Marriage of Harvey CA5

BACKGROUND

Michael and Cynthia married in 1988. Three years later, Michael founded Enviro Tech Chemical Services, Inc. (Enviro Tech), a chemical manufacturing company. By 2010, Michael and Cynthia jointly owned 825 shares in Enviro Tech, amounting to nearly 70 percent of the outstanding common stock. Michael and Cynthia separated in October 2011. Michael petitioned for dissolution of marriage on November 10, 2011. In a “STIPULATION AND ORDER RE TEMPORARY ORDERS” filed March 13, 2012, the parties agreed that Michael would pay Cynthia temporary spousal support. The relevant provision states:

“Spousal Support: [Michael] shall pay to [Cynthia] the sum of $[19,000] per month spousal support payable on the first (1 st) day of each and every month commencing April 1, 2012, and continuing thereafter until further order of the Court. The Court reserves jurisdiction over retroactivity of spousal support. The Court reserves jurisdiction over the potential issue of [Michael]’s reduction in salary and its effect on spousal support, if any.” In a “FINAL JUDGMENT ON RESERVED ISSUES” filed July 23, 2018, the superior court concluded that the fair market value of Cynthia’s interest in the…