In Re Marriage of Sharp

Plaintiff Helen D. Sharp (wife) appeals trial court orders disbursing community assets in this dissolution proceeding. She contends a corporation, jointly owned with James R. Sharp, Jr. (husband), was improperly valued because the trial court deducted a gross sum for income tax consequences where there was no proof of immediate and specific tax liability. The wife also contends the court should have accounted for her capital gains tax liability imposed as a result of an award of stock shares as community property. Finally, she complains of the legal standards used in evaluation of the community business and denial of her attorney fees for this appeal.

Facts

The husband operated a community owned business selling and buying aircraft parts. This business (Sharp and Company) was set up as a “disc” corporation (a domestic international sales corporation). The corporation itself does not pay any income tax. The earnings of the disc corporation are taxed personally to the stockholder when the income is distributed to the shareholder or upon sale of the shareholder’s stock. The trial court in evaluating this business as a community asset took into consideration what the tax…