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In re Marriage of Murray

8/26/2002

nd she never gave Bearl her consent to borrow money from Malisos or from any of his many other creditors.


This arrangement, with Bearl in California and Carole in Texas, lasted for about two years before Bearl's mounting debts finally forced him to close M & E sometime late in 1991. Several other significant things also happened around this same time.


The Dissolution Petition


Most importantly, Bearl decided he did not want to join Carole in Texas, and so filed a dissolution petition in Kern County on June 11, 1991. Carole filed a response and a request for spousal support, in which she stated Bearl had stopped sending her money (i.e., the M & E "paychecks") the previous April. Bearl opposed the request for support, citing his physical disability, the collapse of his business, and the size of his debt. He claimed his income was then limited to a pension of $831 per month (presumably from Baker Hughes), along with the prospect of receiving about $750 per month in Social Security disability payments (which presumably had been discontinued when he went to work for Fishing Masters in 1981).


Temporary Spousal Support


Following a hearing in September of 1991, the court (Judge Wiseman) directed Bearl to pay Carole $800 per month in spousal support. In its written ruling issued in October, the court gave the following explanation:


"3. Although [Bearl] may have suffered health problems in the past (approximately 1973 to 1979), there is insufficient evidence to substantiate a finding that he is totally disabled....


"4. [Bearl] has not been truthful in disclosing his assets. First, this court is dissatisfied with the presentation of out-of-date financial information regarding M and E Sales and Services, Inc.... [ ] In addition, [Bearl] was extremely evasive in answering questions about the financial status of M and E....


"5. [Bearl's exhibit] K [a financial statement apparently submitted in support of a loan application] shows had a net worth of close to one million dollars. [Bearl] explains this by stating that even though he signed the statement as being true and correct, he knew it was inaccurate and padded substantially....


"6. [Bearl] seems to find money for the things that he wishes to do including the purchase of vehicles and for trips to Hawaii...."


The formal support order was filed on March 18, 1992.


Sale of the House in California


Bearl also complained in his opposition to Carole's support petition that he was having to make monthly mortgage payments on their house in Garden Grove, which was unoccupied at that point, because Carole refused to sign the necessary documents to sell it. He and Carole stipulated at the September hearing to an order directing the sale. The order was entered on November 18, 1991. The Murrays received an offer soon afterward for $170,000, and the court issued another order in December directing them to accept it.


The Murrays realized something over $82,000 from the sale of the house: about $26,000 was held in escrow, and another $56,000 or so was deposited in the trust account of Bearl's lawyer at the time, Edward Thomas. However, Carole never received any part of this money, for reasons the court would later conclude amounted to fraud on Bearl's part.


Attachment of the Sale Proceeds


On February 28, 1992, about two months after sale of the house, Genevieve filed suit against Bearl and M & E to recover the monies she had loaned them, both business and personal, which by then totaled about $350,000 including accrued interest. Bearl was served with the complaint in April. H

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