Preview:

IN THE COURT OF APPEALS OF IOWA No. 6-990 / 06-0819 Filed January 18, 2007

IN RE THE MARRIAGE OF TAMI L. SCHMITT AND TIMOTHY J. SCHMITT Upon the Petition of TAMI L. SCHMITT, Petitioner-Appellee/Cross-Appellant, And Concerning TIMOTHY J. SCHMITT, Respondent-Appellant/Cross-Appellee. ________________________________________________________________ Appeal from the Iowa District Court for Clayton County, John J. Bauercamper, Judge.

Timothy Schmitt appeals from the property distribution provisions of the decree dissolving his marriage to Tami Schmitt. AFFIRMED IN PART,

REVERSED IN PART, AND REMANDED WITH DIRECTIONS.

Robert L. Day of Day & Hellmer, P.C., Dubuque, for appellant. Kevin C. Neylan of Neylan Law Office, Guttenberg, for appellee.

Heard by Sackett, C.J., and Zimmer and Eisenhauer, JJ.

2 EISENHAUER, J. Timothy Schmitt (Tim) appeals from the property distribution provisions of the decree dissolving his marriage to Tami Schmitt. Specifically, Tim appeals the portion of the decree relating to a $210,000.00 equalization payment he owes to Tami. He does not contest the amount awarded, but rather how the district court ordered it paid. On cross-appeal, Tami contends the district court erred in

dividing the marital property and requests her equalization payment be increased to $246,996.50. We review these claims de novo. In re Marriage of Campbell, 623 N.W.2d 585, 586 (Iowa Ct. App. 2001). The bulk of the parties' net worth consisted of their interest in three parcels of real estate, all of which the district court awarded to Tim. As a result, the court ordered Tim pay Tami a $210,000.00 payment to equalize the property distribution. In its April 6, 2006 decree, the court ordered Tim to make the

payment by October 1, 2006. If not timely paid, the court ordered ten percent interest to accrue on the payment. To secure the judgment, the court ordered a judicial lien on all of Tim's real estate "equivalent to a judgment lien" and provided that in the event of subsequent execution to enforce the lien, Tami could recover costs and reasonable attorney fees incurred. Tim first contends the court erred in ordering him to pay one lump sum payment of $210,000.00. He argues the court did not consider the tax

consequences of such a payment, claiming he has no liquid assets to pay the equalization payment and therefore would have to sell some of his real estate to realize the payment. He asks this provision of the decree be modified to allow

3 him to pay Tami the award in yearly installments of $30,000.00, commencing on April 6, 2007. In dividing property the court is to consider the tax consequences to each party. Iowa Code

Download IN RE THE MARRIAGE OF TAMI L. SCHMITT AND TIMO THY J. SCHMITT Upon the Petition

Iowa Law