SHIRLEY MAE NEFF, APPELLANT,
v.
JAMES DOYLE NEFF, APPELLEE
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In this landmark marital dissolution case, the Florida appellate court reversed the trial court's allocation of assets in a 24-year marriage where the wife contributed substantially to building a multi-million dollar restaurant business. The court held that a spouse's direct contributions to a family business constitute a special equity or proprietary interest that must be recognized upon dissolution, and remanded for proper equitable distribution under the new standards established in Canakaris v. Canakaris and Duncan v. Duncan.
A spouse who labors directly in a family business is entitled to a special equity or proprietary interest in that business recognizable as a marital asset upon dissolution. Under Canakaris and Duncan, it is no longer necessary to prove that efforts directly produced tangible, measurable profit; the marriage itself may constitute an economic partnership. The trial court's allocation of assets and award of periodic alimony were inadequate and must be reconsidered to recognize the spouse's proprietary interests in the marital estate.
[1] A spouse's direct and indirect contributions to the development of a family business during a marriage are recognized as a special equity in that business upon dissolutio…
[2] Marriage may be considered an economic partnership, entitling each spouse to a fair share of assets accumulated through combined efforts.
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Join FLexlaw to unlock all legal intelligence“It is no longer necessary for a wife to prove, upon dissolution of the marriage, that her efforts directly and specifically produced a tangible, measurable profit or gain. Canakaris confirms the fact that marriage may indeed be a partnership in the economic area and that each partner is entitled to a fair share of the fruits of their combined industry, whether performed in the office, the factory, the fields or the home.”
Establishes the fundamental holding that spouses are entitled to equitable shares of marital assets accumulated through either spouse's efforts without requiring direct proof of specific profit generation.
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Join FLexlaw to unlock all legal intelligenceThe wife devoted 16-18 hour days, seven days a week for many years to help develop the original Foxfire Inn in Lakeland while simultaneously raising t…
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OTT, Judge.
The trial court dissolved the 24-year marriage of the parties, but denied wife’s claim to a special equity in a multimillion dollar family business (the chain of Foxfire/Sea-fox Inns) that she both directly and indirectly assisted in developing. Instead, the court awarded her the husband’s interest in the family home and another parcel of real property as lump sum alimony, and permanent periodic alimony of $800 per month. We have had occasion to remark in several similar cases in recent months that the landmark decisions of our supreme court in Canakaris v. Canakaris, 382 So. 2d 1197 (Fla.1980) and Duncan v. Duncan, 379 So. 2d 949 (Fla.1980) marked the dawn of a new era for a Florida wife who has labored beside her husband in achieving material goals. It is no longer necessary for a wife to prove, upon dissolution of the marriage, that her efforts directly and specifically produced a tangible, measurable profit or gain. Canakaris confirms the fact that marriage may indeed be a partnership in the economic area and that each partner is entitled to a fair share of the fruits of their combined industry, whether performed in the office, the factory, the fields or the home.
If, as often happens, the harvest resulting from mutual efforts winds up in the hands of one partner, the equitable share of the other can be allocated by an award of lump sum alimony.
In some instances, as here, wives labor on two fronts. While tending the home, raising the children, discharging the social and civic obligations of the family and generally performing the myriad tasks sometimes (depending on one’s priorities and viewpoint) termed “supportive of the breadwinner”, the wife may in addition take an active part in the family business. When she does so, Duncan requires that her direct contribution to the commercial enterprise be recognized as a special equity—a proprietary interest—in that business when marital assets are being allocated upon dissolution of the marital partnership.
In the case before us, the wife devoted long and exhausting hours, often 16 to 18 per day, seven days a week for many years to help her husband develop the original Foxfire Inn in Lakeland into the hub of several successful restaurants. She raised three children and often put in a full shift at the restaurant before facing her daily domestic chores when school recessed—only to return later to the restaurant for another four to six hour night shift. Husband, whose brief is long on platitude and short on gratitude, disparages his wife’s contribution to the success of the business by pointing to evidence that she was paid $125 per week, which he asserts was reasonable compensation for a bookkeeper. He fails to mention that (1) her “salary” was paid as a tax gimmick at the recommendation of their accountant, (2) it was used for “grocery money” in the family home, and (3) the lady acted in many capacities other than as bookkeeper for the business.
Husband argues that even if his wife should be deemed entitled to a special equity in the Lakeland Foxfire Inn, that would not warrant an award to her of an interest in any of the other restaurants. That argument ignores the fact that the Lakeland facility, the original and most successful endeavor, was the “golden goose” whose eggs are traceable into the later locations. Of course, such direct tracing is no longer essential to an equitable distribution of marital assets. The Canakaris -approved use of lump sum alimony to achieve that end is now possible.
Wife also attacks the award of permanent periodic alimony of $800 per month, and argues that it is grossly inadequate. She says that this award for 24 years of unstinting effort compares unfavorably with husband’s clothing bills, which he testified might total as much as $15,000 a year but was such a “small item” he couldn’t be more specific. We agree that the award is inadequate as matters now stand, but we cannot predict what amount of periodic alimony, if any, will be necessary after the trial court reconsiders the distribution of marital assets in the light of Canakaris and Duncan. We discern in those cases a philosophy that a partner who has helped build a substantial estate need not and should not be on the dole, no matter how generous it may be. When partnership assets of great value are given into the sole possession of one partner, who is then enjoined to provide life care to the former partner, there is a not-so-subtle implication that the latter is somehow incapable of handling her own affairs. This demeaning aspect of such an arrangement transcends even the more ob viously objectionable features — impermanence, lack of independence and denial of ownership.
Many rules governing marital dissolution confirm the impression that an award of periodic alimony in lieu of an actual, outright grant of interest in assets accumulated during the marriage is a thinly-disguised denial that a proprietary right exists. For example, periodic alimony terminates on death. A wife may have struggled and toiled 40 years to help her husband make a fortune, but she has nothing to call her own or leave to her heirs. And if someone else will but obligate himself to support a divorced woman, her former husband is scot-free — with all the assets she helped him accumulate.
We believe that Canakaris and Duncan provide a more equitable and a more dignified solution to situations such as the one before us. The court below has had no opportunity to consider the true equities here in the light of those cases, or to allocate the marital properties in such manner as to recognize and protect those equities. This case must be remanded for that purpose.
The judgment of the trial court is reversed insofar as it pertains to the allocation and distribution of the marital assets, lump sum alimony and periodic alimony. In doing so, the court will be able to take into consideration (1) any recent change in the status or profitability of the various restaurants, and (2) the propriety of husband’s purported gifts of substantial marital assets to the children of the parties.1 This will permit both parties to explore husband’s claim that his fortunes have been on the wane ever since this action was filed, and particularly since the judgment was entered.
In all other respects the judgment is affirmed.
SCHEB, C. J., and DANAHY, J., concur. . In fairness to Mrs. Neff, it should be made clear that she has in no way begrudged any gift her husband has made of his property to the children. Her point, with which we cannot disagree, is simply that if her property is to be given to the children, she would like to do it herself, in her own way and in her own time.
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Citator
Cited By (15 total)
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Villaverde v. Villaverde, 547 So. 2d 185 (Fla. 3d DCA 1989)…o include the increase in value of the husband’s medical practice during the marriage as a marital asset. This was error. Turner v. Turner, 529 So. 2d 1138 (Fla. 1st DCA 1988); Carr v. Carr, 522 So. 2d 880 (Fla. 1st DCA 1988); see also Neff v. Neff, 386 So. 2d 318 (Fla. 2d DCA 1980). The practical result of the trial court’s omission and the court’s other valuations resulted in the husband receiving approximately 85% of the assets.2 In our view, the trial court’s division of assets is clearly inequitable. We…
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Tommaney v. Willa Brown Tommaney, 405 So. 2d 454 (Fla. 2d DCA 1981)…enerated by a working spouse while the other spouse performed normal household and child-rearing responsibilities. Ball v. Ball; accord Fiedler v. Fiedler, 375 So. 2d 1119 (Fla.2d DCA 1979). Following the lead of Duncan, this court in Neff v. Neff, 386 So. 2d 318 (Fla.2d DCA 1980), recognized that a wife who has taken an active part in the family business might, in the proper circumstances, be entitled to a special equity in that business when the marital assets are allocated upon the dissolution of the mari…
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Priede v. Priede, 474 So. 2d 296 (Fla. 2d DCA 1985)…es the need and the husband has the ability to pay, he is obligated to support her at a standard reasonably commensurate with that established by him during their marriage.” See Jennings v. Jennings, 464 So. 2d 1359 (Fla. 3d DCA 1985); Neff v. Neff, 386 So. 2d 318 (Fla. 2d DCA 1980). See also Colucci v. Colucci, 392 So. 2d 577 (Fla. 3d DCA 1980); Lutgert v. Lutgert, 362 So. 2d 58 (Fla. 2d DCA 1978). Here the evidence indicates that the husband’s salary is over three times as great as the wife’s projected sala…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Canakaris v. Canakaris, 382 So. 2d 1197 (Fla. 1980)
- Duncan v. Duncan, 379 So. 2d 949 (Fla. 1980)