Wheeler v. Wheeler

Summary

The North Carolina Court of Appeals vacated an equitable distribution and alimony order in a divorce case and remanded for further proceedings. The court held that the trial court improperly considered non-economic marital misconduct, including alcohol abuse and domestic violence, under the equitable-distribution catch-all factor. The court also directed the trial court to hear further arguments and evidence regarding the classification, valuation, and distribution of Survivor Benefit Plan coverage.

Holdings

1. The issue was not preserved for appellate review because Plaintiff did not plead or otherwise argue that the alleged separation agreement barred Defendant's equitable distribution claim and did not request a ruling on that issue in the trial court. The argument was therefore dismissed.
2. The trial court erred by considering Plaintiff's excessive alcohol use, domestic violence, threats to kill Defendant, and taking of Defendant's cards, identification, and passport as factors supporting an unequal distribution because those matters were non-economic marital misconduct unrelated to the economic condition of the marriage. The equitable distribution order was vacated and remanded for reassessment without considering those improper factors.
3. The court declined to decide whether Survivor Benefit Plan coverage is properly classified, valued, and distributed as marital property because the issue was not argued at trial and was inadequately briefed. The order was not reversed on that ground, but the trial court was instructed on remand to hold a hearing allowing the parties to present evidence and arguments concerning SBP, including whether it is part of military retirement benefits or a distinct asset and whether Plaintiff may be required to maintain it.

Questions Presented

1. Whether the trial court was required to make a finding regarding the validity of an alleged separation agreement.
2. Whether the trial court improperly considered non-economic marital fault and misconduct under N.C. Gen. Stat. § 50-20(c) in ordering an unequal distribution of marital property.
3. Whether the trial court erred by classifying and distributing Survivor Benefit Plan coverage as marital property and ordering Plaintiff to maintain that coverage for Defendant.

Disposition

vacated