Adam H. Fox v. Jessica C. Fox

734 S.E.2d 662, 61 Va. App. 185, 2012 WL 6004210, 2012 Va. App. LEXIS 395
CourtCourt of Appeals of Virginia
DecidedDecember 4, 2012
Docket0643121
StatusPublished
Cited by61 cases

This text of 734 S.E.2d 662 (Adam H. Fox v. Jessica C. Fox) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adam H. Fox v. Jessica C. Fox, 734 S.E.2d 662, 61 Va. App. 185, 2012 WL 6004210, 2012 Va. App. LEXIS 395 (Va. Ct. App. 2012).

Opinion

*191 FRANK, Judge.

Adam H. Fox, appellant/husband, appeals from the trial court’s award of spousal support and equitable distribution. He asserts eight assignments of error, and we will address them sequentially in the body of this opinion.

PROCEDURAL HISTORY

Husband and wife were married on January 10, 2000 and separated on August 17, 2009. Wife filed a complaint in the Circuit Court of the City of Suffolk on September 24, 2009. Husband then filed an answer and crossbill. Both parties requested equitable distribution in their pleadings. The trial court conducted a hearing on March 22, 2011 and requested both parties file proffers. After reviewing the post-trial proffers, the trial court issued an opinion letter dated July 28, 2011. Husband, by letter, advised the trial court of his objections and asked that the court reconsider certain issues. The court held a second hearing on December 6, 2011 and entered an amended final decree on March 27, 2012. Husband timely filed his written objections to the amended final decree. We will discuss the pertinent facts in each assignment of error.

This appeal follows.

EQUITABLE DISTRIBUTION OF MARITAL RESIDENCES

Appellant assigns error to the trial court’s failure to complete the equitable distribution of the parties’ real estate and thus erred in awarding spousal support without determining the property rights and debts of the parties. The issue before this Court is whether, pursuant to Code § 20-107.3, the trial court must include property that has no value in its equitable distribution analysis.

The parties jointly owned two parcels of real estate, one in Suffolk, Virginia and one in Florida. Both parties agreed there is negative equity in each property. The rent realized *192 from those properties is insufficient to pay the monthly mortgage payments. Husband testified he does not want to sell those properties because of the negative equity. He is willing to continue the mortgage payments but wants wife to equally share the shortfall.

In her post-trial proffer, wife suggested husband could either keep both properties if he refinances them, or the parties can sell them and equally divide any deficiencies. There was no agreement as to the disposition of these properties.

In its opinion letter dated July 28, 2011, the trial court found the Suffolk property had an approximate mortgage balance of $313,368; the Florida property had an approximate mortgage balance of $152,364. The trial court also found a $60,000 negative equity in the Suffolk property and a $20,000 negative equity in the Florida property. The trial court concluded that because both properties have negative market value, they will not be divided, “the parties retaining ownership as tenants in common, subject to foreclosure or sale.” 1

At the hearing on husband’s letter to reconsider, the parties discussed husband’s continuing obligation to pay the mortgages after the divorce. The discussion focused on how husband could recoup his payments. Husband’s counsel argued if the properties were awarded to husband, he would not be able to refinance.

The trial court further indicated the ruling on those properties would “stand” unless the parties could present an alternate proposal to the court. Nothing was proposed.

The amended final decree entered March 27, 2012 provided inter alia:

(F) Real estate—This court finds that there is no equity in the real properties, and declines to make an equitable distribution of said property, i.e., allocate the property to either party and/or to allocate the debt associated with *193 same. The court acknowledges that the ultimate disposition of said real estate may be subject to future determination by a court with personal jurisdiction over the parties. Said determination may include, but not be limited to, the parties’ contributions to the debt secured by the real property, real estate taxes, etc., since the date of their final separation, i.e., August 2009 and a determination as to whether the property should be allocated to one party or the other, and/or whether an allocation of the debt should be made pro rata as determined by a court of competent jurisdiction shall deem appropriate absent agreement of the parties.

Code § 20-107.3(A) requires that the trial court determine legal title, ownership, value, whether property is marital or separate, and shall determine the nature of all debts, separate or marital. 2 This language is mandatory.

There are three basic steps that a trial judge must follow in making equitable distribution of property. “The court first must classify the property as either [separate, marital, or part separate and part marital property]. The court then must assign a value to the property based upon evidence presented by both parties. Finally, the court distributes the property to the parties, taking into consideration the factors presented in Code § 20-107.3(E).” Marion v. Marion, 11 Va.App. 659, 665, 401 S.E.2d 432, 436 (1991). “[T]he division or transfer of marital property and the amount of any monetary award is a matter committed to the sound discretion of the trial court.” Zipf v. Zipf, 8 Va.App. 387, 393 n. 2, 382 S.E.2d 263, 266 n. 2 (1989).

Husband concedes the trial court complied with the first two parts of the process but contends the trial court failed to divide the two parcels.

Code § 20-107.3(C) provides in part:

*194 The court may, based upon the factors listed in subsection E, divide or transfer or order the division or transfer, or both, of jointly owned marital property, jointly owed marital debt, or any part thereof. The court shall also have the authority to apportion and order the payment of the debts of the parties, or either of them, that are incurred prior to the dissolution of the marriage, based upon the factors listed in subsection E.

(Emphasis added).

Subsection C then sets forth the trial court’s options of how to divide or transfer jointly owned marital property. The court may transfer or order the transfer of property to one of the parties, permit one party to purchase the other party’s interest and direct the allocation of the proceeds, or order the sale by private or public sale.

Subsection E lists eleven factors to be considered in making an equitable distribution award. Specifically, paragraph 7 requires the court to consider “[t]he debts and liabilities of each spouse, the basis for such debts and liabilities and the property which may serve as security for such debts and liabilities[.]” Paragraph 8 requires consideration of “[t]he liquid or non-liquid character of all marital property[.]” Clearly, the trial court considered these factors.

Husband cites Shaughnessy v. Shaughnessy, 1 Va.App.

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Bluebook (online)
734 S.E.2d 662, 61 Va. App. 185, 2012 WL 6004210, 2012 Va. App. LEXIS 395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adam-h-fox-v-jessica-c-fox-vactapp-2012.