Frederick W. Plaisted v. Kimberly F. Plaisted

Court of Appeals of Virginia·Decided August 19, 2014·No. 0051142·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Humphreys, Alston and Decker UNPUBLISHED

Argued at Richmond, Virginia

FREDERICK W. PLAISTED

MEMORANDUM OPINION* BY

v. Record No. 0051-14-2 JUDGE ROBERT J. HUMPHREYS AUGUST 19, 2014

KIMBERLY F. PLAISTED

FROM THE CIRCUIT COURT OF THE CITY OF RICHMOND T. J. Markow, Judge

Robert L. Isaacs (Robert L. Isaacs, P.C., on briefs), for appellant.

Melissa S. VanZile (Barnes & Diehl, P.C., on brief), for appellee.

Fredrick W. Plaisted (“husband”) was granted a divorce from his wife, Kimberly F.

Plaisted (“wife”), and now appeals the circuit court’s equitable distribution award, spousal and child support awards, and award of attorney fees for wife. Wife submits an assignment of cross-error, arguing that the circuit court erred in not awarding her sixty percent of the marital funds that husband withdrew from an individual retirement account (IRA) after the parties separated.1

I. ANALYSIS

A. Equitable Distribution Husband argues that the circuit court erred in its equitable distribution award for six reasons. “Fashioning an equitable distribution award lies within the sound discretion of the trial

*

Pursuant to Code § 17.1-413, this opinion is not designated for publication.

1

As the parties are familiar with the record below and this is an unpublished memorandum opinion that has no precedential value, we cite only those facts necessary to the disposition of this appeal.

judge and that award will not be set aside unless it is plainly wrong or without evidence to support it.” Srinivasan v. Srinivasan, 10 Va. App. 728, 732, 396 S.E.2d 675, 678 (1990).

Husband first argues that “no authority exists” for the circuit court to order him to transfer his solely owned membership interest in Wellesley Centre, LC (“Wellesley”) to wife. Husband purchased a three percent interest in Wellesley, a commercial real estate partnership, during the marriage. The interest is titled in husband’s name alone. The circuit court classified Wellesley as hybrid property and ordered that husband shall receive two percent of the Wellesley interest and the remaining one percent interest shall be transferred to wife.2 Husband cites Code § 20-107.3(C), which provides in part,

Except as provided in subsection G [pertaining to pensions, deferred compensation, and retirement benefits], the court shall have no authority to order the division or transfer of separate property or marital property, or separate or marital debt, which is not jointly owned or owed. 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.

(Emphasis added). See also McGinnis v. McGinnis, 1 Va. App. 272, 276, 338 S.E.2d 159, 161 (1985) (holding that Code § 20-107.3(C) did not confer the circuit court with authority to allot to the wife personal property titled in the husband’s name). The statute is clear. Husband is correct that the circuit court did not have the authority to order husband to transfer a one percent interest in Wellesley to wife pursuant to Code § 20-107.3(C). We therefore reverse this portion of the

2 The parties argued the matter before the circuit court and that court stated, “if indeed it is determined that [transfer of the interest to wife] cannot be done, and I mean even if it goes on appeal and it’s determined that I have no authority to do that, then [wife] should get an equivalent amount of monies from some other source. Move monies around, instead of him getting something, she would get this.” We note that Code § 20-107.3(D) allows the circuit court to grant wife a monetary award for her interest in the marital portion of the Wellesley property, which may be paid in a lump sum or over time in fixed amounts. Additionally, “[t]he party against whom a monetary award is made may satisfy the award, in whole or in part, by the conveyance of property, subject to the approval of the court.” Code § 20-107.3(D).

equitable distribution award and remand for the circuit court to reconsider its equitable distribution award in light of this decision.

Secondly, husband argues that “[t]he court was required to determine the value of Wellesley and Ships Watch before basing any equitable distribution award on those assets.” Husband asserts that “neither Wellesley nor Ships Watch3 should be included in the equitable distribution scheme, as no value for these assets, or no competent evidence of value has been introduced.”

Code § 20-107.3(A) states that upon the decree of divorce “the court, upon request of either party, (i) shall determine the . . . ownership and value of all property, real or personal, tangible or intangible, of the parties and shall consider which of such property is separate property, which is marital property, and which is part separate and part marital property.”

“Virginia’s statute ‘mandates’ that the trial courts determine the ownership and value of all real and personal property of the parties.” Bowers v. Bowers, 4 Va. App. 610, 617, 359 S.E.2d 546, 550 (1987). “But, consistent with established Virginia jurisprudence, the litigants have the burden to present evidence sufficient for the court to discharge its duty. When the party with the burden of proof on an issue fails for lack of proof, he cannot prevail on that question.” Id. “‘Reviewing courts cannot continue to reverse and remand . . . [equitable distribution] cases where the parties have had an adequate opportunity to introduce evidence but have failed to do so. Parties should not be allowed to benefit on review for their failure to introduce evidence at trial.’” Id. (quoting In re Marriage of Smith, 448 N.E.2d 545, 550 (1983)). Furthermore,

Virginia’s trial courts may, without doing violence to the statute, make a monetary award without giving consideration to the classification or valuation of every item of property, where the parties have been given a reasonable opportunity to provide the

3 “Ships Watch” refers to an interest in a time share in Duck, North Carolina, which husband purchased a few months before the parties married.

necessary evidence to prove classification or valuation but through their lack of diligence have failed to do so.

Id. at 618, 359 S.E.2d at 551.

Here, the contested issue is the total value of the property. The party that moves for equitable distribution bears the burden of proof on the valuation of property—in this case, husband. Id. Husband did not produce evidence of value on Wellesley or Ships Watch, although he had an adequate opportunity to do so.

As stated supra, the circuit court erred when it ordered transfer of an interest in Wellesley to wife because the property was titled only in husband’s name. However, on remand the circuit court must consider the impact of the Wellesley interest remaining in husband’s name on the equitable distribution between the parties. In order to do this, the circuit court must value husband’s three percent interest in Wellesley by assigning a value in a dollar amount to his interest. Otherwise the circuit court cannot account for the benefit to husband in retaining the total Wellesley interest when redistributing other marital property between the parties.

Husband asserts that the stated value for Ships Watch of $62,000 could only be a guess.

Wife introduced a listing agreement wherein husband and wife agreed to list the property for sale for $62,000 in November 2012. At the time of equitable distribution the property was still listed for sale for the same amount. While other evidence of value might be more persuasive, the circuit court is entitled to infer that the parties’ asking price for the property is credible evidence of value of the property. The circuit court did not err in assigning a value of $62,000 to the Ships Watch property.

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