In Re Marriage of Stevenson

[252]

Opinion

JOHNSON, J.

Under Civil Code section 4800, subdivision (a), the value of community assets and liabilities is generally determined as near as practicable to the time of trial. However, on a showing of good cause, the court may value all or any portion of the assets and liabilities at a date after separation and prior to trial. In this case, the trial court denied Ms. Stevenson’s motion to have the community interests in two small businesses operated by her husband valued as of the date of the parties’ separation. We affirm in part and reverse in part with directions.

Facts and Proceedings Below

David and Jacqueline Stevenson separated on May 6, 1990. In September of that year Mr. Stevenson filed for dissolution of the marriage. Thereafter, Ms. Stevenson filed a motion under Civil Code section 4800, subdivision (a)

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to establish the date of separation as the date for valuing the community interest in the two small businesses Mr. Stevenson operated prior to the parties’ separation.

The evidence at the hearing showed Mr. Stevenson began doing business as a general contractor in 1985. In addition, for a period of 10 years prior to the date of separation, Mr. Stevenson operated a Christmas tree lot. It was undisputed that following the parties’ separation Mr. Stevenson’s contracting business declined and that he quit the Christmas tree business in 1990. The Stevensons’ son testified his father told him after the separation “he didn’t care about the [construction] company and I could let the company run into the ground, for all he cared.” Mr. Stevenson testified the decline in his contracting business was due in part to a general decline in the construction industry in 1990-1991 and in part to the fact his son had gone into the contracting business using the same name, address and telephone number as Mr. Stevenson had used when he was living and working out of the family home.

The trial court ruled the only issue at the hearing was whether Mr. Stevenson had “deliberately trashed the [construction] business” and found Ms. Stevenson had failed to carry her burden of proof on that issue. Although the trial court did not make formal findings of fact, its comments following the testimony at the hearing show the court attributed the decline in Mr. Stevenson’s contracting business in part to the son’s appropriating the company name, address and telephone number for his own contracting business and in part to the prevailing economic decline, especially in the