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the Agreement, Mr. Vanarsdall retained total ownership of his 50-
percent interest in the William A. Schmadeke-David K. Vanarsdall
Partnership (the partnership). Article III, entitled Division of
Property, section 2 of the Agreement stated that, until January
1, 2000, Mr. Vanarsdall would make yearly payments to his former
spouse amounting to 60 percent of his portion of the ordinary
income generated by the partnership. After January 1, 2000, Mr.
Vanarsdall agreed to pay annually his former spouse 50 percent of
his portion of the ordinary income generated by the partnership.
The Agreement required the former spouse to reimburse Mr.
Vanarsdall for his share of the taxes “due on the moneys payable
to Wife pursuant to this Section 2”.
The Agreement was silent as to the duration of the payments
from Mr. Vanarsdall to his former spouse; however, the Agreement
provided that, if Mr. Vanarsdall’s death preceded her death, his
partnership interest would be placed in a trust for their three
daughters. The former spouse, however, would receive the income
from the trust until her death. Furthermore, Article V, section
4 of the Agreement, entitled Miscellaneous Provisions, also
provided that “except as otherwise provided herein, this
Agreement shall be binding upon and run for the benefit of the
heirs, personal representatives, executors and assigns of the
parties hereto”. Finally, and more specifically, Article III,
section 18 of the Agreement stated: “All payments due from
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Last modified: May 25, 2011