IN RE THE MARRIAGE OF McREATH 800 N.W.2d 399 (2011) CASE BRIEF

IN RE THE MARRIAGE OF McREATH

800 N.W.2d 399 (2011)

NATURE OF THE CASE: Husband (H) challenged a decision that affirmed a circuit court order requiring him to pay appellee wife $796,720 to equalize the property division upon divorce as well as $16,000/month for 20 years in maintenance.

FACTS: H and W were married on August 27, 1988. Three children were born of their marriage. In 1991, H received his dental degree, and in 1993, he received a master's degree in orthodontia. Most of H's dental education was pursued during the marriage. H took out student loans to fund his education, all of which were repaid with marital funds. H worked as an associate at Orthodontic Specialists for two years. H then purchased the Baraboo and Portage locations of Orthodontic Specialists from Dr. Grady. H paid approximately $930,000 for the two locations. H testified that $100,000 was for the physical assets, corporate name, and corporate goodwill. The remaining $830,000 was for the noncompete clause, and the employment agreement that Dr. Grady would stay on to introduce H to his existing patients, [and] to counsel me through the process of learning how to do business.' H has worked as the sole owner and averaged a 60-hour work week. This is significantly more than the average orthodontist who works only 35 hours per week. Recently, H has reduced the number of hours he works to approximately 45 hours per week. H has no plans to sell or dispose of his practice. Annual gross business revenues in the five years leading up to the divorce ranged from $1.6 million to in excess of $1.8 million. H received an average yearly net cash flow from Orthodontic Specialists of $697,522. The family has significant assets and little, if any, personal debt. W is a high school graduate with some college credits, but no college degree. W worked outside the home while H was attending dental school. W worked as a homemaker and the primary caretaker for the couple's children. She was completely out of the workforce from 1993 to 2000. From 2000 to 2008, she performed some financial and clerical duties for Orthodontic Specialists. W was paid $15,000 to $16,000 per year. The circuit court found W has a current earning capacity of $14.50 per hour, or $30,160 annually. W filed a petition for divorce. The court valued Orthodontic Specialists at $1,058,000. H's total assets exceeded W's by $1,593,440. As such, to equalize the property division, the court awarded W $796,720, to be paid at the rate of no less than $80,000 per year plus accrued interest. The court awarded W maintenance in the amount of $16,000 per month for a period of 20 years. H appealed and the court of appeals affirmed. H contends the court erred when it treated his personal goodwill in Orthodontic Specialists as divisible property. H appealed again. H also claims that the court double counted his personal goodwill to get the maintenance amounts.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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