Marilyn Kay Anderson v. James Cephas Anderson

This appeal arises from a divorce. All the issues pertain to the classification, valuation, and equitable division of three large tracts of land. Husband acquired two of the tracts before the marriage: a 197-acre tract and a 103-acre tract. Both of these tracts were used in Husband’s farming operation before and during the marriage. During the marriage, Husband and Wife built their marital residence on a portion of the 197-acre tract. Husband acquired the third tract during the marriage but after the parties separated. Wife’s name is not on any of the deeds. Wife contends that the tracts Husband owned prior to the marriage transmuted into marital property. Alternatively, she contends their appreciation in value during the marriage was marital property. Wife also contends the third tract was marital property because Husband purchased it with marital funds from their joint bank account during the marriage. The trial court classified the 197-acre tract and the 103-acre tract as Husband’s separate property and held that none of the land transmuted into marital property. The trial court also concluded that Wife was not entitled to an interest in the appreciation of the properties because she did not substantially contribute to their maintenance or increase in value. The trial court classified the marital residence—that being the improvement but not any of the land associated with the marital residence—as marital property. As for the tract Husband acquired during the marriage, the court ruled that it was Husband’s separate property because Husband purchased it with his separate funds. This appeal followed. Based on the parties’ treatment and use of some of the 197-acre tract on Highland Road as their marital residence, it is evident that the parties intended for some portion of the land to transmute into marital property. Therefore, we reverse the trial court’s determination that the entire 197-acre tract remained Husband’s separate property and remand for the trial court to identify that portion of the land the parties treated and used as part of their marital residence, classify that land as marital property, and determine its value. Based on this change of classification, the trial court should also consider whether the change in value necessitates a revision of the equitable division of the marital estate and, if so, enter judgment accordingly. In all other respects, we affirm the judgment of the trial court.