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Marriage of Czapar
Court of Appeal of California
232 Cal. App. 3d 1308, 285 Cal. Rptr. 479 (1991)
William (plaintiff) and Phyllis Czapar (defendant) were married when, together, they started a plastic extruding company called Anaheim Custom Extruders (ACE). In 1984, William filed for divorce. In the course of the divorce proceedings, William and Phyllis agreed that ACE was community property but disagreed as to the value of ACE. The trial court awarded ownership of ACE to William and calculated the cash value of the business as $494,058, based upon a market value of $644,058 but less the amount of $150,000. This $150,000 was the value assigned by the trial court to a theoretical covenant not to compete that William would likely have been required to enter into should he have sold ACE for its cash value. No evidence was provided that William planned to sell ACE for any purpose in the foreseeable future. Phyllis appealed the trial court's ruling.
Rule of Law
Holding and Reasoning (Wallin, J.)
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