Opinion ID: 2557822
Heading Depth: 1
Heading Rank: 2

Heading: process on remand

Text: [¶ 11] On remand, the parties must present any objections to the referee's findings and conclusions to the District Court. On the central issue of the marital or nonmarital nature of the increase in value of James's nonmarital L.L. Bean stock, it will be important for the parties to focus on the particular facts of this case and on how the relevant statutory language applies to those facts. [¶ 12] Louise established that the value of James's nonmarital L.L. Bean stock appreciated in value during the marriage. See Hedges v. Pitcher, 2008 ME 55, ¶ 15, 942 A.2d 1217, 1222. By statute, that increase in value must be considered marital property unless James proves, by a preponderance of the evidence, that the increase in value of that stock resulted either from market forces or from passively reinvested income and capital gains. 19-A M.R.S. § 953(2)(E)(1); Hedges, 2008 ME 55, ¶¶ 16-18, 942 A.2d at 1222-23; Warren v. Warren, 2005 ME 9, ¶ 26, 866 A.2d 97, 103. [¶ 13] Determining whether appreciation is the result of passively reinvested income and capital gains requires an inquiry into whether either spouse had a substantial active role during the marriage in managing, preserving or improving the property, i.e., the stock. [2] 19-A M.R.S. § 953(2)(E)(2)(c). What constitutes substantial active involvement by the spouse will depend upon the type of management, maintenance or improvement customarily associated with the type of property at issue. Hedges, 2008 ME 55, ¶ 26, 942 A.2d at 1224 (quotation marks omitted). Both the statute and our prior decisions treat a spouse's management of a corporation differently from a spouse's management of the stock in that corporation. Compare Warren, 2005 ME 9, ¶¶ 5, 28-33, 866 A.2d at 99, 103-04 (applying 19-A M.R.S. § 953(2)(E)(2)(b)), with Hedges, 2008 ME 55, ¶¶ 28-30, 942 A.2d at 1225-26 (applying 19-A M.R.S. § 953(2)(E)(1)(a)), and Warner v. Warner, 2002 ME 156, ¶¶ 32-35, 807 A.2d 607, 620-21 (discussing a spouse's role in managing particular stock in an investment portfolio). If James cannot prove that the increase in the stock's value was passive, i.e., did not arise in circumstances where he had a substantial active involvement in the management of the stock, the increase in value is a marital asset to be distributed equitably by the court. See Hedges, 2008 ME 55, ¶ 18, 942 A.2d at 1223. [¶ 14] If there are objections presented on remand, the parties, the court, and potentially the referee must carefully address the nature of the property at issue and, if applicable, the nature of the role either party had in managing, preserving or improving that property. 19-A M.R.S. § 953(2)(E)(2)(c). Only after the District Court has had an opportunity to address any objections and has entered a final judgment will we consider an appeal by either party. The entry is: Judgment adopting the referee's report vacated. Remanded for further proceedings consistent with this opinion.