Joanne Alice Brown Stagner v. Phillip Wayne Stagner

This is a divorce case involving the classification and distribution of marital property. The parties purchased three contiguous lots near the husband's parents in Kentucky, intending to move there after the husband's retirement. The husband's parents financed the purchase of the property. Several years before his anticipated retirement, the husband began building a house on one of the lots. After some time, the wife told the husband that she did not want to move to Kentucky. The parties then transferred title on all three lots to the husband's parents in satisfaction of their debt. Subsequently, the husband completed the construction of the house, and his parents sold the house at a profit. The husband's parents then sent the husband a check in the amount of the proceeds from the sale of the house minus the parties' debt to the parents. The husband's parents retained title in the other two lots. Soon after that, the parties filed cross-petitions for divorce. In the divorce decree, the trial court held that the check paid to the husband constituted marital property, and that the other two lots held by the husband's parents were subject to a resulting trust in favor of the husband and the wife. The trial court also awarded the wife rehabilitative alimony and a percentage of the retirement benefits received by the husband after the divorce petitions were filed. The husband now appeals. We reverse the trial court's imposition of a resulting trust over the two lots held by the husband's parents, and affirm the remainder of the trial court's decision.