WILLIAM E. HARDEE, APPELLANT/CROSS-APPELLEE,
v.
ROSE M. HARDEE, APPELLEE/CROSS-APPELLANT

Fla. 1st DCA | 2006-05-25
No. 1D05-2354
KAHN, C.J. and WOLF, J„ concur.
929 So. 2d 714 Florida District Court of Appeal, First District (2006) Positive Treatment
Cited by 5 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

William Hardee appeals a final judgment of dissolution of marriage, challenging the trial court's classification of certain assets and liabilities as marital property. The First District Court of Appeal reversed and remanded, holding that the trial court erroneously treated a hypothetical workers' compensation settlement and a post-petition debt as marital assets subject to equitable distribution.


Holding

The court held that (1) a theoretically possible but rejected workers' compensation settlement that had not materialized should not be treated as a marital asset, as such settlements represent future lost wages and medical expenses constituting separate property; and (2) a debt incurred after the petition for dissolution was filed cannot be classified as a marital liability, as the cut-off date for determining marital assets and liabilities is the date of filing the dissolution petition.


Headnotes

[1] A trial court errs by treating a theoretically possible settlement of a workers' compensation claim as a marital asset when no settlement has been reached and the claiman…

[2] Future lost wages, disability, and medical expenses awarded in a workers' compensation settlement constitute separate property of the injured spouse, not marital property…

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Key Quotes

“the trial court should be given an opportunity on remand to reconsider the entire distribution scheme, including ... alimony, as these are interrelated remedies and part of one overall scheme.”

Establishes that reversal requires reconsideration of the entire equitable distribution scheme, not just individual assets.

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Facts & Procedural History

William Hardee received a $75,000 settlement offer from a workers' compensation carrier but rejected it in favor of continuing periodic disability and…

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Opinion of the Court
BENTON, J.

BENTON, J.

William E. Hardee appeals the amended final judgment of dissolution of the parties’ marriage. On his appeal, because the trial court erroneously designated certain assets and liabilities as marital, we reverse and remand for reconsideration of the equitable distribution scheme. See Noah v. Noah, 491 So. 2d 1124, 1128 (Fla.1986) (“[T]he trial court should be given an opportunity on remand to reconsider the entire distribution scheme, including ... alimony, as these are interrelated remedies and part of one overall scheme.”). Rose M. Hardee having abandoned the cross-appeal, we affirm on cross-appeal.

Section 61.075(1), Florida Statutes, “requires that the trial court distribute marital assets and liabilities between the parties beginning with the premise that an equal distribution should occur.” Hoirup v. Hoirup, 862 So. 2d 780, 782 (Fla. 2d DCA 2003) (quotation omitted). The trial court “may make an unequal distribution of assets, provided the court supplies a specific finding of fact to justify its unequal distribution.” Id. See also § 61.075(1), Fla. Stat. (2002). But the court should “ensure that neither spouse passes automatically from misfortune to prosperity or from prosperity to misfortune, and, in viewing the totality of the circumstances, one spouse should not be ‘shortchanged.’ ” Feger v. Feger, 850 So. 2d 611, 615 (Fla. 2d DCA 2003) (quoting Canakaris v. Canakaris, 382 So. 2d 1197, 1204 (Fla.1980)).

The trial court erred in treating a theoretically possible settlement of Mr. Hardee’s workers’ compensation claim as a marital asset for purposes of equitable distribution. The evidence was that the carrier had offered Mr. Hardee a lump sum of $75,000 to settle his workers’ compensation claim, but that he had rejected the offer in favor of receiving ongoing, periodic disability and medical workers’ compensation benefits. No settlement had been reached, and no settlement monies were shown to be likely to materialize. See Hoirup, 862 So. 2d at 782.

Any such settlement would, moreover, represent future lost wages, disability and medical expenses, not a marital asset. See Weisfeld v. Weisfeld, 545 So. 2d 1341, 1345 (Fla.1989) (explaining that “noneconomic compensatory damages for pain, suffering, disability, and loss of ability to lead a normal life and the economic damages which occur subsequent to the termination of the marriage of the parties, including the amount of the award for loss of future wages and future medical expenses” constitute separate property of the injured spouse); see also White v. White, 820 So. 2d 432, 434 (Fla. 4th DCA 2002) (“Only that portion of damages paid to the injured spouse as compensation for past lost wages and loss of earning capacity is to be considered marital property.”).

The trial court also erred in treating a $9,000 debt incurred by Ms. Hardee after the petition was filed as a marital liability. See § 61.075(6), Fla. Stat. (2002) (“The cut-off date for determining assets and liabilities to be identified or classified as marital assets and liabilities is the earliest of the date the parties enter into a valid separation agreement ..., or the date of the filing of a petition for dissolution of marriage.”); Guelpa v. Guelpa, 885 So. 2d 409, 410 (Fla. 1st DCA 2004) (“[S]ection 61.075(6), allows the trial court discretion to value assets as of different dates, but does not allow such discretion with regard to determining assets and liabilities .... The trial court erred here by including on the husband’s side of the distribution, numerous liabilities incurred after the date of the filing of the petition.”).

Reversed and remanded.

KAHN, C.J. and WOLF, J„ concur.


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Citator

Cited By

  • Stough v. Laurel L. Stough, 18 So. 3d 601 (Fla. 1st DCA 2009)
    …ibution based on all relevant factors.” § 61.075(1), Fla. Stat. “Where one spouse is awarded a disproportionate share ... the trial court is required to make findings to justify the disparity.” Boutwell, 920 So. 2d at 152; see also Hardee v. Hardee, 929 So. 2d 714, 715-16 (Fla. 1st DCA 2006). Based on its findings, the trial court relied on several factors to justify the unequal distribution: the contribution to the marriage by each spouse; the economic circumstances of the parties; the length of the marriag…
  • Goley v. Goley, 272 So. 3d 800 (Fla. 1st DCA 2019)

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