Marriage of Harrington

Judith (plaintiff) and Ronald Harrington (defendant), during their marital dissolution, sold the family residence for a $480,000 profit and split the proceeds equally; Ronald then bought a replacement home for $251,520 within two years, postponing his own capital-gains tax on his share under existing tax rules, while Judith bought a $120,000 condominium plus $5,000 in improvements, postponing tax on that $120,000 portion but incurring $52,000 in capital-gains tax on her remaining $115,000 profit. Judith sought a court order requiring Ronald to pay half her $52,000 tax bill; conflicting evidence existed on whether the couple had actually agreed to split tax liabilities equally, but the trial court found such an agreement existed and, alternatively, held the parties should bear the tax burdens equally regardless. Judith appealed.