Shaw v. Shaw
290 Ga. 354
Ga.2012Background
- Shaw (Wife) and Shaw (Husband) married in 1968 and separated in 2007; divorce action filed in 2009 focusing on equitable distribution.
- Trial court equitably distributed Florida unimproved property, and two Morgan Stanley accounts equally, but left 6.67% interests in an apartment complex undisposed.
- Husband appealed under a Pilot Project; this Court granted discretionary review of the domestic relations judgment.
- Accounts were opened for inheritance funds with names in both spouses, purportedly transforming Husband’s separate property into marital property.
- Inherited Florida property was deeded to both spouses as tenants in common, giving each an undivided one-half interest, raising transformation into marital asset.
- Apartment complex interests were purchased during marriage with marital funds, creating marital assets; Wife held 6.67% separate to Husband’s claim, but court ultimately treated as marital.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the Morgan Stanley accounts marital property? | Husband inherited funds; accounts should remain separate. | Transformed into marital property because owned jointly and held as joint tenants with right of survivorship. | Accounts are marital property. |
| Was the Florida real property marital property? | Inheritanced property; Wife did not contribute to value; not commingled. | Husband deeded to both as tenants in common; indicates transformation into marital asset. | Property was marital. |
| Should Husband receive Wife's interest in the apartment complex? | Husband paid $20,000 in legal fees after initiating litigation and seeks Wife’s interest. | Wife remains party in litigation with separate attorney; trial court has broad discretion in equitable division. | Trial court did not abuse discretion; property remains marital. |
| Was there prejudgment bias when the judge commented on the case? | Judge made prior-to-evidence conclusions suggesting bias. | Comments occurred in bench trial with comprehensive questioning; judge open to later evidence; not improper. | No error; comments permissible in a bench trial. |
Key Cases Cited
- Lerch v. Lerch, 278 Ga. 885 (Ga. 2005) (transformation of inherited property into marital asset through gifting/titling)
- Coe v. Coe, 285 Ga. 863 (Ga. 2009) (nonmarital inheritance may become marital via transmutation)
- Miller v. Miller, 288 Ga. 274 (Ga. 2010) (property acquired by gift or inheritance can become marital asset through transmutation)
- Stanley v. Stanley, 281 Ga. 672 (Ga. 2007) (trial court with broad discretion in equitable division of marital property)
- In the Interest of C. S., 275 Ga. App. 562 (Ga. App. 2005) (judge in bench trial may express opinions on evidence; limited impact on outcome)
