Frank Ray Baggett v. Anne Marie Baggett
422 S.W.3d 537
| Tenn. Ct. App. | 2013Background
- Husband and Wife formed A&F Computers after meeting in 2000; business operated at Wife’s name but both contributed labor and profits.
- Marriage occurred in 2003; A&F served as the family business with shared income and expenses, funded by A&F profits and Husband’s retirement/Social Security.
- In 2011-2012, separation occurred; Wife continued operating A&F, while Husband pursued separate ventures and lived in a motor home; divorce and a separate partnership claim followed.
- Husband alleged A&F was a partnership and sought a share of profits and dissolution; trial court classified A&F as Wife’s sole property and not a partnership; trial court also divided marital assets.
- On appeal, the court held A&F is a partnership for purposes of marital property but that partnership law does not apply to the divorce division; overall property division deemed equitable; A&F treated as a marital asset with its value included in distribution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether A&F is a partnership under the Revised Uniform Partnership Act | Baggett asserts A&F is an implied partnership | Baggett contends A&F is not a partnership | Court finds partnership existence, but rejects applying partnership law to division. |
| Whether the court erred in classifying A&F as Wife's separate property | Baggett argues A&F is marital property | Baggett argues A&F should be treated as Wife's separate property | A&F deemed either marital asset or Wife’s separate property, but overall distribution upheld. |
| Whether the property division is inequitable | Wife’s division favors her; Baggett disputes amount | Court weighed statutory factors and dissipation; division is equitable | Division affirmed as equitable under Tenn. Code Ann. §36-4-121(c).},{ |
Key Cases Cited
- Bass v. Bass, 814 S.W.2d 38 (Tenn. 1991) (partnerships may be implied from circumstances; marital property includes partnership interests)
- Estate of Walton v. Young, 950 S.W.2d 956 (Tenn. 1997) (trial court credibility and valuation deference in property division)
- Kendrick v. Shoemake, 90 S.W.3d 566 (Tenn. 2002) (no presumption of correctness for conclusions of law; weight to credibility)
- Cradic v. Cradic, 2013 WL 672576 (Tenn. Ct. App. E.S. 2013) ((referenced for framework on division of marital property))