Marriage of Marshall

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Linda Marshall appealed a trial court’s judgment on reserved issues following the dissolution of her marriage to Bryan Marshall. Linda challenged two specific aspects of the family court’s division of marital property: (1) the court erred declaring a 2006 capital gains tax liability to be a community debt, notwithstanding the fact she had obtained an “innocent spouse” determination from the Internal Revenue Service (IRS); and (2) the court erred in awarding Bryan the post-separation proceeds of a disability insurance policy as his separate property, despite the fact the policy had been purchased with community funds and was purportedly intended to serve as retirement income. The Court of Appeal determined the trial court did not err: (1) the trial court was not bound by the IRS’s innocent spouse determination in characterizing the tax liability, and the decision to treat the liability as a community debt, notwithstanding that determination, was supported by substantial evidence; and (2) the disability insurance policy was intended to replace Bryan’s earned income, rather than to operate as part of a retirement plan, was amply supported by the evidence. View "Marriage of Marshall" on Justia Law