Delay in divorce decree does not change valuation date

BVWireIssue #255-2
December 13, 2023

marital dissolution/divorce
separate property, valuation date, marital property, trial court

In a Montana divorce case, the husband became an owner of a business right before marriage. When the couple divorced, the business was valued at $2.2 million, which the wife did not contest at trial. The court took three years to issue the final divorce decree. In the meantime, the business catapulted in value, and the husband got an offer to sell the business for $24.5 million.

Do over? The wife argued that the valuation date should be the date of the final decree, not the date of trial. Of course, this would give her a share of the huge increase in value of the husband’s business. But the appellate court disagreed, finding that “unique circumstances” call for the valuation date to be the date of trial. The wife had cleared out of the family home right after the trial and moved to California, and she had no involvement with the business. Also, the husband should not be penalized because of the court’s three-year delay in issuing the final decree.

The case is In re Marriage of Remitz, 2023 MT 212N; 2023 Mont. LEXIS 1105, and a case analysis and full court opinion will be on the BVLaw platform.

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