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California Community Property Keyed to Carrillo, 11th Ed.
Marriage of Koester
Citation:
73 Cal. App. 4th 1032 (1999)Facts
Frederick W. Koester owned and operated Koester Electric as a sole proprietorship prior to his marriage to Jeanne in November 1986. The business had a value of approximately $337,500 at the time of marriage. In October 1989, during the marriage, the business was incorporated, though no stock certificates were ever issued to formalize the corporate structure. The parties agreed the business was worth approximately $622,000 at the time of trial in April 1996. The trial court determined that the incorporation constituted an “acquisition” of the business by the marital community, thereby characterizing it as community property subject to Family Code section 2640 reimbursement. The court allowed Frederick a credit of $337,500 for his separate property contribution but denied him any return on that investment, charging him with approximately $284,000 in community assets when the business was awarded to him.
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