Taylor Brocato (now Dunn) v. Kyle Young

This is a post-divorce partition action in which the ex-wife asked the trial court to order the sale of the former marital residence and to award her, as specified in the parties’ marital dissolution agreement (“the MDA”), half of the equity resulting from the sale. The ex-wife relied on the provision in the MDA, which provides that she is entitled to fifty percent of any equity in the former marital residence “when the house sells.” The ex-husband opposed the partition action, arguing that he was awarded the former marital residence pursuant to the MDA and that the ex-wife was only entitled to half of the equity valued as of the date of their divorce in 2019. The ex-husband also contended that the ex-wife’s claims were barred under the doctrine of equitable estoppel because he had remitted $6,600.00 in monthly payments toward the ex-wife’s equity pursuant to an oral agreement that set her equity interest at $9,750.00. The court granted the partition petition and ordered that the property be sold. The court also found that the MDA was a contract in contemplation of divorce; therefore, acting pursuant to Tennessee Code Annotated § 36-4-121(b)(2)(A) (“the Distribution of Marital Property Statute”), the court valued the ex-wife’s equity in the former marital residence based on an appraisal near the date of the final divorce decree. The trial court refused to credit the ex-husband for the payments he made to the ex-wife according to their alleged oral agreement, finding that to do so would be a violation of the statute of frauds. Both parties appeal. For the reasons explained below, the judgment of the trial court is reversed, and this matter is remanded for further proceedings consistent with this opinion.