HOLLY NIEDERKOHR
v.
ERIK KUSELIAS
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A trial court may attribute dissipated marital assets to the dissipating spouse in equitable distribution when the dissipation results from intentional depletion for personal benefit unrelated to the marriage, but funds spent on marital expenses that benefit both spouses and relate to the marriage cannot be so attributed.
[1] Funds expended by a spouse for marital expenses such as mortgage payments, utilities, homeowners' association fees, car insurance, and health insurance, which benefit bot…
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Join FLexlaw to unlock all legal intelligence“Misconduct occurs when a spouse intentionally dissipates a marital asset for his or her own benefit and for a purpose unrelated to the marriage.”
Court's statement of the legal standard for attributing dissipated assets in equitable distribution.
In a dissolution of marriage, the former wife spent a substantial portion of the parties' settlement funds on cosmetic procedures in Beverly Hills (ov…
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IN THE DISTRICT COURT OF APPEAL OF THE STATE OF FLORIDA
FIFTH DISTRICT
NOT FINAL UNTIL TIME EXPIRES TO
FILE MOTION FOR REHEARING AND
DISPOSITION THEREOF IF FILED
HOLLY NIEDERKOHR,
Appellant,
v. Case No. 5D19-3231
ERIK KUSELIAS,
Appellee.
________________________________/
Opinion filed August 14, 2020
Appeal from the Circuit Court for Orange County, Alicia L. Latimore, Judge.
Michael J. Vaghaiwalla and Eric L. Bensen, of Greater Orlando Family Law, Winter Park, for Appellant.
No Appearance for Appellee.
PER CURIAM.
Holly Niederkohr (“Former Wife”) appeals the trial court’s final judgment of dissolution of marriage, which dissolved her marriage to Erik Kuselias (“Former Husband”). Former Wife presents multiple challenges to the trial court’s equitable distribution scheme, although we find that only one has merit: whether the trial court erred in attributing dissipated marital assets to her. The main issue at the dissolution trial was the equitable distribution of the parties’ assets, particularly a large settlement that Former Husband had acquired from a previous employer. Evidence was presented that Former Wife spent a substantial portion of those settlement funds on, among other things, cosmetic procedures at a Beverly Hills, California, dermatologist; the mortgage on the marital home; utilities; homeowners’ association (“HOA”) fees; car insurance; and the parties’ health insurance. The trial court determined that Former Wife had dissipated the settlement funds and attributed to her the entire amount that she had used in its equitable distribution scheme. Based on that calculation, the trial court ordered Former Wife to make an equalizing payment to Former Husband. “[I]f marital misconduct results in the depletion or dissipation of a marital asset, a trial court may make an unequal distribution of marital property, or may assign the asset to the dissipating spouse as part of that spouse’s equitable distribution.” Lopez v. Lopez, 135 So. 3d 326, 328 (Fla. 5th DCA 2013) (quoting Karimi v. Karimi, 867 So. 2d 471, 475 (Fla. 5th DCA 2004)). Misconduct occurs when a spouse intentionally dissipates a marital asset for his or her own benefit and for a purpose unrelated to the marriage. Id. at 329. We find that the trial court properly determined that Former Wife had intentionally dissipated the settlement funds and attributed those amounts to her, with the exception of the funds she spent on the mortgage, utilities, HOA fees, car insurance, and health insurance (collectively, “marital expenses”).1 Those expenditures not only benefitted both her and Former Husband, but were also related to the marriage. Id.; see Karimi, 867 So. 2d at 475 (stating that funds utilized for reasonable living expenses generally may not be attributed to spouse in equitable distribution). The mortgage that Former Wife paid secured the marital residence, which was to be sold with the proceeds divided. Accordingly, the monies spent on the marital expenses should not have been included in the equitable distribution scheme. We note that the dissolution proceeding below was contentious, and the evidence suggested that Former Wife had engaged in other instances of misconduct. The trial court did an excellent job in sorting out the parties’ finances and in making detailed findings in its final order of dissolution. We affirm the overwhelming majority of the trial court’s equitable distribution and reverse only with respect to the inclusion of the monies spent on the marital expenses.2 We remand for reconsideration of the equitable distribution scheme accordingly. AFFIRMED IN PART; REVERSED IN PART and REMANDED.
COHEN, EDWARDS and SASSO, JJ., concur.
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- Lopez v. Lopez, 135 So. 3d 326 (Fla. 5th DCA 2013)