Rogan

This appeal involves estate taxes in the amount of $10,585.32, and is taken from the judgment of the District Court reported in 37 F.Supp. 7 , in favor of the taxpayer.

The facts are not disputed. Elmer W. Riggle and Rose G. Riggle were married on May 4, 1905. They lived together as-husband and wife in the State of California from the date of their marriage until the date of their separation shortly before April 1, 1928, at which date the wife acquired a residence in Nevada and obtained a divorce in that State on the 13th day of July following. The husband continued to reside in California.

On April 23, 1928, in contemplation of the divorce, the parties entered into an agreement each with the other as to their community property, which had been acquired prior to 1927, and which included 4,451 shares of stock of the Southern California Drilling Company valued in the property agreement in the sum of $222,650.

Under the terms of the agreement, the wife received certain real and personal property, and she assigned to the husband all of her right, title and interest in certain other real property and also in the 4,451 shares of Southern California Drilling Company stock. The husband…