In re Marriage of Binette

Husband appealed an order setting aside a default judgment that incorporated a marital settlement agreement (MSA). He contended the trial court erred by considering evidence not presented, submitted, or admitted at the hearing, in violation of Family Code section 217. He further argued the court erroneously relied upon an incorrect legal standard when it found the failure to complete preliminary and final disclosures provided sufficient grounds to vacate the judgment. The Court of Appeal affirmed, finding that if husband disagreed with the court’s assessment, he should have stated his position on the record and requested the opportunity to present live testimony as authorized by section 217. Having failed to do so, the trial court did not err in allowing wife to “‘rest on the pleadings’” instead of presenting evidence. In deciding to set aside the judgment, the trial court found that husband failed to complete the preliminary and final disclosures, as evidenced by : (1) there were no supporting documents attached to the preliminary disclosure; (2) the stipulation was prepared by husband’s attorney; (3) wife never actually exchanged any documents with husband; (4) husband was unable to produce copies of the documents that support the preliminary disclosure; and (5) husband has over $400,000 in cash and checking accounts that was not disclosed in his income and expense declaration. Here, husband prepared the necessary preliminary declarations of disclosure; however, he failed to provide the supporting documentation. Wife never completed or exchanged any declarations of disclosure, despite executing the stipulation stating that she had done so. Given the lack of compliance with the statutory requirements, the stipulation was insufficient to act as a waiver of the final disclosure. The trial court therefore correctly concluded that there had been a mistake of fact by the parties regarding whether the statutory requirements had been satisfied, and properly vacated the judgment on that basis. View "In re Marriage of Binette" on Justia Law