Wolfe v. Wolfe

Douglas (plaintiff) held an interest in a family trust set up by his grandfather decades before his marriage to Gillian (defendant), managed throughout by his father and financial advisors, with only reinvested trust earnings (no salary) flowing into it. Gillian gave up her nursing career to run the family farm and manage Douglas's later medical practice without drawing a salary, partly for tax reasons; the couple made joint decisions, like forgoing life insurance, based on the trust's eventual availability to the family. Upon divorce after 30 years, their non-trust assets totaled $5 million and the trust had grown to $10.3 million; the trial court awarded Gillian $2.6 million plus alimony and Douglas $2.6 million plus the entire trust as separate property, and Gillian appealed.

Whether appreciation of separate assets during marriage remains separate property if neither spouse contributed to or managed the assets, but equitable considerations may justify a compensating distribution of marital property.