In re the Marriage of: Vickie Lynn Erickson, petitioner, Respondent,
David R. Erickson, Appellant.
Washington County District Court File No. 82-FA-11-5033
Aleksandra Ljubisavljevic, Minneapolis, Minnesota (for appellant)
James A. Lawton III, St. Paul, Minnesota (for respondent)
Considered and decided by Schellhas, Presiding Judge; Hudson, Judge; and Worke, Judge.
Appellant challenges the district court's characterization and allocation of marital debt in a dissolution judgment. We affirm.
Appellant-husband David Erickson and respondent-wife Vickie Erickson married on January 1, 1997, separated on May 27, 2011, and wife commenced a marriage-dissolution. In March 2012, the district court conducted a hearing to address outstanding issues, including whether an unpaid debt of $12, 651.00 owed to wife's 401(k) plan at Andersen Corporation was a marital debt.
Wife knew very little about the 401(k) debt, testifying that husband "took care of all the finances." When asked when the 401(k) debt originated, wife stated, "I'm not positive." When asked if the debt originated in May 2008, wife stated, "[p]ossibly." Wife also testified that she had "no idea" of the interest rate applicable to the 401(k) debt. She summarized her knowledge about the debt as follows: "I don't know the dates. I don't know the dates we started the loan. I don't know anything other than it's payroll deducted and I pay $606 a month." She also stated that she could not borrow more from her 401(k) account until she paid all her current 401(k) debt.
Husband testified that wife obtained a loan of about $14, 000 with an interest rate of 4% or 5% against her Andersen Corporation 401(k) account in May 2008. Assuming the origination of a $14, 000 loan in May 2008 with 4% interest and monthly payments of $600, husband projected that the loan should have been repaid within 24 months. Contrary to husband's projection, $12, 651.00 of debt remained unpaid as of September 30, 2011. Husband opined that the only possible explanation for the remaining loan balance was that wife incurred a second loan after the parties' separation.
In a July 26, 2012 order, the district court found that the loan was marital and gave wife credit for the balance owed on the 401(k) debt in the distribution of the parties' marital property.
This appeal ...