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Mundlein v. Mundlein2/25/2004
Considered on Briefs on January 12, 2004
. Judy Mundlein (Judy) appeals a decision of a circuit court finding her in contempt of court for failing to pay credit card debt as required by a divorce decree. Because the circuit court made no findings concerning Judy's ability to actually pay the debt, we reverse and remand.
FACTS AND PROCEDURE
. On June 23, 2000, Judy and Jerry Mundlein obtained a final decree of divorce . Pursuant to the decree and property division, Judy was awarded various marital debts. The total amount of the debt was approximately $35,000. In order to equalize distribution of the marital assets, the circuit court ordered Jerry to pay Judy a $45,850 property settlement. After the parties were unable to reach an agreement on a payment plan, the circuit court ordered Jerry to pay $22,925 by December 31, 2000, with the remaining half of the settlement to be paid in three equal installments, plus interest, on December 31 of the following three years.
. A Capital One credit card account was among the debt awarded to Judy. Because the account was in Jerry's name, however, he continued to receive monthly statements from Capital One. Eventually, Judy stopped making payments on the credit card. When a collection agency notified Jerry that the account was in default, he directed his attorney to hold the 2001 payment to Judy in his trust account until the Capital One credit card was paid. The Capital One account was still in default at the end of 2002, and Jerry once again directed his attorney to hold the yearly payment owed Judy in his trust account until she paid the debt. On January 3, 2003, Jerry authorized his attorney to send Judy a sum of $6,340.06, but he retained $12,000 in his attorney's trust account in order to cover the balance owing on the Capital One credit card. Shortly thereafter, Judy paid $5,588.06 to a collection company pursuant to a settlement agreement in satisfaction of the outstanding balance on the Capital One credit card. At the time of the settlement, the balance on the credit card was well over $11,000.
. On February 13, 2003, Judy brought a motion requesting the circuit court to find Jerry in contempt of court for his willful refusal to make the yearly property settlement payments. Jerry subsequently filed a motion to hold Judy in contempt for her failure to pay the full credit card debt thereby damaging his credit rating. After a hearing on both motions, the circuit court held both parties in contempt of court - Jerry for his refusal to pay the periodic property settlement payments, and Judy for her failure to pay the full amount due on the Capital One credit card account. The circuit court found that Judy's settlement agreement with the collection agency damaged Jerry's credit rating, and it ordered Jerry's counsel to pay the full amount of the Capital One credit card debt and then remit the remaining funds from the yearly property payments to Judy. Judy now appeals the judgment of the circuit court and raises the following issues for our review:
Whether the circuit court erred in holding Judy in contempt of court for failing to pay the credit card debt as required by the divorce decree. Whether the circuit court was clearly erroneous in determining that Judy's settlement of the credit card debt for less than the outstanding balance damaged Jerry's credit rating. Whether the circuit court's abused its discretion by requiring Judy to pay the full balance owing on the credit card.
STANDARD OF REVIEW
. We defer to the circuit court's findings of fact and we will only reverse when "after a review of all the evidence, 'we are left with a definite and firm conviction that
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