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Crocker v. Crocker12/10/1991
REVERSED AND REMANDED.
The opinion of the court was delivered by: KAUGER, Justice.
The issues presented are: 1) whether a lump sum workers' compensation payment is considered to be joint property for the purpose of marital property division; 2) whether social security disability payments are joint property acquired during coverture; and 3) whether the accrued equity in the couple's home could be divided between the parties after the home had been awarded to the husband in the couple's prior divorce . We find that: 1) A workers' compensation award is marital property only to the extent to which it reimburses the couple for loss of income during the marriage. To the extent that it compensates for loss of post-divorce earnings by the injured party, it is separate property, even if the compensable injury occurred during the marriage. 2) A lump-sum payment from the Social Security Administration for accumulated disability benefits is not marital property subject to equitable division. 3) Because the couple's residence had been awarded to the husband in their previous divorce , and because neither party sought to change its ownership status after their remarriage, the trial court erred in awarding the wife one-half of the equity in the house.
FACTS
Betty Crocker (wife/appellee) is an insurance supervisor with the Norman Regional Hospital. James Crocker (husband/appellant) is a former truck driver who now has a realtor 's license. James has had a total colectomy and an ileostomy because he has ileitis and/or Crohn's disease. While working as a truck driver in December of 1987, James sustained a hernia. James is unable to perform manual labor or to lift over ten pounds. Apparently, he requires further surgery to repair the hernia.
On April 18, 1989, James received $39,824.65 in Workers' Compensation benefits. The check was made out to James and Betty, but the proceeds were deposited in James' separate checking account. When Betty filed for divorce on June 16, 1989, $20,000.00 was left in the account. Because James was unemployed, he drew on it for his living expenses, and approximately $16,000.00 remained in the account at the time of the trial on February 14, 1990. Because of his physical condition, James also applied for social security disability benefits. After Betty filed for divorce , James was notified that he would receive an $11,390.00 lump-sum award for accrued social security disability payments.
This is the third time that the couple has been divorced. They married for the first time on November 14, 1966, and they were divorced in March of 1968. The second marriage occurred on September 11, 1970, and the second divorce was granted on September 26, 1977. They remarried on Valentine's Day in 1978, and the third marriage ended in divorce on February 14, 1990.
James was awarded the home in the 1977 divorce . When James and Betty remarried in 1978, the house remained in his name. Although the couple maintained separate joint checking accounts, the house payments were usually made from a joint account. Most of the deposits into that account came from James' earnings. Sometimes, Betty paid the utility bills and other expenses from her separate account. After a hearing on the merits, the trial court divided the property. Betty received 50% of the remaining workers' compensation award and 50% of the lump sum social security back payments. The court also ordered the house sold and the net profits divided equally between James and Betty. James appealed.
I
A WORKERS' COMPENSATION DISABILITY AWARD IS MARITAL PROPERTY ONLY TO THE EXTENT TO WHICH IT REIMBURSE
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