RONCHI VS. RONCHI
Aug 31, 202688799-COA · Nevada (SCOTN/COA)
Order affirming in part, reversing in part, vacating in part and remanding.Robert and Joanna Ronchi began dating in 2004. The day before their 2008 wedding in Pennsylvania, they signed a premarital agreement - a contract made before marriage that decides how property will be divided if the couple later divorces. The agreement said it would be governed by Pennsylvania law, listed each person's separate property (including Robert's interest in his business, Element 115, and his retirement accounts), and included provisions in which each spouse gave up any claim to property held in the other spouse's sole name. Joanna, a Polish citizen, was 19 weeks pregnant when she signed. The couple married the next day and moved to Nevada in 2010. In 2015, Robert bought a house, titled only in his name, that became the family home. Joanna filed for divorce in 2022.
After hearings, the district court ruled the premarital agreement was valid. It then divided the couple's property, awarding Joanna half of the portion of Robert's Fidelity IRA that came from his wages during the marriage and half of the equity in the house, while confirming Robert's business interest as his separate property. The court later ordered Robert to pay Joanna $30,304 in attorney fees. Both sides appealed.
The Nevada Court of Appeals resolved the appeal in four main parts. First, it upheld the ruling that the premarital agreement was valid. Because the agreement chose Pennsylvania law, the court applied Pennsylvania contract principles, under which signed agreements are presumed valid and a person challenging one must prove it invalid by clear and convincing evidence. The district court had found that Joanna generally understood the agreement's purpose, could read and write English at the time, and that both parties handwrote on the agreement, "I choose to waive representation by an attorney." The district court was not persuaded that her pregnancy and immigration status amounted to duress, and the Court of Appeals concluded those findings were supported by substantial evidence.
Second, the Court of Appeals reversed the award to Joanna of half of the marriage-era contributions to Robert's Fidelity IRA. Although the agreement never specifically said Robert's wages would be his separate property, its plain language released each spouse's rights to "[a]ny and all rights to any property of the other party titled in the other parties' sole name, whether before or after the marriage." Because the IRA was solely in Robert's name, the court held it remained his separate property even though marital wages went into it. For the same reason, the court reversed the ruling giving Robert a community interest in Joanna's own solely titled Fidelity IRA.
Third, on the house, the Court of Appeals held the district court applied the wrong legal framework. The district court had used Nevada's "gift presumption" caselaw - the idea that when a spouse signs over title, she is presumed to have gifted her interest - and found Joanna rebutted that presumption with evidence that the house was titled in Robert's name only because of her credit problems, was paid for from a joint account, and that Robert admitted in an audio recording he had promised to put her name on the house and still "owed" it to her. The appellate court said that under the premarital agreement's plain language, property titled in one spouse's name stayed separate, so the gift-presumption analysis was error. But it concluded the substance of Joanna's argument and the district court's findings pointed to a different doctrine: "constructive fraud" - a breach of the special duty of trust spouses owe each other, which can allow a court to impose a "constructive trust" recognizing that an asset is actually co-owned despite how it is titled, even where a premarital agreement exists. The court vacated the ruling on the house and sent the issue back for the district court to decide whether Joanna established constructive fraud giving rise to a constructive trust.
Fourth, the court rejected Joanna's argument that she was entitled to a share of the increase in value of Robert's business, Element 115. The Pennsylvania statute she relied on excludes from marital property anything the parties excluded by valid agreement, and the business was listed as Robert's separate property in the agreement's financial disclosure.
Finally, because part of the property division was reversed, the court vacated the $30,304 attorney fee award. The case now returns to the district court for further proceedings consistent with the order.