Court of Appeals of Missouri, Western District, Second Division
DEBORAH A. WALKER, Respondent,
JACK J. LONSINGER, Appellant
APPEAL FROM THE CIRCUIT COURT OF CLAY COUNTY. THE HONORABLE DAVID P. CHAMBERLAIN, JUDGE.
David B. Sexton and Gary M. Steinman, Gladstone, MO for respondent.
Robert E. Gould, Kansas City, Mo. for appallent.
BEFORE DIVISION TWO: LISA WHITE HARDWICK, PRESIDING JUDGE, VICTOR C. HOWARD AND CYNTHIA L. MARTIN, JUDGES. ALL CONCUR.
Lisa White Hardwick, Judge.
Jack Lonsinger (" Husband" ) appeals from the circuit court's judgment denying his motion for contempt against his former wife, Deborah Walker (" Wife" ), and granting her petition in equity to allocate, as an omitted marital debt, all of the parties' 2011 tax liability to Husband. For reasons explained herein, the judgment is affirmed in part and reversed in part.
Factual and Procedural History
Husband and Wife were married in 1981. When they separated in 2009, Wife filed a petition for dissolution of marriage. In 2011, while the dissolution was pending, Husband took distributions of approximately $80,000 from some of his IRA accounts without Wife's knowledge. Husband used the funds to invest in a business venture to which Wife was not a party. Although Husband disclosed his investment in the business venture to Wife in interrogatory responses, he said only that the funds for the investment came from his trust, which consisted of bank accounts, CDs, money markets, stock, and IRA accounts. Husband did not disclose to Wife that he withdrew the funds specifically from the IRA accounts in his trust.
In early 2012, the financial institutions that maintained Husband's IRA accounts issued 1099-R forms to him identifying the gross distribution amount of each of his 2011 IRA distributions. Thereafter, in April 2012, the parties prepared and filed joint 2011 federal and state tax returns. Although Husband was aware that his IRA distributions were taxable, neither the federal nor state tax returns included those IRA distributions. Without reporting Husband's IRA distributions, the joint 2011 federal tax return indicated that the parties were entitled to a refund of $319,000.
On August 6, 2012, Husband and Wife entered into a marital settlement agreement. In the agreement, the parties agreed that they would " equally share any 2011 tax liability or refund" without reference
to a specific amount. The agreement also contained a section titled " Full Disclosure," which included this clause:
2. Each party warrants that he or she has fully advised the other of the full extent of all income, liabilities, and assets in which she or he had any interest, whether legal or equitable, from the filing of the Petition for Dissolution of marriage to the date of the execution of this Agreement ...