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Vallone v. Vallone

644 S.W.2d 455 (1982)

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Vallone v. Vallone

Texas Supreme Court
644 S.W.2d 455 (1982)

  • Written by Whitney Kamerzel , JD

Facts

Leslie Vallone (plaintiff) and Tony Vallone (defendant) were married. During the marriage, Tony worked for his father’s restaurant. Tony’s father transferred the restaurant’s assets to Tony as a gift, and Tony incorporated the restaurant. Forty-seven percent of the initial capitalization was from Tony’s separate property. The restaurant was successful and increased in value from the time it was incorporated. Upon Leslie and Tony’s divorce, the trial court awarded 47 percent of the restaurant’s value to Tony as his separate property. The trial court did not consider whether the increase in the restaurant’s value was due to uncompensated community time, talent, or labor because there was evidence that Tony’s $200,000 annual salary was used almost entirely to benefit the community estate. Seventy percent of the remaining company stock was awarded to Leslie as her share of community property. However, Leslie’s total share of the community estate’s property was 51.4 percent. Leslie appealed, arguing that the trial court improperly failed to consider the community’s contributions to the restaurant’s increase in value. The court of civil appeals agreed with Leslie and reversed the trial court’s holding. Tony appealed.

Rule of Law

Issue

Holding and Reasoning (Ray, J.)

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