Marriage of Brinton CA1/5

CourtCalifornia Court of Appeal
DecidedJune 1, 2026
DocketA170623
StatusUnpublished

This text of Marriage of Brinton CA1/5 (Marriage of Brinton CA1/5) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Marriage of Brinton CA1/5, (Cal. Ct. App. 2026).

Opinion

Filed 6/1/26 Marriage of Brinton CA1/5 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FIVE

In re the Marriage of TODD and PUBLIC VERSION TRACI BRINTON. Redacts material from sealed record

TODD BRINTON, Respondent, A170623 v. TRACI BRINTON, (San Mateo County Appellant. Super. Ct. No. FAM121392)

Traci Brinton appeals from a postjudgment order on specific issues related to the parties’ marital settlement agreement (MSA) and subsequent stipulation amending the MSA.1 These issues included (1) whether a certain stock warrant issued to Todd was an omitted asset that must be divided; (2) whether Traci was entitled to bonus spousal support on Todd’s income from the sale of certain stock; and (3) whether additional child support was owed by Todd. Traci argues the trial court erred on each of these three issues in its decision following a bench trial. We disagree and affirm.

1 As do the parties in their briefs, we refer to the parties by first name

for clarity, intending no disrespect.

1 FACTUAL AND PROCEDURAL BACKGROUND Todd and Traci were married in 1996. They now have two adult children. Todd is an interventional cardiologist. In 2009, Todd cofounded a medical device company called Shockwave Medical, Inc. (Shockwave), with two other individuals. They also formed DJT, LLC (DJT), to hold intellectual property that was then licensed by Shockwave. Todd held a 29-percent membership interest in DJT. Todd and Traci separated in 2012. They executed the initial MSA in 2013, which was incorporated into a judgment of dissolution. After various disputes regarding spousal and child support owed, Todd and Traci entered a stipulation in 2017 that amended the support provisions of the MSA (Stipulation). In 2019, Traci filed a request for order to enforce the terms of the judgment and to verify the division of property and support owed under the judgment. Trial dates were set in 2023. Prior to trial, the parties stipulated to resolve certain issues and identify the “only pending requests before the Court.” These pending requests included whether a certain stock warrant issued to Todd was “an undisclosed community asset that must be divided and/or subject to additional child support or spousal support”; whether spousal or child support was owed on Todd’s income from the sale of certain stock; and if so, the amount of such support. The matter proceeded to a bench trial. The court issued its statement of decision on April 11, 2024. It determined Traci had no claim to the stock warrant or bonus spousal support on the income from the sale of stock but Todd owed $48,004 in additional child support.

2 This appeal followed.2 DISCUSSION I. Trial Court Did Not Err on Stock Warrant A. Additional Background In 2009, DJT was formed as a Delaware limited liability company to hold intellectual property invented by Todd’s two cofounders. [REDACTED] The parties agreed Todd’s portion of these shares was community property; there was no dispute presented to the trial court on this issue. In 2015, almost two years after Todd and Traci executed their MSA, Shockwave engaged in a round of financing. In connection with this financing round, DJT entered into an agreement with Shockwave to terminate their prior license agreement and [REDACTED]. The agreement stated: “[REDACTED]” (Boldface omitted.) Todd was issued a warrant to purchase up to 501,613 shares of Shockwave common stock. Traci’s expert testified at trial that a warrant is “similar to an option” in that it “gives someone the right, but not the obligation, to acquire stock in a company at some sort of exercise price.” Certificates of cancellation of DJT were filed in Delaware and California in 2017 and 2018, respectively. Shockwave went public in 2019. Todd exercised the warrant and received 35,803 shares of Shockwave common stock (the shares to which he was entitled following a reverse split of Shockwave common stock).

2 The notice of appeal identifies not only the trial court’s April 11, 2024

order but also its April 12, 2024 order on Todd’s request for attorney fees and costs. Given the appellate briefing does not present any challenge to the latter order, we deem any such argument waived. (Cal. Rules of Court, rule 8.204(a)(1)(B).)

3 At trial, Traci claimed that the warrant was a community asset omitted from the MSA. Her claim was based on the theory that DJT was formed during the marriage and Todd transferred his interest in DJT’s intellectual property rights in exchange for the warrant he ultimately exercised. Todd argued to the contrary that the warrant was not an omitted asset but, instead, his separate property under the terms of the MSA. Section 9.11 of the MSA is entitled “Waiver of Future Investment Opportunities” and reads, in pertinent part, that the parties “agree that any investment opportunities, business opportunities, or other income-producing opportunities that may accrue to either of them after the date of this Agreement shall be and remain their respective separate property and that the person acquiring the opportunity shall have no duty to notify the other or to share that opportunity with the other, even if the opportunity may be attributed to an asset or activity that accrued during marriage.” (Boldface omitted.) Todd’s expert testified that a warrant is an investment opportunity because it gives an individual or institution the opportunity to invest in a company by exercising the warrant and receiving common stock, and [REDACTED]. The trial court rejected Traci’s claim. It first explained that, under Delaware law, Todd’s membership interest in DJT did not confer on him any ownership rights to its intellectual property. (6 Del. Code § 18-701 [“A limited liability company interest is personal property. A member has no interest in specific limited liability company property”].) It then pointed to the testimony from both parties’ experts that the warrant was an investment opportunity, and the undisputed evidence that the warrant was issued years after the MSA was executed. Pursuant to section 9.11 of the MSA, the court found Todd had no duty to share this investment opportunity “ ‘even if the

4 opportunity may be attributed to an asset or activity that accrued during the marriage.’ ” B. Analysis Traci’s primary challenge to the trial court’s finding on the warrant is that the court failed to determine whether Todd’s 29-percent membership interest in DJT was an omitted community asset. But that was not an issue the parties requested to be heard at trial. Traci and Todd stipulated to an itemized list of the “only pending requests before the Court.” Those requests included whether the “ ‘DJT Warrants’ are an undisclosed community asset that must be divided and/or subject to additional child support or spousal support.” We see no basis to expand the scope of this stipulation. Traci points to various references made to Todd’s membership interest before and during trial. But those references were related to her theory in claiming the warrant was an omitted asset: Traci argued that DJT was community property and that Todd transferred his interest in DJT’s intellectual property rights in exchange for the warrant. Traci cites Family Code section 2556 to suggest the trial court was required to divide Todd’s membership interest in DJT. We disagree.

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