Opinion ID: 1197842
Heading Depth: 3
Heading Rank: 1

Heading: Dean Witter Stock

Text: At the time Fran and Steve separated, they had an investment account with Dean Witter which contained stocks worth approximately $23,700. The money used to purchase these stocks originated from the estate of Fran's mother who died in 1988. According to her mother's written will, Jim Carey (Jim), Fran's brother, was to receive a majority of the property in the estate. However, Jim testified that after the will was written his mother requested that the property be divided equally between Fran and himself. In accordance with these wishes, after the estate had been distributed, he decided to transfer some of the property he had received to Fran. To avoid federal gift taxes, Jim sent separate checks of $10,000 to Fran, $10,000 to Steve, and $3,500 to Christina. The money was first placed in separate individual accounts. It was eventually combined into a joint account with Dean Witter, bearing both Fran's and Steve's names, and stocks were purchased. It is the ownership of these stocks which is now at issue. In its oral findings, the superior court held that the stocks were marital property. It based this conclusion on the fact that the stock was purchased from a joint account, that the money used to purchase the stocks was initially given to Fran and Steve as individuals, and because it was Steve who was primarily responsible for managing the investment account. The superior court's determination that the parties intended to treat the stock as a marital asset was not clearly erroneous, and therefore the decision that it was available for distribution was not an abuse of discretion. We agree with Fran that none of the factors discussed by the superior court mandate a finding that the stock was treated as marital property by the parties. However, viewing the factors cumulatively, it was not unreasonable for the superior court to reach such a conclusion. In Julsen v. Julsen, 741 P.2d 642, 646-47 (Alaska 1987), we noted that the fact that stocks inherited by one of the parties during the marriage were held in a joint account was not dispositive in determining whether they were marital property. Nonetheless, the fact that property is held jointly may be used as evidence of intent. Similarly, we stated in McDaniel v. McDaniel, 829 P.2d 303, 306 (Alaska 1992), that [p]articipation... in the management and maintenance of ... property will not automatically transform pre-marital into marital property. Rather, the participation must be significant and evidence an intent to operate jointly. In this case, although the number of stock transactions was small, [4] the superior court could have considered evidence that Steve managed the stock account as tending to show the parties' intent. [5] Further, the superior court relied on the fact that $10,000 was initially given to Steve individually. Fran and Jim testified that their intent was solely to gain a tax advantage. However, such an intent is not inconsistent with joint ownership  because neither Jim nor Fran foresaw divorce, both may have viewed the gift to Steve as a way to gain the tax benefit while benefitting Fran by giving a gift to the Davilas as a couple. Therefore we hold that in light of the various indicia of joint ownership the superior court's finding that the Davilas treated the stock in the Dean Witter account as a marital asset is not clearly erroneous.