Sean is a paralegal who works for Madison. Madison is an attorney who represents clients in family law and divorce matters. Madison is representing Wanda in her divorce from Harry. The court has determined that the total value of Wanda and Harry’s jointly held property is $1,000,000 and that Wanda and Harry should each receive one-half of all jointly held property. In addition, the court has also indicated that Wendy should be awarded the family home because she will have primary custody of their two children. Harry operates a successful insurance agency that is his sole and separate property, but the judge has determined that any increase in the value of the business was not due any contribution or effort of Wanda. Madison provides Sean with the following list of Wanda and Harry’s jointly held property and separate property. She then asks Sean to determine the most equitable distribution of the property. From the answer choices below, what is the most equitable distribution of the property?
Asset Value
House $200,000
Harry’s Insurance Agency $500,000
Investment Portfolio $500,000
Savings Account $225,000
Cadillac SUV $ 25,000
Mercedes Benz $ 25,000
Checking Account $ 25,000
Explanation
Answer: D - Wanda: the house, the savings account, the SUV, the Mercedes Benz, and the checking account. Harry: the investment portfolio and his sole and separate business. Under this division, Wanda’s assets total $500,000-house at $200,000, plus the savings account ($225,000), the two vehicles (totaling $50,000), and the checking account ($25,000). Harry also gets $500,000 because that is the value of the investment portfolio. Answer A is not correct because giving Harry one of the vehicles means he receives a total of $525,000 and Wanda gets $475,000. Answer B is not correct for the same reason Answer A is not correct-the only difference is that Harry and Wanda each get the other vehicle compared to Answer A. Answer C is not correct because Wanda does not get the house, which she must receive.
