ILNews

Pending dissolution settlement not enforceable upon a party's death

Back to TopE-mailPrintBookmark and Share

A property-settlement document is not an enforceable contract if one of the parties dies before the dissolution action is finalized, the Indiana Court of Appeals ruled today.

In Dwight Murdock v. Estate of Sharron K. Murdock, No. 45A03-0912-CV-585, Dwight Murdock appealed an interlocutory order from Lake Superior Court’s Probate Division that declared the property-settlement document in his dissolution action created an enforceable contract. The dissolution action between Dwight and Sharron Murdock was pending when Sharron died.

Before her death, Dwight had signed a drafted settlement, and attorneys for Dwight and Sharron had signed under “approved as to form.” Sharron via telephone told her attorney she intended to sign but she did not before her death examine or sign the document, and therefore the dissolution court also did not sign the agreement.

Dwight initially was appointed personal representative of Sharron’s estate, but two of their five children successfully petitioned for his removal, arguing he was not an “interested person” because he forfeited his rights based on probate statutes Ind. Code § 29-1-2-14 and Ind. Code § 29-1-2-15 addressing adultery and spousal abandonment. The two children were then appointed co-representatives of their mother’s estate.

During a hearing before the probate court, the daughters argued the property-settlement document was an enforceable contract and Dwight argued it was now null. The estate asked the probate court to use the property-settlement document as a “template” based of the “intent” of Sharron and Dwight.

Also at the hearing, Sharron’s attorney testified that Sharron had expressed her intention to sign the settlement, and the court admitted into evidence the attorney’s affidavit expressing the attorney’s “professional opinion that the property settlement document ‘was to become effective upon its execution, and was not contingent on any Court approval.’”

The probate court found the document was enforceable, found the issue of abandonment moot, and reserved final judgment regarding whether Dwight had forfeited the right to inherit from Sharron’s estate. Dwight then filed an interlocutory appeal, arguing the probate court effectively required him to “deliver property and execute documents.”

Appellate Judge L. Mark Bailey cited Bailey v. Mann, 895 N.E.2d 1215, 1217 (Ind. 2008), that noted settlement agreements become binding when incorporated into a dissolution decree, and in this case, no such decree would be forthcoming.

The court also cited Johnson v. Johnson, 653 N.E.2d 512, 516 (Ind. Ct. App. 1995), noting that dissolution proceedings, including property settlements, terminate upon the death of one of the parties.

The court noted the settlement document was silent regarding its operation in the event of one of the party’s deaths. It was drafted in contemplation of a dissolution and that would not occur upon Sharron’s death.

Judge Bailey wrote, “… an attempt to enforce the provisions of the property settlement document – which had neither been fully executed nor adopted by the dissolution court – based upon a determination of 'intent' would contravene our Indiana Supreme Court’s directive that marital property settlement agreements become binding when incorporated into the dissolution decree. See Bailey, 895 N.E.2d at 1217.”
 

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Hmmmmm ..... How does the good doctor's spells work on tyrants and unelected bureacrats with nearly unchecked power employing in closed hearings employing ad hoc procedures? Just askin'. ... Happy independence day to any and all out there who are "free" ... Unlike me.

  2. Today, I want to use this opportunity to tell everyone about Dr agbuza of agbuzaodera(at)gmail. com, on how he help me reunited with my husband after 2 months of divorce.My husband divorce me because he saw another woman in his office and he said to me that he is no longer in love with me anymore and decide to divorce me.I seek help from the Net and i saw good talk about Dr agbuza and i contact him and explain my problem to him and he cast a spell for me which i use to get my husband back within 2 days.am totally happy because there is no reparations and side-effect. If you need his help Email him at agbuzaodera(at)gmail. com

  3. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  4. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  5. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

ADVERTISEMENT