Brown v. Brown

• Decision Date: 13 November 2018
• Docket Number: Record No. 0553-18-1
• Citation: 820 S.E.2d 384,69 Va.App. 462
• Court: Virginia Court of Appeals
• Parties: Diana K. BROWN v. Megan S. BROWN, Individually and as Co-Administrator, C.T.A. of the Estate of Bruce S. Brown and Joshua K. Brown, Co-Administrator, C.T.A. of the Estate of Bruce S. Brown

69 Va.App. 462

820 S.E.2d 384

Diana K. BROWN

v.Megan S. BROWN, Individually and as Co-Administrator, C.T.A. of the Estate of Bruce S. Brown and Joshua K. Brown, Co-Administrator, C.T.A. of the Estate of Bruce S. Brown

Record No. 0553-18-1

Court of Appeals of Virginia, Norfolk.

NOVEMBER 13, 2018

Richard G. Collins (Collins & Hyman, PLC, on briefs), Williamsburg, for appellant.

Philip L. Hatchett (Daniel F. Basnight ; Kaufman & Canoles, on brief), Newport News, for appellees.

Present: Judges Petty, Chafin and Senior Judge Frank

OPINION BY JUDGE WILLIAM G. PETTY

In this appeal, we consider the effect of the death of a party in a bifurcated divorce proceeding after the entry of a final decree of divorce but before the equitable distribution of the marital property.

I. BACKGROUND

Diana K. Brown (former wife) and Bruce S. Brown (former husband) were married in 1989. On March 8, 2017, the circuit court entered a final decree of divorce between them. In part, the circuit court decreed,

By agreement of the parties, and upon good cause shown, the [c]ourt reserves final determination of equitable distribution of property and debt in accordance with § 20-107.3 of the Code of Virginia, 1950, as amended, and an award of attorney’s fees and costs. A hearing is scheduled for April 19, 2017, at 1:00 p.m. to present closing arguments regarding equitable distribution of assets and debts and an award of attorney’s fees and costs and to review the status of the sale of the marital residence located [in Seaford, Virginia].

Neither party appealed the decree of divorce. The parties appeared on April 19, 2017, and presented evidence and argument regarding equitable distribution of the parties’ assets. The court entered an order on May 1, 2017, nunc pro tunc to April 19, 2017, "upon consideration of the evidence presented and argument of counsel" "pending the final determination of equitable distribution of property and debt." The order described the procedure for maintenance and sale of the marital residence, including the use of funds from husband’s individual retirement account, which was "an account subject to equitable distribution," to pay expenses on the marital residence. Further, the order required that any withdrawal in excess of $2,000 from the individual retirement account had to be approved by former wife and accompanied by a distribution to her of "the exact sum of money as the excess withdrawal." Additionally, the order set closing arguments regarding equitable distribution for August 2, 2017.

Former husband died on April 24, 2017. On August 9, 2017, the trial court granted former wife’s motion to add Megan K. Brown (daughter) as a substitute party defendant, individually and as co-administrator c.t.a. of former husband’s estate, and to add Joshua K. Brown (son) as a substitute party defendant as co-administrator c.t.a. of former husband’s estate.¹ The trial court additionally ordered that the prior order to preserve marital assets, including the individual retirement account, would remain in effect. Daughter was the beneficiary named on that account.

On August 29, 2017, daughter, individually and on behalf of the estate, filed a motion to dismiss the equitable distribution case. She argued that former husband’s death abated that case. She further argued that while the divorce itself was final, the circuit court lost jurisdiction to distribute the marital assets due to the death of a party. She argued that, as beneficiary, she was now sole owner of former husband’s individual retirement account, which had once been marital property. On March 8, 2018, the trial court granted daughter’s motion and dismissed the case, concluding that it lost jurisdiction when former husband died. This appeal followed.

II. ANALYSIS

"[A] trial court’s jurisdiction is a question of law that is reviewed de novo on appeal." Reaves v. Tucker, 67 Va. App. 719, 727, 800 S.E.2d 188, 192 (2017). Additionally, "[s]tatutory interpretation is a question of law which we review de novo ." Friedman v. Smith, 68 Va. App. 529, 539, 810 S.E.2d 912, 916 (2018).

A. A TRIAL COURT’S JURISDICTION TO FULLY ADJUDICATE A DIVORCE CASE

" ‘Jurisdiction’ means the power of a court to hear and determine a cause, which power is conferred by a constitution or by statute, or both." Erickson-Dickson v. Erickson-Dickson, 12 Va. App. 381, 388, 404 S.E.2d 388, 392 (1991).

"Jurisdiction in divorce suits is purely statutory, conferred in clear, detailed language." Estate of Hackler v. Hackler, 44 Va. App. 51, 67, 602 S.E.2d 426, 434 (2004) (quoting Sprouse v. Griffin, 250 Va. 46, 50, 458 S.E.2d 770, 772 (1995) ). In Virginia, the circuit court has jurisdiction of suits for divorce, and such suits are "heard by the judge as equitable claims." Code § 20-96.

A trial court has jurisdiction in a divorce case to determine the status of the marriage and also to adjudicate ancillary matters. One such ancillary matter is the equitable distribution of marital property. Code § 20-107.3 provides that "upon decreeing a divorce from the bond of matrimony," the circuit court must determine the legal title of the parties’ assets, the value of any such property, and the rights of the parties in regard to the marital property. Code § 20-107.3 provides a framework by which a trial court "may equitably distribute the material fruits of the marriage." Brinkley v. Brinkley, 5 Va. App. 132, 136, 361 S.E.2d 139, 141 (1987). "The equitable distribution statute ‘is intended to recognize a marriage as a partnership and to provide a means to divide equitably the wealth accumulated during and by that partnership based on the monetary and non-monetary contributions of each spouse.’ " Robinson v. Robinson, 46 Va. App. 652, 661, 621 S.E.2d 147, 152 (2005) (quoting von Raab v. von Raab, 26 Va. App. 239, 245, 494 S.E.2d 156, 159 (1997) ); see Booth v. Booth, 7 Va. App. 22, 27, 371 S.E.2d 569, 572 (1988) ("The goal of equitable distribution is to adjust the property interests of the spouses fairly and equitably."). This framework was established by the General Assembly to ensure that both partners in the marriage share in the material increase, or decrease, that results from the marriage.

B. A TRIAL COURT’S AUTHORITY TO BIFURCATE A DIVORCE CASE

The General Assembly has granted the trial court "discretion to effectively finalize the issue of divorce from the bond of matrimony independent of other ancillary issues ... effectively transforming one case into two." Friedman, 68 Va. App. at 539, 810 S.E.2d at 917. Code § 20-107.3(A) provides that "[t]he court, on the motion of either party, may retain jurisdiction in the final decree of divorce to adjudicate the remedy provided by [ Code § 20-107.3 ] when the court determines that such action is clearly necessary ...." "[A] court order properly bifurcating a divorce proceeding pursuant to Code § 20-107.3(A), which grants a divorce from the bond of matrimony but explicitly reserves other matters for future adjudication, is a final order with respect to the divorce issue[.]" Friedman, 68 Va. App. at 540, 810 S.E.2d at 917. As such, after twenty-one days, in the absence of appeal, the order is final and conclusive even though "the circuit court retains jurisdiction over all other remaining matters explicitly reserved for future adjudication." Id.

Thus, Code § 20-107.3(A) permits the trial court to separate the divorce from the ancillary matters, including equitable distribution. Once the divorce decree becomes final and conclusive, the status of the marriage is no longer at issue. The trial court, however, retains jurisdiction to fully adjudicate the remaining issues, including jurisdiction to divide equitably the marital property.

C. THE EFFECT OF DEATH ON THE DIVORCE PROCEEDING

"[W]e have consistently held that ‘when a court of equity has once acquired jurisdiction of a cause upon equitable grounds, it may go on to a complete adjudication, even to the extent of establishing legal rights and granting legal remedies which would otherwise be beyond the scope of its authority.’ " Asplundh Tree Expert Co. v. Pac. Emplrs. Ins. Co., 269 Va. 399, 409, 611 S.E.2d 531, 536 (2005) (quoting Erlich v. Hendrick Constr. Co., 217 Va. 108, 115, 225 S.E.2d 665, 670 (1976) ); Rochelle v. Rochelle, 225 Va. 387, 391, 302 S.E.2d 59, 62 (1983) ("When a court acquires jurisdiction of the subject matter and the person [in a divorce case], it retains jurisdiction until the matter before it has been fully adjudicated."). Furthermore, adjudication of a valid cause of action typically survives the death of a party.

Every cause of action whether legal or equitable, which is cognizable in the Commonwealth of Virginia, shall survive either the death of the person against whom the cause of action is or may be asserted, or the death of the person in whose favor the cause of action existed, or the death of both such persons.

Code § 8.01-25.

However, "a divorce suit abates when one party dies while the suit is pending and before a decree on the merits; this is because the death terminates the marriage, thus rendering the divorce suit moot as it relates to the parties’ marital status." Sprouse, 250 Va. at 50, 458 S.E.2d at 772. The death of a spouse determines fully the marital status and therefore leaves nothing to adjudicate. And, when "the jurisdiction to enter a decree in the main cause ends, no jurisdiction survives as to matters purely ancillary to that object." Hackler, 44 Va. App. at 70, 602 S.E.2d at 435. Because Code § 20-107.3 provides that a court may only distribute the assets and debts of a married couple "[u]pon decreeing the dissolution of [the] marriage, and also upon decreeing a divorce from the bond of matrimony," it stands to reason that the termination of the marriage by death rather than decree ends a court’s jurisdiction to divide the property pursuant to Code § 20-107.3. Thus, property owned by the living spouse remains that spouse’s property while property owned by the deceased spouse passes...