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Facts

  • Johnny Gabriele (Husband) and Deborrah Gabriele (Wife) were married and later filed for divorce. During their marriage, they acquired and managed properties and businesses, including an assisted living business. Before filing for divorce, Husband signed four Sole and Separate Property Agreements (SSPAs), designating certain properties and businesses as Wife's separate property. The district court had to determine the validity of these agreements and the proper distribution of marital property, including real estate and other assets (paras 3-9).

Procedural History

  • District Court of Colfax County: Granted dissolution of marriage and distributed marital property, including real estate, cash, other assets, and liabilities. The court found the SSPAs valid, thereby designating certain properties and businesses as Wife's separate property (para 3).

Parties' Submissions

  • Husband: Argued that the SSPAs lacked mutual assent and valid consideration, making them invalid. Contended that his separate property contributions were not properly recognized, and that the district court failed to address his interests in various properties and Wife's income earned during the marriage (paras 4, 10, 30-36).
  • Wife: Contended that the SSPAs were valid and enforceable, freeing Husband from all liabilities associated with the businesses. Argued that the properties and businesses designated by the SSPAs were her separate property and that Husband had no claim to her income earned during the marriage (paras 10, 35).

Legal Issues

  • Whether the four SSPAs are valid, enforceable contracts.
  • Whether the district court erred in distributing the equity in the Francis Home.
  • Whether the district court properly addressed and distributed other property, including a 1955 Chevrolet, a property in Texas, and Wife's income during the marriage (paras 4, 17, 29, 33, 35).

Disposition

  • The Court of Appeals affirmed in part, reversed in part, and remanded for further proceedings. Specifically, it reversed the district court's judgment regarding the SSPAs and the Francis Home, affirming the distribution of all other property (para 37).

Reasons

  • The Court of Appeals found that the SSPAs were voidable at Husband's election due to a presumption of constructive fraud, as Wife gained a decided advantage without providing adequate consideration or ensuring Husband had independent legal advice (paras 14-16). The court also held that the district court erred in concluding the Francis Home was transmuted from Husband's separate property to community property, requiring a remand for further proceedings on this issue (paras 20-28). The court affirmed the district court's decisions regarding the 1955 Chevrolet, the Texas property, and Wife's income, finding no error in their distribution or the determination that Husband had not met his burden of proof (paras 29-36).
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