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respectively. The principal issue is whether, following an
agreement between husband and wife incorporated in a divorce
decree, the gain on the subsequent sale of certain stock
theretofore owned by the husband is to be attributed solely to
him or only that portion awarded to him by the divorce decree.
We hold that, in the circumstances of this case, he is chargeable
only with that portion.
Eugene K. and Nicole Friscone, petitioners, resided in
Strongsville, Ohio, at the time their petition in this case was
filed. Prior to his marriage to Nicole, Eugene (hereinafter
sometimes referred to as petitioner) was married to Linda
Friscone. On November 17, 1988, Eugene and Linda Friscone
entered into an Agreed Judgment Entry of Divorce. Eugene was the
plaintiff in the divorce proceedings. The defendant Linda filed
a counterclaim, and the plaintiff withdrew his complaint. The
litigation proceeded with Linda as the moving party,
notwithstanding that she continued to be referred to as the
defendant and Eugene as the plaintiff.
Both husband and wife were represented by counsel, and the
parties entered into an in-court agreement that was adopted by
the court and set forth in the divorce decree. The divorce
decree found that the "principal remaining assets of the
marriage" consisted of the husband's 50-percent interest in
Maintenance Unlimited, Inc. (MUI), evidenced by his ownership of
150 shares of its stock, and a 25-percent interest in two car
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