Gudelj v. Gudelj

259 P.2d 656 (1953)

Facts

H and W were married in 1938. Prior to that time, H was owner and operator of the Pacific Avenue Cleaners. He continued this business until 1943. In 1946, after his discharge from military service, he operated the Owl Cleaners in partnership with one Grinton. They dissolved the partnership in the following year, and H purchased a one-fourth interest in the Helene French Cleaners where he began to work as a 'benzine man.' The interest in Helene was purchased for $ 11,500. H paid $1,500 of that amount in cash and executed a note for $10,000. The trial court found that the cash payment was made from H's separate funds and concluded that the entire partnership interest is his separate property. No findings were made with respect to the loan. H testified that the downpayment money came from the Owl Cleaners and, although he further stated that the equipment and fixtures of the business had been sold at a loss, apparently at least $ 1,500 was obtained from that source. W claims that the Owl Cleaners must be presumed to have been community property because the business was acquired during the existence of the marriage. The trial court held the interest in Helene French Cleaners was separate property. W appealed.