Nebraska appeals court affirms separate-property ruling after business valuation remand

Following a prior appeal, the district court reconsidered evidence including previously excluded business tax returns and concluded that the husband’s premarital business had not been shown to increase in value during the marriage. The Court of Appeals affirmed. It explained that the party seeking to share appreciation bears the burden of proving it and that values at marriage and separation must be established to determine appreciation in a business. The court found the returns in this record did not establish those values and did not adequately establish business value through a comparison of total assets. Because appreciation was not proved, the court did not need to decide whether it was active or passive. The decision turns on this record and does not mean tax returns can never be relevant to valuation.