Kozen v. Kozen

Opinion

WOODS, P. J. In this marital dissolution action, James Kozen (husband) is appealing the trial court’s award to June Kozen (wife) of the larger of the two family businesses, and its order that he pay over $100,000 in wife’s attorney’s and accountant’s fees. We find no abuse of discretion, and therefore affirm.1

The record shows that husband and wife separated in 1981, following 131/2 years of marriage. At the time of the April 1984 dissolution proceedings, wife had not worked outside the home for fifteen years; earlier in her life, she had been employed as a hairdresser for six or seven years.

In 1976, husband entered into a partnership with Leonard Allenstein to operate Burger King Restaurant franchises. The partnership opened one such restaurant in Hollywood and another in Agoura. Husband became the operator of the highly profitable Hollywood restaurant. He and Allenstein entered into an agreement in 1984 under which husband received the Hollywood franchise and Allenstein the Agoura franchise. The agreement required husband to borrow $227,000, on which he paid interest payments of $3,100 per month, with the principal due on December 15, 1984.

Husband also entered into a restaurant partnership (K & P Partnership) with a different partner. That partnership opened a Burger King Restaurant in Burbank.

At the time of dissolution, the Hollywood franchise and related property were valued at $1,187,000. The community’s interest in the Burbank franchise was valued at $363,150.

[1261]In addition to the Hollywood and Burbank franchises, the community owned one other large asset, the family residence in Pacific Palisades, which had a net value of around $700,000. The community also owned numerous smaller investments.

A Burger King representative testified that Burger King would accept wife as a franchisee if the court awarded her the Hollywood franchise. The company had a management training program for its franchisees.

In the interlocutory judgment entered on May 29, 1984, the trial court awarded the interest in the Burbank franchise to husband and carefully divided the community’s smaller assets. The disposition of the Hollywood franchise and the family residence were reserved. Husband was ordered to pay various fees, including $25,000 to wife’s accounting firm and $80,000 to her lawyers.