Draskovich v. Draskovich

In a divorce case, the Supreme Court of Nevada was asked to consider whether a law firm, established by one spouse before the marriage and incorporated under a different name during the marriage, constitutes that spouse’s separate property. Robert Draskovich, a practicing criminal lawyer since 1997, married Laurinda Draskovich in 2012, at which point he had a 65% ownership stake in a firm. In 2018, that firm dissolved, and Robert incorporated the Draskovich Law Group (DLG) as his wholly owned corporation.

During their divorce proceedings in 2022, DLG was the primary asset in dispute. The district court concluded that DLG was community property, based on the fact that DLG was incorporated during the marriage. The district court also rejected Laurinda’s request for alimony, in part because it determined that the share of community assets distributed to Laurinda would provide sufficient support through passive income.

Upon appeal, the Supreme Court of Nevada held that the district court erred in determining that the law firm was entirely community property. The court found that the law firm was a continuation of the spouse’s original, separate property law practice, and thus, the presumption of community property does not properly apply. Therefore, the Court reversed the portion of the divorce decree pertaining to the DLG interests and remanded for further proceedings. The Court also vacated the district court’s alimony determination to be reconsidered in light of the changed circumstances surrounding DLG.