Wilbur v. DeLapp
119 Or. App. 348, 1993 Ore. App. LEXIS 588, 850 P.2d 1151 (1993)
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Rule of Law:
When distributing property acquired during a non-marital domestic relationship, courts look primarily to the express or implied intent of the parties but may also exercise equitable powers to reach a fair result based on the circumstances, including non-financial contributions.
Facts:
- A man (defendant) and a woman (plaintiff) lived together for 18 years but never married.
- Defendant was employed by the State Highway Division and was the primary wage earner, paying most of the couple's living expenses.
- Plaintiff's main contribution was as a homemaker, though she also contributed her earnings from part-time work, a $5,000 inheritance, a $3,000 marriage dissolution settlement, and her social security benefits to joint household expenses.
- In 1977, defendant purchased the house they lived in, taking title in his name only, using a VA loan.
- Plaintiff sold her own jewelry to pay for repairs required for the house to qualify for the loan.
- Defendant paid the mortgage and all utility bills except for the telephone.
- Over the course of the relationship, defendant accumulated approximately $33,000 in a PERS retirement account, for which plaintiff was the named beneficiary until their separation in 1989.
- Shortly before the separation, defendant purchased a lot in La Pine in his name alone.
Procedural Posture:
- Plaintiff and defendant separated after 18 years of cohabitation, leading to a dispute over the division of their assets.
- The dispute was brought in an Oregon trial court for a resolution in equity.
- The trial court declared the parties to be equal co-tenants in the house, awarded plaintiff one-half its rental value post-separation, and granted plaintiff a $15,000 judgment representing her interest in defendant's PERS retirement account.
- The trial court awarded the La Pine property to defendant.
- Defendant appealed the trial court's judgment to the intermediate appellate court, and plaintiff filed a cross-appeal.
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Issue:
In a dispute over assets acquired during a long-term non-marital relationship, may a court use its equitable powers to award an interest in property held in one partner's name to the other partner based on the parties' implied intent and the non-titled partner's substantial financial and non-financial contributions?
Opinions:
Majority - Deits, P. J.
Yes. A court may use its equitable powers to award an interest in property to a partner in a non-marital relationship, even if that property is titled in the other partner's name. The primary consideration is the intent of the parties, which can be inferred from their conduct. Here, the parties' long-term cohabitation, pooling of financial resources for joint expenses, and division of labor where plaintiff acted as a homemaker demonstrated an intent to share the assets acquired during the relationship. Legal title is not dispositive; plaintiff's financial contributions (her inheritance, settlement money, and social security) and non-financial contributions (homemaking, selling jewelry for house repairs) created an equitable interest in the property, including the house and the funds accumulated for retirement. Her contributions assisted the defendant in his career and allowed for a more comfortable standard of living, justifying a division of assets to achieve a fair result.
Analysis:
This decision solidifies the legal principle in Oregon, established in Beal v. Beal, that courts can equitably divide property for unmarried cohabitants based on their implied intent. It significantly affirms that non-financial contributions, such as homemaking, are legally cognizable and can create an equitable interest in assets titled in the other partner's name. The ruling provides a critical remedy for partners in long-term non-marital relationships, preventing the unjust enrichment of the titled partner upon separation and ensuring a more equitable outcome that mirrors the financial realities of the partnership.
