________________HENRYF.TODD,_P.J._,M.S.________________________________SAMUELL.LEWIS,JUDGE