2. Contracts--extrinsic evidence--no ambiguity
The trial court did not err in excluding extrinsic evidence to show the parties' intent
concerning their Ohio antenuptial agreement because there is no ambiguity in the agreement
since it states separate assets do remain separate property, even if they change form, but only if
they do not become marital property.
3. Divorce--equitable distribution-- order not void for uncertainty--specific enough to
ascertain rights and obligations
The trial court's equitable distribution order should not be rendered void for uncertainty
based on the fact that it required defendant-husband to execute any documents submitted to him
because the order is specific enough so that the parties can ascertain their respective rights and
obligations, it specifically designates which property was to be encumbered by a security
interest, and defendant was only required to sign those documents needed for plaintiff-wife to
perfect her security interest and make a record of it.
Appeal by defendant from order entered 22 May 1998 by Judge
John W. Smith in New Hanover County District Court. Heard in the
Court of Appeals 18 August 1999.
Lea, Clyburn & Rhine, by J. Albert Clyburn and James W. Lea,
III, for plaintiff-appellee.
Ralph S. Pennington for defendant-appellant.
LEWIS, Judge.
This controversy involves the construction and enforcement
of an antenuptial agreement executed 19 July 1989 in the State of
Ohio. Plaintiff and defendant married on 22 July 1989. Prior to
their marriage, they signed the antenuptial agreement ("the
Agreement") at issue here. The parties lived in Ohio for the
first four years of their marriage and then moved to North
Carolina in 1993. They divorced 16 August 1997.
[1]During their marriage, the parties acquired two pieces
of property in North Carolina that they still owned at the time
of their divorce: one located at 3600 Island Drive in North
Topsail Beach ("the Topsail property") and the other located at
5816 Oak Bluff Lane in Wilmington ("the Oak Bluff property"). In
its equitable distribution order, the trial court classified both
of these as marital property under the terms of the Agreement and
then divided them equally between the parties. Defendant
contends that the trial court misconstrued the Agreement by
failing to account for the fact that most of the money used to
buy the Topsail and Oak Bluff properties was his separate money
that he either brought into the marriage or inherited from his
mother during their marriage. We disagree with defendant'sproposed construction.
At the outset, we note that the parties specified Ohio law
as the law governing the interpretation of their Agreement. Such
choice of law provisions are valid and must be given effect.
Land Co. v. Byrd, 299 N.C. 260, 262, 261 S.E.2d 655, 656 (1980).
Accordingly, we look to Ohio's laws in construing the parties'
Agreement.
In Ohio, antenuptial agreements are treated as contracts,
and general contract law is used to interpret them. Fletcher v.
Fletcher, 628 N.E.2d 1343, 1346 (Ohio 1994). Under traditional
contract principles, the plain language of the Agreement
controls. Alexander v. Buckeye Pipe Line Co., 374 N.E.2d 146,
150 (Ohio 1978). The Agreement here undertakes to define the
parties' separate and marital property. It further provides
that, upon divorce, the trial judge has discretion as to how to
equitably divide the marital property, but has no such discretion
as to the parties' respective separate property. In order to
properly address defendant's arguments, we must then begin with
the definitions of separate and marital property outlined in the
Agreement.
Section Four defines "separate property" as follows:
[I]t is agreed and understood that the
parties intend and desire that all property
owned respectively by each of them, at thetime of the marriage, and all property that
may be acquired by each of them, individually
and in their own names, from any source
during their marriage . . . shall be
respectively their separate property, . . .
whether that asset or item has changed from
one form to another, vested or reinvested.
Such property shall be the separate propertyof that respective party, unless otherwise
provided in this Agreement.
(emphasis added). The parties then proceed to define "marital
property in Section Five:
"Marital property" shall be any funds or
property accumulated by the parties during
the marriage, which is put into joint names
as tenants in common, joint tenants with the
right of survivorship or other similar
designation. Any real estate purchased by
the parties during the marriage in their
joint names, shall be marital property and
upon the sale of said real estate for any
reason whatsoever, the net proceeds from said
sale shall be divided between the Prospective
Husband and Prospective Wife in an amount
equal to the percent of cash contribution
made by each of them . . . .
(emphasis added).
Thus, according to the plain language of the Agreement, allproperty is either separate or marital. Separate property is any
property that is either brought into the marriage or acquired
individually during the marriage, unless it falls under the
definition of marital property. Marital property is then defined
as any property accumulated by the parties that is titled in
their joint names. Pursuant to this definition, the Topsail and
Oak Bluff properties were properly classified as marital
property; both properties were titled as tenants by the
entireties.
Defendant, however, contends the Agreement requires that, in
dividing the marital property, the trial court should have
accounted for any contributions of separate property used to
purchase the marital property. The plain language of the
Agreement, however, belies his contention. The Agreement
specifically states that an accounting of contributions is
required only "upon the sale of said real estate." Upon divorce,
no such accounting is required; the trial court is simply toconsider "what is a fair and equitable division of the property .
. . which fits into the definition of marital property." The
trial court did not err by refusing to order an accounting for
any separate contributions defendant may have made towards the
purchase of the Topsail and Oak Bluff properties.
[2]In the alternative, defendant argues that the Agreement
is ambiguous and that the trial court should have therefore
permitted the introduction of extrinsic evidence showing the
parties' intent. Under Ohio law, no extrinsic evidence or other
methods of construction may be employed unless an agreement is
ambiguous. Packer, Thomas & Co. v. Eyster, 709 N.E.2d 922, 926
(Ohio Ct. App. 1998). Defendant's claimed ambiguity is that the
provision in Section Five that any property titled jointly is to
be considered marital property clashes with the statement in
Section Four that all separate assets are to remain separate,
even if those assets change form. His argument, however,
overlooks the language in Section Four that separate assets
remain separate property "unless otherwise provided in this
Agreement." This caveat eliminates any ambiguity. Separate
assets do remain separate property, even if they change form, but
only if they do not become marital property. When the parties
titled the Topsail and Oak Bluff properties as tenants by the
entireties, any separate contributions by defendant wereautomatically transformed into marital property. Because the
"unless otherwise provided" caveat removes any ambiguity between
Sections Four and Five, the trial court did not err in excluding
all extrinsic evidence regarding the parties' intent.
[3]Finally, defendant contends that part of the trial
judge's order should be rendered void for uncertainty. As part
of its equitable distribution order, the trial judge ordered
defendant to make a distributional payment of $42,845.75 to
plaintiff. The trial judge then provided a method by which
plaintiff could secure the distributional money owed to her.
Specifically, the trial court stated, "Wife shall be entitled to
a security interest in the real estate distributed to Husband
[the Oak Bluff property] for the payment of the same. Husband
shall immediately execute and return for filing any documents
submitted to him by Wife to secure this obligation." Defendant
argues that this order is so vague and uncertain that it would be
impossible to enforce. We disagree.
"A judgment must be complete and certain, indicating with
reasonable clearness the decision of the court, so that judgment
may be enforced. If the parties are unable to ascertain the
extent of their rights and obligations, a judgment may be
rendered void for uncertainty." Morrow v. Morrow, 94 N.C. App.
187, 189, 379 S.E.2d 705, 706 (1989) (citation omitted), cert.denied, 326 N.C. 365, 389 S.E.2d 816 (1990). Here, the trial
judge's order is specific enough so that the parties can
ascertain their respective rights and obligations. The trial
judge specifically designated which property was to be encumbered
by the security interest: the Oak Bluff property. By requiring
defendant to execute and return "any documents submitted to him,"
the trial court was only requiring defendant to sign those
documents needed so that plaintiff could perfect her security
interest and make it of record. This requirement is not so vague
and uncertain as to warrant that it be rendered void.
AFFIRMED.
Judges MARTIN and HUNTER concur.
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