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contractsettlementmediationappealprobate
contractsettlementattorneyappealprobatebail

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Murdock v. Estate of Murdock, 935 N.E.2d 270

Facts

Dwight and Sharron Murdock were married and initiated dissolution proceedings in 2007. After mediation failed, a property settlement document was drafted but remained unsigned by Sharron at the time of her death in April 2008. Following her death, Dwight was initially appointed as the personal representative of Sharron's estate, but two of their children later petitioned for his removal, claiming he had forfeited his rights due to adultery and abandonment. The probate court ultimately ruled that the property settlement document was enforceable, leading to Dwight's appeal.

On April 28, 2008, Sharron died intestate. At that time, there existed a property settlement document that had been signed by Dwight. Also, Dwight's and Sharron's attorneys had each signed below the designation “Approved as to Form.” (App.54.) Sharron had, in a telephonic consultation with her attorney, expressed an intention to sign the document, but did not, in fact, examine it or sign it before her death.

Issue

Did the probate court err by recognizing the property settlement document as a contract enforceable in probate proceedings?

Dwight presents the single issue of whether the probate court erred by recognizing the property settlement document as a contract enforceable in probate proceedings.

Rule

Settlement agreements become binding contracts when incorporated into the dissolution decree and are interpreted according to the general rules for contract construction. Without a final decree, there can be no property settlement.

Parties to a dissolution action may craft an agreement providing for the disposition of their marital property pursuant to Indiana Code Section 31–15–2–17, which provides: (a) To promote the amicable settlements of disputes that have arisen or may arise between the parties to a marriage attendant upon the dissolution of their marriage, the parties may agree in writing to provisions for: (1) the maintenance of either of the parties; (2) the disposition of any property owned by either or both of the parties; and (3) the custody and support of the children of the parties.

Analysis

The court determined that the property settlement document was not enforceable because it had not been signed by Sharron and was not incorporated into a dissolution decree. The court emphasized that the dissolution proceedings terminate upon the death of one of the parties, and thus, the probate court could not recognize the document as a binding contract based on the parties' intent.

Accordingly, we reverse the order for enforcement of the marital property settlement document, including its provision that the issue of abandonment is moot, and remand for further proceedings on the issue of Dwight's alleged forfeiture of the right to inherit from Sharron's estate.

Conclusion

The Court of Appeals reversed the probate court's order declaring the property settlement document enforceable and remanded the case for further proceedings regarding Dwight's alleged forfeiture of rights to inherit from Sharron's estate.

We find the argument unavailing. First, the property settlement document is silent as to its operation in the event of death. It contained no terminology directed toward binding heirs and assigns.

Who won?

Dwight Murdock prevailed in the case because the Court of Appeals found that the property settlement document was not enforceable as it lacked the necessary signatures and had not been incorporated into a dissolution decree.

The Court of Appeals, Bailey, J., held that enforceable contract was not created by property settlement document.

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