Marriage of Harvey CA5

INTRODUCTION

This is an appeal and cross-appeal from a July 23, 2018 judgment of the Stanislaus County Superior Court. Appellant Michael S. Harvey and appellant Cynthia M. Harvey1 married in 1988. Three years later, Michael founded and incorporated Enviro Tech Chemical Services, Inc. (Enviro Tech), a chemical manufacturing company. By 2010, the Harveys jointly owned 825 shares in Enviro Tech, amounting to nearly 70 percent of the outstanding common stock. On March 14, 2011, they signed a “SHAREHOLDER BUY-SELL AGREEMENT” (Agreement), which included provisions relating to a “Sale on Marital Dissolution or Separation of Shareholder.” The Harveys separated on October 23, 2011. Thereafter, Michael purchased additional Enviro Tech shares from other stockholders. He also petitioned for dissolution of marriage. Pursuant to Family Code section 2337, the superior court bifurcated the issue of marital status. In May 2015, the Harveys’ marriage was terminated. In a “FINAL JUDGMENT ON RESERVED ISSUES” filed on July 23, 2018, the court concluded that the fair market value of Cynthia’s one-half interest in the jointly owned Enviro Tech shares was $21,332,000 as of December 31, 2017; awarded…