Marriage of Finby
California Court of Appeal
166 Cal. Rptr. 3d 305 (2013)
Rhonda Finby, a financial advisor for UBS Financial Services during her marriage to Mark Finby, built a book of business generating over $1.8 million in fees and commissions for UBS in 2008 from clients who had invested over $192 million with her; in 2009, she agreed to move to Wachovia Securities, which paid her a transitional bonus over $2.8 million for bringing her book of business, contingent on hitting minimum earnings targets and remaining with the firm for ten years. Mark and Rhonda separated in 2010, and Mark claimed a property interest in her book of business and transfer bonus; the trial court ruled Rhonda's book of business had no value and Mark had no interest in it. Mark appealed.
Whether the goodwill of a spouse's business created during marriage constitutes community property.