Allen v. Scott
363, 2020
| Del. | Jul 26, 2021Background
- Parties married May 3, 2017 after an ~11-year relationship; separated Feb 2019 and divorced Sept 9, 2019 with ancillary matters reserved.
- The couple bought a Colorado home (~$740–$750K); Allen paid a $150,719 down payment, both names were on title; home sold at a loss for $715,000 and produced $72,388.78 in proceeds.
- In an Ancillary Pretrial Stipulation entered as a court order both parties stated Allen made the down payment with premarital funds, but they disputed whether that down payment was a "gift unto the marriage."
- At the ancillary hearing Allen testified she used funds from a “personal checking account”; the Family Court treated that testimony as a material change and ruled the down payment funds were marital, awarding Scott half the sale proceeds.
- The Family Court also divided remaining marital assets 60/40 in Scott’s favor after weighing 13 Del. C. § 1513 factors; Allen sought reconsideration and appealed.
- The Delaware Supreme Court reversed the Family Court’s reclassification of the down payment (holding the stipulation controlled), remanded to consider whether the premarital down payment was a gift unto the marriage, and left the 60/40 allocation intact unless remand findings require adjustment.
Issues
| Issue | Plaintiff's Argument (Allen) | Defendant's Argument (Scott) | Held |
|---|---|---|---|
| Whether the Family Court erred by classifying the Colorado down payment as marital despite the parties’ stipulation that it was premarital | The Stipulation (ordered by the court) expressly stated the down payment was premarital; that binding stipulation was not amended and relieved Allen of presenting proof at trial | Allen’s hearing testimony (“personal checking account”) created a material change permitting modification of the stipulation; alternatively, the down payment was a gift unto the marriage | Reversed: the stipulation controlled; no triable issue existed as to source once the order was entered. Remanded to determine whether the premarital down payment was a gift unto the marriage. |
| Whether the Family Court abused its discretion in awarding a 60/40 split of other marital assets in Scott’s favor | The erroneous marital classification of the Colorado proceeds tainted the overall division and would justify a more favorable split to Allen | The Family Court reasonably weighed statutory factors and its allocation was supportable | Affirmed in substance: no abuse of discretion found on the record, but court may revisit and adjust the allocation on remand if the gift inquiry changes the §1513 analysis. |
Key Cases Cited
- Forrester v. Forrester, 953 A.2d 175 (Del. 2008) (standard of review for Family Court property-division decisions).
- Glanden v. Quirk, 128 A.3d 994 (Del. 2018) (Family Court’s property-division weighing of statutory factors will not be disturbed absent abuse of discretion).
- Gertrude L.Q. v. Stephen P.Q., 466 A.2d 1213 (Del. 1983) (definition and binding effect of stipulations in judicial proceedings).
- Itron, Inc. v. Consert Inc., 109 A.3d 583 (Del. Ch. 2015) (stating that stipulations narrow issues and trial resources should focus on genuine disputes).
- Martin v. Martin, 857 A.2d 1037 (Del. Fam. 2004) (a motion for reargument should not be used to rehash arguments; preservation doctrine requires issues be fairly presented but not necessarily re-asserted in every post-judgment motion).
