Marriage of Ferrazzano

Montana Supreme Court·Decided August 4, 2026·No. DA 25-0549·Unpublished·McKinnon

Opinion

08/04/2026

DA 25-0549

Case Number: DA 25-0549

IN THE SUPREME COURT OF THE STATE OF MONTANA 2026 MT 182N

IN RE THE MARRIAGE OF: JOSHUA FERRAZZANO, Petitioner and Appellee,

and

KELLY O’CONNELL (f/k/a KELLY FERRAZZANO),

Respondent and Appellant.

APPEAL FROM: District Court of the Eleventh Judicial District, In and For the County of Flathead, Cause No. DR-24-71(C)

Honorable Heidi J. Ulbricht, Presiding Judge

COUNSEL OF RECORD:

For Appellant:

Kelly O’Connell, Self-Represented, Kalispell, Montana For Appellee:

Jason T. Holden, Katie R. Ranta, Faure Holden Henkel Terrazas, PC, Great Falls, Montana

Submitted on Briefs: March 25, 2026 Decided: August 4, 2026

Filed:

Clerk

Justice Laurie McKinnon delivered the Opinion of the Court.

¶1 Pursuant to Section I, Paragraph 3(c), Montana Supreme Court Internal Operating Rules, this case is decided by memorandum opinion and shall not be cited and does not serve as precedent. Its case title, cause number, and disposition shall be included in this Court’s quarterly list of noncitable cases published in the Pacific Reporter and Montana Reports.

¶2 Kelly O’Connell, f/k/a Ferrazzano (O’Connell), appeals from the May 14, 2025 Decree of Dissolution, Findings of Fact, and Conclusions of Law entered in the Eleventh Judicial District Court, Flathead County, as well as from the denial of numerous post-trial motions. We affirm.

¶3 O’Connell married Joshua Ferrazzano (Ferrazzano) in 2011.1 Ferrazzano petitioned for dissolution of the marriage on February 5, 2024. The couple share two minor children, and the court approved the parties’ Stipulated Parenting Plan. O’Connell and Ferrazzano owned a home together in Trego, Montana (Trego Property), appraised at $750,000 with an outstanding mortgage of $390,000. The Decree of Dissolution stated that Ferrazzano would have the opportunity to purchase the home within 90 days or sell the home, with the parties splitting the equity.

¶4 On April 16, 2024, the District Court issued a scheduling order for discovery. Pursuant to the order, the parties had until July 19, 2024, to complete discovery.

1 We note that O’Connell failed to provide transcripts of the proceedings in District Court. See M. R. App. P. 8(3) (outlining the appellant’s duty to provide transcripts of the proceedings). Thus, our review is confined to the District Court record.

O’Connell, through counsel, successfully obtained an extension until September 17, 2024, to complete discovery. During the discovery window, Ferrazzano produced extensive documentation regarding financial assets, the finances of the production company he owns a 50% membership interest in, and responded to O’Connell’s interrogatories. O’Connell also subpoenaed financial institutions. On December 6, 2024, O’Connell, now representing herself, moved to compel a forensic accounting and full financial disclosure. At a January 3, 2025 hearing, the District Court denied the motion, which was filed after the applicable discovery deadlines lapsed.2 O’Connell filed a series of motions after both her attorney withdrew and the discovery deadline lapsed. These motions sought further discovery, but many were duplicative of the information already sought and obtained through discovery or subpoenas of relevant financial institutions.

¶5 On May 23, 2024, O’Connell filed a contested motion to join Ferrazzano’s father, the sole living trustee of a trust which owned a property in Whitefish, Montana (Whitefish Property), until 2024. The parties never possessed an ownership interest in the Whitefish Property but did reside there on occasion without paying rent. They also provided some upkeep and made improvements. She contended the parties considered the property a marital asset and had made improvements to the property, granting O’Connell a beneficial interest. However, O’Connell later moved to withdraw her motion “[a]fter further discussion and discovery[.]” The court granted O’Connell’s motion to withdraw.

2 In the absence of transcripts, we can only rely on the minute entry for this date wherein the District Court noted that O’Connell’s motion was untimely because discovery had closed.

¶6 The District Court assessed the value of the marital estate. The parties’ situation is admittedly obscured by financial assistance and supportive interventions from Ferrazzano’s parents or their trust which served to assist the parties in maintaining their lifestyle with bridge loans, allowing them to live in the Whitefish Property, and other injections of funds during their marriage. Ferrazzano also received post-separation gifts from his father. The District Court ultimately determined the marital estate consisted of the custodial accounts of the children; the Trego Property; Ferrazzano’s 50% membership in a Los Angeles, California, production company, World War Seven Studios, LLC (WW7); no investment or retirement accounts; various vehicles; minor cryptocurrency holdings; an assortment of bank accounts; and significant debt.

¶7 WW7 produces commercials and owns no real property. Ferrazzano handles bidding, scheduling, planning, client interfacing, and other tasks involved in producing commercials. His business partner, David Shafei (Shafei), who owns the other 50% interest in WW7, directs the commercials. After several years of sharing director fees, Shafei and Ferrazzano agreed in 2020 that Shafei alone would receive those fees. Because WW7 operates on a service-based model, income is irregular and precarious: some months the company may secure one or more jobs but in other months WW7 may have no ongoing projects. Shafei and WW7’s Chief Financial Officer testified that WW7 fronts up to half of the production costs. Payment occurs once WW7 completes a project and, even then, full payment may be delayed further by sequential liability provisions requiring the principal agency be paid before paying WW7.

¶8 Daren Mesrobian (Mesrobian) presented a business valuation of Ferrazzano’s interest in WW7. There are two values for Ferrazzano’s share: an applicable price as determined by WW7’s operating agreement and a fair market value (FMV) of $310,000. The applicable price refers to the value ascribed to the share under WW7’s operating agreement in the event of an “involuntary transfer.” Per the terms of the operating agreement, an involuntary transfer includes “distribution pursuant to an involuntary liquidation, transfer or disposition in connection with a divorce or settlement decree or agreement.” Further, the operating agreement provided that “the applicable price shall not exceed the capital account of the interest subject to the involuntary transfer.” In other words, the applicable price could not exceed the value of Ferrazzano’s capital account, which at the date of valuation in February 2024 was $197,000. By August 2024, that value had increased to $220,000. As for the FMV, Mesrobian analyzed WW7 from an income approach and a market approach. He determined WW7’s FMV was $970,000 and thus Ferrazzano’s one-half interest had an initial FMV of $485,000. After deducting 15% for lack of control and 25% for lack of marketability, Mesrobian arrived at a FMV for Ferrazzano’s stake in WW7 of $310,000.

¶9 O’Connell did not offer any competing valuation of WW7. The District Court concluded Mesrobian’s valuation was reasonable and derived from generally accepted accounting principles. As provided by WW7’s operating agreement, the court found the most Ferrazzano could receive from liquidating his interest was the value of his capital account. Given the fluctuations of WW7’s income, the court averaged the $197,000

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