Steven G. Washington v. Sofia T. Washington

Court of Appeals of Virginia·Decided May 3, 2005·No. 2100042·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA

Present: Judges Elder, Frank and Humphreys Argued at Richmond, Virginia

STEVEN G. WASHINGTON v. Record No. 2100-04-2

SOFIA T. WASHINGTON MEMORANDUM OPINION * BY JUDGE LARRY G. ELDER

SOFIA T. WASHINGTON MAY 3, 2005

v. Record No. 2188-04-2 STEVEN G. WASHINGTON

FROM THE CIRCUIT COURT OF HENRICO COUNTY George F. Tidey, Judge

W. Joseph Owen, III (Christopher F. Cowan; Samuel J. Kaufman;

Cowan & Owen, P.C., on briefs), for Steven G. Washington.

Susanne L. Shilling (E. Ryan Meyer; Shilling & Associates; E. Ryan Meyer, PLLC, on briefs), for Sofia T. Washington.

Steven G. Washington (husband) and Sofia T. Washington (wife) have filed cross-appeals from a circuit court ruling resolving issues related to their divorce. On appeal, husband contends the trial court erroneously valued and divided husband’s business and erroneously refused his request to use an alternate valuation date. Husband also contends the trial court erred in awarding sole custody of the parties’ two minor children to wife and in limiting the amount of his visitation with the children. Finally, he contends the court erred in awarding attorney’s fees to wife. In her cross-appeal, wife contends the trial court erroneously failed to classify and divide between the parties the portion of student loan debt she incurred that

*

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

she contended was used for the family’s living expenses. Wife also seeks an award of attorney’s fees on appeal. We hold the evidence supports the trial court’s rulings and decline wife’s request for an award of attorney’s fees on appeal. Thus, we affirm.

I.

A.

EQUITABLE DISTRIBUTION

“Fashioning an equitable distribution award lies within the sound discretion of the trial judge . . . .” Srinivasan v. Srinivasan, 10 Va. App. 728, 732, 396 S.E.2d 675, 678 (1990). Although the trial court must consider all factors set out in Code § 20-107.3(E), it “need not quantify or elaborate exactly what weight was given to each of the factors” as long as its “findings . . . [are] based upon credible evidence.” Taylor v. Taylor, 5 Va. App. 436, 444, 364 S.E.2d 244, 249 (1988).

1. Husband’s Business

a. Valuation Date and Value A court effecting an equitable distribution of marital property “shall determine the value of any such property as of the date of the evidentiary hearing on the evaluation issue. Upon motion of either party . . . the court may, for good cause shown, in order to attain the ends of justice, order that a different valuation date be used.” Code § 20-107.3(A) (emphasis added).

Where an asset that is subject to equitable distribution is retained by one of the parties for a period of time . . . before the equitable division occurs and the asset significantly increases or decreases in value during that time through neither the efforts or fault of either party, neither party should disproportionately suffer the loss or benefit from the windfall.

Rowe v. Rowe, 33 Va. App. 250, 263-64, 532 S.E.2d 908, 915 (2000).

Here, husband moved the court to value his interest in Washford Enterprises as of the date of the parties’ separation, February 15, 2002, rather than the date of the evidentiary hearing,

held over two years later on April 23, 2004. 1 Thus, pursuant to Code § 20-107.3(A), husband bore the burden of establishing good cause for his request. See Kaufman v. Kaufman, 7 Va. App. 488, 499-500, 375 S.E.2d 374, 380 (1988).

Although the evidence established husband’s business increased in value between the date of the parties’ separation and the date of the evidentiary hearing, no evidence established that this increase occurred due to any extraordinary effort on husband’s part, beyond the effort he was already expending before the separation to develop the business and fill the group home with clients. See Rowe, 33 Va. App. at 263-64, 532 S.E.2d at 915. Any increase could just as easily have been attributable to husband’s and wife’s pre-separation efforts to set up the necessary physical facilities and make the necessary professional contacts in the community, or it could have resulted from post-separation factors not directly within husband’s control, such as a decrease in the number of homes competing for similar clients or an increase in the number of available clients. Absent evidence of extraordinary effort, husband has not established he was entitled to have the court use an alternate valuation date.

In valuing a business for purposes of equitable distribution, the standard is that value that represents the property’s “intrinsic worth” to the parties upon divorce. E.g. Bosserman v. Bosserman, 9 Va. App. 1, 6, 384 S.E.2d 104, 107 (1989).

Because intrinsic value must depend on the facts of the case, we give great weight to the findings of the trial court. We affirm if the evidence supports the findings and if the trial court finds a reasonable evaluation based on proven methodology and on the application of it to the particular facts of the case.

1 The dates for which evidence was actually presented were December 31, 2001, and December 31, 2002, because these were the dates closest to the separation and evidentiary hearing for which accurate financial information was available.

Howell v. Howell, 31 Va. App. 332, 339, 523 S.E.2d 514, 518 (2000). “The trial court has discretion to resolve conflicting expert testimony to determine an asset’s value.” Id. at 341, 523 S.E.2d at 519.

The trial court expressly accepted the testimony of wife’s expert, William Dacey, who valued husband’s share of Washford Enterprises at $176,000 using an income method of valuation involving the capitalization of historical earnings. Under the facts viewed in the light most favorable to wife, we hold the court’s decision to accept this valuation was not erroneous.

Citing Shooltz v. Shooltz, 27 Va. App. 264, 274-75, 498 S.E.2d 437, 442 (1998), husband contends that the business’ historical earnings could not be capitalized because the business was new and had no earnings history. However, Shooltz involved two businesses that were not yet operational and unrebutted expert testimony that “valuation methods which depend on earning . . . are never used for the valuation of a business with no operating history.” Id. at 272, 274-75, 498 S.E.2d at 441, 442. Based on that evidence, the trial court held that a valuation based on projected future earnings was speculative, and we affirmed that ruling. Id. at 274-75, 498 S.E.2d at 442. Here, by contrast, the business at issue was incorporated in 2000, had been operating since March 2001, and was valued as of December 31, 2002. When husband attempted to challenge Dacey’s evaluation on cross-examination based on a lack of historical earnings, Dacey testified, “I had the historical earnings of the business.” Thus, Dacey’s expert opinion was that the business’ earnings records for tax years 2000, 2001, and 2002 were sufficient to provide him with the necessary earnings history.

Husband also contends that Dacey’s valuation was flawed because it was based on what husband contended was the unfounded assumption that the business “runs by itself on ‘automatic.’” The evidence, viewed in the light most favorable to wife, supported the conclusion that, once the facility was established and filled with children, it required minimal input from

husband. Wife testified at the evidentiary hearing husband told her that once the home was established and occupied by the full number of children,

there’s not much you need to do. You’ve got people who are there overnight, and it pretty much runs itself, because the children who are there, they’re going to stay there for a period of three, four, five years. And once you have a good set of children in there, it runs itself, and then, furthermore, once you have a template, which [husband] was trying to [create], . . . you can open up various group homes and help others open up group homes, . . . and then just kind of sit back and get a cut.

Free access — add to your briefcase to read the full text and ask questions with AI

Steven G. Washington v. Sofia T. Washington, (Va. Ct. App. 2005).

Steven G. Washington v. Sofia T. Washington (Steven G. Washington v. Sofia T. Washington) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Estate of Hackler v. Hackler
602 S.E.2d 426 (Court of Appeals of Virginia, 2004)
Courembis v. Courembis
595 S.E.2d 505 (Court of Appeals of Virginia, 2004)
Lanzalotti v. Lanzalotti
586 S.E.2d 881 (Court of Appeals of Virginia, 2003)
Robert W Szymczak, II v. Laura M Kane
585 S.E.2d 349 (Court of Appeals of Virginia, 2003)
Torian v. Torian
562 S.E.2d 355 (Court of Appeals of Virginia, 2002)
Mary Ann Rowe v. Charles S. Rowe
532 S.E.2d 908 (Court of Appeals of Virginia, 2000)
Herring v. Herring
532 S.E.2d 923 (Court of Appeals of Virginia, 2000)
Howell v. Howell
523 S.E.2d 514 (Court of Appeals of Virginia, 2000)
Thomas C. Shooltz v. Jane Hoffman Shooltz
498 S.E.2d 437 (Court of Appeals of Virginia, 1998)
O'Loughlin v. O'Loughlin
479 S.E.2d 98 (Court of Appeals of Virginia, 1996)
Lightburn v. Lightburn
472 S.E.2d 281 (Court of Appeals of Virginia, 1996)
Stumbo v. Stumbo
460 S.E.2d 591 (Court of Appeals of Virginia, 1995)
Sargent v. Sargent
460 S.E.2d 596 (Court of Appeals of Virginia, 1995)
Zipf v. Zipf
382 S.E.2d 263 (Court of Appeals of Virginia, 1989)
Bosserman v. Bosserman
384 S.E.2d 104 (Court of Appeals of Virginia, 1989)
Brown v. Commonwealth
380 S.E.2d 8 (Court of Appeals of Virginia, 1989)
Kaufman v. Kaufman
375 S.E.2d 374 (Court of Appeals of Virginia, 1988)
Srinivasan v. Srinivasan
396 S.E.2d 675 (Court of Appeals of Virginia, 1990)
Via v. Via
419 S.E.2d 431 (Court of Appeals of Virginia, 1992)
Trivett v. Trivett
371 S.E.2d 560 (Court of Appeals of Virginia, 1988)