Elanor Wilderman (P) owns one-half of the stock in Marble Craft Co. Her ex-husband, Joseph Wilderman (D), was president and had been the major force behind the business of the corporation working up to 60 hours per week. P's father had started the corporation, and she works as a bookkeeper. D initially drew $125 a week compared to P's $75. To avoid double taxation, P & D agreed D would pay himself the balance of the net corporate profits at the end of each year, leaving no money available for dividends. After the couple split, D continued the practice while P only received a low salary. Following the breakup of the home, P was largely excluded from the benefits inuring to D. D's salary increased from $25,000 in 1963 to $60,000 in 1970. D paid himself a bonus of $71,738.71 in addition to a flat salary of $20,800 for the fiscal year 1971. In 1972 D paid himself total compensation of $35,000, a year in which corporate profits were substantially lower than those of the previous year due to a building trades strike. In 1973, D paid a total compensation in the amount of $86,893.40. P received the annual sum of $7,800 for her services to the corporation.

This section contains the nature of the case and procedural background.

The legal issues presented in this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.