# Divorce Financial Impact Summary

| | |
|---|---|
| **Prepared for** | Attorney Review |
| **Date** | January 27, 2026 |
| **Marriage Date** | December 28, 2021 |
| **Proposed Divorce Date** | January 29, 2026 |
| **Duration** | 4 years, 1 month |

---

## Prenuptial Agreement Key Provisions

The parties executed a prenuptial agreement prior to marriage. The following provisions govern property division:

| Section | Provision |
|---------|-----------|
| **8a** | Property acquired during marriage shall be divided equally (50/50), except appreciation of pre-marital assets |
| **8b** | Homestead appreciation divided proportionate to contributions (monetary + in-kind) |
| **8c** | Pre-marital assets remain separate property, including appreciation, income, and reinvestment |
| **8d** | Joint accounts divided equally |
| **9** | Spousal support/alimony waived by both parties |

---

## Eric's Pre-Marital Assets (Exhibit A - December 2021)

Per the signed prenuptial agreement Exhibit A:

| Asset | Value at Marriage |
|-------|-------------------|
| Real Estate - 3736 NE Everett St, Camas, WA | $410,000 (mortgage: $243,110) |
| Real Estate - 2319 SE Ankeny St, Portland, OR | $720,000 (mortgage: $500,972) |
| Vehicles | $10,000 |
| Cryptocurrency (Solana) | $124,458 |
| Chubby Bunny Loan Receivable | $75,000 |
| Kelli Personal Loan Receivable | $20,000 |
| Brokerage (Etrade/Spotify stock) | $4,259 |
| Checking (First Tech) | $34,199 |
| IRA (Betterment) | $8,285 |
| 401k (Vanguard) | $129,849 |
| **Net Worth** | **$764,270** |

## Kelli's Pre-Marital Assets (Exhibit B - December 2021)

| Asset | Value at Marriage |
|-------|-------------------|
| Checking (Wells Fargo) | $25,000 |
| **Net Worth** | **$25,000** |

---

## Current Asset Summary (January 2026)

### Eric's Separate Property (Section 8c - No Division)

| Asset | Current Value | Basis |
|-------|---------------|-------|
| UBS Rollover IRA | $260,276.43 | Pre-marital 401k (Vanguard → UBS) |
| **UBS Brokerage** | **$246,011.81** | **Pre-marital Spotify stock grants (see below)** |
| First Tech Checking | $9,291.51 | Pre-marital account |
| First Tech Savings | $311.31 | Pre-marital account |
| Coinbase Cash | $75.85 | Pre-marital crypto (Solana sold) |
| Vehicles | $10,000 | Pre-marital |
| 2619 56th St S, Gulfport, FL - Equity | $52,069.49 | Down payment traced from pre-marital property sale (see below) |
| Chubby Bunny Loan Receivable | $75,000 | Pre-marital - confirmed outstanding |
| **Total Separate Property** | **$653,036.40** | |

### Joint/Marital Property (Sections 8a & 8d - 50/50 Division)

| Asset | Total Value | Eric's Share | Kelli's Share |
|-------|-------------|--------------|---------------|
| Chase Joint Checking (...1267) | $6,951.12 | $3,475.56 | $3,475.56 |
| ADP 401k (new employer, acquired during marriage) | $26,646.91 | $13,323.46 | $13,323.46 |
| **Total Joint Property** | **$33,598.03** | **$16,799.02** | **$16,799.02** |

---

## Real Estate Transactions During Marriage

### 2319 SE Ankeny St, Portland, OR (Pre-Marital - SOLD)

| Item | Value |
|------|-------|
| Sale Date | February 3, 2022 |
| Sale Price | $760,000 |
| Prenup Baseline | $720,000 |
| Appreciation | $40,000 |
| Net Proceeds | $206,146.10 |

**Classification**: Pre-marital asset per Section 8c. All proceeds (including appreciation) are Eric's separate property. Proceeds were deposited to First Tech Credit Union on February 7, 2022.

### 3736 NE Everett St, Camas, WA (Homestead - SOLD)

| Item | Value |
|------|-------|
| Sale Date | July 3, 2023 |
| Sale Price | $410,000 |
| Prenup Baseline | $410,000 |
| Appreciation | $0 |
| Net Proceeds | $166,961.43 |

**Classification**: This was the marital homestead per Section 8b. However, since there was zero appreciation, Kelli's proportionate share of appreciation is $0.

### 2619 56th St S, Gulfport, FL (Acquired During Marriage)

| Item | Value |
|------|-------|
| Purchase Date | July 2022 |
| Original Mortgage | $551,200 |
| Current Mortgage Balance | $521,030.51 |
| Estimated Market Value | $573,100 (Zillow) |
| Current Equity | $52,069.49 |

**Down Payment Tracing**: Bank statements confirm the down payment was funded by proceeds from the Ankeny property sale:
- Feb 7, 2022: Wire deposit from First American Title ($197,553.53) into First Tech
- Jul 12, 2022: Wire withdrawal to Fidelity National Title of Florida for 2619 purchase

Per Section 8c, pre-marital assets remain separate property "including reinvestment." Since the down payment was traced from pre-marital property sale proceeds, and current equity ($52,069.49) is less than the original down payment, 100% of the equity is Eric's separate property.

**Kelli's share of 2619 56th St S: $0**

---

## Spotify Stock Options Analysis

Eric held multiple Spotify stock option grants. **ALL grants were awarded BEFORE the December 28, 2021 marriage.**

| Grant Date | Grant # | Type | Classification |
|------------|---------|------|----------------|
| 01/01/2010 | 5230 | ISO | **Pre-marital** |
| 12/01/2016 | NQ7955 | NQ | **Pre-marital** |
| 03/01/2019 | NQ5293 | RSU | **Pre-marital** |
| Pre-2021 | MM006808 | NQ | **Pre-marital** |

### Critical Distinction: Grant Date vs. Vesting Date

The 1099-B tax documents show "Date Acquired" which is the **vesting date** (when shares became Eric's property), NOT the **grant date** (when Spotify awarded the options). Per Section 8c, the **grant date** determines classification.

**Evidence that ALL grants were pre-marital:**
- 2016 Spotify USA Benefits Summary confirms Eric's employment at Spotify in 2016
- Spotify Share Register (Folio 1780) shows shares inscribed July 27, 2017
- Eric left Spotify in 2023; no new grants could have been awarded that year
- Grant MM006808 vested during marriage, but was AWARDED before marriage

**Conclusion**: The UBS Brokerage ($246,011.81) contains proceeds from pre-marital Spotify stock grants. Per Section 8c, this is **Eric's separate property**.

**Kelli's share of Spotify stock: $0**

---

## Outstanding Loans

### Kelli Personal Loan

Per Exhibit A, Eric loaned Kelli $20,000 prior to marriage. This loan remains **outstanding and unpaid**. This amount should be offset against Kelli's settlement share.

### Chubby Bunny Loan

Eric holds a $75,000 loan receivable from Chubby Bunny (third party). This is Eric's separate property per Section 8c.

---

## Settlement Calculation

### Summary of Property Division

| Category | Eric | Kelli |
|----------|------|-------|
| Separate Property (Section 8c) | $653,036.40 | — |
| 50% of Joint Property (Sections 8a/8d) | $16,799.02 | $16,799.02 |
| **Subtotal** | **$669,835.42** | **$16,799.02** |
| Kelli Loan Offset ($20,000) | +$20,000.00 | -$20,000.00 |
| **Final Settlement** | **$689,835.42** | **-$3,200.98** |

### Settlement Outcome

Kelli's share of marital property ($16,799.02) is less than the $20,000 pre-marital loan she owes Eric. After offset, **Kelli owes Eric $3,200.98**.

Alternatively, Eric may choose to forgive the remaining loan balance.

### Total Assets Verification

| Component | Value |
|-----------|-------|
| Eric's Separate Property | $653,036.40 |
| Joint/Marital Property | $33,598.03 |
| **Total Current Assets** | **$686,634.43** |

Settlement verification: $653,036.40 + $33,598.03 = $686,634.43 ✓

---

## Alimony/Spousal Support

Per Section 9 of the prenuptial agreement, both parties waived spousal support/alimony.

---

## Key Documents Referenced

- Prenuptial Agreement with Exhibits A and B (December 2021)
- ALTA Settlement Statement - 2319 SE Ankeny St (February 3, 2022)
- Closing Statement - 3736 NE Everett St (July 3, 2023)
- First Tech Credit Union Statements (February 2022, July 2022)
- Etrade Stock Plan Tax Documents (2021, 2023, 2024)
- **2016 Spotify USA Benefits Summary** (confirms pre-marital employment)
- **Spotify Technology Share Register - Folio 1780** (shows shares inscribed July 27, 2017)
- Current account statements from UBS, ADP, First Tech, Chase, Coinbase, Cenlar FSB

---

## Outstanding Items

| Item | Status |
|------|--------|
| Kelli's assets acquired during marriage | Unknown - may increase joint pool |
| Current market appraisal for 2619 56th St S | Using Zillow estimate ($573,100) |
| Chubby Bunny loan collectability | Confirmed outstanding |

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*This summary is for informational purposes and attorney review. It does not constitute legal advice.*
