Moorman v. Moorman

62 Va. Cir. 497, 2003 Va. Cir. LEXIS 276
CourtRoanoke County Circuit Court
DecidedSeptember 17, 2003
DocketCase No. CH 00-1190
StatusPublished
Cited by2 cases

This text of 62 Va. Cir. 497 (Moorman v. Moorman) is published on Counsel Stack Legal Research, covering Roanoke County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moorman v. Moorman, 62 Va. Cir. 497, 2003 Va. Cir. LEXIS 276 (Va. Super. Ct. 2003).

Opinion

By Judge Robert P. Doherty, Jr.

This matter came before the Court on the Plaintiff Wife’s bill of complaint for a divorce, child and spousal support, and the equitable distribution of marital property, and on the Defendant Husband’s answer and cross-bill. The Court granted the parties a divorce pursuant to § 20-91(9), Code of Virginia (1950), as amended, on March 28, 2003. Previously, the Court had set temporary spousal and child support. After numerous opportunities to observe the parties and their demeanor and to consider their testimony and arguments, the Court makes the following findings regarding temporary spousal and child support, as well as the following findings regarding the distribution of marital assets.

Husband and Wife were married in 1973 and had two children, both having reached their majority, the last one having turned eighteen years of age on June 14,2003. Husband operated his own construction business from 1985 to the present and rehabilitated and sold investment real estate properties. Wife’s primary responsibility was raising the children. However, she occasionally worked paid time, and she helped Husband with his construction business by selecting interior decorations. Otherwise, her involvement in the business was limited. The parties separated on September 27, 2000.

[498]*498 Husband’s Annual Income

At an earlier support hearing, the Wife attempted.to show that the Husband’s income was substantially greater than he had divulged in discovery or in his testimony. Although Husband ran his own construction business, Wife alleged his income from the construction business was under-reported and that it also included the rent and the annual profits on the purchase and sale of two or three houses per year for approximately the last twenty-five years. She proposed presenting numerous documents, testimony, and related evidence dealing with the rent receipts and with the purchase, remodeling, and sale of all parcels of real estate that the couple had bought and sold each year since 1978 for the purpose of showing Husband’s annual income and his ability to earn income. Husband, on the other hand, maintained that he earned a limited income from his sale and rental of investment properties and from his construction business. To support his position, Husband represented to the Court that his income for 1997 was $24,617.00, for 1998 was $13,688.00, and for 1999 was $16,210.00.

In order to resolve the question of Husband’s annual income, the matter was referred to a Commissioner in Chancery. After receiving testimony and documentary evidence, the Commissioner reported that Husband’s income was at least $55,000.00 per year. The Commissioner also reported that the evidence was in conflict; that Husband had failed to report income; that the tax returns for the years 1997,1998, and 1999 were not reliable; that Husband had admitted in a deposition to under-reporting his earnings and/or receipts for the year 1996; that some records were incomplete; that certain rental incomes were received in cash and not reported over the years; and that the current reported rental income was an unrealistic figure.

Both Husband and Wife filed exceptions to the Commissioner’s Report. However, these exceptions, as well as the findings in the Commissioner’s Report itself, have been rendered moot based upon new evidence that has since surfaced. Shortly after the presentation of evidence but before the Commissioner’s Report was prepared, Husband sent a letter to the Commissioner in an attempt to explain some of the profits he made from capital gains arising from the sale of investment real estate. This letter was unsolicited and not under oath and, accordingly, was not included in the evidence considered by the Commissioner in reaching his conclusions. Nonetheless, it was reported to the Court. In a subsequent hearing, occasioned in part because of that letter, Husband declared that he had realized fewer [499]*499capital gains from the sales of the investment properties than the amounts alleged by the Wife. However, when confronted with the letter on cross-examination, Husband admitted that the figures presented in the letter were an accurate representation of the income derived from the sale of the investment properties.

The end result of all of this was that the Court went back and reviewed all of its notes from all of the hearings in this case, the entire case file, and the transcript from the Commissioner’s hearing. The inescapable conclusion reached is that'Husband has consistently misled the Court and lied under oath at all stages of this case concerning his income and assets. The testimony of the Husband, as well as the Commissioner’s Report, which was based in part on that false testimony, are of no value to the Court in reaching the decisions necessary to conclude this case. Needless to say, a ruling on the objections to the Commissioner’s Report would be an exercise in futility. Accordingly, the Court rejects the Commissioner’s Report and charges the entire cost of the same, to include all expenses and attorney’s fees incurred by the Wife for that proceeding, against the Husband. Counsel for Wife should report those costs to the Court so that they can be included in the final decree. Husband is guilty of violating the equitable doctrine of “unclean hands.” Brown v. Kittle, 225 Va. 451,456(1983):

Because of the multitude of lies told by the Husband, his falsification of tax returns, and the double sets of books kept by him, a determination of his annual income is extremely difficult. For example, using his 1996 tax return as well as his business ledgers, Husband had an income of at least $86,829.00 for that year. His 1996 tax return indicates gross receipts from the construction business as approximately $158,058.00 with aprofit of $34,316.00 based on an accrual method of accounting. A business ledger from that year, reflecting a cash basis of accounting, shows gross receipts of $158,058.00 and profits of $41,000.00. However, a second ledger presented by Wife indicates gross receipts of $210,562.23 for 1996. This would indicate that Husband had under-reported his income by $52,513.00 for 1996. Husband denies that this is his ledger and he denies that the “1996” at the top of the page is his handwriting. Wife maintains that it is Husband’s handwriting on the second ledger. In light of Husband’s numerous misrepresentations, the Court finds his testimony to be incredible. The Court further finds that for the year 1996, and for all the years to the present, the Husband either made or had the ability to make at least $85,000.00 annually. He will be held to that standard of income.

[500]*500 Support

A manifest injustice has occurred in this case because of the Husband’s false testimony. At the support hearing on February 5, 2001, the Husband testified that he hoped to make as much as $25,000.00 to $30,000.00 that year, but that he had made only $16,210.00 in 1999, the last year for which he had tax returns, and $13,688.00 for the year 1998. Based on that evidence, as well as the debt structure of the family, their living expenses, the best interest of the child, their attempts to aid their adult daughter in college, their effort to keep their rental properties intact, and the fact that savings existed which could be drawn upon, the Court found that the presumption of § 20-108.2, Code of Virginia (1950), as amended, the child support guidelines, had been rebutted. It appeared as though the application of the guidelines would be inappropriate.

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Related

Hicks v. Hicks
77 Va. Cir. 141 (Fairfax County Circuit Court, 2008)
Miller v. Miller
72 Va. Cir. 274 (Fairfax County Circuit Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
62 Va. Cir. 497, 2003 Va. Cir. LEXIS 276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moorman-v-moorman-vaccroanokecty-2003.