ILNews

Court rules on inclusion of inherited property in marital estates

Jennifer Nelson
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
The Court of Appeals ruled today on a case of distributing inherited property during dissolution of a marriage, stating property inherited by either party should be included in the marital estate.

In Sharren M. (Garrity) Grathwohl v. Steven T. Garrity, http://www.in.gov/judiciary/opinions/pdf/07300703mpb.pdf the Court of Appeals remanded the case back to the trial court for the purpose of requiring the trial court to include both parties' inherited property in their marital estate, to value the properties, and to issue a new order to redistribute the marital assets accordingly.

In 2003, Sharren Grathwohl and Steven Garrity, who were married at the time, both inherited properties from their mothers. Grathwohl owned her property in Michigan as a joint tenant "with full rights as a survivor," with her son from a previous marriage owning the other half. In 2006, Garrity filed for divorce and testified that both properties should be included in the marital estate, but set off separately to each party. Grathwohl argued her inherited property should not be included because of the joint tenancy with her son. The trial court excluded both properties when dissolving the marriage and dividing the marital estate. The court calculated the net worth of the marital estate at $277,537 and awarded approximately 49 percent to Grathwohl and 51 percent to Garrity.

Grathwohl appealed the ruling, stating the trial court erred in not including Garrity's property in the marital estate and that Garrity had frivolously dissipated marital property prior to the divorce.

The Court of Appeals, citing Indiana Code Section 31-15-7-4(a), states it has been repeatedly held that the statute requires inclusion of all property owned in the marital estate, including inherited properties. It found the trial court erred in excluding the properties of Garrity and Grathwohl. Even though Grathwohl's property includes joint tenancy, the court stated she had the right to enjoy the use of the Michigan property, sell it, or mortgage her interest in it, thus it is sufficient enough to render the property in the marital pot as well.

The trial court didn't include in its decision why it excluded the inherited property in the marital estate, beyond stating it was inherited property. The Court of Appeals is unable to determine the actual total value of the marital estate or the percentages of the estate Garrity and Grathwohl received because the trial court did not assign values to the parties' interests in the inherited properties, despite evidence being presented to support that point.

The Court of Appeals remands to the trial court to include the parties' inherited property interests in the marital estate, to valuate those interests, and to recalculate the division of marital assets accordingly. A footnote to this point states the court cannot address Grathwohl's claim she was entitled to a larger percentage of the estate because it doesn't know what percentage of the marital estate she actually received.

Grathwohl also claimed in her appeal that Garrity frivolously dissipated marital assets prior to the divorce when he purchased a motorcycle, bought Conseco stock that eventually became worthless, and spent money remodeling and repairing the property he inherited from his mother. The court found that Garrity did not dissipate marital assets frivolously because Grathwohl had received half of the profits from the sale of the motorcycle; Garrity couldn't have known that the Conseco stock would become worthless; and remodeling of a home that is considered a marital asset is not wasteful.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. State Farm is sad and filled with woe Edward Rust is no longer CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go All American Girl starred Margaret Cho The Miami Heat coach is nicknamed Spo I hate to paddle but don’t like to row Edward Rust is no longer CEO The Board said it was time for him to go The word souffler is French for blow I love the rain but dislike the snow Ten tosses for a nickel or a penny a throw State Farm is sad and filled with woe Edward Rust is no longer CEO Bambi’s mom was a fawn who became a doe You can’t line up if you don’t get in a row My car isn’t running, “Give me a tow” He had knowledge but wasn’t in the know The Board said it was time for him to go Plant a seed and water it to make it grow Phases of the tide are ebb and flow If you head isn’t hairy you don’t have a fro You can buff your bald head to make it glow State Farm is sad and filled with woe Edward Rust is no longer CEO I like Mike Tyson more than Riddick Bowe A mug of coffee is a cup of joe Call me brother, don’t call me bro When I sing scat I sound like Al Jarreau State Farm is sad and filled with woe The Board said it was time for him to go A former Tigers pitcher was Lerrin LaGrow Ursula Andress was a Bond girl in Dr. No Brian Benben is married to Madeline Stowe Betsy Ross couldn’t knit but she sure could sew He had knowledge but wasn’t in the know Edward Rust is no longer CEO Grand Funk toured with David Allan Coe I said to Shoeless Joe, “Say it ain’t so” Brandon Lee died during the filming of The Crow In 1992 I didn’t vote for Ross Perot State Farm is sad and filled with woe The Board said it was time for him to go A hare is fast and a tortoise is slow The overhead compartment is for luggage to stow Beware from above but look out below I’m gaining momentum, I’ve got big mo He had knowledge but wasn’t in the know Edward Rust is no longer CEO I’ve travelled far but have miles to go My insurance company thinks I’m their ho I’m not their friend but I am their foe Robin Hood had arrows, a quiver and a bow State Farm has a lame duck CEO He had knowledge, but wasn’t in the know The Board said it was time for him to go State Farm is sad and filled with woe

  2. The ADA acts as a tax upon all for the benefit of a few. And, most importantly, the many have no individual say in whether they pay the tax. Those with handicaps suffered in military service should get a pass, but those who are handicapped by accident or birth do NOT deserve that pass. The drivel about "equal access" is spurious because the handicapped HAVE equal access, they just can't effectively use it. That is their problem, not society's. The burden to remediate should be that of those who seek the benefit of some social, constructional, or dimensional change, NOT society generally. Everybody wants to socialize the costs and concentrate the benefits of government intrusion so that they benefit and largely avoid the costs. This simply maintains the constant push to the slop trough, and explains, in part, why the nation is 20 trillion dollars in the hole.

  3. Hey 2 psychs is never enough, since it is statistically unlikely that three will ever agree on anything! New study admits this pseudo science is about as scientifically valid as astrology ... done by via fortune cookie ....John Ioannidis, professor of health research and policy at Stanford University, said the study was impressive and that its results had been eagerly awaited by the scientific community. “Sadly, the picture it paints - a 64% failure rate even among papers published in the best journals in the field - is not very nice about the current status of psychological science in general, and for fields like social psychology it is just devastating,” he said. http://www.theguardian.com/science/2015/aug/27/study-delivers-bleak-verdict-on-validity-of-psychology-experiment-results

  4. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  5. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

ADVERTISEMENT