Dalton and Dalton

When dividing marital real property upon dissolution, the court must divide the equity in the property not just the market value of the real property

This case is a marital dissolution between a husband and wife who had married in 1996 and separated in 2013. On his appeal, the husband raised two assignments of error. First, he alleged that the trial court erred in ordering him to pay $103,994 for what the trial court deemed to be the half of the fair market value of the home at the time the wife moved out in 2013. Second, he alleged that the trial court erred in ordering him to pay monthly spousal support payments of $500. The Oregon Court of Appeals upheld the second assignment of error, finding that the trial court did not abuse their discretion when ordering the spousal support. However, the Court found that the trial court erred when ordering the husband to pay the equalizing judgement because it failed to take into account the mortgage still owed on the home. They held that when dividing marital real property upon dissolution, the court must divide the equity in the property, not just the market value. Therefore the court reversed and remanded in part and upheld in part the trial court’s judgement.