Marriage Of Brigde

80 Cal.App.3d 380, 145 Cal. Rptr. 716 (1978)

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Nature of the Case

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Facts

H and W were married June 17, 1953. Nineteen and a half years later, on December 2, 1972, they separated. The separation was permanent, and on November 10, 1976, the judgment of dissolution of marriage under appeal was granted. In 1961, H was one of eight persons who formed a company named Logicon, Inc. Logicon has never lost money. It was founded with about $1,000 total capital and has 'generally' grown 'about 40 percent a year.' Annual revenues at the time of trial had 'grown to about 30 some million.' H has been on the board of directors of Logicon during its entire existence. He also is senior vice president of Logicon. H and W acquired 66,304 shares of Logicon stock, which constitutes 7.6 percent of the 872,180 total shares outstanding. These shares represent a useful power base in the company. The community-owned shares have always been voted in favor of H's election to the board of directors of Logicon. Logicon stock is now traded on the American Stock Exchange. Its value on March 1, 1978, was $13.75 per share. The highest value over the 52 weeks prior to that date was $17.625 per share. Its lowest value over the 52 weeks prior to that date was $9 per share. As of the time of trial, Logicon had never declared a dividend on its shares. W wanted her one-half of the Logicon stock. H requested that all the stock be awarded to him in that the stock gives him a power base. There were insufficient community assets to offset the value of the award of the entire block of stock to H. Husband did not have the ability to compensate W, by access to his separate property or other sources of funding, for the award to him of her interest in the stock. W's equal interest in the stock, was awarded to H subject to conditions on a schedule: The schedule provides for (1) disposition of 500 shares on or before December 31, 1976; (2) disposition of 1,500 shares on or before December 31, 1977; (3) disposition of 1,500 shares on or before December 31, 1978; (4) disposition of 1,500 shares on or before December 31, 1979; and (5) disposition of the remaining 28,152 shares on or before December 31, 1980. H was to pay at least $ 4 for each share of stock or, if he releases any shares to W when the average market price is less than $ 4 per share, he must make up the difference between $4 and the average market price. The judgment gives W no security for her interest in the stock. H and W appealed.