In Re Marriage of Varner

Summary

Husband testified that Varner Construction was worth about zero and Pipeline Specialties was worth negative $300,000, and the unrepresented wife then signed a stipulated division. Her later preliminary appraisal put Varner Construction at $2,000,000 to $2,750,000 and Pipeline at $300,000 to $600,000, and husband's own earlier figures to her first accountant, his loan applications, and his own appraiser all ran higher than his trial testimony. The court held that nondisclosure of the existence or value of a community asset is a mistake ground for setting aside a stipulated judgment under Family Code 2122(e), and it rejected husband's claim that the business was premarital separate property because the only evidence of his premarital assets was an earth mover listed in his prior divorce judgment. Reversed.

What it means for the financial analysis

Compare what the party testified to against his own loan applications, prior representations to the accountant, and any appraisals, because that gap carried this case. A separate property claim for a premarital business needs a documented opening balance and a growth analysis, and a bare assertion that the business predates the marriage did not carry it here. An expert who was forced to rely on the other side's numbers should say so in a declaration and record each document request that went unanswered.

Also available on CourtListener.