## Facts

- Dean Brandenburg (wife) and Herman Jean Brandenburg (husband) litigated property classification in a dissolution action.
- Three parcels were disputed: a duplex at 134–136 Ilhardt Avenue (Nicholasville), a duplex on Glen Cove (Nicholasville), and a residence with a rental apartment at 403 Bellevue (Wilmore).
- The husband owned legal title to all three properties before the marriage (July 18, 1970).
- During the marriage, mortgage payments on each property were made using marital funds, reducing principal and increasing equity.
- The trial court classified each parcel as wholly nonmarital because the husband owned them before marriage.
- The wife argued each property was partly marital to the extent marital funds increased equity.

## Issues

1. Whether real property owned by one spouse before marriage remains entirely nonmarital when marital funds during the marriage reduce mortgage principal and increase equity.
2. Whether the trial court must allocate mixed (marital and nonmarital) interests in such property by a proportional contribution method.

## Decision

- The Kentucky Court of Appeals held the trial court erred in classifying the properties as wholly nonmarital.
- The court ruled the properties were hybrid, requiring recognition of both nonmarital and marital components.
- The court reversed and remanded for recalculation and reallocation of interests using a contribution-based apportionment formula.

## Legal Principles

- Premarital ownership establishes a nonmarital interest, but equity added during marriage through marital contributions is marital property subject to division.
- When marital and nonmarital contributions both exist, interests must be apportioned in proportion to each estate’s contribution to total equity.
- Definitions for apportionment:
  - Nonmarital contribution (nmc): equity at marriage plus post-marriage reductions of principal and improvements funded by traceable nonmarital funds.
  - Marital contribution (mc): post-marriage reductions of principal and improvements funded by other than nonmarital funds.
  - Total contribution (tc): nmc + mc.
  - Equity at distribution (e): equity at dissolution (or traceable sale proceeds if sold earlier).
- Allocation formulas:
  - Nonmarital portion: (nmc / tc) × e.
  - Marital portion: (mc / tc) × e.
- Trial courts must determine the relevant equity and contribution figures for each property and then apply proportional allocation before distributing the marital portion under equitable distribution rules.

## Conclusion

The court required proportional allocation of equity in premarital real estate when marital funds reduce debt or pay for improvements, reversing an all-or-nothing nonmarital classification and remanding for division under a contribution-based formula.


Brandenburg v. Brandenburg, 617 S.W.2d 871 (Ky. Ct. App. 1981)