Speer v. Quinlan

McFADDEN, Justice

(dissenting).

I generally concur with the dissenting opinion of SHEPARD, J., but I wish to express other conclusions I have reached concerning this appeal.

The majority opinion discusses at length the problem inherent in this case where there has been a marked increase in the value of the separate property of the appellant as evidenced by the shares of stock he holds in Speer, Inc. However, the majority opinion then concludes that “A determination of whether Raymond Speer received compensation comparable to that of a similar employee in his position is needed for a final resolution of this case.” It is my conclusion that this is too narrow a basis to determine what interest the community had in the increase in value of the separate property of appellant.

The parties to this action were married in April, 1949, and this divorce proceeding commenced in January, 1971, after the parties had separated in November, 1970. For over twenty years these parties had continued their marital relationship, both of them devoting their efforts to the rearing of their children, maintaining their home, and striving to establish a successful marriage. During this period of time these parties prospered financially, and apparently without regard to whether their efforts increased the value of the separate property *135of either or the community property of both.

The trial court specifically found:

“The increase in the earnings, accumulations and values of Speer, Inc., have been occasioned and caused substantially and materially by the various contributions of the community, including without limitation personal efforts continuously made by the plaintiff and defendant wife in behalf of said business and other contributions hereinabove enumerated. The increase in value of Speer, Inc., did not result from any marked increase in value of the physical assets of Speer, Inc., but from the increased sales and earnings of Speer, Inc., which are directly attributable to the community efforts of the parties. The defendant wife made a substantial contribution to her husband’s efforts, and success in achieving such increases, acting as a constant and devoted wife and mother, and in making considerable effort in entertaining business clients and contacts.”

Accepting this finding as binding on this court, it becomes evident that on remand the trial court must make its determination of the contribution by the community to the increased valuation of the appellant’s separate property and thereupon compensate the community for this increase. See, Brockelbank, the Community Property Law of Idaho (1962) § 3.7.2, pp. 174 et seq. and Rule 3 mentioned therein; DeFuniak and Vaughn, Principles of Community Property, (2d ed. 1971), § 73, p. 168 et seq. See also, Gapsch v. Gapsch, 76 Idaho 44, 277 P.2d 278 (1954). In my opinion, evaluation of Raymond Speer’s compensation in comparison with other employees would be doing a great injustice in not recognizing the actual contribution made by both parties of the community to the increase in valuation of the separate property.