Clooten v. Clooten — North Dakota Supreme Court affirms contempt finding and sanctions against ex-husband who failed to remove ex-wife’s name from mortgage

Case
Stephanie R. Clooten v. Jesse I. Clooten, et al.
Court
North Dakota Supreme Court
Date Decided
June 25, 2026
Docket No.
20260025
Topics
Family Law, Civil Contempt, Divorce Decree Enforcement, Remedial Sanctions

Background

Stephanie and Jesse Clooten divorced by stipulated judgment entered April 3, 2024. The judgment awarded Jesse the marital home and required him to remove Stephanie’s name from the mortgage within ninety days. It also made Jesse solely responsible for an approximately $200,000 joint tax liability from 2023, which was factored into the property distribution. The judgment further provided that if either party had to seek an order to show cause due to the other’s failure to meet debt obligations, and the court found that motion justified, the noncomplying party would pay the other’s attorney’s fees.

More than a year after the ninety-day deadline passed, Stephanie’s name remained on the mortgage. On July 25, 2025, she filed both a contempt motion and a separate motion to redistribute property based on what she characterized as a changed tax picture. At the October 2025 evidentiary hearing, Jesse admitted he knew the deadline, did not request a certificate of occupancy from Stephanie until after the deadline had already expired, and — critically — never submitted an assumption application to the lender even after Stephanie signed and returned the certificate in January 2025. He offered no bank documentation to support his claimed lender requirements or a purported $3,000 restart fee.

The district court held Jesse in contempt at least since February 1, 2025 — the day after Stephanie returned the signed certificate — finding that all remaining steps were within Jesse’s control and that he had other available paths to compliance, including refinancing or selling the home, none of which he pursued. On the redistribution motion, the court declined to rule based on an unsigned, incomplete 79-page draft tax return, instead directing the parties to file final 2023 returns and reserving the motion for further proceedings.

The Court’s Holding

The North Dakota Supreme Court affirmed the contempt order in full and dismissed Jesse’s appeal of the redistribution order for lack of jurisdiction. On contempt, the court applied a highly deferential abuse-of-discretion standard and found the district court’s willfulness determination well-supported: Jesse admitted knowing the deadline, admitted missing it, admitted requesting the certificate of occupancy only after the deadline lapsed, and admitted never submitting the assumption application to the bank even as of the hearing date. The district court’s rejection of his excuses as unsupported and unpersuasive was entitled to deference because the trial court is best positioned to assess credibility.

On remedial sanctions, the court upheld all three categories awarded by the district court. The $5,460 attorney’s fee award was authorized both by N.D.C.C. § 27-10-01.4(1)(a) and by the divorce judgment itself, and Jesse did not contest the amount. The $10,505 rent-versus-mortgage differential — compensating Stephanie for the higher cost of renting because Jesse’s noncompliance prevented her from obtaining financing to buy her own home — was within the range of the uncontested evidence Stephanie presented, including average Bismarck home prices, applicable interest rates, and a loan amortization schedule. The additional $955 per month of continuing contempt and $2,622.53 in lost principal reduction were similarly authorized by statute and grounded in the record evidence Jesse never contested.

On the redistribution appeal, the court dismissed for lack of appellate jurisdiction. Because the district court neither granted nor denied Stephanie’s redistribution motion — instead deferring a ruling until the parties filed finalized 2023 tax returns — the order did not constitute a final determination of the motion. Under North Dakota law, only final judgments and orders enumerated in N.D.C.C. § 28-27-02 are appealable, and a non-final interlocutory order directing further proceedings does not qualify.

Key Takeaways

  • A divorce decree obligor who knows the compliance deadline, misses it, delays requesting necessary cooperation from the other party, and then fails to take any documented steps even after receiving that cooperation can be held in civil contempt for intentional disobedience — the availability of alternative compliance paths (refinancing, sale) weighs against any excuse of impossibility.
  • Remedial contempt sanctions need not be proved with mathematical precision; sanctions are proper if within the range of evidence presented to the court, and uncontested testimony and exhibits can supply an adequate factual basis for monetary loss calculations including rent-versus-mortgage differentials and lost principal reduction.
  • An order that defers ruling on a motion pending further proceedings — rather than granting or denying it — does not finally determine the motion and is not an appealable order under North Dakota’s finality statute, requiring dismissal of any premature appeal.

Why It Matters

This decision reinforces that post-divorce compliance with property-settlement obligations is not optional, and that courts have broad authority to compensate the aggrieved spouse for real economic harm — including downstream financial consequences like the inability to purchase a home — flowing from the noncomplying party’s contempt. The opinion makes clear that unsupported excuses, conflicting accounts, and a failure to contest the other party’s evidence will not shield a contemnor from substantial monetary sanctions.

The dismissal of the redistribution appeal also offers a practical reminder for family-law practitioners: interlocutory orders that direct further proceedings without resolving the underlying motion are not immediately appealable, and attempting to appeal them prematurely wastes resources and forfeits no rights — the issue remains open in the trial court. Parties seeking appellate review must wait for a final determination on the merits.

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