PERLA GRAFF, APPELLANT,
v.
JAY L. GRAFF, APPELLEE

Fla. 1st DCA | 1990-10-25
No. 89-2497
NIMMONS and ALLEN, JJ., concur.
569 So. 2d 811 Florida District Court of Appeal, First District (1990)

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Synopsis

Perla Graff appeals a divorce judgment contesting the trial court's refusal to award her a portion of the appreciated value of the marital home. The appellate court reversed on the home valuation issue, holding that appreciation resulting from marital labor and marital funds must be equitably distributed, even when the home was purchased by the husband before marriage.


Holding

The court held that a portion of the appreciated value of the marital home constitutes a marital asset subject to equitable distribution when the appreciation results from marital labor or expenditure of marital funds or earnings. The trial court's judgment was reversed as to the home valuation issue and remanded for determination of the appreciated value and equitable distribution thereof.


Headnotes

[1] The appreciated value of an asset solely owned by one spouse before marriage may be considered a marital asset subject to equitable distribution if the increased value re…

[2] Improvements made to a home purchased by one spouse before marriage, using marital funds earned during the marriage, are considered to have enhanced the value of the home…

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Key Quotes

“the increased value of an asset solely owned by one spouse before marriage may be determined a marital asset subject to equitable distribution if the increased value was the result of either the work efforts of one or both spouses or the expenditure of marital funds or earnings of the parties”

Establishes the legal standard for when pre-marital property appreciation becomes subject to equitable distribution

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Facts & Procedural History

The husband purchased the marital home prior to marriage for $48,000. Approximately 13 years into the marriage, he deeded the home to both parties as …

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Opinion of the Court
ERVIN, Judge.

ERVIN, Judge.

Perla Graff, the former wife, appeals from a final judgment of dissolution of marriage, arguing that the court erred in refusing to equitably distribute certain assets of the parties. We reverse only as to the issue regarding the failure of the trial court to award the wife a portion of the appreciated value of the marital home caused by inflation or market conditions and certain improvements made on the home during the marriage. We otherwise affirm.

Although we do not fault the trial court’s determination that the marital home was not a marital asset subject to equitable distribution,1 we agree with the wife that the lower court erred in failing to award her a portion of the appreciated value of the marital home. As this court has recognized, the increased value of an asset solely owned by one spouse before marriage may be determined a marital asset subject to equitable distribution if the increased value was the result of either the work efforts of one or both spouses or the expenditure of marital funds or earnings of the parties. Crapps v. Crapps, 501 So. 2d 661, 665 (Fla. 1st DCA), review denied, 511 So. 2d 297 (Fla.1987). Accord Sanders v. Sanders, 492 So. 2d 705 (Fla. 1st DCA 1986).

In the case at bar, the husband testified that he purchased the home prior to the marriage for $48,000, and that the value of the home at the time of the final hearing was approximately $100,000 to $110,000. The wife testified without contradiction that substantial improvements were made upon the marital home, including the construction of a pool and replacement of the roof. Because the improvements to the home were purchased with money the husband earned during the marriage, and mortgage payments on the house were made from the parties’ joint checking account, the improvements and mortgage payments must be considered as having enhanced the value of the home through the marital labor of one or both spouses.

Consequently, a portion of the appreciated value of the marital home and the increased equity therein should be considered a marital asset. Therefore, that portion of the final judgment awarding the wife’s interest in the marital home to the husband must be reversed and the cause remanded to the trial court with directions that it determine the appreciated value of the home, and thereafter make an equitable distribution of such increased value. We find no error in the court’s distribution of the remaining assets to the parties.

AFFIRMED in part, REVERSED in part, and REMANDED for further consistent proceedings.

NIMMONS and ALLEN, JJ., concur. . The husband purchased the home in his own name prior to the marriage, and, approximately 13 years following the marriage, deeded the house and lot to the parties as joint tenants by the entireties for survivorship purposes only.


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