Wurm v. Wurm
2017 Ohio 861
Ohio Ct. App.2017Background
- Randall and Courtney Wurm married in 1999, bought 10 acres and built a marital residence completed ~Nov. 2000; four children were born of the marriage.
- Randall sold pre-marital stocks in multiple transactions (totaling $29,730 for land purchase and $106,989 during construction) and submitted financial statements and tax returns documenting the sales.
- Construction financing came from three sources: proceeds from Randall’s pre-marital investments, gifts/loans from his parents, and an $85,000 mortgage taken in April 2000; receipts for construction totaled $161,716.09 though parties estimated total cost at ~$215,000.
- Magistrate found Randall failed to trace his separate property into the residence and ruled the house marital; trial court remanded for additional evidence, then ultimately divided property equally and awarded the house to Randall but ordered him to pay Courtney $80,848.50.
- On appeal, the Sixth District concluded Randall had sufficiently traced his separate-property stock proceeds into the land and construction and reversed, finding a separate-property interest and calculating its present value at $119,983.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Randall traced pre-marital funds used to buy land and build the house | Randall: financial records and testimony show stock-sale proceeds funded land and construction; tracing burden met | Courtney: magistrate found records unreliable and mortgage/equity changes destroyed traceability | Court held Randall met his burden; trial court’s contrary finding was against manifest weight of the evidence |
| Measure of Randall’s separate-property interest in present value of home | Randall: entitled to a reimbursement/recognition of separate-property contribution pro rata | Courtney: challenged traceability and reasonableness of dollar-for-dollar reimbursement | Court applied Munroe formula: percentage of separate funds invested (55.6%) applied to change in home value to compute present separate-interest ($119,983) |
Key Cases Cited
- James v. James, 101 Ohio App.3d 668 (2d Dist.) (standard of review for classification of marital vs. separate property)
- Peck v. Peck, 96 Ohio App.3d 731 (12th Dist.) (burden to trace separate property is by preponderance of evidence)
- Munroe v. Munroe, 119 Ohio App.3d 530 (Eighth Dist.) (formula allocating change in property value proportional to separate contribution)
- C.E. Morris Co. v. Foley Const. Co., 54 Ohio St.2d 279 (Ohio) (competent, credible evidence standard for appellate reversal)