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and balanced the bank statements and wrote checks on the checking
account (the joint checking account) to pay routine household
bills.
Barbara managed her retirement savings. During the audit
years, she and David were both partners in a partnership,
Continental South Apartments. In 1980, Barbara recommended to
David that they sell an apartment house they owned because
Barbara thought they were not making money on the investment.
David followed her recommendation, and they sold the apartment
house in the same year. Neither David nor Barbara made any
attempt to deceive the other with regard to his or her respective
financial affairs. Barbara participated in financial matters
with David, who valued her advice and participation.
Vulcan
Vulcan was a limited partnership formed to invest in
technology for the recovery of oil and gas. David invested in
Vulcan on October 2, 1981. On that date, he signed the “Vulcan
Oil Technology Partners Subscription Agreement” (the subscription
agreement), and he delivered to the promoters of Vulcan a check
in the amount of $18,750 and two promissory notes in like
amounts, which notes he subsequently paid, also by check. All
three checks were drawn on the joint checking account. Because
she routinely balanced the checkbook, Barbara saw the checks when
they cleared.
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Last modified: May 25, 2011