Colburn v. Colburn

290 A.2d 480 (1972)

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Nature of the Case

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Facts

While H and W were still cohabiting, W became dissatisfied with H's management of their properties which they held as tenants by the entireties, alleging that he collected the proceeds from them without informing her of their disposition. On November 17, 1969, while still living with H, W filed a bill of complaint for an accounting and the appointment of a receiver. The chancellor filed a decree appointing Edward F. Mullen, C.P.A., as a special auditor of the court and directing him to state an account of all sums collected by each of the parties from: (1) rents collected from jointly held properties; (2) payments upon jointly held mortgages; (3) monies on deposit in the joint names of the parties in all savings and checking accounts; (4) jointly owned stocks, bonds and securities; and, (5) securities held by either party as trustee for the other. The chancellor, awarded a judgment of $5,907.55 in W's favor, and additionally, ordered H to deposit $1,380.56 in a joint account subject to the joint withdrawal order of H and W or the order of the court; to deposit in the joint account the future payments on three jointly held mortgages; and, to pay W one-half of the rental payments received from their jointly held properties. On appeal, the case was remanded for further proceedings, because an accounting was not property until W left the marital domicile on 14 January 1970. Memoranda of law were submitted by both parties addressed to the specific issues of: (1) whether or not W was entitled to one-half of the rental payments made on one of the jointly owned properties which was being used by H, a contractor, as a place of business for his corporation; (2) whether or not H should be allowed a deduction for taxes and insurance premiums expended on the couple's home which he exclusively occupied and for which he paid no rental; (3) whether or not H should be allowed a deduction for repairs and improvements made to four jointly owned rental properties; and, (4) whether or not W was entitled to one-half of the monies placed in both parties' names in checking and savings accounts. The chancellor found in favor of W on the first three points and in favor of H on the fourth point. The decree awarded W the sum of $5,440.89, representing the amount found to be due for her share of the income from rents and interest payments on mortgages; ordered that the sum of $3,201.12, representing principal payments on mortgages, remain on deposit in a joint account subject to the joint withdrawal order of both H and W or the order of the court; and, made provisions for future payments of proceeds from the jointly held properties to W. H appealed.