Klug

Donald Klug (Donald) appeals from a postjudgment order denying his motion for division of a community asset omitted from the marital termination agreement (MTA)—specifically, the $346,000 awarded to respondent Lynn Klug (Lynn) in settlement of her legal malpractice lawsuit against the couple’s former attorney. Donald contends the court erred in ruling that the settlement proceeds were Lynn’s separate property. He argues that the malpractice cause of action accrued during the marriage and the settlement proceeds were a community asset.

The trial court ruled that the $346,000 settlement was Lynn’s separate property and not subject to division as an omitted asset because “the cause of action for the malpractice case against Mr. Christensen accrued after separation.” (Italics added.) A trial court decision will be upheld even where it is based on an incorrect rule of law, as long as a sound basis for the decision exists. “ ‘In short, we will affirm a judgment or order if it is correct on any theory of law applicable to the case, even if it is right for the wrong reasons.’ [Citation.]” (Conservatorship of Davidson (2003) 113 Cal.App.4th 1035, 1056 [ 6 Cal.Rptr.3d 702 ]; see…