In Re Marriage of Seewald

Citations: 22 P.3d 580; 2001 Colo. J. C.A.R. 1381; 2001 Colo. App. LEXIS 423; 2001 WL 253359Docket: 99CA1154

Court: Colorado Court of Appeals; March 14, 2001; Colorado; State Appellate Court

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In the case of In re the Marriage of Janet Brown Seewald and Dean A. Seewald, the Colorado Court of Appeals addressed multiple issues stemming from the dissolution of the couple's marriage. Janet Seewald appealed the trial court's property division and denial of maintenance and attorney fees, while Dean Seewald cross-appealed, asserting that a Mexican divorce decree rendered the Colorado proceedings moot and challenging the property division.

The couple, married in Mexico in February 1990, resided in both Mexico and Colorado until their separation in 1996, after which Janet moved permanently to Colorado. In 1997, she initiated dissolution proceedings, claiming residency in Colorado for over 90 days. Dean acknowledged the residency but cited a prenuptial agreement that waived Janet's right to maintenance. 

During a March 1999 evidentiary hearing, Dean claimed a valid Mexican divorce had occurred in October 1998, arguing that it barred Colorado's jurisdiction. However, the magistrate found insufficient evidence of the Mexican decree's validity regarding property division, maintenance, or attorney fees and issued temporary orders for Janet's maintenance and attorney fees, which were upheld by the trial court despite Dean's appeal.

In the permanent orders, the trial court ruled the Mexican decree invalid and unenforceable, determining that the prenuptial agreement lacked adequate asset disclosure. It concluded that the majority of the assets in Dean's revocable trust were marital rather than separate property. The appellate court affirmed some parts of the trial court's decisions, reversed others, and remanded the case for additional proceedings.

The trial court awarded the wife separate assets valued at $43,000 and marital property worth $56,485, while the husband received approximately $1,200,000 in remaining property. The court denied the wife's requests for maintenance and attorney fees for both parties, leading to an appeal. In the husband's cross-appeal, he argued that the trial court should have dismissed the case due to a Mexican divorce decree. However, the court found no error in this decision. Previous discussions on the decree's validity were deemed non-binding. Under Colorado law, foreign decrees are recognized based on the principle of comity, provided they are adjudicated by a competent court with a fair trial and do not violate state public policy. The husband must prove proper jurisdiction of the foreign court when asserting res judicata based on its judgment. The documents related to the Mexican decree introduced at the hearing did not meet Colorado Rules of Civil Procedure (C.R.C.P.) requirements for authentication, rendering them inadmissible. Specifically, one document lacked an original Spanish version, and neither had proper certification. Without compliance with C.R.C.P. 44, the foreign decree cannot be admitted as evidence. Additionally, the husband failed to demonstrate that the wife received adequate notice of the Mexican proceedings, further undermining the validity of the decree's recognition in the U.S. Courts may refuse to recognize foreign decrees if there is evidence of improper notice, regardless of the petitioning spouse's domicile in that country.

Recognition of a foreign divorce decree requires that either the divorce occurred in the state of domicile or habitual residence of one party, or that it was granted by a court with jurisdiction over both parties, with at least one appearing in person and the other notified. A foreign decree may not be recognized if the initiating party was a domiciliary of the foreign nation but the court lacked in personam jurisdiction over the defending spouse. In-person jurisdiction requires the defending spouse to be domiciled or a resident of the foreign nation or to have consented to jurisdiction. 

The husband had the burden to demonstrate proper service of process under Mexican law, which he failed to do, as neither of the documents presented confirmed that the wife was personally served with divorce papers. The wife's affidavit stated she was not served and only learned of the divorce after reconciling with the husband, who had indicated he no longer wished to proceed with the divorce. The husband's assertion that the wife's knowledge of the proceedings could replace proper service was rejected, and he did not provide evidence to support his claim of adequate service in Mexico. The record indicated that the wife was not notified of certain hearings, undermining the claim of adequate opportunity to defend herself regarding maintenance and property distribution.

Consequently, the trial court rightfully declined to recognize the Mexican decree based on the doctrine of comity, affirming that Colorado courts can amend or set aside foreign divorce decrees as necessary. Additionally, the trial court's ruling on the unenforceability of the prenuptial agreement was upheld, as it required voluntary execution and fair disclosure of financial obligations, which was not met; specifically, the attachment labeled "Balance Sheet of Dean A. Seewald" was blank when the wife signed.

The attorney consulted by the wife, at her husband’s request, testified that the husband's financial disclosure was incomplete, leading him to advise the wife that the agreement was not valid. The trial court sided with the wife, asserting that the husband did not provide adequate disclosure, a determination that cannot be reassessed by appellate review according to established case law. 

In terms of marital property division, the court erred by failing to provide specific findings on the classification of assets within the husband's revocable trust. The husband claimed that all his premarital assets were transferred to the trust before the marriage and maintained their separate character, despite some liquidation and reinvestment. He noted a significant decrease in the trust’s value during the marriage, from $2 million to $1.2 million. 

Under Colorado law, marital property is generally presumed to include assets acquired during marriage, while separate property is protected from distribution. Any appreciation of separate property during marriage is also considered marital property. However, assets acquired in exchange for premarital property can be exempt if properly traced back to their original separate asset. 

The trial court recognized the husband’s ownership of the trust assets but failed to determine if any assets had appreciated in value during the marriage, nor did it clarify whether the trust assets were consumed to support the couple's lifestyle. Consequently, further proceedings are required to properly classify and divide the marital property.

The court did not resolve the classification of trust assets, specifically whether the husband could trace these assets back to his premarital holdings, which is necessary to overcome the presumption of marital property. This lack of clarity prevents a determination of whether the husband’s premarital assets were commingled or if marital appreciation of trust assets occurred, impacting the equitable division of marital property as claimed by the wife in her appeal. Therefore, the property division is set aside and remanded for the trial court to make specific findings on the classification of trust assets and to assess any increase in their value during the marriage. The trial court must also consider the economic circumstances of both spouses during this process.

Regarding maintenance, the wife's appeal on the denial of her request is also remanded due to the property division being overturned. The court must first establish that the wife lacks sufficient property to meet her reasonable needs and cannot support herself through employment before determining maintenance. The trial court failed to provide findings on the wife's expenses or her ability to support herself, which are necessary for an appropriate maintenance decision. The court is directed to make the required findings on both threshold determinations and the relevant factors for maintenance if applicable. Additionally, the wife's request for attorney fees must be reconsidered. The judgment is reversed concerning property division and maintenance requests, while affirmed in other respects, and the case is remanded for further proceedings.