Deffenbaugh v. Deffenbaugh
Husband not entitled to share in increased value of wife’s separate property due to management of her mutual funds. His activity was “ordinary and usual spousal duties” and increase was due to favorable market trends.
Husband not entitled to share in increased value of wife’s separate property due to management of her mutual funds. His activity was “ordinary and usual spousal duties” and increase was due to favorable market trends.
Portion of appreciation of husband’s separate business is community property because both spouses were undercompensated by the company during the marriage resulting in a contribution of community property to the business.
The single test for whether appreciation in the value of nonmarital property is marital or nonmarital is the extent to which marital effort generate the increase.
Appreciated value of gift or inherited property not subject to division unless hardship is shown. Burden of proof to show hardship is on nonowning spouse. Failure to divide separate property could cause a hardship when the nonowning spouse contributes to the property’s increased value.
Amount of appreciation due to general economic conditions accrue to the gift; any amount due to contributions by the non-owning spouse is to be included in the marital estate.
Increase in value of separate corporation due to marital efforts is part of the marital estate. Where the appreciation of the separate property is due to the efforts and abilities of the marital partnership, it is active appreciation and is divisible.
Increase in value of separate corporation due to marital efforts is part of the marital estate. Where the appreciation of the separate property is due to the efforts and abilities of the marital partnership, it is active appreciation and is divisible.
Multiple issues. See full summary.
Gift and appreciation in value that is due to general economic conditions where non-owning spouse does not contribute to the appreciation in value is exempt from division.
Retained earnings of subchapter S corporation, over which wife had full ownership, is income and not appreciation, so court properly included it in the marital estate.