Grumbeck v. Grumbeck
Though a circuit court may consider substantial gifted assets when dividing the marital estate, it may not divide the marital estate to work a de facto splitting of those assets when there is no hardship.
Though a circuit court may consider substantial gifted assets when dividing the marital estate, it may not divide the marital estate to work a de facto splitting of those assets when there is no hardship.
Husband traced non-divisible stock and there was no evidence of donative intent. Trial court did not err in finding that husband was not responsible for appreciation of company stock. Retained earnings were not marital since they represented insurance proceeds from loss of an asset.
Tracing and transmutation principles may be employed outside the context of gifted and inherited property, in this case, to property initially classified as individual property under a marital property agreement.
Principles of donative intent are applicable to property classified as individual under a MPA. Tracing is not limited to gifted and inherited property. Analysis does not differ because MPA is applied to determine ownership upon death rather than a divorce.
The only property that remains individual property and not subject to division upon divorce is property acquired before or during the marriage by gift or by reason of the death of another, or acquired with funds from either source. Premarital property is not excluded.
Daubert applies only to actions and special proceedings commenced on or after February 1, 2011.