David M. Smith (husband/appellant); Terri R. Gazdik (wife/appellee)
High court upholds classification and valuation of husband’s investment management business, noting business consists of book of business, which can exist without owner, and owner’s skills and expertise, which are his separate property; proceeds from sale of book of business are community property.
A complex divorce case in front of the Idaho Supreme Court featuring an
investment management business that the husband had set up before and sold
during the marriage raised noteworthy issues about the nature of the
business and the characterization and valuation of its various components
(book of business vs. owner’s skills). A related flashpoint was whether the
nonowner spouse was entitled to any appreciation (enhancement) in the value
of the business that occurred ...