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Schulman v. Schulman

92 Nev. 707, 558 P.2d 525 (1976)

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Schulman v. Schulman

Nevada Supreme Court
92 Nev. 707, 558 P.2d 525 (1976)

  • Written by Liz Nakamura, JD

Facts

Mary Ann Schulman (plaintiff) and Albert Schulman (defendant) married in 1968. Approximately 40 years before the marriage, Albert had started Schulman Meats and Provisions (SMP), a retail and wholesale meat business. SMP was incorporated in 1972, and Albert became the sole shareholder. Shortly after, Albert took out a $440,000 loan from the Small Business Administration (SBA) to expand SMP. Mary Ann filed for divorce in 1973 and sought one-half of SMP’s stock. The hearing master determined that SMP had increased in value from $28,000 to $600,000 during the marriage and that the increase in value was due primarily to Albert’s community labor. The hearing master, applying the Pereira approach, allocated a fair return on investment to Albert and allocated the remainder of SMP’s increased value to the community. The district court rejected the hearing master’s allocation and instead applied the Van Camp approach, holding that SMP’s increase in value was due primarily to the SBA loan. The district court allocated a reasonable salary for Albert’s services to the community, less any community expenses paid using SMP funds, and then allocated the remainder of the increased value to Albert. Mary Ann appealed, arguing that using the Van Camp approach did not achieve substantial justice.

Rule of Law

Issue

Holding and Reasoning (Mowbray, J.)

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