Ricky I. Parsons v. Diana L. Parsons

Court of Appeals of Virginia·Decided March 20, 2012·No. 1051114·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Frank, McCullough and Senior Judge Annunziata Argued at Alexandria, Virginia

RICKY I. PARSONS MEMORANDUM OPINION * BY

v. Record No. 1051-11-4 JUDGE ROSEMARIE ANNUNZIATA MARCH 20, 2012

DIANA L. PARSONS

FROM THE CIRCUIT COURT OF FAIRFAX COUNTY Brett A. Kassabian, Judge

John E. Byrnes (Ryan M. Witkowski; Condo Kelly & Byrnes, P.C., on briefs), for appellant.

Gerald R. Curran (Sonya L. Powell; Shoun, Bach, Walinsky & Curran, P.C., on brief), for appellee.

Ricky I. Parsons (husband) appeals the trial court’s equitable distribution award. Husband argues that the trial court abused its discretion by (1) failing to abide by the expressed intent and terms of the parties’ pre-marital agreement; (2) violating Code § 20-109(C) and ordering relief that was inconsistent with the express terms and intent of the parties’ pre-marital agreement; (3)(a) ordering equitable distribution that contradicted the terms of the parties’ pre-marital agreement; (3)(b) failing to find that the Utterback Store Road real estate was husband’s separate property despite contradictory language in the parties’ pre-marital agreement; (3)(c) reading or inserting substantive provisions into the two “unless” provisions in Section III(C) of the parties’ pre-marital agreement, which were not present and contradict the express intent of the agreement; (3)(d) failing to follow the terms of the pre-marital agreement; (4) not awarding husband a separate

*

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

interest in the Utterback Store Road real estate; (5) not classifying the income earned by husband and the result of husband’s personal efforts as his separate property, contrary to the language in the parties’ pre-marital agreement; (6) not awarding husband the UBS account as his separate property; (7) holding husband liable for the entire debt on the line of credit; (8) ordering the Utterback Store Road real estate to be sold; (9) ordering husband to pay Diana L. Parsons (wife) $331,294; (10) disregarding husband’s tracing analysis; (11) excluding from evidence bank account statements, wife’s social security earnings statements, and deposit slips; (12) refusing to address the boat debt and excluding husband’s evidence regarding the amount of that debt; (13) denying husband’s motion for declaratory judgment; and (14) denying husband’s motion in limine. Upon reviewing the record and briefs of the parties, we affirm the trial court’s decision in part, reverse in part, and remand this case to the trial court for further proceedings consistent with this opinion.

BACKGROUND

On October 31, 1991, husband and wife signed an agreement, titled “Parsons/Landres Pre-Marital Agreement” (the pre-marital agreement). The pre-marital agreement addressed property rights, support, debts, and obligations.

The parties married on November 3, 1991, and two children were born of the marriage.

Husband was the primary wage-earner during the marriage, wife having ended her employment in January 1993 after the parties’ first child was born.

On March 11, 2009, the parties separated. On April 6, 2009, wife filed a complaint for divorce, to which husband responded and filed a “Counterclaim.” On husband’s motion, the trial court incorporated the pre-marital agreement into an order on May 6, 2009.

Subsequently, husband filed a motion for declaratory judgment, asking the trial court to find the real estate located on Utterback Store Road (the Utterback Store Road property) to be his

separate property pursuant to the pre-marital agreement. Wife objected to the motion, and the trial court denied husband’s motion. The trial court held that the issue should be determined at the equitable distribution hearing.

Thereafter, husband filed a motion in limine, asking the trial court to rule the parties had waived equitable distribution in the pre-marital agreement. Wife objected to the motion, and the trial court denied the motion.

After hearing testimony and argument in a three-day hearing, the trial court took the matter under advisement and asked counsel to submit their closing arguments in writing. On March 3, 2011, the trial court announced its ruling. It rejected husband’s argument that the pre-marital agreement “does not allow for any marital property and that all property must be separate property.” The trial court held that the Utterback Store Road property and the UBS account were not separate property, as defined by the pre-marital agreement, and were subject to equitable distribution. The trial court reviewed the factors of Code § 20-107.3(E) in detail and awarded fifty percent of the equity in the Utterback Store Road property to wife and fifty percent of the UBS account to wife. The trial court held the husband responsible for withdrawing $331,294 from the joint line of credit account, and ordered husband to pay that amount to wife. The trial court found the husband’s evidence insufficient to prove any existing debt on the boat and made no award on that claim.

On April 8, 2011, the trial court entered the final order of divorce, incorporating its rulings from March 3, 2011. Husband filed a motion to reconsider, which was denied by the trial court. This appeal followed.

ANALYSIS

I. The trial court’s interpretation of the pre-marital agreement A. Pre-Marital Agreement

Husband contends the trial court erred in interpreting the pre-marital agreement and, as a result, erred in applying equitable distribution principles to divide the Utterback Store Road property and the UBS account.

“Antenuptial agreements, like marital property settlements, are contracts subject to the rules of construction applicable to contracts generally, including the application of the plain meaning of unambiguous contractual terms.” Pysell v. Keck, 263 Va. 457, 460, 559 S.E.2d 677, 678 (2002) (citing Southerland v. Estate of Southerland, 249 Va. 584, 588, 457 S.E.2d 375, 378 (1995)).

On appeal, the Court reviews a trial court’s interpretation of a contract de novo. Eure v. Norfolk Shipbuilding & Drydock Corp., 263 Va. 624, 631, 561 S.E.2d 663, 667 (2002) (citing Wilson v.

Holyfield, 227 Va. 184, 313 S.E.2d 396 (1984)) (“we have an equal opportunity to consider the words of the contract within the four corners of the instrument itself”).

Plunkett v. Plunkett, 271 Va. 162, 166, 624 S.E.2d 39, 41 (2006).

“[I]t is the court’s function to construe the contract made by the parties, not to make a contract for them. The question for the court is what did the parties agree to as evidenced by their contract. The guiding light in the construction of a contract is the intention of the parties as expressed by them in the words they have used, and courts are bound to say that the parties intended what the written instrument plainly declares.”

Irwin v. Irwin, 47 Va. App. 287, 293, 623 S.E.2d 438, 441 (2005) (quoting Wilson, 227 Va. at 187, 313 S.E.2d at 398); see also Stacy v. Stacy, 53 Va. App. 38, 44, 669 S.E.2d 348, 351 (2008) (en banc).

Accordingly, our review of the trial court’s interpretation of the pre-marital agreement is based on the pre-marital agreement’s language as it relates to the Utterback Store Road property and the UBS account.

B. Utterback Store Road property Prior to the marriage, husband owned property on Middle Valley Drive. The parties lived in the Middle Valley Drive property when they married. The parties acknowledge in the pre-marital agreement that the Middle Valley Drive property is husband’s separate property. It states:

It is contemplated that upon the marriage of the parties, they will live in the property known as Lot Eight (8) of the subdivision known as Middle Valley in Fairfax County, Virginia . . . .

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