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Counting Chickens When You Divorce
Jan L. Warner & Jan Collins
Question: My husband and I had been married for 18 years when I left him because of ongoing physical abuse. We have two children in school. He inherited 60 acres of land when his father died during our marriage. He has no brothers or sisters.
He and his father used to be farmers, but just before we married, they started raising chickens and turkeys that they sold to large processors. We lived on the family land in a house built during our marriage, and I worked without pay in the business keeping the books for 12 years. My husband now claims that all of his chickens and turkeys -- and the business -- are not marital property because he owned chickens and turkeys before we were married. Ditto for the land and house.
He sells hundreds of thousands of chickens and turkeys every year, and only wants to pay me support, but not divide the property. He pays the geneticist who helps him produce more chickens and turkeys more than he wants to pay me. My lawyer has told me that I may get a small property division if we settle, but I don’t think that is fair and refuse to settle for next to nothing.
Answer: We can’t say that we blame you. Based on our research, the amount of poultry eaten by Americans has increased four-fold since 1950, and the “poultry industry” has grown exponentially. In some states, poultry is the largest agricultural crop. Leading universities now offer majors in “poultry science,” including geneticists who direct the breeding programs and hatchery management professionals.
First of all, we don’t think any judge will buy the story that your husband’s “premarital turkeys and chickens” – long ago in someone’s pot pie – are perpetually premarital, and that somehow, their replacements are components of an unending premarital line.
Second of all, the “poultry crop” being raised at the time of separation is an asset until sold, at which time it becomes taxable income. This is a very complicated area that depends, to a large extent, on whether the business uses the cash or accrual method of accounting. Either way, you need a good certified public accountant to help you.
Third, based on your side of the story, it appears that you have made substantial contributions to the growth of the business that may entitle you to a share depending on the law of your state of residence. Likewise, building a residence for the family during the marriage on inherited land, but using marital income, should give you a leg up in making your claims for property division.
Bottom Line: While we certainly don’t know all of the facts and don’t give legal advice, the totality of circumstances as explained by you fly in the face of your lawyer’s advice to settle. We suggest that you hire a good certified public accountant to review the company books and tally up your contributions, get the assets appraised, and don’t consider a settlement for chicken feed until you have all of the information in front of you.
SoloFact: An old axiom tells us to always keep our spouses and bookkeepers happy, but a lawyer from Campbell, California, who advertises himself as "Mr. Divorce" did not follow this sage advice. Mr. Divorce was convicted in federal court on tax evasion charges based on information given by his former wife about her husband’s tax schemes.
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