In re the Marriage of Krejci
2013 COA 6
| Colo. Ct. App. | 2013Background
- Husband appeals the permanent orders on property distribution and child-support-income findings; wife cross-appeals on property division.
- Trial court classified marital home as wife's separate property based on wife’s inheritance funds; court did not apply the marital presumption.
- Court treated wife’s Merrill Lynch account as fully separate property despite marital increases; value increases during marriage were not allocated as marital.
- Court valued husband’s Race Place interest based on income, not capital account, with no expert valuation.
- Court did not make explicit findings on wife’s voluntary underemployment or include dividends in wife’s income for child support; remand ordered.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Marital presumption applies to third-party gifts to jointly titled home | Krejci argues third-party gift should be marital | Krejei argues gift remained separate property | Remand to apply marital presumption and reassess home equity |
| Treatment of wife's Merrill Lynch account as marital increase | Increase should be marital and shared | Funds from inheritance remain separate | Remand to determine marital increase and distribution |
| Valuation method for husband's Race Place interest | Use capital account values; should reflect value | Use income-based valuation | Court did not err; valuation supported by record; no reversal |
| Dividend income and underemployment in child support | Dividends should be included; court failed to find voluntary underemployment | No explicit findings; underemployment not proven | Remand to include dividends and make findings on underemployment |
| Overall legal framework for presumption and burden of proof | Balanson framework governs; clear and convincing standard applies | Legislative amendments alter burden; may apply preponderance | Partly reversed; remand for findings; discuss burden on third-party gifts |
Key Cases Cited
- In re Marriage of Balanson, 25 P.3d 28 (Colo.2001) (marital presumption when separate property is put into joint ownership; may be overcome by clear and convincing evidence)
- In re Marriage of Dale, 87 P.3d 219 (Colo.App.2003) (real property; presumption applied to marital portion of jointly owned asset)
- In re Marriage of Stumpf, 932 P.2d 845 (Colo.App.1996) (concept of marriage as partnership; relevant to presumption applicability)
- Burford v. Burford, 950 P.2d 682 (Colo.App.1997) (allocation of increases to marital property; tracing separate property increases)
- Powell v. Powell, 220 P.3d 952 (Colo.App.2009) (discussion on treatment of premarital accounts and asset valuation for marital increase)
- Seewald v. Seewald, 22 P.3d 580 (Colo.App.2001) (asset treatment and tracing in marital property contexts)