Lynam v. Gallagher, 526 A.2d 878 (Del. 1987)

Facts

The parties married in 1959 separated in 1983 and divorced in 1984.  Husband had received shares of stock prior to the marriage.  While they were still married, WTC issued two, 100%, stock dividends, and one stock dividend after the divorce.

Procedural History

Husband and wife disagreed over whether stock held prior to marriage and dividends occurring during marriage were marital property.  The Family Court adopted wife’s argument and found the dividends were marital property but the shares held prior to marriage were husband’s.

Issue(s)

Did the trial court err in finding the dividends occurring during the marriage were marital property?

Holding(s)

Yes.

Reasoning/Analysis

The Court found that the three 100% dividends received on the shares held prior to marriage were an increase in property and excluded from marital property.  The husband did not receive any property of value and had WTC not declared any dividends, the price of the shares would have been approximately eight times their value.  Stock certificates are mere evidence of property.

Judgment/Outcome

The Court affirmed in part, reversed in part, and remanded.