Stacey A. Wharam, f/k/a Stacey Austin v. Richard E. Austin

Court of Appeals of Virginia·Decided December 5, 2017·No. 2044162·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Beales, Russell and Malveaux UNPUBLISHED

Argued at Charlottesville, Virginia

STACEY A. WHARAM, F/K/A

STACEY AUSTIN

MEMORANDUM OPINION* BY

v. Record No. 2044-16-2 JUDGE RANDOLPH A. BEALES DECEMBER 5, 2017

RICHARD E. AUSTIN

FROM THE CIRCUIT COURT OF ALBEMARLE COUNTY Cheryl V. Higgins, Judge

Tonya N. Gibbs (TNG Legal, PLC, on briefs), for appellant.

Lawrence D. Diehl (Ann Brakke Campfield; Barnes & Diehl, P.C., on brief), for appellee.

Stacey Wharam (formerly “Stacey Austin”) (“wife”) appeals the circuit court’s November 18, 2016 order awarding Richard Austin (“husband”) child support in the amount of $1,289 per month and finding wife in contempt for failure to comply with a previous order of the circuit court.

The court ordered wife to pay husband $647,832.81 in restitution, in accordance with a monthly payment plan, to purge herself of the contempt order. Wife assigns ten assignments of error to the circuit court’s order and requests appellate attorney’s fees. Husband also asks for attorney’s fees related to this appeal.

I. BACKGROUND

We review the evidence in the light most favorable to husband, as we must as he is the party prevailing below, and for the same reason, grant him all “reasonable inferences fairly deducible therefrom.” Anderson v. Anderson, 29 Va. App. 673, 678, 514 S.E.2d 369, 372 (1999).

*

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

So viewed, the evidence in the record establishes that, prior to their marriage on April 25, 1997, husband and wife executed a prenuptial agreement. During the marriage, husband was employed by REA Development, which, through its holding companies, operated two Arby’s Roast Beef franchises. Wife was employed as the bookkeeper for husband’s business. During the marriage, husband and wife had three children. The parties separated on June 22, 2013.

Thereafter, the parties engaged in contentious proceedings regarding property distribution, child custody, and child support. After the divorce proceedings began, and while wife was in sole possession of the former marital residence, wife removed numerous items of tangible personal property from the home. She sold many of these items at auction through Pete Elliot’s Auction Services on April 5, 2014 and April 12, 2014. On June 26, 2014, after wife’s actions were discovered, the trial court ordered wife to return those items within 45 days. For any items wife sold, the court ordered wife to provide a receipt indicating the item and the sale price.

On August 12, 2014, husband made a motion for a rule to show cause. In support of his motion, he stated that wife had not facilitated the return of this personal property or provided any receipts. On August 18, 2014, the trial court found wife in civil contempt for failure to comply with the June 26, 2014 order. The order again provided that wife could purge her contempt by returning the items not sold by September 1, 2014 and by providing receipts for the items sold.

The October 2014 Trial and the December 2014 Order On October 27 and 28, 2014, a trial was held on the divorce, distribution of property, child custody, and child support. Following the hearing, in a December 3, 2014 order, the court granted the parties a divorce.

On December 31, 2014, the court issued a second ruling on matters addressed at the October 2014 trial (the “December 2014 order”). This order granted wife primary physical

custody of the children. However, as wife had relocated to Northern Virginia, the court required the children to remain in the care of their maternal grandmother during school days to permit them to continue attending school in Albemarle County.

With respect to distribution of property, the court awarded the martial home to husband as his separate property, given the terms of the prenuptial agreement. The court also made several findings regarding fraudulent actions taken by wife. Namely, the court found wife had: (1) forged a Deed of Gift purporting to transfer the marital home from husband to the parties as tenants by the entireties; (2) forged a power of attorney and used it to secure a mortgage on the marital home for $63,543.50 and to obtain a Deed of Trust on her separate property for $902,224.28 with husband’s businesses as guarantors and the parties as co-borrowers; (3) forged powers of attorney to purchase and title a property in the parties’ joint names without husband’s authorization; and (4) fraudulently obtained a line of credit without husband’s knowledge or approval, in the amount of $649,874.90 with husband’s businesses’ property as collateral and husband’s businesses as guarantors. The court ordered that wife was responsible for the debts secured by these forgeries.1 The December 2014 order also addressed the tangible personal property that is a central issue in this appeal. The court ordered wife to return husband’s gold bullion, silver and gold coins, guns and ammunition, and all personal property removed by wife and auctioned by Pete Elliot’s Auction Services. The court ruled that each of these items, as well as all items in the marital home, were husband’s separate property. With respect to the tangible property wife already sold or could not return, the court’s order stated that “a determination of said property’s

1

The order also recognized that wife had failed to pay husband $22,382.81, representing one-half of the mortgage payments on the marital home, pursuant to the circuit court’s August 22, 2013 ruling. The December 2014 order required wife to pay husband this amount.

value is hereby reserved and shall be addressed upon a future motion of either party.” The court also awarded husband $6,000 in attorney’s fees.

The June 2016 Hearing

On June 16, 2016, the parties again appeared before the court to address husband’s motion for child support2 and to address husband’s renewed motion to show cause concerning wife’s failure to comply with the December 2014 order.3 At the start of the hearing, counsel for wife informed the court that she was not retained to represented wife on husband’s show cause motion – just child custody, visitation, and support. However, as the hearing proceeded, counsel for wife participated in the hearing on the show cause matters. Also, at the beginning of the hearing, the trial court and counsel discussed the possibility that the court’s ruling on the show cause may be affected by wife’s bankruptcy proceedings. After this discussion, the court stated that it may hear the evidence, but not enter a final order until the parties had an opportunity to submit briefs on the bankruptcy issue.

During the hearing, when asked about his employment, husband testified that he was forced to sell his Arby’s franchises because, as a result of wife’s fraudulent actions, he was unable to reinvest in them. He testified, “[T]he banks are pursuing me for the notes that she took out, and I have no credit whatsoever – my credit rating is destroyed. She left me with $110,000

2

The parties continued to litigate over child custody following the October 2014 trial.

On February 20, 2015, upon being notified that wife had removed the children to Northern Virginia and was homeschooling them, in violation of the December 2014 order, the court awarded husband primary physical custody. The parties subsequently agreed to a consent custody and visitation order, which the court entered on June 16, 2016. This order also granted husband primary physical custody.

3

Prior to this hearing, on January 28, 2015, husband again filed a show cause motion for wife’s failure to comply with the December 2014 order. During the hearing on the motion, on June 22, 2015, the court found that there was evidence to find wife in contempt of the December 2014 order, but the court reserved the matter for further hearing to be commenced after wife’s bankruptcy proceedings had concluded.

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Stacey A. Wharam, f/k/a Stacey Austin v. Richard E. Austin, (Va. Ct. App. 2017).

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