Marriage Of Baltins

212 Cal.App.3d 66 (1989)

Facts

H and W were married on June 7, 1969, and separated on January 7, 1982. They had one adopted child, born October 31, 1978. At the time of their marriage, H was in his senior year in medical school, and W was working as a secretary. In 1975, H became board certified in orthopedic surgery and began his private practice. W worked at home for H's medical partnership, doing the payroll, making deposits, and paying the bills. After the couple's separation in January 1982, W, represented by Attorney G. Scott Gaustad, filed a petition for dissolution. W discharged Gaustad in March and dismissed the action in January of 1983. In April of 1982, H and W executed a marital settlement agreement, handwritten by H, providing for custody of their child, support, and a division of property. On March 30, 1983, H, in pro se, filed a petition for dissolution of the marriage alleging that all community assets and obligations had been disposed of by written agreement and requesting that custody of the minor child be awarded to w. H prepared an appearance, stipulation, and waivers. The waivers stated the cause could be tried as an uncontested matter without notice. Without advice of counsel, W signed the documents on April 9, 1983. Two days later, H had her default entered, and an uncontested hearing that same day resulted in the dissolution of marriage. The court approved and incorporated into the judgment a typed property settlement agreement, which had been executed by both parties on December 22, 1982; the agreement was substantially the same as the handwritten agreement executed by the parties in April 1982. W did not appear at the hearing. Six months later, on October12, 1983, the court entered the final judgment on H's request. W noticed a motion to modify support, which was heard on August 31. The court filed its order increasing spousal and child support and awarding her fees and costs. H appealed.

In W's motion to set aside the judgments, W testified about the circumstances of the marriage. W had gone to Gaustad in April 1981 when H physically abused her, and she was frightened about losing custody of their child if she left. W moved out of the family home, and Gaustad represented her. H became furious with Gaustad for mentioning to another attorney in a public place that he had seen bruises on W which had been inflicted by H. H threatened to sue Gaustad and demanded that W fire him, which she did. Shortly thereafter W signed a property settlement agreement in H's handwriting dated April 25, 1982. Although Gaustad was still her attorney of record, she did not consult with him before signing. H threatened that if she did not sign, he would declare bankruptcy and thereby avoid paying anything to her or their creditors. H further told W that he worked for the assets and she was not entitled to them and that his medical practice was his business and that she had nothing to do with it. W admitted that she knew of all the parties' assets. In June 1981, the community had assets of $1,306,515 and a net worth of $720,302. Under the April 1982 agreement, W received a rental residence, a 1977 Mercedes-Benz automobile, and some household furnishings, at a total net value of about $63,000. H received the balance of the assets. H received community property with an approximate net value of $507,700. W would receive $1,000 per month for 24 months and child support of $300 per month. Both spousal and child support would terminate if W cohabited with someone or remarried. H's 1982 federal income tax return showed gross income from his medical practice was over $282,000. He testified that his net that year was $150,000. In July 1982, W hired Jordan who told her the handwritten agreement was unfair to her. Jordan testified that W did not seem to hear what Jordan was saying and frequently cried. W was emotionally upset and incapable of asserting herself or of explaining why she would accept an unfair agreement. On August 3, 1982, the parties increased spousal support to $1,200 a month for 45 months but did not change the property division. W would not let Jordan depose or confront H. Jordan withdrew. W went to see Stephens for representation. H called him on Saturday morning and that his partner had already talked to H and there was a conflict. Stephens typed a new agreement, and H used that to prepare his own typed agreement. W signed in December 1982 without representation. H was not willing to talk about anything, and W was no longer able to deal with the issues. Evidence showed W was frequently crying. w was emotionally unable to confront H. H stated his feeling that he had contributed much more to the marriage emotionally, psychologically, and financially than W. As far as he was concerned W received more than one-half of the community assets under the December 1982 agreement. The court granted W's motion to set aside the judgments on the grounds of duress and extrinsic fraud or mistake. W had received only 10 percent to 15 percent of the community assets.