754 S.E.2d 501
S.C.2014Background
- Marriage from 2000 to separation 2007; Wife sought divorce on adultery and to characterize Pittman Professional Land Surveying, Inc. as marital property.
- Business began in 1996 pre-marriage; Wife assisted with billing, accounting, and some field duties; both pooled funds and shared management.
- In-marriage participation: Wife reduced nursing hours, salary decisions were joint, and Wife earned substantial salary from the Business.
- Premarital contributions and guarantees: geodimeters purchased before marriage with debt; both signed an unlimited guaranty in 2002.
- Family court found the Business transmuted to marital property and valued and equitably apportioned in the marital estate.
- Court of Appeals partially affirmed, but this Court held premarital conduct wrong for transmutation analysis and affirmed transmutation based on marriage conduct
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Business was transmuted into marital property | Pittman contends no transmutation; premarital conduct cannot establish it | Pittman argues the record shows mutual intent to treat the Business as marital property | Transmutation established based on marriage conduct; premarital conduct improperly considered |
| Whether Pittman was entitled to special equity or premarital credit | Husband seeks special equity or premarital value credit | Court should include full value and deny special equity; adjust overall division | No special equity; overall equitable apportionment deemed fair; premarital credit not separately awarded |
Key Cases Cited
- Edwards v. Edwards, 384 S.C. 179 (Ct.App. 2009) (transmutation factors and marital assets evidence)
- Lewis v. Lewis, 892 S.C. 381 (2011) (appellate deferential review of family court credibility findings)
- Dawkins v. Dawkins, 386 S.C. 169 (2010) (sole method for accounting for special equity in marital property)
- Franks v. Frank, 311 S.C. 454 (Ct.App. 1993) (transfer of premarital funds to marital use evidences transmutation)