Opinion ID: 1191457
Heading Depth: 1
Heading Rank: 4

Heading: purchase of fallon ranch

Text: In 1982 the parties agreed to purchase a ranch in Fallon, Nevada. It was agreed that the down payment of $100,452.90 would be made from equal contributions of separate property funds by each of the parties. Wilma Hybarger withdrew $50,226.45 from an account containing her separate property funds. David Hybarger withdrew $50,226.45 from his capital account in Hybarger and Son Drywall. The ranch was purchased as a community property asset. Wilma subsequently argued that, since the amount of David's contribution to the purchase of the ranch was community property, she was entitled to a 75% interest in the ranch. The trial court found (and David has maintained) that the money withdrawn from Hybarger and Son Drywall for the purchase of the ranch was David's separate property, in accordance with the agreement and understanding of the parties. The court did not err in making this initial determination, and therefore did not err in finding Wilma's interest in the ranch to be 50%. However, having determined that David withdrew over fifty thousand dollars in separate property from Hybarger and Son Drywall, the court did commit error in failing to reduce the amount of David's remaining separate property interest in the business by the amount withdrawn as separate funds. For purposes of determining David's separate property interest in Hybarger and Son Drywall under Pereira, it is necessary to subtract from the value of the separate property investment the amount of separate property withdrawn. [3] Thus, the Pereira calculations should be adjusted by the trial court by subtracting from David's separate property interest the sum of $50,226.45 in the year 1982. [4]