Niroo v. Niroo

545 A.2d 35 (1988)

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Nature of the Case

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Facts

H and W married in 1977. H began work as an insurance salesman for Pennsylvania Life Insurance Company (Penn Life); pursuant to contract, he received commissions on individual policies sold. In 1980, he became a branch manager and shared in the profits (and the losses) of the company as determined by specific 'office codes,' or blocks of insurance, assigned to agents under him and for whom he was responsible. H was entitled to profits from renewals on policies as well subject to a covenant not to compete, an exclusivity clause, and a required renewal volume. At trial, there was a battle of the experts related to the value of the renewals. The trial judge determined that H's interest in the renewal income constituted marital property. The court found the present discounted profit value of the renewal commissions to be $410,000. H was indebted to the companies in the amount of $267,000. In assessing the proper amount to be awarded to W, the trial judge determined that although the renewal income was marital property, H's $267,000 debt was not marital debt, but instead was to be taken into account as an 'economic circumstance.' The court arrived at a final monetary award of $200,000; in doing so, it considered various statutory factors, including the economic circumstances of the parties. H appealed.