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In re Marriage of Brewer5/6/1999
Oral Argument Date: 01/14/1999
En Banc
Petitioner Michael A. Brewer seeks review of a decision of the Court of Appeals, Division II, which reversed and remanded to the Clark County Superior Court a ruling characterizing monthly payments to a permanently disabled spouse under a private disability insurance policy after dissolution of a marriage as separate property and not community property. We granted review. We affirm the Court of Appeals in part and reverse it in part.
QUESTION PRESENTED
The question presented in this case is whether monthly payments to a permanently disabled spouse under a private disability insurance policy after dissolution of a marriage constitutes separate property and not community property, even though the policy was acquired during the marriage and premiums were paid from community funds before premiums were waived by the issuing companies.
STATEMENT OF FACTS
Petitioner Michael A. Brewer and Respondent Deborah Q. Brewer were married on May 20, 1988 in King County, Washington. No children were born of the marriage, although Respondent has two children from a prior marriage. Respondent has been a full-time elementary school teacher since 1977 with net income between $2,200.00 and $2,300.00 per month. At the time of the marriage Petitioner was a dentist who practiced his profession at the Kaiser Company until December 1991 when he was diagnosed with a progressively deteriorating disease, multiple sclerosis. Petitioner was unable to continue the practice of dentistry. The Social Security Administration determined him to be permanently disabled. A similar determination was made by the companies issuing his disability insurance policies, Mutual of New York (MONY) and New York Life Insurance Company (NYLIC). Petitioner receives a monthly non-taxable income of $6,193.00 from the disability insurance policies and $1,212.00 from Social Security, totaling approximately $7,400.00. This is his sole source of income.
On March 3, 1995 Petitioner served Respondent with a summons and petition for dissolution of marriage which he filed in the Clark County Superior Court. On March 1, 1996 the Honorable Robert L. Harris signed a decree of dissolution. The following statements concerning the disability insurance policies were made by the trial court in the findings of fact and Conclusions of law:
A. The Petitioner's New York Life and Mutual of New York disability insurance benefits are not assets subject to division in this case. Such benefits should be awarded to the Petitioner Michael Brewer free of any claims of the Respondent Deborah Q. Brewer.
The court notes that the community paid about $12,000 in premiums for such disability pay; however the court also notes that the community received about $6,000 on a monthly basis from these private disability policies, from the time of the Petitioner's disability until the parties separation, as well as during the period of parties separation under court order which also benefited the parties.
B. Furthermore, the property division in this case is fair and equitable in that it has also taken into account and recognized the disability benefits received and to be received by the Petitioner. The court notes that the Respondent has a substantial separate property estate that the Petitioner does not have. Furthermore, the court has made disproportionate award of community property in favor of the Respondent. The total property award received by Respondent is in excess of that to be received by Petitioner. Such award takes into consideration the fact of the disability payments that Petitioner has and will receive.
Each
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